Download - MacMedia - Tollgate 1
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Advisory Board
Dr. David Potter : Entrepreneurial Project Advisor
Ms. Sharon Meeke : Business Mentor
Dr. Kamran Sartipi : Technical Mentor
Tarek Sadek : Enterprise Developer
Team
Luis Quiroz : Project Manager
Mohammed Amjad : Business Partner
Introductions
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Today’s Agenda
The Opportunity
The Market
The Customer / End User
The Competition
The Technology Development
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MacMedia
Innovative Media Channel for Pharma & Physician
Tollgate One
Presentation
Luis F. Quiroz
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Promotion activity to explain to physicians features and benefits of products.
Carried out by sales representative who use face-to-face interaction
Defining the term “detailing”
Use of any digital technology in the detailing process. Example, Internet or
Video Conferencing
eDetailing”
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"Right now, the selling model for pharmaceuticals is reach and frequency.
Reach as many customers as you can as often as you can,“… "That's why we
have these armies of salespeople out there.“
John Constantine, director of global learning support at GlaxoSmithKline
The Selling Model of the Pharmaceutical Sector
Background
According to the statistics…
Estimate Number of Sales
Representatives in the U.S
1996 2007
35,000 100,000
Annual Total Spending in Professional
Advertising
In the U.S. (Millions USD)
1995 2000 2005
$4,318 $5,996 $7,206
Prescription For Success in Sales. Feb 19, 2007. Chemical &
Engineering News
The New England Journal of Medicine, August 16, 2007
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35% of physicians are not seeing reps at all
Only 8% of the visits last for more than 2 minutes**
Average sales rep field visit is USD 200*
Physicians are doing their own search for product information and unbiased
sources
E-detailing has not taken off as a real alternative due to lack of initiatives
However; reality is….
High Promotion
Costs
Lower Promotion
Efficiency
The pharmaceutical industry needs innovative technologies to reach
healthcare professionals in a broad scale with high frequency by using
more efficient, more cost-effective means and more unbiased sources to
meet doctors’ information needs
The Conclusion
*Effective e-detailing. IBM Institute. 2006
**Elling ME, Gogle HJ, MackhAnn CS et al
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The Solution – A New Concept in E-detailing
A channel for pharmaceutical products tailored to each physician’s needs by using
Multimedia Files delivered by a Push method over for standalone computers,
laptops and notebooks.
The product provides unbiased reference sources bundled with samples delivery
orders and sales reps appointment requests.
A multimedia file
with unbiased
sources
developed by
MacMedia
The file is pushed over
the internet
The file reaches the
physician’s PC
laptop or notebook
as an “update””
A Message Center
icon indicates that a
presentation is ready
to be executed and
displayed
Pharmaceutical
Samples
References
Sales Representative
Appointment Requests
Also Samples delivery and
Sales rep visit can be requested
A detailing session supported by unbiased
sources is delivered over PCs, laptops or
notebooks
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The pharmaceutical sector could cut costs in promotion per detailing visit between
15% and 50% and raise its ROI up to 2.48*.
The pharmaceutical sector will increase its business and reduce its excessive
number of sales representatives.
The Value Proposition
Advantages for Pharmaceutical Companies
Better reach in less time
More cost-effective
Better relevance (ways to discover and retain records of doctors’ needs,
preferences and aptitudes toward products)
New tool to bring pharmaceutical detailing to doctors in remote places
Advantages for Physicians
Convenience
- Detailing multimedia presentation comes along with unbiased sources
Request for pharmaceutical samples and sales reps visits at a click of
a button
Significant time saving
Increased productivity
*Lathian Seminar, June 2005
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Pharmaceutical
Company = CUSTOMER
MacMedia
= SERVICE PROVIDER
Physicians
= END USERS
Pharmaceutical marketing
literature is handed out
•Convert marketing info
into Multimedia
•Add unbiased sources
using Xerox Summarizer
technology
•Assemble package with
services
The package
is pushed over
the network to
reach PCs, laptops
or notebooks
Charge ($) based on the number
of packages received by
each physician
Detailing
service is
delivered
Business Model
Provide
Summarizer
technology
tools
Pay a license
fee
= KEY TECHNOLOGY
PROVIDER
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Collection of
Marketing literature/
catalogues
Information
is converted
into
Multimedia
The package is
assembled with servicesMacMedia Content
Server
Physicians
Internet
Requests from users :
•Samples
•Appointments with
sales representatives
File is pushed
Conversion
component
Distribution
component
Delivery / Execution Component
Interaction / Request component
Service Components
Summarized
unbiased
resources
are appended
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Physician will
access to a pharmaceutical
company’s website
Pharmaceutical
Company’s
website
Physician’s
information
is recorded into
McMedia’s
database
Message Center Software
is downloaded and ready
to alert the user on:
new drug releases
new drug versions
drug recalls
other topics or products
related to their specialties
Link to
MacMedia’s
website
Message
Center
Software
download
User will fill out a subscription
according to his topics of interest.
