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Connecting the Dots: Decision Making for Next-Generation Products


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Connecting the Dots: Decision Making for Next-Generation Products : Vanee Pho, Senior Product Manager, Life Technologies at SVPMA Monthly Event August 2013

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Connecting the Dots: Decision Making for Next-Generation Products

  1. 1. 1Life Technologies™ Proprietary | From Innovation to Execution Case Study from Life Technologies Vanee Pho PhD, MBA Silicon Valley Product Management Association August 7, 2013
  2. 2. 2Life Technologies™ Proprietary | Who Am I?  Senior Product Manager at Life Technologies  MBA, Rady School of Management, UCSD, 2007  Post Doctoral Fellow at UCSF, 2003-2005  PhD in Psychology, Boston University, 2003
  3. 3. 3Life Technologies™ Proprietary | What We Do at Life Technologies
  4. 4. 4Life Technologies™ Proprietary | Agenda Innovation to Execution: Case Study from Life Technologies  Path to Innovation > Design thinking > Understanding the marketplace > Market analytics to differentiate the product > Positioning to win the market
  5. 5. 5Life Technologies™ Proprietary | Situation Context  Consultants predict that product growth market is expected  2009 Life Technologies acquires Biotrove’s OpenArray system for $80M Opportunity  Need to assimilate acquired technology  User workflow is not optimal
  6. 6. 6Life Technologies™ Proprietary | The Power of qPCR & OpenArray® Technology  Genetic Validation and Screening
  7. 7. 7Life Technologies™ Proprietary | Agenda Innovation to Execution: Case Study from Life Technologies  Path to Innovation > Design thinking > Understanding the marketplace > Market analytics to differentiate the product > Positioning to win the market
  8. 8. 8Life Technologies™ Proprietary | The Design Challenge: How might we enhance the customer experience by improving the workflow from ordering, experimental set-up and through data analysis?
  9. 9. 9Life Technologies™ Proprietary | | Life Technologies Proprietary & Confidential | Challenging Workflow Insert OpenArray Plate into Glass Slide Use Tweezers to Push Plate Seal with Glue
  10. 10. 10Life Technologies™ Proprietary | Using Design Thinking Examine “How Might We...” to understand pain points and customer needs Synthesis: •100% Team Activities •3 days/week (6-7 hr/day) no “in and out privileges” •Storytelling •Themes •Opportunity Areas •HMW statements? 1-2 weeks 2-3 weeks 2-weeks 2 weeks Pre-Kickoff: •Looking-in on current projects •Scheduling visits •Observation Guide Observations: •On-site observations •Requires travel •2 team members/visit •Photos/recording/no tes •6-10 external sites Build: •3 days/week (6hr/day) •Brainstorm HMW •extended team •Develop concepts •Prototype concepts •Limited feedback: • 1-2 customers • internal MayApril June
  11. 11. 11Life Technologies™ Proprietary | We discovered that…… ……… customers are excited by Life Technologies acquiring BioTrove and have high expectations.
  12. 12. 12Life Technologies™ Proprietary | Excited by Life Technologies acquiring BioTrove “OpenArray is quite a contrast to what I usually get from AB. AB is really polished.”
  13. 13. 13Life Technologies™ Proprietary | We learned that….. ………this is an Artisanal Workflow with many steps using non-standard lab techniques and non-standard tools.
  14. 14. 14Life Technologies™ Proprietary | This is an Artisanal Workflow “ Are you kidding me? I have 16 chances to make mistakes.”
  15. 15. 15Life Technologies™ Proprietary | This is an Artisanal Workflow “I do feel like we are making Valentines cards for kids.”
  16. 16. 16Life Technologies™ Proprietary | We found out that… …the user’s skill in executing the workflow has a large effect on data quality.
  17. 17. 17Life Technologies™ Proprietary | Data Quality The exact same genotyping experiment gives significantly different results when performed by skilled hands of Internal QC vs Field Trainer in OpenArray. Internal Quality Control Field Trainer
  18. 18. 18Life Technologies™ Proprietary | We observed that….. …………many instruments are sitting idle.
  19. 19. 19Life Technologies™ Proprietary | Instrument Sitting Idle “It is hard to teach the OpenArray workflow to interns. I can trust the 7900 and it is so easy to use.”
  20. 20. 20Life Technologies™ Proprietary | Instrument Not Maximized “I couldn’t get other groups interested in OpenArray until we got the robot.”
  21. 21. 21Life Technologies™ Proprietary | We heard that…. …feedback is key…users want to track progress throughout the workflow and when and why something went wrong.
  22. 22. 22Life Technologies™ Proprietary | Feedback is Key “The most important thing is to track samples and AB just leaves it up to you.”
