Transcript Slide 1

Navigating New Markets
in Healthcare
2013
Agenda
• The changing healthcare environment
• How New Markets can help
Copyright 2013 New Markets Advisors
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How is the healthcare industry evolving?
Healthcare needs have changed, yet the industry is stuck in old models
THEN
NOW
• Prevalence of acute disease such as
TB and diarrhea. Diagnosis of
conditions such as heart disease
often made after hospitalization
• Prevalence of chronic disease – ¾ of
U.S. medical expense. Formerly
lethal diseases now managed as
chronic conditions
• Fee for service, with focus on
treatment at the hospital or
physician’s office
• Fee for service does not fit need to
treat beyond physician visits and to
prevent hospitalization
• Primary care physician key, little
need for care coordination
• Broad care teams require
coordination
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What trends are shaping the face of healthcare?
Changing
Healthcare
Environment
• Healthcare
Professional
shortages
• Growing relative
importance of
chronic conditions
• Changing nature of
primary care
• Growth of health IT
Copyright 2013 New Markets Advisors
Changing
Consumer &
Patient Behavior
• New sources of
•
consumer influence
•
• Growth of do-ityourself mentality
• Focus on wellness
Changing
Populations
Changing
Healthcare
Business Models
Aging populations
• New payment
models beyond FFS,
e.g. ACOs
Changing
importance of
specific diseases
• Growing middle
classes in emerging
• Rise of social media
markets /
and mobile apps
frequently self-pay
populations
• Healthcare
consolidation
• Rise of health
insurance outside
the US
• New intermediaries
and influencers
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Who is affected by these trends?
Employers
Individuals
Governments
Providers
Payors
Healthcare Startups
Entire Health Systems and
Beyond
Life Sciences
Companies
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Medical Device
Companies
Pharmaceutical
Companies
Health IT
Companies
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What are healthcare consumers concerned
about?
Three primary drivers in healthcare
Costs
Outcomes
Quality
Innovative solutions are essential as payors / health authorities, employers, and
individuals are looking to reduce healthcare costs without compromising on
outcomes or quality
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What are healthcare consumers concerned
about?
Three primary drivers in healthcare
Costs
Outcomes
•
Healthcare consolidation is
shifting where money is spent
•
Health IT is improving data
collection abilities
•
Bargaining power is changing
for providers and payors
•
•
Expanding scientific frontiers
create potential for
breakthrough therapies
Big data and improved medical
knowledge are enabling
personalized medicine and
population management
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•
Regulatory bodies are
demanding better outcomes
Quality
•
New technology is
decentralizing care and
turning the home into a viable
point of care
•
Increases in insurance
transparency are incentivizing
customer-centered options
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What questions should healthcare companies be
asking?
Trends and opportunities
• How does our heritage give us an advantage in this new world?
• What new markets are opening up due to all this change?
Who are we now?
• Are we a provider of integrated solutions or a supplier to the integrators?
How does that affect our sales and marketing approach?
• What is our business now? How can we define the market opportunity
by looking at what stakeholders really need, versus what we traditionally sell?
Charting a strategy
• How do we re-define the playing field to end commoditization?
• How can we increase our power in the healthcare ecosystem? How do we
make ourselves indispensible to our partners?
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What opportunities will come out of the
changes?
Sample opportunities
Products
Sample opportunities
•
Remote monitoring
devices
•
Medication adherence &
lifestyle modification
•
Wearable health
technology
•
Patient consulting
•
Health / disease
management
•
Home health hubs
Services
Sample opportunities
•
•
Health IT
•
Sample opportunities
Electronic Health Records
(EHR)
Clinical Decision Support
(CDS)
Analytics
•
Virtual visits
•
Home-centered patient
care
•
Delivery of specialist care
Care delivery
Healthcare companies will need to embrace the right combination of solutions
Copyright 2013 New Markets Advisors
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How can healthcare companies adjust to this
changing environment?
1. Develop consensus about your current situation, your present strategy, baseline
knowledge, and key upcoming decisions
2. Undertake primary, qualitative research with target stakeholders to see the world
through their eyes
3. Rigorously define the challenges these stakeholders grapple with, and create total
solutions that put you in a competitive class you can own
4. Develop business plans focused on mitigating key risks, validating success drivers, and
rapidly reaching milestones that improve odds
of success. Business plans should:
a. Reduce risk before investing for scale
b. Avoid false precision in financial estimates. Focus instead on “what you have
to believe” financial assumptions and achieving certainty behind those
assumptions
c. Explicitly link near and long-term decisions to underlying strategy
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Our view on the pattern of success
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•
Think first about the needs of healthcare ecosystem stakeholders,
especially patients
•
Only later view the opportunity through the lens of your organization
•
Put together total solutions for these needs, potentially encompassing
a range of products / services. Think broadly about how those
solutions are sold and the profit formula used to monetize their value
•
Relentlessly focus on target customer types and circumstances
•
Create a business planning process that allows for fast iteration, in the
style of good entrepreneurs
•
Drive decisions from over-arching strategy
•
Understand the scenarios for industry evolution, your leverage points
to shape the future, and how your actions in individual functions /
business units affect those leverage points
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Agenda
• The changing healthcare environment
• How New Markets can help
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Who is New Markets?
