Health Innovators
Health Innovators

Episode · 3 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 kind video program about health innovators, early adoptors and influencers and their stories about 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 with Matt Johnson, who is the executive producer for our show and he also is has 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 love the conversations that we have. Some I'm excited to get into. We're going to talk a little bit about what it takes to actually have an innovation reach commercial success, which, course, is what all of your clients and the people that you work with want. It's what we all want. We want to create things that take off and hit the market and people are receptive and and they buy it, it takes off. So you've got some some things we're going to lay out. We talked...

...about desirability, viability and feasibility, so will give a people a little overview of what that is. But what essentially is is the problem, right. So why are we talking about this whole thing about innovation and making sure it actually gets commercial success? So I think the problem that a lot of health innovaders face today is that they believe that just because they develop a health and healthcare innovation that solves a real problem or is functionally superior to other solutions on the market, that that's going to be a definite success. And it really isn't the case. And so today we can talk about what are some of those things that they need to be mindful of because, you know, just a problem, solving a problem doesn't automatically equal market success. Yeah, yeah, and it's really hard to accept. But yeah, the other side of the equation that that these are real people. 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 mental cost of just understanding what your solution is...

...like. It maybe takes some mental effort to even understand what you're selling. Obviously you want to lower that barrier as much as possible. But yeah, the unfortunately developing something 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 lot of things have to go right in order for whatever we have created, whatever innovation we're creating, to actually take off. So let's start with desirability. What the what? How do you look at that, when you 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 a really unique environment, and so there's some additional factors, right. So first off, you know, you have to know, like what are the priorities for 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 priority that 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 to desireblity, is this real? Do...

I really have a market that wants to 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, then they'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 not something that we're looking to solve today or even tomorrow, then you probably need to go back to the drawing board and keep trying. How do you determine life for individual health systems? Who Do you turn to or how do you ask 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 the demographics 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 health systems that maybe do have priorities that match up? Yeah, so, I mean I think that that's really where that needs analysis comes into play and being able to do research and getting real user...

...and buy our feedback early in that process. So, you know, a lot of times, as health innovators, we have we go into this process and build business, building in with a lot of assumptions and biases and so getting, you know, just do making 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 their priorities, and then you're kind of taking all of that data, that real data that you've collected, and kind of grouping it together in the themes and kind of seeing what what's popping up, what's bubbling up, and that kind of helps you make those decisions to really validate whether there's the resirability there or not. Yeah, that makes total sense and I'm sure it's very, very tempting to skip that because we, if we're the ones that are developing the solution, we see the problem every day. It's the thing that we're thinking about all the time. It's hard for US sometimes to relate to somebody who doesn't see the problem is clearly and bright...

...and vivid as we do, because it's all we think about where we're the ones that are developing the innovation for it. So that makes sense. So desirability and you're really looking for the you not looking for the entire market to express this need and to have this in priority. So you know, one of the things that we do is really help the innovators focus on the early adopter strategy. And so really you're just looking for a small subset of the market in the beginning to kind of raise 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's another area. But you know, it's super easy to overlook is who are those early adopters? Because we all want the mainstream success, we all want to do something that impacts a lot of people and it's very, very tempting to skip that step and go straight to the mass and see what they want. And the problem is they don't always know what they want and there's sometimes they're the ones that are slow us to adopt a new idea and we we end up skipping over the earlier doctors for some reason. So, so desirability. 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's the desirability, you've identified that there is a market will just because there's a market for a solution doesn't mean that it's going to be viable for the business. Right. Are we going to be able to generate enough sales and revenue from this solution. Are we going to be able to price it appropriately, you know, with enough margins to actually build a business around? Is this is this business opportunity real and is it worth it? I love that it's a I was just reading a book by Richard Coche, the author of the twenty principle. It was in one of his other books and he said that the best, the best quote ever. It was number one, is there a gap in the market and number two, is their market in the gap? You cash exactly. Yeah, yeah, to evaluate the competitive landscape and identify where they fall short, and so there's kind of this belief that I need to be first to market in...

...order to be successful. But one of the advantages that being a, you know, a fast follower, second to market is being able to observe where those gaps are in the market and be able to see how the audience, the target audience is, were reacting to that first to market company and solution and then be able to fill in those gaps where they fell short. So it can actually end up being a real advantage and I think in healthcare it's especially challenging to 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. 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 company that I've built, but it's something that really I think it's often overlooked in healthcare 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 is and 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 circumvent the traditional healthcare system because you know of all the obstacles and barriers that are built into it, and they're going to go direct to consumer. And the reality is is that's really a tough route. Customer consumers are are not willing to pay for a lot of these healthcare things. You know, it's just been ingrained in us for decades that we expect those to be covered by our health insurance and we're not paying out a pocket for it. It's a huge behavior 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 identify who's paying for it is going to be in important to the viability of the business. Interesting. Yeah, I'd be very curious and will have to do an episode on this some time if you have some strong opinions. But I'll be very interested to know what you think...

...of LASIC and other director consumer type of services and how they took off maybe some of the things that they did well and didn't. But let's talk about feasibilities. talked about kind of analyzing kind 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 and determine whether you're too late, if fast followers an advantage, if you can do something different, like, how do you look at that in terms of feasibility? Yeah, so if you are, you know, so if your first to market, then you're typically absorb, absorbing a huge chunk of the costs of 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 so being 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 market is and how you fit in. Is...

...there a space for you to play? And you know, most of the time, you know, sometimes I'll work with you know companies and they want to go in with the cheaper price and 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 the company 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 be able to bring this healthcare innvation to market. Yeah, I was talking with with another podcast host and certain you know who provides a service. He's entrepreneurs in his own right. We're talking about that a little bit and one of the things that came out of that conversation was just it's a good it's a good question to ask yourself if I had to double my price, but the service 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 the only competitive advantage is the fact that you're offering it a lower price than you've got an issue. You got to find...

...something else. So it's just a good 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 the product or service? So I love that. Yeah, it's all about doing something different, 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 you know if you can validate these three that factors, that allows you to kind of confirm your product solution fit. It also allows you to confirm your product market fit, and it's really when you're able to accomplish those two things that you are moving towards commercial success. So those things are not 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 products solution fit 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 or you know like it, like strategies, hard mental thought, but it doesn't take 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 we can get them involved, the better. Speaking of that, you're actually doing a workshop that the listeners might be able to still attend, but I would love them, for them to know about at the very least, because you're doing a whole workshop on cocreation, coproduct creation. Where can people learn more about that and how to get to that particular event? Great question, Matt. So the Connected Health Conference happens in Boston in October. I think the dates are like the sixteen to the eighteen or something, and so I'm going to be leading a patient co creation workshop...

...we'll talk about the how's, the wise the what's of patient co creation and I'll be doing that with one of my colleagues from David Gold Seeing Goldsmith, from we go health and and so people can find out more information about that on the connected health website. Love to have folks join us. Yeah, and we'll throw a link to that in the show notes so people can get straight there and double check the dates and all that stuff. So now nothings, nothing has to be exact. So they can check that out and make travel plans and stuff. But besides listening to you know, Cyq, getting it on on Apple podcast and spotify and Stitcher in all those fun places, where else would you like to send people for them to learn more and kind of dive into a little bit of the 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 then that'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. Thank you, Matt. Appreciate it. By Bye. What's the difference between launching and 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 to watch past episodes of the show, head to our video show page at Dr Roxycom. Thanks so much for watching and listening to the show. You can subscribe 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 the platform, just search coiq with Dr Roxy. Until next time, LET'S RAISE OUR COIQ.

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