Commercializing Your Commercializing Your Healthcare/IT/Media Healthcare/IT/Media ProductProduct

By Shahid N. ShahBy Shahid N. Shah

CEO, Netspective CEO, Netspective Communications LLCCommunications LLC

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Who is Shahid?Who is Shahid?

CEO, Netspective (CEO, Netspective (http://www.netspective.com))

15+ years of entrepreneurship experience15+ years of entrepreneurship experience7+ years of executive technology management experience as 7+ years of executive technology management experience as CTO, Chief Architect, etc. in healthcare IT firmsCTO, Chief Architect, etc. in healthcare IT firmsLead/Analyst/Consultant on numerous consulting projects in Lead/Analyst/Consultant on numerous consulting projects in the past 9 years. Sample clients:the past 9 years. Sample clients: Executive Office of the President U.S. Patent & Trademark Office (I train them and I have a patent) Northrop Grumman CardinalHealth NIH American Red Cross

Read my blogs to learn more:Read my blogs to learn more: http://shahid.shah.org (technology) http://www.healthcareguy.com (healthcare IT)

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Marketing, Advertising, PR, Marketing, Advertising, PR, BrandingBranding

Source: Brand Autopsy Blog

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Healthcare Industry FallaciesHealthcare Industry Fallacies

Healthcare folks are neither technically Healthcare folks are neither technically challenged nor simple techno-phobes (they’re challenged nor simple techno-phobes (they’re busy saving lives)busy saving lives)

Most product decisions are no longer made by Most product decisions are no longer made by clinical folks alone, CIOs are fully involvedclinical folks alone, CIOs are fully involved

Complex, full-featured, products are Complex, full-featured, products are not not easier easier to sell than simple, stand alone tools that have to sell than simple, stand alone tools that have the capability of interoperating with other the capability of interoperating with other solutions aresolutions are

Hospitals will Hospitals will not not buy unless one proves value.buy unless one proves value.

Selling into doctors offices is Selling into doctors offices is not not easy.easy.

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Marketing Issues to Be Aware ofMarketing Issues to Be Aware of

Define your market clearly (this is much Define your market clearly (this is much harder than it seems)harder than it seems)

Phase I & II funding is not to be used for Phase I & II funding is not to be used for marketingmarketing

If marketing and sales is not your core If marketing and sales is not your core competency, consider outsourcing this competency, consider outsourcing this function (plenty of people are out there, function (plenty of people are out there, but most may not know what you do)but most may not know what you do)

Generally, marketing and sales expense Generally, marketing and sales expense far exceed cost to produce product.far exceed cost to produce product.

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Competing With Free ProductsCompeting With Free Products

Many public/behavioral health Many public/behavioral health products are provided by the products are provided by the government or non-profits for free.government or non-profits for free.

Critical for your product to have a Critical for your product to have a discriminator (technology or discriminator (technology or innovation)innovation)

Price points generally have no Price points generally have no relationship of the cost to produce.relationship of the cost to produce.

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Barriers to MarketingBarriers to Marketing

Competing with products that are Competing with products that are provided for freeprovided for free

Shrinking resources (money) available Shrinking resources (money) available for purchasing productsfor purchasing products

Too much noise in the market placeToo much noise in the market place

Saturation of products in market placeSaturation of products in market place

Niche markets don’t support ROI for Niche markets don’t support ROI for marketingmarketing

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Conducting Market ResearchConducting Market Research

Find the right search terms for your Find the right search terms for your industry or product. Don’t be esoteric.industry or product. Don’t be esoteric.Using your search terms, locate your

competitors and existing firmsOnce you know your competitors, call

them up and ask them about client references

Call up their clients and talk to them about their products and services and what can be improved

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How Tech Helps HealthcareHow Tech Helps Healthcare

Fraud detection and improved billing Fraud detection and improved billing (revenue cycle management)(revenue cycle management)

Offshoring. Inshoring. Offshoring. Inshoring.

Convergence of healthcare IT and Convergence of healthcare IT and clinical engineering. clinical engineering.

Virtual clinicians in radiology and ICU Virtual clinicians in radiology and ICU monitoring. monitoring.

Data interoperability for medical Data interoperability for medical records.records.

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Business Models that help Business Models that help MarketingMarketing

Software as a Service (SaaS) and Software as a Service (SaaS) and subscription modelsubscription model

Consulting and Solutions modelConsulting and Solutions model

Licensed modelLicensed model

Freemium model (and open source)Freemium model (and open source)

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Some Success CriteriaSome Success Criteria

Easy to explainEasy to explainDefendable and differentiatedDefendable and differentiatedAttractive partnership opportunitiesAttractive partnership opportunitiesWord of mouth opportunityWord of mouth opportunityPotential for PRPotential for PRScaleable staff and systemsScaleable staff and systemsScaleable product — build once, sell many timesScaleable product — build once, sell many timesUncomplicatedUncomplicatedFocusedFocusedSales model is scaleable and predictableSales model is scaleable and predictableOwn relationship with and information about Own relationship with and information about customerscustomers

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Sealing the DealSealing the Deal

Research based products that are Research based products that are proven effectiveproven effective

Partnering and endorsement with Partnering and endorsement with accredited institutions or associations.accredited institutions or associations.

Partnering with private sector Partnering with private sector (Pharma, Managed Care, etc).(Pharma, Managed Care, etc).

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Tracking SuccessTracking Success

Establish realistic success criteria up Establish realistic success criteria up front.front.

Success may not be measured only in Success may not be measured only in terms of revenueterms of revenue

Set up systems to track sales and Set up systems to track sales and distribution in house or through distribution in house or through distribution partners.distribution partners.