Health Innovators
Health Innovators

Episode · 2 years ago

The Difference Between Launch & Commercialization

ABOUT THIS EPISODE

People often use the terms “launch”, “go-to-market”, and “commercialization” interchangeably, but it’s important to separate them. What are the core differences between a launch strategy and a commercialization strategy? What are some of the considerations made in commercialization that aren’t included in a launch strategy? On this episode, we talk about the key factors that make a difference in commercialization and launch.

3 Things You'll Learn

  • The key differences between launching and commercializing a healthcare innovation lie within the company's goals and when to engage your strategy team.
  • The goal of a launch is to maximize awareness, while the goal of commercialization is to maximize profit.
  • There’s a lot of strategic decisions that are part of the commercialization process that are not typically considered in a launch strategy. For example, timing strategies.

 

The distinction between launching and commercializing an innovation in healthcare is very important. Commercialization is the most critical stage of the innovation process. The strategic and tactical decisions involved in the commercialization process are deeply connected in ways that often go unnoticed and the effects of these decisions heavily shape and influence market success.

For example, timing strategies are often not included in a launch plan. Many health innovators just launch their new product when it's complete without any strategic consideration about the advantages and disadvantage of being first to market, a fast follower, or late follower.  

A commercialization strategy defines a clear path to maximizing ROI of the innovation and the strategy development process starts a lot earlier than launch.

Many healthcare innovations will launch, few will commercialize.

Welcome to Coiq and first of its kindvideo program about health, innovators earlier doctors and influencers, andthey are stories about writing the roller coaster of health care andovation. I'm your host Dotor Roxy, founder of Legacy, DNA marketing groupand it's time to raise our COIQ welcome back on today's show. We don'thave any guests with us, but we have our producer match Johnson with us andwe're just going to jump right into this. Show this episode we're going tobe talking about. What's the difference between launching and commercializing ahealthcare innovation, that's right and super excited to talk about thisbecause its something that a lot of your clients they understand once theywork with you. A lot of the folks out there that are working to launch aninnovation into healthcare. Probably don't understand this, and so we'regoing to be talking about some things that are going to be super helpful anduseful to anyone that has an innovation that they want to get out there andcommercialize it. But let's talk about...

...the difference in term, so what youfind is a lot of people kind of use. These terms interchangeably and throwthem around as if it'r the same thing, but to you. Why are they two differentthings to begin with? Yeah Ma, that's right! So when people reach out to us alot of times, they use the terms launch or go to market and commercializationinterchangeably, and so we start off having a conversation on what's thedifference, and I would define that in two different ways. I seey that there'stwo factors. One of those differences is the timing of that process and theother one is the goal of that process. So when you are launching a product,it's usually the last step in the innovation process, so you would havegone through the idea conceptualization, maybe even the pilot phase and nowyou're ready to launch so you're, usually looking for a marketing partnerand go to market partner. S Help me launch this product into themarketplace, and the goal of that is usually to maximize awareness of theinnovation or maximize interest in the...

...innovation, whereas with thecommercialization process. This is something that starts much earlier thanlaunch. This is way before product is ever developed. So it's mostly startingduring the idiation or conceptualization part of the process,and really that commercialization is going well beyond match. So the timingof that is very different and in the distinction they ares really important,because there's a lot of decisions that are being made in the commercializationprocess that are either overlooked or not considered during the launchprocess. And then the second piece of that is the goal. So the goal forcommercialization is to maximize ry from that innovation. So when we saycommercialization we're thinking of what is the strategy and plan formaximizing profit from that innovation, yeah, which makes sense if Gyou've gota launch which the goal is to maximize awareness right versus acommercialization strategy which is...

...actually set out to maximize ry rightto get actual real results and get in people buying and investing in theproduct getting them investing in the idea of what you've created. So it justdoesn't go out there and people are aware of it, but then nothing happens,which is a a distinct possibility. You're, definitely fighting ENOPGH fillbattle anytime you're launching something new kind of into the market.So, let's talk about being like where does launch kind offit in in your world like when you do a launch properly, where does launchactually kind of fit into what you think of is commercialization? Why itlet kind of go a little bit deeper into why thereare two very different thingsyeah. So when we start off developing the commercialization strategy or plan,we start off with looking at the product and we look at things like:what's the minimal viable product and not just the minimum features andfunctionality that a product would need, but specifically through the Lens ofthe earlier doctors, what's the minimum value that this product or innovationneeds to deliver specifically to the...

