Health Innovators
Health Innovators

Episode · 2 years ago

The Keys to Launching a Successful Pilot

ABOUT THIS EPISODE

“Death by pilot” is a phenomenon that happens far too often for healthcare innovators, and it can take them out of business before they even start selling anything. What is the root of this problem, and what are the initial mistakes innovators make? What are the things you need to nail down before you launch a pilot so that it doesn’t mark the end of your business? 

On this episode, I talk about how to have a pilot that actually leads to sales and avoids “pilot purgatory”.

 

3 Things You'll Learn

  • Many innovators get so excited that someone was interested in their project they accept everything during the negotiation process. This is how they end up with unfavorable terms.
  • If you don’t negotiate any sales terms for the end of the pilot, you can be left holding the bag.

  • You want to have a pilot of early adopters because they are the people with a higher likelihood to buy your innovation after the pilot. 

 

When health innovators have to launch a pilot in order to establish medical validation or clinical evidence, they can end up in pilot purgatory and go out of business before making any sales. In order to get a good outcome from the pilot, you have to know what it’s actually for. The pilot is the pathway to demonstrating safety and efficacy. You still need sales afterwards for it to be viable. Your negotiations, goals, and KPIs should be going in that direction.

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 doctor, Roxy Founder of Legacy, DNA marketing groupand it's time to raise our COIQ wcome back to the show on anotherepisode of Coiq with Dr Roxy. I Have Matt our producer with us today,instead of a guest, and he is going to have a conversation with me today andwe're going to talk about death by pilot Nomenon that his seems to happen very often yeah, and this was this- is superfascinating. So, let's start with differend defining the terms death bypilot, because I'm assuming this is not a reference to air crashes. What is that the listening audience knows thatyou're till you're talking about pilot programs. What do you mean by Jesth bypilot yeah? So I use this phrase I have...

...talked to so many health care,innovators and when I say death by pilot. What I mean is this phenomenon,where health innovators end up having to launch a pilot in order to establishthe medical validation or clinical evidence that they need for theirinnovation and they get stuck in one pilot after another and their businessends up going under before they ever generate enough clinical evidence tostart generating sales, and I like to say that yea, I feel so bad for thesehealth innovators, because I say that they're stuck in pilot pargatory andit's a thing. It's really it's a real thing that I think a lot of H, healthinnovators can relate to well. Let's start, let's start at the at the kindof the Roote of the problem, some they get the initial opportunity. They'resuper excited, let's walk through that a little bit. What are some of theinitial mistakes right out of the gate, some of the things they don't nail downthe agreements, the pitfalls things like that when the when you first getthat pilot yeah sure. So when I'm talking to these health ennovators,they get so excited they're like yeah,...

...and I got this pilot and they're justthinking that you know it's going to be a home run now that they've got thispilot and then they end up having this, you know rude awakening and there's acouple of things that they either don't do what they could do to make that a abetter situation and a get a better outcome from that. So when they'renegotiating this pilot agreement, just because they're so excited that Ifinally got someone that's interested in my innovation. You know the wholenegotiation process is just kind of like yes, yes, yes to the hospital tothe health play and whatever, whatever your terms, are, let's do it because Ijust want you to say yes, so I can go down the street and say: Oh I'm doing apilot with John Hopkins or I'm doing a pilot with you know Florida Hospitaland and forget that, through that pilot agreement, I need to do certain things.I need to make sure that in that contract, language that we're measuringcertain KPIS, whatever those indicators are to establish that clinical evidence.I need to make sure that I get access to the data and make sure that that'spart of the agreement, because you know...

...we have a pilot, but I don't have thedata to prove it. Han thit was really Worriedu O. I n Si to the ply whateveractually happened, yeah exactly and then the third thing is, you knowagain. It seems like it would be obvious, but a lot of people miss. Thisis some type of terms that, if Xy and Z happen, then that's going to lead tosales bcause, because you know t the pilot is really supposed to be just thepathway to demonstrating safety, an efficacy, and I need sales and O t'stoo many times. I hear that the health innovators will have a pilot with ahospital system or a health playand everything goes smooth, they couldn'if,they couldn't have asked for a better pilot scenario. You know patients aregetting better or they're. Actually, adopting you know the mobile APP or youknow the Widgit, and but then it doesn't lead to sales, andso you know this, it becomes an allugend or the the innovator becomesdelusion that just because they have a...

...pilot that that's going to be on thepath to success and really, if you don't negotiate any sales terms at theend, you can really be left holding the bag and a lot of a lot of innovatorsend up going under before they actually generate any revenue because they getstuck in this pilot, purgatory yeah and how, when you say stuck in it because ewe gave the example of just how maybe one specific pilot can go. You knowjust doesn't produce the results that you want Ot. It could go well withoutproducing sales. But what do you mean by pilot purgatory? Are we going fromone pilot to the next wee? We getting stuck in one really bad pilot with badnegotiated terms. What are we talking about? Yeah so I'll give you a scenarioso ias talking a couple of diferent innovators, and this is kind of whattypically happens. I'm sure our audience will be able to relate to this.So again, I'm a health innovator. I go out to a health system, everybody'sreally excited. We ink the deal for the pilot and I'm excited about it. The pilot isunderwe and so now onm negotiating...

