2018 Global Value-based Digital Dental Competitive Strategy … · 2018-04-06 · competitive...

2018 Global Value-based Digital Dental Competitive Strategy Innovation and Leadership Award

2018

BEST PRACTICES RESEARCH

© Frost & Sullivan 2018 2 “We Accelerate Growth”

Contents

Background and Company Performance Industry Challenges ......................................................... 3

Strategy Innovation and Customer Impact ........................................................................... 4

Conclusion ........................................................................................................................ 7

Significance of Competitive Strategy Innovation and Leadership .................................................... 8

Understanding Competitive Strategy Innovation and Leadership .................................................... 8

Key Benchmarking Criteria ................................................................................................. 9

Strategy Innovation ........................................................................................................... 9

Customer Impact .............................................................................................................. 9

Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices .....10

The Intersection between 360-Degree Research and Best Practices Awards ....................................11

Research Methodology ......................................................................................................11

About Frost & Sullivan .............................................................................................................11



Background and Company Performance

Industry Challenges

Digital dentistry is the use of digital technologies in place of traditional techniques for

dental procedures. The most common digital dental solutions used by dentists and dental

practices include digital intraoral radiography and computer-aided design

(CAD)/computer-aided manufacturing (CAM) solutions, such as intraoral scanners. The

main advantages of digital dentistry over conventional dentistry methods include

improved efficiency and faster turnaround time of devices, such as crowns and bridges,

and improved accuracy of procedures and manufactured devices.

In intraoral imaging, more dental practices are moving from analog to digital systems;

therefore, practices are looking for products that can reduce their efforts in updating to

digital systems at affordable rates. CAD/CAM solutions are used in dental restorations and

include intraoral scanners and milling systems. Milling systems are still a niche segment in

most dental practices.

Dentists use hand-held intraoral scanners to make digital impressions. Conventional

methods of creating dental impressions using molds for dental restorations lack precision

and accuracy and can result in a slower turnaround time. Therefore, intraoral scanners,

with their improved accuracy, precision, ease of use, and less turnaround time for

restorations from dental laboratories, are slowly expected to replace conventional molding

techniques in dental practices. However, certain challenges with existing intraoral

scanners and intraoral imaging need to be addressed.

For example, existing intraoral scanners are expensive. Among dental practices, group

practices and hospitals have the highest adoption rate of intraoral scanners because of

their spending power and higher number of patient visits. However, in solo practices that

contribute the major share among dental practices, with more than 70% of practices in

both Europe and the United States, this technology adoption is low. Therefore, penetrating

solo practices is critical to gaining market share and a competitive advantage. In addition,

intraoral imaging has a high maintenance cost for dental practices.

Another big challenge with existing intraoral scanners is the equipment’s ergonomics or

ease of use. Because intraoral scanners are hand-held equipment, the ability to use them

comfortably is important for dentists. Dental practices are looking for companies that can

provide both high-quality intraoral imaging and intraoral scanners at an affordable price,

especially for solo dental practitioners who form the value segment.

3DISC is a digital dental solution provider of compact and affordable computed

radiography PSP systems for dental professionals and is launching a new, easy-to-use,

and affordable intraoral scanner for dentists, which is expected to challenge existing

products in the market.



Strategy Innovation and Customer Impact

Strategy Effectiveness

The United States has about 90,000 solo practices, and Europe (Germany, France, Italy,

Spain, and the United Kingdom) has more than 110,000 solo practices, of which 15% in

the United States and 5 to 10% in Europe have intraoral scanners, and only 15 to 20% of

dental practices have completely moved to digital intraoral imaging. As a competitive

move, 3DISC, by leveraging its experience in imaging, has entered the intraoral scanners

market, thereby making it a pure play value-segment company for digital dental solutions.

The adoption of imaging equipment and intraoral scanners in solo practices is vital for

companies’ success because approximately 70% of all dental practices in the United

States and 75% of all dental practices in Europe are solo practices. 3DISC has been selling

PSP systems for more than 10 years and is one of the key companies in the market

because it primarily caters to affordable practices.

3DISC has a focused strategy of providing solo practices with the benefit of affordable

pricing, in the range below $30,000, without any annual licensing fees for intraoral

scanners.

According to Frost & Sullivan’s end-user survey among dentists, more than 90% of

dentists believe device cost and maintenance cost are the main challenges restraining the

adoption of current intraoral scanners and digital intraoral imaging systems in the market.

Therefore, with its focused strategy, 3DISC successfully caters to the needs of

stakeholders in the imaging segment and is now aiming to cater to the needs of major

stakeholders of dental practices: solo practices in the intraoral scanners market.

Strategy Execution

The Heron intraoral scanner is developed and manufactured in Virginia. To gain a

competitive advantage by addressing existing challenges, 3DISC has incorporated a best-

in-class solution in terms of both design and workflow.

