Health Innovators
Health Innovators

Episode · 2 years ago

The 3 Lenses of Innovation that Influence Market Success

ABOUT THIS EPISODE

Many healthcare innovators underestimate what it takes for their innovations to achieve market success. What are the three lenses of innovation that health innovators must get right to increase their chances of success? How do these factors influence commercialization?

On this episode, we talk about the three things innovators need to consider when bringing healthcare innovations to market.

 

Just because your innovation solves a real problem or is technically and functionally superior to competing solutions, doesn’t mean it will automatically reach commercial success. -Dr. Roxie Mooney

 

3 Takeaways 

  • Desirability: innovators should ask themselves if the problem the product is trying to solve is a priority for the healthcare system.
  • In order to find out if your innovation is viable, ask yourself if the product is worth it, and if you have realistic estimates of sales and revenue. Just because there’s a market for a solution, doesn’t mean it will be viable for the business.
  • To determine if an innovation has feasibility, you need to have the resources and capabilities to build a competitive advantage and differentiation in the market.
  •  

    If we can validate the desirability, viability, and feasibility of our innovation, we will be able to confirm product-solution fit and product-market fit. When we accomplish those two things, we will be able to move towards commercial success.

 

To learn about the Product Co-Creation Workshop at the Connected Health Conference, go to https://www.connectedhealthconf.org/boston/2019

Welcome to Coiq and first of its kindvideo program about health, innovators earlier doctors and influencers andtheyar stories about riting, the roller coaster of health care and ovation. I'myour host doctor, Roxy Founder of Legacy, DNA marketing group and it'stime to raise our COIQ. Welcome back to you. Yq Listeners ontoday show I'm doing a solo episode with Matt Johnson, who is the executiveproducer for our show, and he also s has his own podcast and his own right.It's that for joining me today, I'm super pumped. As always. I love talkingthrough strategy and I love the conversations that we have Somei'mexcited to get into we're, going to talk a little bit about what it takesto actually have an innovation reach commercial success, which course iswhat all of you are clients and the people that you work with, want. That'swhat we all want. We want to create things that take off and hit the market,and people are receptive and and they buy, and it takes off so you've gotsome some things we're going to lay out. We talk about desirability, viabilityand Feasibiliti, so will give a people...

...a little overview of what that is. But what essentially is is the problemright. So why are we talking about this whole thing about innovation and andmaking sure to actually gets commercial success? So I think the problem that alot of health and invaders face today is that they believe that, just becausethey develop a health, an health care inevation that solves a real problem oris functionally superior to other solutions on the market that that'sgoing to be a definite success, and it really isn't the case, and so today wecan talk about what are some of those things that they need to be. Mindful ofbecause you know just a problem: solving a problem doesn't automaticallyequal market success, yeah yeah and it's really hard to accept, but yeahthe other side of the equation that that these are real people, there'sother solutions that probably solve a similar problem or close enough andyeah. There's, there's, there's cok cost of switching there's mental costof just understanding what your...

...solution is like. It maybe takes omemental effort to even understand what you're selling. Obviously you want tolower that barrier as much as possible, but yeah, unfortunately developingsomething that's superior to what else is out there. That's our opinion right,we're the ones that are coming up with the solution. That's our opinion.Anyway, we have to get people to agree with us, so so, in other words, a lotof things have to go right in order for whatever we have created, whateverinnovation we're creating to actually take off. So let's start withdesirability what the? What do? How do you look at that when you look atwhether something you've created is desirable to the market yeah? So youknow, I think, in health care this, it's just it's a really uniqueenvironment and so there's some additional factors right. So, first offyou know, you have to know like what are the priorities for the folks thatyou want to sell this to, because you know just because you're solved in aproblem doesn't mean that it's going to be the priority that that health systemis looking to solve for the next three to five years, so that can be a hugebarrier. You know when it comes to desirability.Is this real? Do I really have a market...

...that wants to buy this solution and arethey looking to solve this problem right now? Is it something that'skeeping them up at night? If it is, then they're likely to buy yoursolution? If it's something like yeah, you know yeah it's a problem, but it'syeah, but it's really not something that we're looking to solve today oreven tomorrow. Then you probably need to go back to the drawing board andkeep trying. How do you determine like forindividual health systems? Who Do you turn to, or how do you askthem to get a sense of what their priorities are? LET MEA! Let's, let'ssay you feel like you have something that you think applies to thedemographics and the trends that are going on an in their system and theire.You know the people that they serve. They may not agree. How do you figureout what their priorities are and how to find the health systems that maybedo have priorities tha matchup yeah? So I mean, I think, that that's reallywhere that needs analysis, comes into play and being able to do research andgetting real user and buy our feedback...

