Healthcare

Global Adjacent Market Analysis: Diagnostics

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Problem:

A major medical diagnostics vendor was interested in moving its focus beyond the testing and screening market and into a diversified set of offerings along the patient care continuum.

The Beacon Group (Beacon) was tasked with defining potential adjacent markets (for both product and service offerings), sizing the global market opportunity, evaluating growth potential, understanding the customer requirements within each market segment, assessing competitor positioning, and providing entry strategies.

 

Approach:

To define the market and evaluate opportunities, Beacon used its primary research capability as a starting point. Beacon spoke with over 350 competitors, customers, analysts, and industry association sources and customer interviews to serve as a starting point for its assessment. Beacon used this data in concert with weekly client briefings to clearly identify attractive segments, collect client buy-in, and build towards a strategy. Beacon evaluated opportunities both upstream and downstream in the care continuum looking at both product-based offerings and service models to drive both revenue and loyalty across the different market segments studied.

 

Results:

Beacon provided its client with an analysis of current and future market segments across the care-continuum, opportunities to expand beyond its current testing and screening market, areas of particular customer interest and unmet need, as well as several potential paths to market entry.

Beacon's strategy balanced the client need for near-term revenue to balance long-term payout.  As a result, Beacon offered a strategy organized by timeline with key milestones to hit prior to triggering the next phase of market entry.  Included in the analysis were also multiple business development options for consideration as Beacon's client progressed with its strategy.

Commercial Operations and Sales Strategy: Hospitals and ASCs

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Problem:

A leading healthcare company was seeing changes in its customer base and more of a need to drive utilization of its products in both the hospital and Ambulatory Surgery Center (ASC) markets.  The Beacon Group(Beacon) was asked to develop a commercial operations strategy andsupporting tactics to ensure proper customer engagement. Beacon's Client was particularly interested in the specific tactics it could usewith its sales team to support execution across customer settings.  Theassessment was focused on ways to use all customer interactions – sales,  service, education, distributors – as a tool to improve loyalty anddifferentiate from key competitors.

Approach:

In ten weeks, Beacon evaluated customer requirements for commercial engagement, how our client and other market participants were comparing to expectations, and identified both gaps and opportunities.  Beacon used over 300 direct conversations with customers and other market stakeholders as the basis for its analysis.  We used the conversations to test various sales and marketing programs and engagement models as a way to ensure their viability long-term.

Each week, Beacon captured client feedback on progress and its findings.  Questions from each update were incorporated into the next week's research and analysis.  This process ensured regular intereaction and a set of actionable recommendations upon completion.

Results:

Beacon's client has implemented its proposed strategy to date with great success.  It has seen both sales and profit grow over the past 12 months and is continuing to implement different pieces of the overall framework.  Beacon identified several ways to add value beyond the product, streamline interactions with the customer, identify and take advantage of competitor weaknesses, and anticipate changes in the overall market environment.

Strategy Development: Global Research and Development

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Problem:

A major US Medical Device vendor was in the process of developing across-business, global R&D strategy.  Client leadership believed a coordinated strategy was a requirement for success, but historically fragmented decision-making posed a challenge.

To support an organized and strategic approach to R&D globalization, the client asked The Beacon Group (Beacon) to benchmark competitor organizations, identify best practices, evaluate internal client activities, and align the proposed strategy with internal activities.  As an output, Beacon's client wanted a clear framework for its R&D strategy and data to support its decisions.

Approach:

Beacon worked collaboratively with its client to select 8 companies for study – both inside and outside the Healthcare industry.  In a 10-week, 3-phase engagement Beacon interviewed over 150 market participants - financial, industry, and trade analysts, in-country KOLs and regulators, junior and senior members of benchmark R&D organizations - and approximately 30 client executives across businesses and roles.  Beacon engaged with the client's core team on a bi-weekly basis to brief its progress and provide the client an opportunity to focus or redirect Beacon activities based on information uncovered.  In week 6, Beacon transitioned from a data-collection exercise to analyze and synthesize the information as the basis for its strategic planning work.

Results:

The set of data collected during the course of Beacon's research yielded stories of success and failure, a clear picture of industry norms, best practices and requirements for success.  This knowledge drove development of a 5-year cross-business roadmap for R&D globalization.  Strategies and tactics were presented along a timeline, included recommendations for when, where, and how much to invest, and which specific therapeutic areas and R&D activities should be prioritized in specific geographies.  Recommendations also included market shaping, market development, and competitor differentiation strategies by geography.  Country-specific strategies were presented in the context a comprehensive framework for global R&D operations.  Beacon also recommended a path forward for structuring and coordinating internal R&D roles, responsibilities, and processes across the client's organization.  Since completion, Beacon's client has executed on several of the proposed recommendations and is in-process on others.