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 ofits kind video program about health innovators, early adoptors and influencers and their storiesabout writing the roller coaster of healthcare innovation. I'm your host, Dr Roxy,founder of Legacy DNA marketing group, and it's time to raise our COIQ. Welcome back toiq listeners. On today's show I'm doing a solo episode withMatt Johnson, who is the executive producer for our show and he also ishas his own podcast in his own right. Thanks that for joining me today.I'm super pumped as always. I love talking through strategy and I lovethe conversations that we have. Some I'm excited to get into. We're goingto talk a little bit about what it takes to actually have an innovation reachcommercial success, which, course, is what all of your clients and thepeople that you work with want. It's what we all want. We wantto create things that take off and hit the market and people are receptive andand they buy it, it takes off. So you've got some some things we'regoing to lay out. We talked...

...about desirability, viability and feasibility,so will give a people a little overview of what that is. But whatessentially is is the problem, right. So why are we talking about thiswhole thing about innovation and making sure it actually gets commercial success? So Ithink the problem that a lot of health innovaders face today is that they believethat just because they develop a health and healthcare innovation that solves a real problemor is functionally superior to other solutions on the market, that that's going tobe a definite success. And it really isn't the case. And so todaywe can talk about what are some of those things that they need to bemindful of because, you know, just a problem, solving a problem doesn'tautomatically equal market success. Yeah, yeah, and it's really hard to accept.But yeah, the other side of the equation that that these are realpeople. There's other solutions that probably solve a similar problem or close enough.And Yeah, there's there's there's costs of the cost of switching. There's mentalcost of just understanding what your solution is...

...like. It maybe takes some mentaleffort to even understand what you're selling. Obviously you want to lower that barrieras much as possible. But yeah, the unfortunately developing something that's superior towhat else is out there. That's our opinion, right, we're the onesthat are coming up with the solution. That's our opinion. Anyway, wehave to get people to agree with us. So so, in other words,a lot of things have to go right in order for whatever we havecreated, whatever innovation we're creating, to actually take off. So let's startwith desirability. What the what? How do you look at that, whenyou look at whether something you've created is desirable to the market? Yeah,so, I you know, I think in healthcare this it's just it's areally unique environment, and so there's some additional factors, right. So firstoff, you know, you have to know, like what are the prioritiesfor the folks that you want to sell this to, because you know,just because you're solving a problem doesn't mean that it's going to be the prioritythat that health system is looking to solve for the next three to five years. So that can be a huge barrier. You know, when it comes todesireblity, is this real? Do...

I really have a market that wantsto buy this solution and are they looking to solve this problem right now?Is it something that's keeping them up at night? If it is, thenthey're likely to buy your solution. If it's something like yeah, you know, yeah, it's a problem, but it's yeah, but it's really notsomething that we're looking to solve today or even tomorrow, then you probably needto go back to the drawing board and keep trying. How do you determinelife for individual health systems? Who Do you turn to or how do youask them to get a sense of what their priorities are? I mean,let's let's say you feel like you have something that you think applies to thedemographics and the trends that are going on, and then their system and there,you know, the people that they serve. They may not agree.How do you figure out what their priorities are and how to find the healthsystems that maybe do have priorities that match up? Yeah, so, Imean I think that that's really where that needs analysis comes into play and beingable to do research and getting real user...

...and buy our feedback early in thatprocess. So, you know, a lot of times, as health innovators, we have we go into this process and build business, building in witha lot of assumptions and biases and so getting, you know, just domaking the investment in doing that needs assessment, conducting that research, that primary research, where you're asking health and you're asking those target customers what are theirpriorities, and then you're kind of taking all of that data, that realdata that you've collected, and kind of grouping it together in the themes andkind of seeing what what's popping up, what's bubbling up, and that kindof helps you make those decisions to really validate whether there's the resirability there ornot. Yeah, that makes total sense and I'm sure it's very, verytempting to skip that because we, if we're the ones that are developing thesolution, we see the problem every day. It's the thing that we're thinking aboutall the time. It's hard for US sometimes to relate to somebody whodoesn't see the problem is clearly and bright...