...early in that process. So you know alot of times as health innovators. We have. We go into this process and BUILbusiness building in with a lot of assumptions and biases, and so getting you know just do making the investmentin doing that needs assessment. Conducting that research, that primaryresearch, where you're asking health and you're asking those targetcustomers what of their priorities and then you're kind of taking all of thatdata that real data that you've collected and kind of grouping ittogether in the themes and kind of seeing what what's popping up what's bubbling upand that kind of helps you make those decisions to really validate whetherthere's the deresirability. There are not yeah. That makes total sense andI'm sure it's very, very tempting to skip that, because we, if we're theones that are developing the solution, we see the problem every day. It's thething that we're thinking about all the time it's hard for us sometimes torelate to somebody who doesn't see the problem is clearly and bright and vividas we do because s all we think about.

We we're the ones that are developingthe inovation for it. So that makes sense so desirability and you'r notreally looking for the you're, not looking for the entire market toexpress this need and to have this in priority. So you know one of the thingsthat we do is really help. The innovators focus on the early adopterstrategy and to really you're just looking for a small subset of themarket in the beginning. To kind of raise their hand, do something thatkind of indicates that they would be viable buyers. They have this viableneed going forward. Yeah that makes sense. That's another area, but youknow it's super easy to overlook is who are those early adopters, because weall want the mainstream success. We all want to do something that impacts a lot ofpeople and it's very very tempting to skip that step and go straight to themass and see what they want and the problem is they don't always know whatthey want and they're, sometimes they're, the ones that are slowes toadopt a new idea, and we end up skipping over the early adopters forsome reason. So all right so...

...desirability. Now s talk aboutviability. What do you mean by viability so viability? So just becauseyou know, let's say that you validate that there's the desirability you'veidentified, that there is a market. Well, just because there's a market fora solution, does it mean that it's going to be viable for the businessright? Are we going to be able to generate enough sales and revenue fromthis solution? Are we going to be able to price it appropriately? You knowwith enough margins to actually build a business around. Is this? Is thisbusiness opportunity real and is it worth it? I love that it's! I was just reading abook by Richard Cotch, the author of the eight twenty principal. It was inone of his other books and he said h the best the best quote ever it wasnumber one. Is there a gap in the market and number two is theiremarketing the gap, MN RICARD CA, exactly yeah, you have toevaluate the competitive landscape and identify where they fall short, and sothere's kind of this belief that I need...

...to be first to market in order to besuccessful. But one of the advantages that being a you know, a fast followersecond to market is being able to observe where those gaps are in themarket and be able to see how the audience the target audience isreacting to that first to market company and solution and then be ableto fill in those gaps where they fell short. So it can actually end up beinga real advantage and I think in healthcare it's especially challengingto identify who's paying for it right. So again, I might have a market for it.I might have a great product idea and it seems like a no brainer right, ofcourse, we're going to identify. I mean I'm Smart Entrepreneur, I'm building abusiness more than likely. This isn't the first company that I've built, butit's something that really, I think it's often overlooked in healthcare,because it's a multicided market. So often I see that you know we might kind of mix who the user is with, whothe buyer is and or that those...

...reimbursment models are aligned. Youknow a lot of times I'll see health innovator say that they're going tocircumvent the traditional health care system, because you know all theobstacles and barriers that are built into it and they're going to go directoconsumer and the reality is, is that's really a tough route. Customerconsumers are are not willing to pay for a lot of these healthcare things.You know it's just been engrowned in us for decades that we expect those to becovered by our health insurance and we're not paying out a pocket for it.It's a huge behavior change in paradigm shift, so btc isn't is going to be the easy win like a lotof people, think and so really being able to identify who's paying, for it is going to be imp important to theviability of the business. Interesting Yeah IULDL, be very curious. E willhave to do an episode on this sometime. If you have some strong opinions, butI'll be very interested to know what...

