Post on 20-Jul-2015
www.smiths-medical.com © 2012 by Smiths Medical: Proprietary Data
Embedding Market Intelligence in Strategic Planning and ImplementationNadia Smulian Director, Market IntelligenceOctober 2012
© 2012 by Smiths Medical: Proprietary Data
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Nadia Smulian Oct-12
Smiths Group: how it all began
1851…
Early 20th century…
1930s…
…and now
Clocks & Watches
Avionics
Car Speedometers & Odometers
© 2012 by Smiths Medical: Proprietary Data
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FY 2012 sales £3.04 Bn
Headline op profit £554 m
Operating margin 18.2%
EPS 92.6
Market cap ~£4.3 Bn
FY2012 Sales
© 2012 by Smiths Medical: Proprietary Data
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Nadia Smulian Oct-12
Smiths Medical: Bringing Technology to Life
Deliver Medication Provide Vital Care Keep People Safe
• Reduce programming & delivery errors with intelligent pumps
• Relieve acute & chronic pain
• Treat cancer
• Manage acute and chronic airway conditions
• Maintain correct body temperature
• Monitor vital signs
• Assist reproduction
• Provide safe treatment access
• Prevent needle stick injuries
• Reduce cross infections
Our mission is to help healthcare professionals make every intervention successful.
Vision: Save lives by becoming the most valued global provider of innovative interventional medical devices in our chosen markets
Vision: Save lives by becoming the most valued global provider of innovative interventional medical devices in our chosen markets
© 2012 by Smiths Medical: Proprietary Data
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Market Intelligence is part of the Global Strategy team…because we asked to be!
Director
Strategic Planning & Business
Development
Nadia Smulian
Director
Market Intelligence
Director, Strategic Project
Management Office
Director, Business Intelligence
Michael Munro,
Market Intelligence
Analyst
Kathy Surry,
Manager
Market Intelligence
• Competitor tracking
• Strategic Analysis
• Economics
• Market modelling, news & trends
President,
Smiths Medical
VP, Strategy
& Business Transformation
Clinical Marketing & Scientific Affairs
• Clinical & technology trends
• Voice of customer
• Sales performance
• Customer segmentation
• Sales targeting
© 2012 by Smiths Medical: Proprietary Data
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Our activities support Smiths Medical’s strategic growth drivers
Global & Local Market Intelligence
•Competitor activities
•Market related
•Product related
1 2 3 4 5
Competitor performance tracking
•Benchmarking vs. major competitors
•Opportunities & threats
•Competitor views of our markets
1 2 3Strategic analysis
•Strategic Direction
•Identifying & prioritising opportunities
1 2 3 4
Economic & market trends
•Integrated Business Planning
•Strategic planning
•Benchmarking vs. market
1 2 3 4 5
Market mapping
•Prioritising opportunities
•Support for investment
1 2 3 4
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3 4
5
Market modelling
•Emerging markets
•Adjacencies
2 3
Smiths Medical’s Strategy Gears:
New products
New markets
New call-points
Market penetration
Efficiency
© 2012 by Smiths Medical: Proprietary Data
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Mapping the Strategic Landscape
Strategic Planning
Page 7
Know the Market
• Size and growth
• Competitive landscape
• Drivers & trends
• Customer needs & behaviours
• Adjacencies & other opportunities
Know the Competition
• Where are they being un/successful – and why?
• What is their strategic direction?
• How are they/might they impact us?
• What do they think about the market?
Know Yourself
• Portfolio strengths & weaknesses
• Capabilities
• Stakeholder expectations
© 2012 by Smiths Medical: Proprietary Data
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Synthesis & discussion
© 2012 by Smiths Medical: Proprietary Data
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Continuous monitoring Continuous discussion & insight generation
Competitor performance tracking
News monitoring
Macroeconomics,Healthcare activity, etc
News alerts with insights/ questions
Ql’y competitor performance
& trends reports
Monthly market trends reports
Synthesis
© 2012 by Smiths Medical: Proprietary Data
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Nadia Smulian Oct-12
Know the Market: The Global Market Map
Competitor earnings calls, investor presentation, press releases etc
3rd Party Reports
Analysts Reports
Internal knowledge
Market monitoring
© 2012 by Smiths Medical: Proprietary Data
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Nadia Smulian Oct-12
Know the Market: The Global Market Map
By major product segment:
Market Size
Market Growth rates:
• Historic & forecast
• Organic & other
Market Shares
• Smiths Medical
• Main Competitors
Franchise 1 Franchise 2 Franchise 3 Franchise 4
© 2012 by Smiths Medical: Proprietary Data
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Understanding growth drivers & restraints
Growth opportunitiesRisk assessment
Products:Clinical trendsTechnology adoptionLegislation…
Regions:Economy DemographicsHealthcare investmentRegulation…
Competitors:LandscapeWinners /losersActions… & reactionsNew entrants& fast movers…
Page 12
Customers:RequirementsBuying behaviourSatisfactionwith suppliersCall-points…
Supported by continuous monitoring and synthesis
© 2012 by Smiths Medical: Proprietary Data
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Opportunity ranking
“The essence of strategy is choosing what not to do.” – Michael Porter
© 2012 by Smiths Medical: Proprietary Data
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Market Growth
0
Page 14
Market Attractiveness Competitive Strength
Profit potential
0
Market concentration
0
Barriers
0
0
Skills & Capabilities
0
Cost position
0
Competitive position
0
Product position
0
Opportunity ranking: existing & potential new initiatives
© 2012 by Smiths Medical: Proprietary Data
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Opportunity ranking: existing & potential new initiativesM
arke
t attr
activ
enes
s sc
ore
Competitive strength score
= Market size
Develop/acquireStrategic partnerships
Why bother? Maintain
© 2012 by Smiths Medical: Proprietary Data
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Franchise Capabilities Customers Market Competitors
Initiative 1
Initiative 2
Risk assessment
• Current activities
• Capabilities
• Potential reaction
• New legislation
• Regulatory bodies
• Changing practice
• Hospital economics
• Benefits?
