using behavior-based market sizing to inform global medical device innovation decisions

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Using market build to inform global

product innovation decisions

Ani Chatterjee

Becton Dickinson

Alex Zhu

SKIM

Who is BD?

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FORTUNE 500 company

Locations in more than 50 countries

Nearly 30,000 associates worldwide

Serves healthcare institutions, life science researchers,

clinical laboratories and the general public

Sells a broad range of medical supplies and services,

devices, laboratory equipment and diagnostic products

500

50

30k

BD Locations

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Industrialized Markets

Emerging Markets

Latin America - 1952

• ~5,200 Associates

• 8 Countries, 5 Plants

U.S.A. - 1897

• ~12,000 Associates

• 29 Plants

•

Canada - 1951

• ~550 Associates

• 1 Plant

Asia Pacific - 1971

• ~4,600 Associates

• 16 Countries, 5 Plants

India - 1995

• ~550 Associates

China - 1994

• ~2,200 Associates

Europe - 1952

• ~6,000 Associates

• 21 Countries, 10 Plants

•

Japan - 1971

• ~600 Assxociates

• 1 Plant

EMA - 1994

•~ 250 Associates

• 10 Countries

*note: last updated April 2013

Critical Care Molecular and Proteomics Urine Collection

BD PAS: Leaders in Specimen Collection

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BD Microtainer®

Contact-Activated Lancet BD Vacutainer® Push Button

Blood Collection Set

BD Vacutainer® Blood collection tubes

Urinalysis

Products

BD Microtainer® Blood

Collection Tubes

Microbiology

Products

PAXgene® Blood RNA System

BD Vacutainer® Laboratory Consulting Services

ABG Products

Venous collection Capillary Collection

Customer centricity drives innovation

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• VOC

• Outcome-Driven Innovation

Needs

Assessment

Identify the most promising

innovation opportunities

Ethnography • Observation Research

• Interviews Identify the customer behaviors

you want to change

Market sizing

• Segmentation

• Size and Growth

Characterize the commercial

landscape for the innovation

Benefits study

Concept

Research

• Choice Models

• Market Simulation Prioritize customer requirements

to justify innovation opportunity

• Concept Ideation

• Design and Usability

Research

Develop concepts that

address customer needs

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Frame the Market Quantify the Market Prioritize Opportunities

Examine the market through

several lenses, e.g.,

– Regions / countries

– Settings of care

– Context of blood collection

Lenses chosen to align with

value propositions of

innovation concept

Cut quantitative data to fill in

details for each “cell”

– Size

– Growth

– Profitability

Both current and projected

market

Develop a preliminary

assessment of market

opportunities

– Based on key quantitative

data and BD ability to

address with concept

Prioritize opportunities and

align with development

strategy (concept

downselection)

Market build

Key behaviors often hidden beneath sales data reporting

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Who is using it?

Where are they

using it?

What are they

doing with it?

And WHY?

Account

ED

ICU

OR

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Informing Global Innovation

Decisions Of A Blood Draw Device

Case study

• Acute care settings: ED, OR, ICU

• Region: US, EU5

• Target audience: Nurses, PAs, RTs

As a key step in innovation process, we needed to evaluate

the commercial opportunity

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• VOC

• Outcome-Driven Innovation

Needs

Assessment

Identify the most promising

innovation opportunities

Ethnography • Observation Research

• Interviews Identify the customer behaviors

you want to change

Market sizing

• Segmentation

• Size and Growth

Characterize the commercial

landscape for the innovation

Benefits study

Concept

Research

• Choice Models

• Market Simulation Prioritize customer requirements

to justify innovation opportunity

• Concept Ideation

• Design and Usability

Research

Develop concepts that

address customer needs

But we had a few challenges in characterizing the

commercial landscape

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• Practices across hospitals or

even across departments within a

hospital vary significantly

• Value proposition of the concept

is highly dependent on the draw-

scenario use case

• Sales reporting often gives an

incomplete picture

How many blood draws

does a new device

potentially serve?

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Conceptually it is similar to create a Super Bowl fan map

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Map out how users draw blood for a specific scenario and

size each cell in this behavior matrix

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Department (ED, ICU, OR, PICU/NICU)

Arterial

Single-

draw

Tube

Line Stick

Multi-

draw

Syringe

Blood gas

syringe

Venous Capillary

Country (US+EU5)

Device used

Sample type

Draw

Scenario

Access type

Clinical

setting

Region

Layering over with innovation concepts’ ability to serve

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Department (ED, ICU, OR, PICU/NICU)

Arterial

Single-

draw

Tube

Line Stick

Multi-

draw

Syringe

Blood gas

syringe

Venous Capillary

Country (US+EU5)

Device used

Sample type

Draw

Scenario

Access type

Clinical

setting

Region

Essentially we need to build the market from bottom-up

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# of ED visits

% of visits drawing blood for a specific

scenario

# of draws/visit

# of EDs

% of EDs drawing blood for a

specific scenario

# of draws for EDs conducting a specific

scenario

Top-Down Bottom-Up

volume

volume

Market build framework

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• Number of

departments (ED,

OR, ICU and etc.)

• Multiple national

reputable sources

(e.g. American

Association for the

Surgery of Trauma)

• Percentage of

departments using a

specific type of blood

draw

• Avg. annual number

of a specific type of

blood draws per

setting

• Proportion of draws

by segment (sample

type, access type,

scenario and device)

• Triangulation is the

key

• Mean vs. median

• Sensitivity analysis

(25th/75th percentile,

error bar)

• Sales data

• Cross-check with

reputable published

data (e.g. AHA, CDC)

Primary data Secondary data Risk mitigation

Survey instrument design

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Sample a large gen

pop of acute care AHPs

Main Survey

• Hospital level information

• Whether their department utilizes a specific draw

• De-duplicate with identifier such as zip code

• Department level information (over-quota)

• Patient load

• % of patients requiring a specific blood draw

• Daily # of such blood draws per patient

• Days of admission

• AHPs conducting a higher number of such blood

draws

• Individual practice level information

Screening

Extended screener

Screening

National # o

f dra

ws

User

Beha

vio

r

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Informing concept selection using market build

Concept 1 Concept 2 Concept 3

Scenario 1

Stick

syringe

tube

Line

syringe

Scenario 2

Stick

syringe

tube

Line

syringe

tube

= perfectly

integrates

= additional

steps

required

= does not

work

69%

40% 20% 16%

29% 37% 47%

57% 63% % of market a

concept serves

Considerations of conducting a market build

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Create the

methodological

roadmap

Differentiate

“must-know”

from “nice-to-

know”

Get the input

right

Impact for the business

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• Inform department and country prioritization for next steps in

market research

• Gain a better understanding of customer behaviors and

better position the concept

• Support ongoing R&D investment decisions

• Quantify behaviors to change in order to drive health

outcomes (HEOR modeling)

Success Factors and

Takeaways

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Success factors

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• Define the minimal level of clarity for decision-making at outset

• Structure the approach systematically

• Constantly align with marketing, R&D and strategy

• Triangulation is the key for senior management support

Takeaways

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• A market build provides a more realistic view of opportunity

especially when market segments are better characterized by

users’ behaviors than demographics

• A market build is very useful to inform innovation decisions

throughout the research & development process

Contact us

Ani Chatterjee

Manager Strategic Innovation, BD

Aniruddha_Chatterjee@bd.com

Alex Xiaogung Zhu

Manager, SKIM

a.zhu@skimgroup.com