  23. 23. 23Life Technologies™ Proprietary | The OpenArray Journey Represents a Framework of Opportunities Does not meet expectation Somewhat meets expectation Meets expectation Delight Disposal of Arrays Workflow Steps Purchase OpenArray Learn the workflow Assay/Array Ordering& Receiving Results ResultsGenotyping and Gene Expression Cycling Genotyping Data Analysis Gene Expression Data Analysis Results ResultsExperimental Setup Encasing Genotyping and Gene Expression Cycling Genotyping Data Analysis Loading
  24. 24. 24Life Technologies™ Proprietary | Agenda Innovation to Execution: Case Study from Life Technologies  Path to Innovation > Design thinking > Understanding the marketplace > Market analytics to differentiate the product > Positioning to win the market
  25. 25. 25Life Technologies™ Proprietary | • Is there a market and how big is it? Know the Market Space to Make Informed Decisions Current Portfolio OpportunitiesCompetition • Conduct SWOT analysis, read the annual reports • Consult sales reps for competitive info •Inconsistent branding, multiple software platforms •Crowded in various market segments •Requires RoHS compliance updates to hardware Market Landscape •Know your customers and the application space
  26. 26. 26Life Technologies™ Proprietary | Analytics to Validate the Market and Differentiate the Product  Is there a market for such a large throughput? Do they have the budget and are they planning to buy in the near future?  Are customers interested in another instrument and how can we make the instrument unique?  How much are customers willing to pay?
  27. 27. 27Life Technologies™ Proprietary | Applied Biosystems’ Real-Time Open Array is the most commonly considered mid-density instrument for future purchases in North America and the Illumina Bead Array is the 2nd most common What brands/models are being considered? - North America Planned Purchases - N=89 %ofRespondents Market Segment Life Tech Real Time Open Array Illumina Bead Array Illumina iScan Nanostring nCounter Fluidigm Biomark Sequenom MassARRAY Analyzer 4 Fluidigm EP1 Other Academic (non Core) n=32 50% 31% 13% 25% 13% 9% 9% 13% Biotech / Pharma / Product Development n=24 58% 29% 17% 21% 21% 13% 13% 13% Service / Core n=11 45% 27% 18% 0% 0% 18% 18% 27% Industrial (Non Pharma) n=2 50% 0% 50% 0% 0% 0% 0% 50% Government n=14 57% 50% 14% 14% 14% 7% 0% 14% Public Health n=6 50% 17% 17% 0% 0% 33% 17% 17%
  28. 28. 28Life Technologies™ Proprietary | About 1/3 of the sampled facilities expect to purchase an average of 1.3 mid-density instruments within the next 3 years Do you believe your department will purchase any new mid-density instruments within the next 3 years? - North America - Avg # of Unit 1.2 1.0 1.2 1.0 1.0 1.5 1.3 %ofRespondentssaidYES Avg # of Unit 1.4 1.3 1.4 1.2 1.1 1.0 1.3 1.2 %ofRespondentssaidYES
  29. 29. 29Life Technologies™ Proprietary | Reliability and Data Quality are the two most important mid- density instrument features. What are the most important features? - North America Overall - N=183 Most Important Least Important Most Important Least Important 77% 60% 53% 40% 42% 45% 16% 34% 23% 26% 11% 20% 13% 15% 6% 6% 4% 5% 5% % of respondents ranked it Top 5
  30. 30. 30Life Technologies™ Proprietary | The concept is well received 45% of the respondents gave a rating of 8 or above High Interest 45% How interested are you in using this new real-time PCR instrument? - North America - Overall N=183 Average Interest Level = 7.0 Academic (non Core) (n=57) Biotech / Pharma (n=54) Service / Core Labs (n=23) Industrial (Non Pharma) (n=9) Gover nment (n=26) Public Health (n=8) Avg Interest 6.9 7.2 7.2 5.9 7.1 6.9 % of High Interest 44% 43% 52% 22% 53% 50% Affymetrix / Illumina (n=64) BioRad / Roche (n=85) Fluidigm / Nanostrin g (n=11) Life Tech (n=114 ) Life Tech- only (n=43) Open Array / ViiA7 (n=10) Avg Interest 6.9 7.1 6.8 7.0 7.0 7.4 % of High Interest 45% 46% 36% 44% 42% 60% Very Interested Not Interested at all 384 well + (n=71) 96 wells or under (n=112) Avg Interest 6.9 7.1 % of High Interest 38% 50%
  31. 31. 31Life Technologies™ Proprietary | Optimal Price ~$110,000 Price where an equal # of respondents think it is Expensive, but still possibly a buy and Too Cheap to be of OK quality Price where an equal number think it is a Bargain and Expensive Price where less than 50% Think it is Too Expensive to Buy and before Price Sensitivity becomes high %ofCustomers GlobalVan Westendorp Pricing Analysis - Initial Purchase: 12k Data Points or 384w* - N=94 *Respondents who would purchase 12,000 data points or 384-wells block type Optimal QuantStudio™ 12K Flex Price Is $110k Price where less than 75% Think it is Too Expensive to Buy Point of Inflection ~$140,000 Max. Price $190,000 Min. Price = $85,000 Target AUP $140K
  32. 32. 32Life Technologies™ Proprietary | Proposed Instrument Concept + =  Model scenarios: leverage past financial models, with updated assumptions − How much of competitors share would we gain? − Would we lose customers? − Would there be cannibalization of the other instruments or existing bundling promotions?