• Technology?
• Routes to market?
• Credibility?
Can we win?
© 2012 by Smiths Medical: Proprietary Data
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Regional investment
Market size modelling
Market parameters:
• Patient numbers
• Bed numbers
Clinical knowledge:
• Product usage
• Replacement frequency
Local factors:
• Healthcare spend
• Local practice
Estimated Market
Potential
© 2012 by Smiths Medical: Proprietary Data
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Regional investmentEmerging markets comparator: Which countries are best for investment?
Portfolio Gap Analysis: Which products are under-penetrated in a country?
Country Market SizeHistoric Market Growth
GDP Growth Import SpendHospital Beds
per 1000 Population
Private % of Total
Healthcare
Population Growth
% of Population
over 60 Years
% of Upper-Middle/Rich
Class
Corruption Perception
Index
Intellectual Property
Rights Index
Ease of Doing Business Index
Ease of Registration
Overall Rating
A £5,883 -3.7% 9.9% £365 0.8 11.0% 2.8% 4% 9.8% 2 125 172 1 2.6B £647 7.0% 2.7% £137 0.4 44.8% 2.7% 4% 3.8% 2 117 183 4 1.5C £2,499 17.4% 4.9% £2,255 1.2 23.1% 1.9% 5% 24.7% 3 NA 170 4 3.5D £16,826 10.2% 5.9% £281 1.4 66.2% 2.7% 4% 15.0% 5.1 100 109 1 4.7E £1,693 -0.4% 4.0% £257 0.3 32.9% 2.9% 5% 3.0% 3 107 137 4 1.4F £5,168 2.3% 6.9% £99 1.1 26.4% 3.1% 5% 1.7% 3 75 127 1 4.2G £104,505 7.2% 2.3% £765 2.8 59.9% -0.4% 7% 15.5% 5.1 32 35 2 5.9I £3,735 26.3% 6.3% £145 1.9 40.5% 2.1% 5% 30.5% 3.2 84 84 4 3.7
© 2012 by Smiths Medical: Proprietary Data
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Measuring success
Organic growth vs. major competitors
Source: Competitor Quarterly/Annual Reports and Investment Analysts’ reportsAll growth figures are at constant currency and exclude acquisitions/divestitures
Competitors’ Quarterly Growth (%) in Competing Segments
Quarter
% organic revenue growth
Competitor averageAdjusted for H1N1
Historic Forecast
“However beautiful the strategy, you should occasionally look at the results.” – Winston Churchill
Share trends
© 2012 by Smiths Medical: Proprietary Data
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Nadia Smulian Oct-12
How to Communicate Strategic Intelligence to Top Level Executives
• Answer the questions that they get asked
− How are we doing compared to our major competitors?
− What is happening to market growth …and what will happen?
• Be first with the news – and add insight
• Be part of the schedule
− Regular inputs to monthly Divisional Board meetings and Quarterly Board reviews
• Don’t be afraid to communicate directly – as long as you have something useful to say
© 2012 by Smiths Medical: Proprietary Data
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The “Market Intelligent” Company
• MI team proactively creating and sharing global competitor & market insight
• Core part of strategic planning & performance review
• Culture of MI-driven decision making
• Part of everyone’s mindset & something everyone does
• Network of trained local intelligence co-ordinators
MI that is global and local
Deeper & broader insight
• Closer integration of customer insight
www.smiths-medical.com © 2012 by Smiths Medical: Proprietary Data
at the heart of strategy