5 tech megatrends and their impact on medical technology marketing final

5 Technology Megatrends

& Their Impact On MedTech Marketing

March 2015

2

• BA: Vanderbilt University

• Founder: HealthyMe.md

• Founder & Director: Tenex Health

• Board of Directors: SONEX Health

• Advisory Boards: DxTerity Diagnostics / Hallux Pharmaceuticals

• Board of Directors: OCTANe

• Investor in 11 early-stage med-tech companies

CEO & Chief Strategy Officer, DevicePharm

CLAY WILEMON

MACRO DIGITAL THEMES

3

1. THE DIGITAL DOCTOR

2. BIG DATA

3. PREDICTIVE ANALYTICS

4. INTERNET OF THINGS

5. AUGMENTED & VIRTUAL REALITY

1. THE DIGITAL DOCTOR

3. PREDICTIVE ANALYTICS

4. INTERNET OF THINGS

5. AUGMENTED & VIRTUAL REALITY

2. BIG DATA

5

84% of doctors use a smart device in their clinical practice Primary uses reported include…

Searching diseases

Watching clinically relevant videos

Cross-referencing professional sites

Ketchum: 2014 Healthcare Providers and Technology Report

• 2 X…time using online resources versus print for clinical decision-making

• 84%...of doctors perform an average of  six professional searches per day for clinical and treatment information

• 71%...of doctors start patient research with a search engine. 94% of those doctors use Google for patient research

6

84% of doctors use a smart device in their clinical practice Primary uses reported include…

Searching diseases

Watching clinically relevant videos

Cross-referencing professional sites

Ketchum: 2014 Healthcare Providers and Technology Report

• 3 hours…per week watching video online for professional purposes

• Types of medical videos include:- 43% disease or condition information- 37% health news- 36% specific drug or treatment options- 13% video clips to show patients

• 89%...of doctors are likely to recommend a mobile health app to patients

7

WHAT ARE THE IMPLICATIONS FOR MED TECH MARKETERS?

• “Always On” Engagement: Develop trusted 1-to-1 digital relationship with doctors where value added content can be dripped

• More Cost Efficient Sales: Once digital relationship is established, non-manpower marketing options increase

• Improved Point Of Call Efficiency: Digital tools enable personnel to be more agile and efficient at the point of sale

• Millions Of Brand Contact Points: Every digital contact (consumer / HCP) can be branded by the manufacturer

Ketchum: 2014 Healthcare Providers and Technology Report

APPLICATION

9

Complex Device AppsWith Analytics

Integrated HCP / Patient Engagement Portals

EXECUTION

1. THE DIGITAL DOCTOR

2. BIG DATA

3. PREDICTIVE ANALYTICS

4. INTERNET OF THINGS

5. AUGMENTED & VIRTUAL REALITY

11 CSC: 2014 Digital Universe Study

By 2020, the world’s data growth is expected to reach 35 ZettabytesTo put that in perspective…

One-Thousand Megabytes = One Gigabyte

One-Trillion Gigabytes = One Zettabyte

12

• Need To Use Big Data… leverage valuable information patterns that where previously too large to capture, process, and report

• New Software Makes 3 V’s Actionable…recent developments make volume, velocity, and variety at an enterprise level

• VOLUME: More data beats better math

• VELOCITY: Real time access and actionability lets marketers respond to every customer click and interaction

• VARIETY: Makes unstructured data from multiple sources including social networks, weblogs, video downloads, transactions, applicable

WHAT ARE THE IMPLICATIONS FOR MED TECH MARKETERS?

O’Reilly Radar: An Introduction to the Big Data Landscape

APPLICATION

14

EXECUTION: “JAMES BOND” REPS

15

EXECUTION: CONTINUOUS LOOP INTEGRATED MARKETING

Global Website

Global Sales App

Request Rep Contact

Request Service Contact

Download Content

Request Content

Practice Solutions2

Practice Self-Assessment 1

Practice Support / Topcon U 3

Automated Content Marketing “Drip”

Campaigns

Automated Content Marketing “Drip”

Campaigns

16

EXECUTION: CONTINUOUS LOOP INTEGRATED MARKETING

Global Sales App

Automated Content Marketing “Drip”

