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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
Alex Xiaogung Zhu
Manager, SKIM