...early market, which will be verydifferent than the mainstream market? If someone is coming to us to launch an innovation, we might be looking at more of thebroader market and looking at the mainstream markets needs and the valuethat that innovation is delivering, which would be very different than justthe early market. Yeah, that's so that's so true and itssuch a hard concept. I think for people to wrap their brains around, which is we don't go to market with thething that we think is going to appeal to the mainstream right away. We go toa different market right, usually more sophisticated market, I'm assuming ifwe're talking about early adoptors, and so you have to create a different typeof value. But then there has to be a very clear path from okay. If we'regoing to follow that strategy, there has to be a very clear path from here's,the minimum value that we start creating, but here's how we build itinto our ultimate vision, because I think if people are going to acceptthat idea that we need to start with an...

...early adoption and kind of a minimumvalue first, that has to be a path to eir their greater vision and that's rfrom what I understand. That's kind of part of the process that you' help walkthem through yeah, because a big challenge that happens is when clientswill come to us or health care. Brands will come to us if they're looking forjust a launch partner, they've already made a lot of those product decisions,and so then we are finding that majority of the time thatthey've really overdeveloped the product they're adding a lot offeatures and functionality that either the early market does it want orthey're investing so many resources in the product making sure that it is notjust perfect, but it just has every bell and whistle that t that sometimesthey have very limited resources to actually take the innovation to market,because they've spit so much into the product, and you can imagine howsuccessful that's going to be if you're investing millions of dollars in theproduct and then you've got fifty sand...

...dollars to actually commercialize it yeah, that's not a fun position to beit, no, no, not at all, and so the commercialization. You knowwe start off talking about the product and what that minimal, viable product.We have conversations about timing, and, what's really interesting, is a lot oftime. People think that the timing for their commercialization strategy iswhen the product is ready and they really don't give it any type ofconsideration around. Should we be first to market, what's the riskexposure for being first to market versus being. Second, a lot of peopleassume that being first to market is kind of, like the sure thing winningstrategy, and if you look at research, you actually see a lot of times thatthat's the opposite of the case. There are a lot of advantages of being firstto market, but there are a lot of disadvantages to and if you can imaginebeing a fast follower, you get a chance to look at those companies that havecome before you see what mistakes they've made see. What's resonating andnot resonating wherear those gaps, and...

...then you can tweek and modify yourinnovation to fill in those gaps. So there's there's a whole lot ofstrategic consideration around timing strategies that are part of thecommercialization process. That again are not typically considered if you'rejust thinking about launch because or go to market, because it'spredominantly lookin in at communication. You know messaging andCha communication channels, yeah exactly because all you mentioned thatall a lot of those decisions are already made. So I wanted to throw outsome things that you would ideally if they were working with you from the from the right stage andsetting it up and and kind of getting them on the right path. You'd behelping with things like product identity, logos, visuals, developingthe advertising and things like that to where you're not taking somethingthat hey. This is the way it is, and now, let's figure out how to wemarket this thing, but instead taking more holistic approach and startingwith the market and really looking at what do they want and then what doesthat subset of them want? That's most...

...likely to jump on this thing right outof the gate and then figuring out? Okay, how do we deliver he exactly that tothem, so they'll be super excited about it and then they're going to help themainstream adopted and to me that s? It's just it's super unique. I don'tsee anybody else really taking that kind of a strategic approach, becausemost people would rather try to go for the mainstream right away. They'reimpatient, H, they'll spend all the time behind the seems, like you said,overbuilding the product and the so little time on the marketing but ther.It's really they're, not they're, not taking the market into considerationand what they want. Absolutely and in what I see,especially in any industry, but especially in healthcare, is that thhealth innovators will have a tendency to become very discouraged because theyare taking their innovation that something that would be veryinteresting and appealing to the two point: five percent innovator market orthe thirteen and a half percent earlier doptor market right so that firstsixteen percent. But instead they go...