Campaigns

Send E-Brochure / Video

Request Service Contact

Send Topcon U Link

Register For Course

Schedule Demo

Request Rep Contact

Request Quote / PO

Global Website

50,000 Topcon Customer Communication Channel

Push Customer-Specific Education,

Information, Updates, & Offers

Send E-Brochure / Video

Request Service Contact

Send Topcon U Link

Register For Course

Schedule Demo

Send Assessment Report

Request Quote / PO

Automated Content Marketing “Drip”

Campaigns

1. THE DIGITAL DOCTOR

2. BIG DATA

3. PREDICTIVE ANALYTICS

4. INTERNET OF THINGS

5. AUGMENTED & VIRTUAL REALITY

18 Gartner: Business Intelligence & Analytics Magic Quadrant; February, 2014

By 2019, the market for predictive analytics will surpass $6.5 billion Two of the top four business use growth categories include:

- Sales & Marketing

- Customers & Channels

19

• More Informed Outcomes…Leverage big data with sophisticated algorithms / take bias out of the equation

• Automated Confidence…to separate important information from noise, understand likelihood of future actions

• Define future actions with credible confidence levels

• Actionable Models…predictive modeling drives performance

• Align purchasing behaviors with demographics

• Specificity in messaging to buyers

• Mitigating risk

• Improve ROI

WHAT ARE THE IMPLICATIONS FOR MED TECH MARKETERS?

APPLICATION

21

EXECUTION: PREDICTING BUYING BEHAVIORS

CountrySecond Most Important

In Building Trust

Most Important Piece Of Capital Equipment

Looking To Purchase/Upgrade In

Next 2 Years

Probability Of Surgical Microscope Being Next

Purchase Of Capital Equipment

IndiaIntroduce

meaningful/innovative new products

Did not answer OCT 32%

India Provide a reliable product

Did not answer OCT 30%

ChinaIntroduce

meaningful/innovative new products

Did not answer OCT 28%

India

Have service reps who fix the equipment on time, on budget, and

to specification

Did not answer OCT 27%

China Provide a reliable product

Did not answer OCT 26%

22

EXECUTION: WHO IS BUYING AT THIS PRICE POINT?

Survey Question Variable Answer To Question Support Probability Of Success +/- Accuracy

What is your primary reason to lose weight? 

Q4 Improve Health 182 28.5714% 3.3442%

Q4 Look Better 70 40.0000% 5.8329%

Q4 Be Able To Exercise 16 56.2500% 12.2355%

Q4 Feel Better About Self 33 6.0606% 4.2353%

Which type of doctor would you most likely want to see for this procedure? 

Q11 Bariatric Surgeon 145 52.4138% 4.1406%

Q11 Gastroenterologist 50 14.0000% 4.9061%

Q11 Plastic Surgeon 13 23.0769% 11.5128%

Q11 Medical Weight Loss 22 18.1818% 8.1774%

Q11 Don't Care 45 2.2222% 2.3281%

Q11 Don't Know 26 0.0000% 1.4630%

How would you most likely pay for the procedure? 

Q15 Cash 119 49.5798% 4.5737%

Q15 Get A Loan 35 5.7143% 4.0044%

Q15 Credit Card 65 35.3846% 5.9067%

Q15 Combination 82 8.5366% 3.0977%

Into which category does your BMI fall?

Q18 BMI 30-30.9 49 2.0408% 2.1422%

Q18 BMI 31-31.9 19 0.0000% 1.9861%

Q18 BMI 32-32.9 16 6.2500% 6.2716%

Q18 BMI 33-33.9 43 6.9767% 3.9302%

Q18 BMI 34-34.9 25 28.0000% 8.8957%

Q18 BMI 35-35.9 69 50.7246% 5.9972%

Q18 BMI 36-36.9 30 60.0000% 8.8882%

Q18 BMI 37-37.9 35 62.8571% 8.1298%

Q18 BMI 38-38.9 12 33.3333% 13.3209%

23

EXECUTION: WHO IS ACTING IMMEDIATELY?

Survey Question Variable Answer to Question Support Probability of Success+/-

Accuracy

How interested are you in learning more aboutgetting this procedure for yourself?

Q10 Not At All Interested 23 0.0000% 2.0706%

Q10 Not Very Interested 25 0.0000% 1.9090%Q10 Somewhat Interested 42 0.0000% 1.1475%Q10 Interested 44 11.3636% 4.8314%

Q10 Very Interested 167 83.2335% 2.8937%

Which type of doctor would you most likely want to see for this procedure?