The subscription is submitted
Pharmaceutical
Samples
References
Sales Representative
Visit Bookings
The Subscription Model – One Alternative
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Medium
Performance
Higher
Performance
Unbiased sources of
information
Rich in value (key information)
Available (24/7)
Easy to use
Content flexible to update and
customizable for other applications
Push Delivery
(alerts or message centers)
Entertaining
(Appealing to the eyes)
Multimedia based including
interactivity
Compatible with internet
browsing
Combined with drug sample
orders
Combined with sales rep
appointment requests
Tailored to each physician’s
needs
Ongoing creation of an
intelligence system that feeds
on doctors’ current needs,
preferences and behaviors
toward products
Key Service
Features
Current Multimedia
e-detailing
offerings for PCs
Multimedia e-detailing for
PCs offered by MacMedia
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Drivers for e-detailing
Three major trends
The existence of similar products in the pharmaceutical industry makes
marketing the only tool to create a difference among them
Product changes due to modifications in formularies or switches from
prescription drugs to OTC versions requires a high speed channel for
dissemination
Current needs of cost cutting
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e-detailing Estimate for standalone computers 2008 - 2011
(Based on 1% of Total Promotion Costs)
$440$485
$536
$589
$0
$100
$200
$300
$400
$500
$600
$700
Millions U
SD
U.S. $404 $447 $495 $545
Canada $36 $38 $41 $44
Total N.A. $440 $485 $536 $589
2008 2009 2010 2011
Projection of E-detailing Market Size – North America
Secondary research indicates that pharmaceutical companies spend,
on average, 1% of their total promotion cost on e-detailing for standalone
computers
The New England Journal of Medicine, August 16, 2007
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Projected Number of Physicians in North America
974,727 984,291 993,952 1,003,711
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
U.S. 901,937 910,357 918,855 927,432
Canada 72,789 73,935 75,098 76,279
Total N.A. 974,727 984,291 993,952 1,003,711
2008 2009 2010 2011
Projection of End-users in North America
Physicians’ rate growth in the U.S. is on average 0.93% a year whereas
in Canada the rate is about 1.57% a year.
Euromonitor Report 2007
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Company
Advertising
Expenditure in
USD
(2007)*
Multimedia
Advertising
included in
Expenditure *
Lilly (Eli) & Co. $4,497,000,000 Y
Pfizer Inc $2,152,500,000 Y
Johnson & Johnson $1,900,000,000 Y
Genentech, Inc. $439,000,000 Y
Abbott Laboratories $227,882,000 Y
Wyeth $130,000,000 Y
Allergan, Inc $118,000,000 N
NBTY Inc. $104,000,000 N
King Pharmaceuticals, Inc. $85,044,000 N
Merck & Co., Inc $27,000,000 Y
Watson Pharmaceuticals, Inc. $9,400,000 N
Schering-Plough Corp. N/A N
Hospira Inc N/A N
Forest Laboratories, Inc N/A N
Bristol-Myers Squibb Co. N/A N
Barr Pharmaceuticals Inc N/A N
The Customers
Major Pharmaceutical Companies in North America
Sales of major companies
Accounted for 45% or about
USD 290.1 billion of worldwide
sales in 2006**
Source : Lexis-Nexis – ADVERTISERS 2008 *
Mergent Online. November 2007**
Customer grouping
based on priority to target
Type of customer Priority
Pharmaceutical
without CRM
services
1st
Pharmaceutical with
CRM services
2nd
CRM: Customer Relationship Services
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Major PCRM Companies
in North America
Allscripts
Aptilon
WebMD Health Corp
inVentiv Health Inc
Dendrite
Lathian Systems
Quintiles Trans-national
The Competition in North America
Companies that offer Customer Relationship Management Services (PCRMs)
PCRM may cover a full range of solutions such as Customer-facing Operations,
Internal Functional Operations, Performance Marketing Analysis, Customer Survey
Analysis and others.
