navigating new markets in healthcare 2013. agenda 2 copyright 2013 new markets advisors the changing...

Navigating New Markets in Healthcare

2013

Copyright 2013 New Markets Advisors 2

Agenda

• The changing healthcare environment

• How New Markets can help


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


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


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


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


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


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?


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


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

Copyright 2013 New Markets Advisors

Our view on the pattern of success

11

• 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


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

13Copyright 2013 New Markets Advisors

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


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


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


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


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


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


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


Relevant services from New Markets


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]


navigating new markets in healthcare 2013. agenda 2 copyright 2013 new markets advisors the changing...

Documents

healthcare industry

healthcare consumers

face of healthcare

coordination slide

emerging markets

quality slide

chronic conditions fee

us new intermediaries