...you think of LASIC and other directorconsumer type of services and how they took off. Maybe some of the things thatthey did well and didn'tbut. Let's talk about feasibilitys ye talked about kindof analyzing kind of the landscape. Now feasibility you're talking more aboutlike the competitive environment, you mentione being a fast follower. How doyou look at that? An determine whether your too late, if fast, followerers anadvantage? If you can do something different like? How do you look at thatin terms of feusibility yeah? So if you are, you know so, if you're first to market,then you're typically obsr absorbing a huge chunk of the costs of bringingthat to market. So you don't kind of you can't leverage. You know economiesof scale, because it's new and it's innovative and so being a fast follower,allows you that so part of this you know feasibility is scanning thelandscape, understanding who the players are like. We just talked about examining that and seeing where thatgap in the market is and how you fit in.

Is there a space for you to play, andyou know most of the time you know. Sometimes I ll work with you knowcompanies and they want to go in with the cheaper price, and you know that'snot going to be a winning strategy for an innovation right, so we're trying tofigure out what is the resources and capabilities that the company needs tobuild in order to have that competitive advantage in that differentiation andthat kind of validates that it's going to be feasible for them to be able tobring this health carrndivation to market yeah. I was talking with with anotherpodcast host and sertain. You know who provides e service Hese mentrepreneursin his own right, we're talking about that a little bit and one of the things that came out ofthat conversation was just it's a good. It's a good question to ask yourself ifI had to double my price butther' service, whether it's a product woichstill would people still buy it, and if that, if that's an automatic noe,because everything rests on the only competitive advantage, is the fact thatthat you're, offering it a lower price, then you've got an issue. You got tofind something else: Someo, it's just a...

...good mental exercise to think aboutwhat would happen. If I double my prices, would people still get thevalue out of it? Would they still buy the product of service? So I love that yeah. It's all about doing somethingdifferent and so we've got desirability. We've got viability and feasibility.That's a lot of things that have to go right. Yes, it is a lot and so that youknow if you can validate these three, that factors thatallows you to kind of confirm your product solution fit. It also allowsyou to confirm your product market fit, and it's really, when you're able toaccomplish those two things that you are moving towards commercial success. So those things arenot something. That's like static that happens at a single moment in time.It's something that is irritive over a process, and so you want to be able to.You know, accomplish these two things of product solution fit and productmarket fit to validate that you've got...

...a viable strategy, commercializationstrategy and business model that you can scale and reach Clo Tas wet love.It yeah and we'll have to do another episode, I think about just the iditiveprocess, because Theah, it's stretand a great a great line. A greatway to put it might be just the gray strategy, doesn't happen in a vacuum. Ithere's no amount of naval gazing or you know like it like strategies, hardmental thought, but it doesn't take place in the vacuum separated from thepeople who aby it. The people who pay for the people benefit from it thefaster we can get them involved, the better. Speaking of that you'reactually doing a workshop hat, the listeners might be able to still attend,but I would love them for them to know about it. The very least because you'redoing a whole workshop on Co creation, Co, product creation. Where can peoplelearn more about that and how to get to that particular event? Great QuestionMatt, so the Connected Health Conference happens in Boston in October.I think the dates are like the ixteenth to the eighteenth or something, and soI'm going to be leading a...

...patient cocreation workshop will talkabout the how how's, the wise, the whats of patient, Co creation and I'llbe doing that with one of my colleagues for David Goldseng Goldsmith from Wego,health and and so people can find out more information about that on theconnected health website. Yothav folks join US yeah and we'll throw a link tothat. In the show knows: Tha People can get straight there and debl check thedates and all that stuff. So not nothings. Nothing has to be exact, sothey can check that out, make travel plans and stuff. But besides listeningto you, know, cyq getting it on on Apple podcast and spotify and sitter,and all those fun places where also woul, you like to send people for themto learn more and kind of dive into a little bit of the strategy behindcommercialization of Ninovation. So I can go to our website legacy. HyphenDnacom we've got tons of resources and information there and then that's theother place where they can look at. You know, case studies, white papers andthen all of our podcast and video shows awesome, very good, welwe'ractuallythink so much. I appreciate it. Thank...

...you. Matd appreciate it bybye. What's the difference between waunchingand commercializing, a health care Novation, many people will watch a newproduct. Few will commercialize it to learn the difference between watchand commercialization and to watch past episodes of the show head to our videoshow page at Dr Roxycom. Thank so much for watching and listening to the showyou can subscribe to the latest episodes on your favorite podcast, APPlike apple podcasts and spotify, or subscribe to the video episodes on ourYoutube Channel, no matter the platform just search Coyq with Dr Roxy untilnext time. LET'S RAISE OUR COIQ.

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