MacMedia plans to target at the Customer-facing Operations service interfacing
between pharmas and doctors to promote products
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Macro Level grouping of Competitors from
the Competitive Strategy Perspective
Type of Strategy Company
Low Cost Contract Sales
Organizations
(CSO)
Differentiation
Allscripts
Aptilon
inVentiv
WebMD
Focus
(Combination of cost
and differentiation)
Lathian
Dendrite
Quintiles
CSOs are outsourcing companies in the low-end market . CSOs provide basic
services such as call-centers and hiring of sales representatives. Numerous
Differentiators offer comprehensive solutions such as Customer-facing
Operations, Internal Functional Operations and others.
Differentiators provide best services, create high value; and therefore, control
prices
Focus companies center in a few services. These companies take advantage
of the expertise in their specialties
Products Currently Available in the market to
offer detailing
Electronic
detailing
Allscripts
Aptilon
WebMD
Dendrite
Lathian
inVentiv
Sales
representatives
inVentiv
Quintiles
Highly fragmented
Contract Sales
Organizations (CSO)
Video
conferencing
Aptilon
Lathian
Phone
Highly fragmented
Contract Sales
Organizations (CSO)
Classification of Competition
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Pharmaceutical Market knowledge
IT and programming expertise
Systems Analysis & Solutions skills
Marketing and Sales knowledge
Public Relations Skills
Strategic Management skills
Skills in the PCRM Sector
Skills Exhibited by PCRMs
SWOT Analysis for the PCRM Sector
Strengths Weaknesses
Renown companies very well established
in the pharmaceutical industry with
customer oriented cultures
Multi-business and big organizations that still
need to combine independent information
sources and other useful tools so as to fit them
into their products
Opportunities Threats
E-detailing offers potential growth
Healthcare professionals use online
resources nowadays
Existence of serious inefficiencies in the
pharmaceutical promotion
Privacy issues
Rapid change of technology
Failure to wisely integrate multiple products
and services
Limited number of computer programmers/
designers with experience in the B2B sector
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Tools MacMedia PCRM
Competitor
Multimedia
Technologies
Purchase Yes
Programmers /
designers with
experience in
e-detailing
Hire Yes
Journal
Subscriptions
Subscribe No
Summarization
Technologies
Purchase/License No
Physicians’ DB Purchase/Hire
Service
Yes
PCRMs focus on pharma’s needs
rather than on doctors’ needs
MacMedia’s product has potential to
turn into an intelligence system so
as to ensure service repeat and
loyalty
MacMedia’s product will improve
market penetration
Motivations and Skills
Pharma
Company
MacMedia
e-detailing
Intelligence
Service = Loyalty
Repeat
Competitive Advantage
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Incumbents’ likely Response
Main PCRMs could counteract with own version (growth-driven strategy).
If PCRMs cannot respond soon due to organizational issues, they would
consider to integrate MacMedia’s detailing product into their offerings
(co-opting strategy). Example: Inventiv
Type of PCRM Threat of Attack Most Likely Response
CSO Very Low None
Focus Moderate to Low Buy out
Differentiator HighCompete with own
version
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Technology Description Products/Brands Accessibility Criteria
Multimedia
Combination of multiple
content formats: Audio,
video & sound
AdobeFlash
AdobeDreamweave
r
PurchasingFeatures
Prices
Summarizer
Technology
Software that produces
synopsis of a large
document
Xerox Summarizer
Intellexer
Summarizer
License fee
License
conditions
Features
Prices
Server
Computer or device on
a network that manages
network resources
Numerous brands PurchasingFeatures
Prices
WebsiteSite location on the
World Wide Web
Numerous software
productsPurchasing
Features
Prices
Medical
Journals
Database
Scientific journals
devoted to the field of
medicine
The New England
Journal of Medicine
The Lancet
Journal of the
American Medical
Association
etc
Subscription
Impact factor
Subscription
conditions
Prices
The Technical Feasibility
JIF: Frequency that an average article in a journal has been cited in a given period of time
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Pharma_1 Pharma_2 Pharma_3 Pharma_4
Doctor_1 A1, B1,D1 A2,F2 B3,F3,G3 C4,L4,O4
Doctor_2 A1,C1 E2,G2,T2 C3,F3 C4,E4,S4,X4
Doctor_3 L1,M1 A2,P2,H2,I2 D3,F3,G3, P3 F4,M4
Doctor_4 P1, Q1,Y1 B2,C2 B3,M3,T3 C4,F4,M4, W4
The DB - The Heart of the Service
To start the service, a physicians’ DB must be purchased or hired from a third
party
To obtain an extensive range of information on products, doctors must
subscribe in as many pharmaceutical companies and choose as many topics in
their specialties
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Pharma 1
Products
Pharma 2
Products
Pharma 3
Products
Pharma 4
Products
MacMedia
Architecture Alternatives
First Alternative
Version 1
Requires access to
DBs of pharmaceutical
products.