Q11 Bariatric Surgeon 145 68.9655% 3.8378%

Q11 Gastroenterologist 50 30.0000% 6.4594%Q11 Plastic Surgeon 13 76.9231% 11.6492%Q11 Medical Weight Loss Physician 22 45.4545% 10.4983%Q11 Don't Care As Long As Experienced W/ Procedure 45 15.5556% 5.4226%Q11 Don't Know 26 7.6923% 5.4029%

If you had the procedure, where would you prefer to have your follow-up visits?

Q12 Go To Doctor's Office 147 50.3401% 4.1168%

Q12 Speak W/ HCP On Phone 97 62.8866% 4.8947%

Q12 Doesn't Make A Difference 57 15.7895% 4.8430%

How likely would you be to strongly consider the procedure at a price of $9,000 – $9,999?

Q14_f Not At All Likely To Strongly Consider 152 7.8947% 2.2001%

Q14_f Not Very Likely To Strongly Consider 12 25.0000% 12.3931%

Q14_fSomewhat Likely To

Strongly Consider46 91.3043% 4.2308%

Q14_f Very Likely To Strongly Consider 91 95.6044% 2.2028%

Into which category does your BMI fall?

Q18 BMI 30-30.9 49 14.2857% 5.0223%Q18 BMI 31-31.9 19 10.5263% 7.2198%Q18 BMI 32-32.9 16 25.0000% 10.7566%Q18 BMI 33-33.9 43 20.9302% 6.2013%Q18 BMI 34-34.9 25 40.0000% 9.7076%

Q18 BMI 35-35.9 69 72.4638% 5.3689%

Q18 BMI 36-36.9 30 86.6667% 6.2773%

Q18 BMI 37-37.9 35 80.0000% 6.7698%

Q18 BMI 38-38.9 12 66.6667% 13.4067%

Into which of the following categories does your total pretax annual household income fall? 

Q19 $50,000-$59,999 29 6.8966% 4.8762%

Q19 $60,000-$84,999 77 10.3896% 3.5013%Q19 $85,000-$199,999 67 44.7761% 6.0528%

Q19 $120,000 Or More 128 81.2500% 3.4523%

1. THE DIGITAL DOCTOR

2. BIG DATA

3. PREDICTIVE ANALYTICS

4. INTERNET OF THINGS

5. AUGMENTED & VIRTUAL REALITY

25 BI Intelligence Estimates

According to Business Insider, the ‘Internet of Things’ alone will surpass the PC, phone and tablet markets combined by 2017.

Total number of device types connected in the internet will jump from

2MM to 9MM in two years.

26

• Interconnected Day-To-Day…most communication will be multichannel through things that are connected to the internet

• Medical Devices Are Getting Smarter…Interactivity with smart phones, universal analysis devices, etc. will become the standard

WHAT ARE THE IMPLICATIONS FOR MED TECH MARKETERS?

• Emergency response

• Remote monitoring

• Manpower reduction

• Prevent adverse events

• Data access

Challenges Benefits

• Privacy

• Security

• Dosing

• Provider accountability

SANS Institute “Internet of Things” Security Study, 2014

APPLICATION

27

28

Saving Lives, Hours, & Reducing A $100 M Healthcare Cost

EXECUTION: ICD EMERGENCY CARE

5. AUGMENTED & VIRTUAL REALITY

1. THE DIGITAL DOCTOR

2. BIG DATA

3. PREDICTIVE ANALYTICS

4. INTERNET OF THINGS

30 eMarketer: 2013 Mobility Report

Augmented and virtual reality market will exceed $1 Billion by 2018 Demand created by healthcare is expected to fuel that growth

Big players include manufacturers OculusVR, EonReality, Qualcomm

31

• Make Sales & Training More Effective…enable more meaningful activities at an efficient point of contact

• Reduce training costs by enabling remote access

• Provide more HCP training in a lower cost environment

• Reduce manpower associated with patient education of complex devices

• Improve Clinical Outcomes…increase the number of “touches” and surgical scenarios

• Enable doctors to become more efficient before the first case

• Provide “refresher” opportunities between cases

• Get “real world” exposure to complications before they happen

• Provide training at the most critical moment – before a case

• Train more people

WHAT ARE THE IMPLICATIONS FOR MED TECH MARKETERS?

32

APPLICATION / EXECUTION

Train…

• Locally

• Broadly

• Cost-effectively

• When retention is high

Thank You