  33. 33. 33Life Technologies™ Proprietary | Agenda Innovation to Execution: Case Study from Life Technologies  Path to Innovation > Design thinking > Understanding the marketplace > Market analytics to differentiate the product > Positioning to win the market
  34. 34. 34Life Technologies™ Proprietary | QuantStudio™ 12K Flex Target Segments 0.0 50.0 100.0 150.0 200.0 250.0 MarketSize(US$M) Academic PI Applied Markets CRO Therapeutic Area Group TL & Hosptial Group Academic Core Mid-density (un-allocated) Industrial Ag Clinical & Service Lab BioPharma Core Genome Center Scalability Driven Flexibility Driven Speed & Throughput Driven Key Customer Segments Academic PI (non-Core) Biotech startup Academic Core Translational & Hosptial Group Biopharma Therapeutic Area Group CRO Applied Markets Genome center BioPharma Core Clinical & Service Lab Industrial Ag Key Applications • Candidate mRNA & miRNA analysis • CNV • SNP genotyping • dPCR • Pathogen detection • GEx (both candidate & targeted discovery; mRNA & miRNA) • dPCR • SNP genotyping • Pathway analysis/targeted discovery • miRNA profiling • Biomarker screening Entry configuration • 96- or 384-well block • Multiple block purchase (OA with either 96/384-well or TAC block) • OA block $45M $227M $208M
  35. 35. 35Life Technologies™ Proprietary | Scalability Driven Flexibility Driven Speed & Throughput Driven Key Value Drivers • Low throughput need initially with intent of scaling toward mid- density in the future • Consistent results/minimize variability • Requires flexibility to investigate variable number of targets & samples per project basis • Faster decision making • Workflow ease • Reliable results • Low cost per sample • Desire a focused set of targets with ultimate goal of screening thousands and thousand of samples • Low cost per data point • Faster decision making • Reliable results Entry Level Instruments QuantStudio 96 or 384 well QuantStudio OA plus TAC/384W/96W QuantStudio OA Value Proposition With limited resources, you can get the most reliable results and plan for the future with the most scalable qPCR instrument on the market today You need the right answers quickly - get high quality data fast with the most flexible qPCR instrument on the market today Your time is precious and people are counting on you, screen the right set of markers quickly with the best in class mid- density platform on the market today Benefits • Integration of TaqMan Content • Robust light technology/block design • Easy workflow; • 5 interchangeable blocks • Easy workflow with minimal hands on time • LIMS/automation capability • 12,000 data points in 1 hr 40 min runs • Best in class mid-density workflow • Integration of fixed & custom TaqMan content Target Segments & Value Propositions
  36. 36. 36Life Technologies™ Proprietary | Mid Density Price/Value Strategy Mix 1 Premium Strategy 2 Penetration Strategy 3 Superb-Value Strategy 4 Overcharging Strategy 5 Average Strategy 6 Good-Value Strategy 7 Rip-Off Strategy 8 Cream-Skimming Strategy 9 Cheap-Value Strategy High Medium LowHighMediumLow Life QuantStudio 12K Flex AUP $140K Sequenom AUP $205K Fluidigm EP1 AUP $120K Fluidigm Biomark HD AUP $190K Wafergen AUP $110K NanoString AUP $237K BeadXpress AUP $90K Roche LC1536 AUP $200K Life NT Cycler AUP $86K PRICE *Value parameters defined in “Value & Pricing Matrix” detail slide in appendix
  37. 37. 37Life Technologies™ Proprietary | QuantStudio™ 12K Flex OpenArray® Plate Workflow
  38. 38. 38Life Technologies™ Proprietary | Results One Year After Launch 2012 AOP 2012 Actuals Unit Actuals vs Plan Overall Install Base Recent OpportunitiesRegional Breakdown
  39. 39. 39Life Technologies™ Proprietary | Lessons Learned More Application Focus at Launch Realize Project Scope & Breadth EarlyUnderstand Sales Compensation Structure Strategize Product Replacements and Discontinuance Plans
  40. 40. 40Life Technologies™ Proprietary | Thank You! K. Ridley Quantstudio Technical Specialist Life Technologies, Asia-Pacific
  41. 41. 41Life Technologies™ Proprietary | The QuantStudio™ 12K Flex Real Time PCR System is For Research Use Only. Not for use in diagnostic procedures. © 2013 Life Technologies Corporation. All rights reserved. The trademarks mentioned herein are the property of Life Technologies Corporation and/or its affiliate(s) or their respective owners.