Statement of
confidentiality
Pharma 1
Products
Pharma 2
Products
Pharma 3
Products
MacMedia
POS= Point of Subscription
POS
POS
First Alternative
Version 2
Create POS where
physicians are referred to
MacMedia’s website and then
subscribe
Requires access to Dbs of
pharmaceutical products
Statement of confidentiality
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Pharma 1
Products
Pharma 2
Products
Pharma 3
Products
Pharma 4
Products
MacMediaPCRM
Second Alternative
Integrates with PCRMs’
DBs
Architecture Alternatives
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Resources Plan and Estimate Time Allocation
for the Technical Realization
PhaseEstimate
TimeTimeline Tasks
Skills/
Profile
Human
Resources
Estimate
Cost
Systems Design3 months
Jun 08
Jul 08
Aug08
Information Collection,
Processing and DeliveryCPA or SEU
1
$34,200Client/Server
Architecture
Website Design
CPA or SEU 1
Prototype3 months
Sep 08
Oct 08
Nov 08
Application Development CPA or SEU 1
$38,100Website Development
Server Setup/Website
Upload
CPA or SEU 1
Testing1 month
Dec 08Server testing
Service testingCPA or SEU 2 $10,500
Implementation2 months
Jan 09
Feb 09
Business Case
Business Plan
CPA or SEU 2
$21,000MEEi Candidate
1
Commercialization2 months
Mar 09
Apr 09
Presentation to Investors
Road-shows
CPA or SEU 2$27,000
MEEi Candidate 1
Grand Total $130,800
CPA: Computer Programmer Analyst/Designer SEU: Systems Engineer Undergraduate
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Control of Product Components
Component
Physicians/
Marketing
Intelligence
DB
Multimedia
Application
Medical
Journals
DBs
Summarizer
Technology
Server/
Internet
Domain
Under
MacMedia’s
Control
YES YES NO NO YES
Technical Realization
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Type Source Risk Level ImpactMeasure to
mitigate risk
Technical
Summarizer
TechnologyNot efficient Low High
Validation of
features
Physicians’ DB
Not Updated
Not
Comprehensive
Low High
Validation of
features
Medical Journals
SubscriptionsNot efficient Low High
Validation of
Journal Impact
Factor Index (JIF)
Business
Xerox technology
Supplier
Not exclusive
licenseLow High
Explore other
suppliers and
conditions
End UsersInformation is
biasedLow High
Select peer-
reviewed journals
End UsersProduct
dissatisfactionLow High Permanent VOC
Product Risk Analysis
JIF: Frequency that an average article in a journal has been cited in a given period of time
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Mar
08
Apr
08
May
08
Jun
08
Jul
08
Aug
08
Sep
08
Oct
08
Nov
08
Dec
08
Jan
09
Feb
09
Mar
09
Apr
09
Investigation &
Analysis
Design
Prototyping
Testing
Implementation
Commercialization
MILESTONE OVERVIEW
Market
Secondary
Research
Preliminary
VOC
Systems
design draft
Tollgate
One
Technical
screening &
selection
Financial
draft
Systems
design
completion
Prototype
ready
Tollgate
Two
Testing
completion
Complete
VOC
Market
Secondary
Completion
Business
Case
Business
Plan
Road
shows
Tollgate
Three
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Next Steps:
look for expert advice at McMaster to have IP protection of the service
idea and also advice on technology licensing
apply for resources through the school for the prototyping phase
look for technical expertise to develop the systems design
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Thank You
Q&A Session