...out to the mainstream market and try toconvince them that they have a problem that needs to be solved and to to buythis innovation and there's a misalignment between the messaging andthe market. So they're kind of maybe using that sophisticated, highlytechnical messaging, which resonates with early adopters but they're usingthat messaging towards the mainstream market and the mainstream market. Don'twant innovative new, no one tried it before they won the ones that timetested proven. Give me the twelve case studies you know. Let give meconfidence and assurance that this is effective before I'll, even consideranything, and I also want to know that the people in my network have used itsuccessfully as well and think really highly of it, so that post, purchase attitude or perspective isreally important for engaging the mainstream market, but thatmisalignment can make a world of...

...difference between market success andfailure. Yeah, it's interesting to think about when you, when you putsomething in front of the mainstream market, what what are they going to do?How are they going to react, and you pointed it out exactly theethey'regoing to look for the proof they're going to look for? Who Else do? I know that's already doing this alreadyengaging its already interacting with this. What's their experience like andthen beyond that they're also going to look for. Okay are other people asclose to me as possible, like the Pertof, like what are other people wholook exactly like me and have exactly my circumstances. What's theirexperience, because yeah, the mainstream has a very different outlookin a much more risk, a verse outlook than than your early adoptors. Thoseare the ones that are most likely to try something new right, you're, rightdoctors and, and so it has to be a very specific strategy which well we'll getinto that another episode, because you have a whole strategy for really how togo to that Segmento market. But I think if anybody pulls something out of thisepisode, just that that idea that the...

...mainstream has a certain way ofthinking and a lot of the ways that health care ennovations are launchdinto, the marketplace just doesn't match how the mainstream behaves andhow they make decisions yeah, and if you're, launching a health care,enovation or commercializing a health carenovation you're going to be reallydiscouraged and think that there just isn't a fit for your innovation. If youare continuously trying to get the MAINSTREAMG market to buy it first yeahexactly I a little bit of like what are some of the other symptoms. So let'ssay somebody has done that they've, just they've got a great product, agreat innovation, theyre messaging. Just it's not quite right: it's notresonating. They can't seem to find their flooting they're, not gettingtraction. What are some of the other symptoms like how does that show up inthe business and how does that show up and what hey what they hear from themarket yeah. So one of the the common pitfalls that I see and heareabout is unclear positioning. So I have thisrevolutionary innovation and I'm trying to get my get the target market tounderstand...

...what I have to offer, because it's sorevolutionary that I have a tendency to start comparing it to something else sothat they can relate to it. But then, when I do that, I'm taking thatrevolutionary sophisticated nature out of it and I use apples. You know acommon example that most of us can relate to. But you know the the ipodwith a thousand songs in your pocket, so this was an innovation that we hadnever experienced before and apple didn't come out and say well, it's kindof like a Sony Walkman, but you know that would have just completelydevalued the innovation an and so that that positioning strategy is reallyimportant, that you want that the early market is going to be most interrestedand those things that no one else has that's extremely revolutionary and thepositioning. The messaging need to be aligned with that Y hundred percentyeah, ind TNE. There's then there's over time. You see a shift take placeas the more you get to the edges and...

...most of the early adoptors have jumpedon great. Then your messaging has to shift, and you start to appeal to themainstream, and you have your case studies. You have your success, youhave all your proof and then that's you in there's a major shift, and so I lovethat kind of that progression. So for people that are that are interested inthey're, saying, okay, I've got all the painpoints right O or I can see thishappen like. I can see that I'm already starting to kind of fall into someof.Those pitfalls that you talk about. I would totally go out and talk to themainstream as if they were early. adoptors now would use all the insidelingo, and I use all the jargon and all this stuff. How does somebody reach out connectwith you learn a little bit more about what you guys do, so they can preventfalling into those pit pulls so a so. You can visit our show website at DrRoxycom or you can visit our agency website legacy, legacwy hyphen dnacom,and you can reach us at both of those places and get a better understandingof the commercialization services that we have to offer perfect all right, Dr Roxy, this isfantastic. I love this conversation so...

...in future episodes we're goin to bediving deep into certain topics, but for those of you that are listening,definitely check out the next one that we're going to do. I like a really deepdive into on the early adoption strategy. Cal, I think that's going tobe fantastic. Excellent thanks, bat appreciate it. 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 Roxey untilnext time. LET'S RAISE OUR COIQ.

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