...and vivid as we do, becauseit's all we think about where we're the ones that are developing the innovation forit. So that makes sense. So desirability and you're really looking for theyou not looking for the entire market to express this need and to have thisin priority. So you know, one of the things that we do isreally help the innovators focus on the early adopter strategy. And so really you'rejust looking for a small subset of the market in the beginning to kind ofraise their hand do something that kind of indicates that they would be viable buyers. They have this viable need going forward. Yeah, that makes sense. That'sanother area. But you know, it's super easy to overlook is whoare those early adopters? Because we all want the mainstream success, we allwant to do something that impacts a lot of people and it's very, verytempting to skip that step and go straight to the mass and see what theywant. And the problem is they don't always know what they want and there'ssometimes they're the ones that are slow us to adopt a new idea and wewe end up skipping over the earlier doctors for some reason. So, sodesirability. Now let's talk about viability.

What do you mean by viability?So viability. So just because you know, let's say that you validate that there'sthe desirability, you've identified that there is a market will just because there'sa market for a solution doesn't mean that it's going to be viable for thebusiness. Right. Are we going to be able to generate enough sales andrevenue from this solution. Are we going to be able to price it appropriately, you know, with enough margins to actually build a business around? Isthis is this business opportunity real and is it worth it? I love thatit's a I was just reading a book by Richard Coche, the author ofthe twenty principle. It was in one of his other books and he saidthat the best, the best quote ever. It was number one, is therea gap in the market and number two, is their market in thegap? You cash exactly. Yeah, yeah, to evaluate the competitive landscapeand identify where they fall short, and so there's kind of this belief thatI need to be first to market in...

...order to be successful. But oneof the advantages that being a, you know, a fast follower, secondto market is being able to observe where those gaps are in the market andbe able to see how the audience, the target audience is, were reactingto that first to market company and solution and then be able to fill inthose gaps where they fell short. So it can actually end up being areal advantage and I think in healthcare it's especially challenging to identify who's paying forit. 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. Of course we're going to identify. I mean, I'm a Smart Entrepreneur, I'm building a business. More than likely this isn't the first companythat I've built, but it's something that really I think it's often overlooked inhealthcare because it's a multisided market. So often I see that, you know, we might kind of mix who the user is with who the buyer isand then, yeah, or that those...

...reimbursement models are aligned. You know, a lot of times I'll see health innovators say that they're going to circumventthe traditional healthcare system because you know of all the obstacles and barriers that arebuilt into it, and they're going to go direct to consumer. And thereality is is that's really a tough route. Customer consumers are are not willing topay for a lot of these healthcare things. You know, it's justbeen ingrained in us for decades that we expect those to be covered by ourhealth insurance and we're not paying out a pocket for it. It's a hugebehavior change in paradigm shift so betc isn't is going to be the easy when, like a lot of people think, and so really being able to identifywho's paying for it is going to be in important to the viability of thebusiness. Interesting. Yeah, I'd be very curious and will have to doan episode on this some time if you have some strong opinions. But I'llbe very interested to know what you think...

...of LASIC and other director consumer typeof services and how they took off maybe some of the things that they didwell and didn't. But let's talk about feasibilities. talked about kind of analyzingkind of the landscape. Now feasibility you're talking more about like the competitive environment. You mentioned being a fast follower. How do you look at that anddetermine whether you're too late, if fast followers an advantage, if you cando something different, like, how do you look at that in terms offeasibility? Yeah, so if you are, you know, so if your firstto market, then you're typically absorb, absorbing a huge chunk of the costsof bringing that to market. So you don't kind of you can't leverage, you know, economies of scale because it's new and it's innovative and sobeing a fast follower allows you that. So part of this, you know, feasibility is scanning the landscape, understanding who the players are. Like.We had just talked about examining that and seeing where that gap in the marketis and how you fit in. Is...

