Final project for information systems and strategy classes at Boston University School of Management, discussing how Intuitive Robotic\'s DaVinci machine is positioned for success in the future.

1. Intuitive Surgical Team 4: Asad Butt Cristina Pedroza Dinesh Kurian EszterHamori Joel Samen

2. What is the da Vinci Robot?

3. Agenda Intuitive Industry Analysis Outlook Recommendations Pictures of the da Vinci robot were borrowed from the Intuitive website.

4. Da Vinci as a Disruptive Technology Performance Minimally invasive surgery, or conventional MIS Traditional, open surgery Time Now

5. Intuitive’s (Relatively) Quick Ascent Today 1980s 1999 2000 FDA Approved; First Robot for Laparoscopic Surgery Prototype Developed by Stanford for a U.S. Army Contract More Than 1,676 Units Installed in More Than 1,500 Centers Worldwide Introduced da Vinci Robot http://www.intuitivesurgical.com.

6. Intuitive’s Solid Financial Growth NASDAQ Intuitive Surgical * 2010/2009 Source: ww.sec.gov

7. Agenda Intuitive Industry Analysis Outlook Recommendations

8. Intuitive isthe Industry Bargaining Power of Suppliers Bargaining Power of Customers Threat of New Entrants Threat of Substitute Products Competitive Rivalry in Industry Low Threat Heavy Competition Between Part Makers Intuitive Builds Robots Itself Medium Threat Hospitals Can Stick with Traditional Surgery High Cost of Machines a Consideration Medium Threat Competitors Entering Soon Opportunity for Intuitive to Further Differentiate High Threat Many Surgeons Prefer Tradition LaparoscopicStill an Option Very Low Threat No Other FDA Approved Surgical Robot in Market Currently

9. Agenda Intuitive Industry Analysis Outlook Recommendations

10. The Early Bird Catches the Worm Channel and Location Input Cardica (CRDC) Luna Technologies, Inc. Capacity Not Available to Many New Entrants Swiss Precision Machining High Tech Capital Intensive Once in a Hospital, No Room for Another Robotic Surgical Platform

11. The of Learning … Surgical Procedures Learning Curve Endometrial Cancer – case-matched control study (122 patients) 40 min. decrease in average operating time 61% less blood loss 53% reduction days in hospital Value of Data Teaching/Learning/Best Practices http://seekingalpha.com/article/264371-intuitive-surgical-s-ceo-discusses-q1-2011-results-earnings-call-transcript

12. ...Also Takes Place at Home Manufacturing Process Managing Efficiency Cellular layout: continues flow assembly line Sub-assembled parts delivered to WIP stations Eliminating stock room Kanban implementation Web based B2B replenishments systems  CRM integration http://www.themanufacturer.com/us/profile1848/Intuitive_Surgical

13. Building a Reputation Second-Order First-Order http://leeds-faculty.colorado.edu/madigan/4820/Presentations%202010/2009%20Examples/ISRG%20final%20draft.pdf

14. Spending Money to Make Money Millions Spent Creating and Marketing da Vinci To Leverage Costs: Continue to Innovate Prevent Incumbent Inertia Development of Key Technologies Education of Buyers Developing Supporting Infrastructure Investing in Complementary Products Maintain Product Leadership Create Lock-In

15. Team Practice Makes Perfect Edmondson et al. Speeding up team learning. Harvard Business Review (2001) vol. 79 (9) pp. 125-134

16. Intuitive’s First Mover Uncertainties New Market More Technically Capable New Entrant Highly Uncertain Demand High Cost of New Technology Excess Capacity? Current Capacity vs. New Products? Inputs for Ultrasounds and EKG 3D Displays, High-Tech Console

17. Agenda Intuitive Industry Analysis Outlook Recommendations

19. Expand Overseas

20. Marketing Increase to Hospitals, Surgeons, and Potential PatientsMore Hospitals with Devices More Surgeons Using Devices More Patients Want Surgeries More Surgeries with Devices

21. Poised to Maintain Industry Leadership

22. Going After New Surgeries New Instruments Simulator Currently used in general… Expand to other common surgeries Long Tail of Surgeries

23. Intuitive Continually Updates 3D HD Dual Console

24. Continue to Innovate Technological Leadership R&D 8% Revenue Patents Low to Medium Risk Patent Expiration Competition Patent Variations on da Vinci

25. Coming Soon: Rivals Five Years Out The Enemy: Sofie

26. Promising Financial Future

27. Paging Dr. WALL-E

28. Agenda Intuitive Industry Analysis Outlook Recommendations

31. Greatest Asset: Information on Surgical Techniques

32. Open Platform to Speed Up Innovation

33. Improve Data Collection Reduces Cost of Errors

34. New Platform: Video Telestration with Experts

35. Explore Licensing Deals with Hospitals

36. Questions?

37. Appendix - Financials Consolidated Statements of Income information (in millions) Source: www.sec.gov