Recent Clients
• Experts in
reframing
market space
and generating
growth
• Senior
experience
• Creative and
pragmatic
• First-class
consultants,
thought
leaders, and
entrepreneurs
Copyright 2013 New Markets Advisors
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What makes us different
Deep senior-level
involvement
Focus on actionable
advice
Cost-effective project
engagements
Personal
entrepreneurial and
real-world experience
Copyright 2013 New Markets Advisors
Global perspective and
experience
In-depth consumer
insights
Active involvement in
primary research
Critical thinking that
transcends data analysis
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What we do
Creating new sources of growth
Using the jobs-to-bedone framework to
redefine markets
Assessing the state of
new markets and
assisting with market
entry
Facilitating ideation
sessions and solution
development
Copyright 2013 New Markets Advisors
Developing
consumer-oriented
solutions
Creating business
plans that match
changing industry
imperatives
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Our methods
Turning market research into actionable strategies
In-depth understanding of
latent needs in the market
Focus groups /
interviews
Insights into “true” or “hidden”
competitors
New product ideas / potential
markets
Knowledge about existing pain
points and opportunity areas
Understanding of stakeholders’
context and priorities
Ethnographic research
Overview of obstacles to
success and market adoption of
new solutions
Alternative market
segmentations
Evaluation of new concepts and
their likely uptake
Quantitative surveys
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Detailed strategies and
business plans
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Our methods
Leveraging deep industry knowledge
• Honed expertise on how health reform
is reshaping business strategies
Healthcare Articles Have
Appeared In…
• Consulted for leading managed care
organizations including national
carriers, state Blue plans, and leaders
in niche health insurance markets
• Interviewed dozens of health system
and physician practice leaders on
topics including business model
innovation and the adoption of new
solutions
• Spoke at top industry events and for
leading healthcare organizations
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Our methods
Combining insights and ideation to generate action plans
Detailed data / insight mining leads to an ideation workshop and the creation of a
roadmap of opportunity areas and innovation priorities
Identify product / service
ideas for concept testing
Ideation
Map existing and potential
business models and highlight
opportunity areas
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What we have done for others
Representative engagements
Developing new
innovation initiatives
Project: Worked with U.S. national
health insurance carrier to build
enterprise-wide innovation
capabilities through guiding a range
of innovation projects
•
Helped frame organization’s
innovation priorities
•
Assisted with integrating product
/ service goals into innovation
strategy
•
Launched training workshops to
improve overall organizational
innovation
Copyright 2013 New Markets Advisors
Assessing potential
markets
Project: Worked with leading
medical device company to assess
market readiness to adopt new type
of intervention
Charting long-term
strategies
Project: Worked with top diagnostics
company to determine long-term
strategic priorities
•
Assessed ingoing beliefs,
hypotheses, and uncertainties
among management team
•
Determined what segment of
providers would be likely to
adopt the intervention first
•
Evaluated industry trends
•
Assessed willingness to pay and
evidence thresholds required
•
•
Evaluated range of options for
positioning and initial target
patients
Created process for projecting
future scenarios and devising
plans for them
•
Resolved conflicts to align on
concrete strategies
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What we have done for others
Testimonials
“Very effective at collaborating with teams to make a big and ambiguous strategic opportunity into a
clear and actionable project plan. These plans are built off of customer insights and position the
company to bring disruptive innovation into the market place.“ – Michelle Brennan, President, Ethicon
Endo-Surgery EMEA (a Johnson & Johnson Company)
"New Markets Advisors did an excellent job of providing our team with a 'jobs-to-be-done' framework
for generating customer-centric product requirements. Their consultants have a knack for outlining the
theories and then applying them in creative and engaging ways.“ – Paul Conrad, Vice President, Global
Hip Product Management, Zimmer Holdings
"Based on experience with Steve Wunker in two different companies in very different segments of the
healthcare industry, I have been consistently impressed by both the strategic discipline and breakthrough
perspective that Steve provides that is essential to building new innovations and growth platforms.
Equally important, Steve plays a leadership role with his clients in moving from plan to action as rapidly
as possible in order to get real-world learnings on key projects.“ – Colin Watts, Chief Innovation Officer,
Walgreens; former President of J&J’s OTCs business
"New Markets Advisors did a wonderful job synthesizing a broad array of original and secondary
research into fresh, actionable business concepts for our organization. I was impressed by how deeply
their team understands healthcare industry trends, the clarity of their new business opportunity
analysis process and their ability to bring disparate insights together in a meaningful way.“ – Teresa
Marchek, Business Development Director, Capella Education Company
Copyright 2013 New Markets Advisors
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Relevant services from New Markets
Light-touch counsel on strategy-shaping process
Deeper involvement in strategy and solution
creation
Structuring of primary research and
interpretation of results
Business plan creation
Facilitation of consensus-building meetings
Copyright 2013 New Markets Advisors
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Contact
Stephen Wunker
Managing Director
New Markets Advisors
245 First Street, 18th Floor
Cambridge, MA 02142 USA
Tel. +1 617 337 3060
Fax +1 617 337 3070
[email protected]
Copyright 2013 New Markets Advisors
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