...there a space for you to play? And you know, most of the time, you know, sometimes I'llwork with you know companies and they want to go in with the cheaper priceand you know that's not going to be a winning strategy for an innovation right. So we're trying to figure out what is the resources and capabilities that thecompany needs to build in order to have that competitive advantage and that differentiation,and that kind of validates that it's going to be feasible for them to beable to bring this healthcare innvation to market. Yeah, I was talking with withanother podcast host and certain you know who provides a service. He's entrepreneursin his own right. We're talking about that a little bit and one ofthe things that came out of that conversation was just it's a good it's agood question to ask yourself if I had to double my price, but theservice or whether it's a product, would still would people still buy it?And if that, if that's an automatic not, because everything rests on theonly competitive advantage is the fact that you're offering it a lower price than you'vegot an issue. You got to find...

...something else. So it's just agood mental exercise to think about what would happen if I double my prices?Would people still get the value out of it? Would they still buy theproduct or 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'sa lot of things that have to go right. Yes, it isa lot. And so that you know if you can validate these three thatfactors, that allows you to kind of confirm your product solution fit. Italso allows you to confirm your product market fit, and it's really when you'reable to accomplish those two things that you are moving towards commercial success. Sothose things are not something that's like static, that happens at a single moment intime. It's something that is irritive over a process, and so youwant to be able to, you know, accomplish these two things of products solutionfit and product market fit to validate that you've got a viable strategy,commercialization strategy and business model that you can...

...scale and reach. curn. That's, with love it, yeah, and we'll have to do another episode.I think about just the aderative process, because it's a great a great line, a great way to put it might be, just the great strategy.Doesn't happen in a vacuum, right, there's no amount of naval gazing oryou know like it, like strategies, hard mental thought, but it doesn'ttake place in a vacuum, separated from the people who will buy it,the people who pay for the people who benefit from it. The faster wecan get them involved, the better. Speaking of that, you're actually doinga workshop that the listeners might be able to still attend, but I wouldlove them, for them to know about at the very least, because you'redoing a whole workshop on cocreation, coproduct creation. Where can people learn moreabout that and how to get to that particular event? Great question, Matt. So the Connected Health Conference happens in Boston in October. I think thedates are like the sixteen to the eighteen or something, and so I'm goingto be leading a patient co creation workshop...

...we'll talk about the how's, thewise the what's of patient co creation and I'll be doing that with one ofmy colleagues from David Gold Seeing Goldsmith, from we go health and and sopeople can find out more information about that on the connected health website. Loveto have folks join us. Yeah, and we'll throw a link to thatin the show notes so people can get straight there and double check the datesand all that stuff. So now nothings, nothing has to be exact. Sothey can check that out and make travel plans and stuff. But besideslistening to you know, Cyq, getting it on on Apple podcast and spotifyand Stitcher in all those fun places, where else would you like to sendpeople for them to learn more and kind of dive into a little bit ofthe strategy behind commercialization of minivation? So I can go to our website,legacy and dnacom. We've got tons of resources and information there, and thenthat's the other place where they can look at, you know, case studies, white papers and then all of our podcast and video shows. Awesome,very good or rock say. Thanks so...

...much. I appreciate it. Thankyou, Matt. Appreciate it. By Bye. What's the difference between launchingand commercializing a healthcare in avation. Many people will launch a new product,few will commercialize it. To learn the difference between latch and commercialization and towatch past episodes of the show, head to our video show page at DrRoxycom. Thanks so much for watching and listening to the show. You cansubscribe to the latest episodes on your favorite podcast APP like apple podcasts and spotify, or subscribe to the video episodes on our youtube channel. No matter theplatform, just search coiq with Dr Roxy. Until next time, LET'S RAISE OURCOIQ.

In-Stream Audio Search

NEW

Search across all episodes within this podcast

Episodes (111)