Navigating New Markets in Healthcare
2013
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Agenda
• The changing healthcare environment
• How New Markets can help
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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
• Fee for service, with focus on treatment at the hospital or physician’s office
• Primary care physician key, little need for care coordination
• Prevalence of chronic disease – ¾ of U.S. medical expense. Formerly lethal diseases now managed as chronic conditions
• Fee for service does not fit need to treat beyond physician visits and to prevent hospitalization
• Broad care teams require coordination
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What trends are shaping the face of healthcare?
Changing Healthcare
Environment
Changing Consumer &
Patient Behavior
Changing Populations
Changing Healthcare
Business Models
• Healthcare Professional shortages
• Growing relative importance of chronic conditions
• Changing nature of primary care
• Growth of health IT
• New sources of consumer influence
• Growth of do-it-yourself mentality
• Focus on wellness
• Rise of social media and mobile apps
• Aging populations
• Changing importance of specific diseases
• Growing middle classes in emerging markets / frequently self-pay populations
• New payment models beyond FFS, e.g. ACOs
• Healthcare consolidation
• Rise of health insurance outside the US
• New intermediaries and influencers
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Who is affected by these trends?
Entire Health Systems and Beyond
Employers Individuals Governments Payors
Providers
Health IT Companies
Life Sciences Companies
Medical Device Companies
Pharmaceutical Companies
Healthcare Startups
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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 Quality
• Healthcare consolidation is shifting where money is spent
• Bargaining power is changing for providers and payors
• Expanding scientific frontiers create potential for breakthrough therapies
• Health IT is improving data collection abilities
• Big data and improved medical knowledge are enabling personalized medicine and population management
• Regulatory bodies are demanding better outcomes
• 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• Remote monitoring
devices• Wearable health
technology• Home health hubs
Sample opportunities• Medication adherence &
lifestyle modification• Patient consulting• Health / disease
management
Sample opportunities• Electronic Health Records
(EHR)• Clinical Decision Support
(CDS)• Analytics
Sample opportunities• Virtual visits• Home-centered patient
care• Delivery of specialist care
Products Services
Health IT Care delivery
Healthcare companies will need to embrace the right combination of solutions
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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
Who is New Markets?
• Experts in reframing market space and generating growth
• Senior experience
• Creative and pragmatic
• First-class consultants, thought leaders, and entrepreneurs
Recent Clients
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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
In-depth consumer insights
Global perspective and experience
Active involvement in primary research
Critical thinking that transcends data analysis
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What we doCreating new sources of growth
Using the jobs-to-be-done framework to
redefine markets
Assessing the state of new markets and
assisting with market entry
Developing consumer-oriented
solutions
Facilitating ideation sessions and solution
development
Creating business plans that match changing industry
imperatives
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Our methodsTurning market research into actionable strategies
Focus groups / interviews
Ethnographic research
Quantitative surveys
In-depth understanding of latent needs in the market
Insights into “true” or “hidden” competitors
Knowledge about existing pain points and opportunity areas
Understanding of stakeholders’ context and priorities
Overview of obstacles to success and market adoption of
new solutions
Evaluation of new concepts and their likely uptake
New product ideas / potential markets
Alternative market segmentations
Detailed strategies and business plans
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Our methodsLeveraging deep industry knowledge
Healthcare Articles Have Appeared In…
• Honed expertise on how health reform is reshaping business strategies
• 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 methodsCombining insights and ideation to generate action plans
Ideation
Identify product / service ideas for concept testing
Map existing and potential business models and highlight
opportunity areas
Detailed data / insight mining leads to an ideation workshop and the creation of a roadmap of opportunity areas and innovation priorities
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What we have done for othersRepresentative engagements
Developing new innovation initiatives
Assessing potential markets
Charting long-term strategies
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
Project: Worked with leading medical device company to assess market readiness to adopt new type of intervention
• Determined what segment of providers would be likely to adopt the intervention first
• Assessed willingness to pay and evidence thresholds required
• Evaluated range of options for positioning and initial target patients
Project: Worked with top diagnostics company to determine long-term strategic priorities
• Assessed ingoing beliefs, hypotheses, and uncertainties among management team
• Evaluated industry trends
• 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 othersTestimonials
"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
"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
“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)
"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
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Relevant services from New Markets
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Light-touch counsel on strategy-shaping process
Facilitation of consensus-building meetings
Deeper involvement in strategy and solution creation
Structuring of primary research and interpretation of results
Business plan creation
Contact
Stephen WunkerManaging DirectorNew Markets Advisors245 First Street, 18th FloorCambridge, MA 02142 USATel. +1 617 337 3060Fax +1 617 337 [email protected]
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