using market build to inform global product innovation decisions
TRANSCRIPT
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Using market build to inform global
product innovation decisions
Ani Chatterjee
Becton Dickinson
Alex Zhu
SKIM
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Who is BD?
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FORTUNE 500 company
Locations in more than 50 countries
Nearly 30,000 associates worldwide
Serves healthcare institutions, life science researchers,
clinical laboratories and the general public
Sells a broad range of medical supplies and services,
devices, laboratory equipment and diagnostic products
500
50
30k
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BD Locations
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Industrialized Markets
Emerging Markets
Latin America - 1952
• ~5,200 Associates
• 8 Countries, 5 Plants
U.S.A. - 1897
• ~12,000 Associates
• 29 Plants
•
Canada - 1951
• ~550 Associates
• 1 Plant
Asia Pacific - 1971
• ~4,600 Associates
• 16 Countries, 5 Plants
India - 1995
• ~550 Associates
China - 1994
• ~2,200 Associates
Europe - 1952
• ~6,000 Associates
• 21 Countries, 10 Plants
•
Japan - 1971
• ~600 Assxociates
• 1 Plant
EMA - 1994
•~ 250 Associates
• 10 Countries
*note: last updated April 2013
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Critical Care Molecular and Proteomics Urine Collection
BD PAS: Leaders in Specimen Collection
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BD Microtainer®
Contact-Activated Lancet BD Vacutainer® Push Button
Blood Collection Set
BD Vacutainer® Blood collection tubes
Urinalysis
Products
BD Microtainer® Blood
Collection Tubes
Microbiology
Products
PAXgene® Blood RNA System
BD Vacutainer® Laboratory Consulting Services
ABG Products
Venous collection Capillary Collection
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Customer centricity drives innovation
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• VOC
• Outcome-Driven Innovation
Needs
Assessment
Identify the most promising
innovation opportunities
Ethnography • Observation Research
• Interviews Identify the customer behaviors
you want to change
Market sizing
• Segmentation
• Size and Growth
Characterize the commercial
landscape for the innovation
Benefits study
Concept
Research
• Choice Models
• Market Simulation Prioritize customer requirements
to justify innovation opportunity
• Concept Ideation
• Design and Usability
Research
Develop concepts that
address customer needs
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Frame the Market Quantify the Market Prioritize Opportunities
Examine the market through
several lenses, e.g.,
– Regions / countries
– Settings of care
– Context of blood collection
Lenses chosen to align with
value propositions of
innovation concept
Cut quantitative data to fill in
details for each “cell”
– Size
– Growth
– Profitability
Both current and projected
market
Develop a preliminary
assessment of market
opportunities
– Based on key quantitative
data and BD ability to
address with concept
Prioritize opportunities and
align with development
strategy (concept
downselection)
Market build
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Key behaviors often hidden beneath sales data reporting
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Who is using it?
Where are they
using it?
What are they
doing with it?
And WHY?
Account
ED
ICU
OR
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Informing Global Innovation
Decisions Of A Blood Draw Device
Case study
• Acute care settings: ED, OR, ICU
• Region: US, EU5
• Target audience: Nurses, PAs, RTs
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As a key step in innovation process, we needed to evaluate
the commercial opportunity
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• VOC
• Outcome-Driven Innovation
Needs
Assessment
Identify the most promising
innovation opportunities
Ethnography • Observation Research
• Interviews Identify the customer behaviors
you want to change
Market sizing
• Segmentation
• Size and Growth
Characterize the commercial
landscape for the innovation
Benefits study
Concept
Research
• Choice Models
• Market Simulation Prioritize customer requirements
to justify innovation opportunity
• Concept Ideation
• Design and Usability
Research
Develop concepts that
address customer needs
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But we had a few challenges in characterizing the
commercial landscape
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• Practices across hospitals or
even across departments within a
hospital vary significantly
• Value proposition of the concept
is highly dependent on the draw-
scenario use case
• Sales reporting often gives an
incomplete picture
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How many blood draws
does a new device
potentially serve?
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Conceptually it is similar to create a Super Bowl fan map
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Map out how users draw blood for a specific scenario and
size each cell in this behavior matrix
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Department (ED, ICU, OR, PICU/NICU)
Arterial
Single-
draw
Tube
Line Stick
Multi-
draw
Syringe
Blood gas
syringe
Venous Capillary
Country (US+EU5)
Device used
Sample type
Draw
Scenario
Access type
Clinical
setting
Region
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Layering over with innovation concepts’ ability to serve
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Department (ED, ICU, OR, PICU/NICU)
Arterial
Single-
draw
Tube
Line Stick
Multi-
draw
Syringe
Blood gas
syringe
Venous Capillary
Country (US+EU5)
Device used
Sample type
Draw
Scenario
Access type
Clinical
setting
Region
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Essentially we need to build the market from bottom-up
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# of ED visits
% of visits drawing blood for a specific
scenario
# of draws/visit
# of EDs
% of EDs drawing blood for a
specific scenario
# of draws for EDs conducting a specific
scenario
Top-Down Bottom-Up
volume
volume
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Market build framework
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• Number of
departments (ED,
OR, ICU and etc.)
• Multiple national
reputable sources
(e.g. American
Association for the
Surgery of Trauma)
• Percentage of
departments using a
specific type of blood
draw
• Avg. annual number
of a specific type of
blood draws per
setting
• Proportion of draws
by segment (sample
type, access type,
scenario and device)
• Triangulation is the
key
• Mean vs. median
• Sensitivity analysis
(25th/75th percentile,
error bar)
• Sales data
• Cross-check with
reputable published
data (e.g. AHA, CDC)
Primary data Secondary data Risk mitigation
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Survey instrument design
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Sample a large gen
pop of acute care AHPs
Main Survey
• Hospital level information
• Whether their department utilizes a specific draw
• De-duplicate with identifier such as zip code
• Department level information (over-quota)
• Patient load
• % of patients requiring a specific blood draw
• Daily # of such blood draws per patient
• Days of admission
• AHPs conducting a higher number of such blood
draws
• Individual practice level information
Screening
Extended screener
Screening
National # o
f dra
ws
User
Beha
vio
r
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Informing concept selection using market build
Concept 1 Concept 2 Concept 3
Scenario 1
Stick
syringe
tube
Line
syringe
Scenario 2
Stick
syringe
tube
Line
syringe
tube
= perfectly
integrates
= additional
steps
required
= does not
work
69%
40% 20% 16%
29% 37% 47%
57% 63% % of market a
concept serves
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Considerations of conducting a market build
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Create the
methodological
roadmap
Differentiate
“must-know”
from “nice-to-
know”
Get the input
right
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Impact for the business
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• Inform department and country prioritization for next steps in
market research
• Gain a better understanding of customer behaviors and
better position the concept
• Support ongoing R&D investment decisions
• Quantify behaviors to change in order to drive health
outcomes (HEOR modeling)
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Success Factors and
Takeaways
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Success factors
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• Define the minimal level of clarity for decision-making at outset
• Structure the approach systematically
• Constantly align with marketing, R&D and strategy
• Triangulation is the key for senior management support
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Takeaways
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• A market build provides a more realistic view of opportunity
especially when market segments are better characterized by
users’ behaviors than demographics
• A market build is very useful to inform innovation decisions
throughout the research & development process
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Contact us
Ani Chatterjee
Manager Strategic Innovation, BD
Alex Xiaogung Zhu
Manager, SKIM