...terms with another hospital system inthe same area. So, let's just say, for example, OORMC or Lando, regionalmedical was the was the first hospital. So now I'm pitching Florida Hospitaland you know to adopt the innovation and they say oh well. We need to do apilot and I'm thinking, I'm so glad you ask for this, because I actually justdid a pilot with ORMC in the same market and I'm going NA. You know share thatclinical evidence with you and they go. No, No, no O. No, our patientpopulation is different Yolev. Our pation population is different andyou're. Like no B were both hospital systems are in the same city andthey're like yeah, but we have a different patient population. So, inorder for us to adopt your innovation or even consider rolling it out, we'vegot to do a pilot here too, and so it becomes pilot after pilot after pilot,and you run out of money you before you ever actually startgenerating tin sales, and so it's a real problem, and so that's why I saystuck in pilot purgatory, because it's...

...one pilot after another and now healthinnovators- I hear this over and over is when am I going to actually get tothe end of this, where it's going to be enough clinical evidence to actuallystart generating revenue? Yeah a that's interesting. So let's talk a thout. Wetalk a little bit in a previous episode, which everybody should go check out ofjust about the difference between launch and commercialization, and wetalked a little bit about. Who Are you speaking to right? Are you speaking tothe mainstream? Are you speaking to the early adoption, and so kind of yoursolution to this is is really part of your whole strategy of going to theearliadoptors First O. Let me ask you this: When you do a pilot, howimportant is it to understand the person that you're dealing with andwhether they're a part of the mainstream or whether they're a part ofthat early adopter, because it seems like that would drive a lot of the outcome of the pilot and whether itactually leads to sales? Absolutely I mean, I think thatsometimes you know these health inevators just spinning their wheels ifthey are looking to do a pilot with a...

...hospital system or health plan that isreally part of the mainstream market and they're, not one of the Earliadoptors. So you know, I would say that you want to be able to get pilots withthose earlier doptors, because those are the ones that are going to be morelikely to buy at the end of the pilot, instead of just doing a pilot and goingyeah that was great and then how common? Is it hat? Whattype tell me a little bit about this? This scenario, where you can walk intoa pilot and come out with an agreement that, if this pilot does what you saywill do and everything looks good and it comes out th the way that we expectit to that we will buy at the end of this pilot. What is that? What does thescenario look like? What is the company? How is the company positioned? How isthe innovation position? Put you in that kind of a negotiating position? I think that you have to you know, identify one. You know whatis the patient population that's even viable for this, and you know what isthe percentage of the patient...

...population that's participating in thepilot? Are you going to do you have enough people participating to be ableto extend those results or have those results validate the entire populatpatient population, because I think another thing that you don't want toget involved in is I did a pilot, but we did a pilot with fifty patients andnow they're still unsure on whether that's going to really those resultsare going to apply to the ten thousand patients. So I think making sure thatyou've got a the right sample. Size is going to be really important fornegotiating that entrant having some early dialogue ordialogue early on in the process of you know, how likely are you to buy and inand let's put that in writing- let's put that in the agreement that if aband C happene, then you are going to buy and be specific and I think healthinnovators are like they just struggle with havingthat negotiation power, because all the...

...power really is with the health systemor the H hospital system and in and so I might acquiesce or mightnegotiate to less than favorable terms, because I just want to be able to saythat I have this pilot going on. But if it really doesn't amount to anythingrevenue wise at the end of the day, then it really is just a waste of time. It's interesting yeah, the it all itall deals with with limiting beliefs and personal development and all kindsof fun stuff. But it is interesting. There's I think, there's when you talkabout negotiation and getting the best most favorable terms for a pilot beforeyou even start. There are thereare some negotiating tactic, things that you'vetalked about that have been very helpful, but the flip side of that isthat, hopefully, if they've been working with you through that processand they're being guided through an early adoption strategy, with your helpto me, what that does, I helps position them differently, so that thenegotiating conversation changes a it's...

...qualitatively different right. It's notjust a matter of well. I could have massaged that a little bit differently.I could have said some things differently during the egotiation to mewhen you're, when your company is positioned well and you're, coming infrom a position of strength that changes the quality of the negotiation,and I think that's part of what your goal is when you're working throughthis early adoption strates is to position them completely differently.So then, not in in a weakened put. You know kind ofnegotiating position where they are kind of at the mercy of these hospitalsystems and other types of people they're. Trying to sell to- and theyhave to Acquiese on all these terms right right, yeah, and it really goesback to what we're talking about. One of our previous episodes, like you hadmentioned about the difference between launching commercialization. So ifyou're, just looking for a launch plan, you'Ryou're not generally developing apilot strategy or a pilot planned, it's just, it's a lot more ad hack, and it'snot part of that. Whereas you know from our point of view, it's a veryimportant incritical component of the early adoption strategy going forwardof that commercialization strategy...

...to make sure that you have marketsuccess, love it and I know we'll go into futureepisodes or talk a little bit more about early adoption strategy. Yoyou'll talk to some founders that have tathave walked through thissuccessfully and can share their own experiences with going straight afterthe early adoptors, and why that's important so definitely for the folksthat are listening, go check. Those other episodes out. What's the best wayto connect and just get into your world lern a little bit more about the coiqstrategies and gramework sure. So you can go to Dr Roxycom and check out ourshow website, or you can go to legacy hyphen dnacom and get more informationabout the commercialization services that we offer perfect rrocki fantastic.I really enjoye the conversation. I know people on the listening, an D gota ton of value from it because I'm sure you're describing exactly te that whatthey're going through and and give some great tips to solve us. So thank you somuch. Thank you, Byebye! 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 thanks 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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