An important criterion to ensure the scanner is simple and easy to use is weight. Dentists

prefer lightweight scanners as they are easier to handle, especially when taking

impressions of oral cavities. 3DISC’s Heron intraoral scanner is one of the lightest weight

scanners in the market, weighing only 145 grams. In contrast, the average weight of

other scanners is approximately 310 grams.

The company’s performance is expected to grow in the short term because of its imaging

solutions and in the long term fueled by the intraoral scanners market. This entry into the

intraoral scanners market strategically places 3DISC among the select five companies that

provide both intraoral scanners and intraoral imaging equipment for dental practices.



Competitive Differentiation

In the digital intraoral imaging and intraoral scanners market, most products fall either

under the high-end segment with full features or the value-based segment with minimum

functionalities. The main challenge with the high-end segment is affordability. In terms of

intraoral scanners, most dentists, especially in small to midsize practices, primarily

perform basic restorations, such as crowns and bridges; therefore, small to midsize

practices are looking for scanners that can provide basic restorative impressions for these

specific types of restorations.

In addition, in the low-end segment, image quality, speed, and ergonomics are the

biggest drawbacks. In digital intraoral imaging, practices are looking for digital solutions

that can optimize their workflow and provide high-quality images.

3DISC is the only company that caters to the value segment, with its affordable FireCR

PSP System for imaging and Heron scanner for intraoral scanning. 3DISC’s Heron IOS

scanner combines the low-end segment with the high-end segment and provides a value-

based product with ergonomically superior performance for dentists. 3DISC’s FireCR PSP

System is designed to provide fast, high-quality readings of reusable dental imaging

plates, thus enabling better patient care.

Frost & Sullivan believes that 3DISC has positioned itself as a value-segment solution

company, thereby providing it with a competitive advantage, compared to other market

participants.

Price/Performance Value

Existing PSP Plate Systems typically cost between $7,000 and $20,000, depending on size

and capability, and dental practices must already be configured with operatory

workstations and dental imaging software. 3DISC’s FireCR PSP System is priced at less

than $7,000, and its compact and lightweight features allow it to be placed even in the

most space-challenged dental office. Existing intraoral scanners are expensive, with an

average cost of approximately $25,000 to $40,000. Moreover, intraoral scanner

manufacturers charge an additional annual software licensing fee of $1,500 to $2,000 per

computer. Considering that the average lifetime of equipment is 5 to 7 years, a dental

practice with one computer connected to an intraoral scanner on average spends $32,500

to $50,000. In addition, the annual software licensing charges will increase, depending on

the number of computers connected.

3DISC offers PSP plates with various features and optional add-ons and an intraoral

scanner with optimum features to support the most common impressions for dentists as

well as provides best-in-class and easy-to-use software at no additional charge. In

addition, the Heron scanner uses QuantorClinic™, which is the software application for

order management and scanning, and shares files with the lab. Furthermore, the software



is built on exocad’s original equipment manufacturer (OEM) software platform, which is

one of the most widely used CAD/CAM software platforms in the dental industry.

The FireCR PSP System uses QuantorDent Imaging Software, and it also offers a TWAIN

driver, that enables easy image acquisition, processing, and management; supports

efficient workflow; and requires little training. The software’s intuitive workflow allows

users to enhance images, thereby providing the possibility of more precise diagnoses.

Customer Purchase Experience

3DISC’s FireCR PSP System and the Heron intraoral scanner are small and lightweight

devices. The FireCR device has an inbuilt memory that can store the last 100 images and

offers a full range of imaging plate sizes: 0, 1, 2, 3, and a full size 4c. The full size 4c

imaging plate enables dentists to capture more teeth and roots on the same image,

without having to stitch several smaller images together, which is an inconvenient and

inefficient process. In addition, the Heron IOS scanner contains a hand-and-mouth piece

and a 360-degree rotatable tip to provide an optimal ergonomic grip.

The Heron IOS scanner offers premium features that are seldom seen in the value-based

segment, such as color capture and a built-in heater to prevent fogging. The scanner

allows fast scanning, and impressions can be opened in a stereolithography (STL) or

polygon (PLY) format, which are compatible with most CAM milling systems in dental

laboratories for the widest dental laboratory integration.

Another potential benefit for customers is that dentists can collaborate with dental

laboratory technicians on patient cases through the scanner’s user interface.

Brand Equity

With the Heron intraoral scanner and the FireCR PSP System, 3DISC offers a complete

turnkey solution with easy-to-handle devices as well as intuitive software platforms,

QuantorDent and QuantorClinic, both of which support the entire digital imaging diagnosis

and impression processes. QuantorClinic is an all-in-one software that allows workflow,

including scanning, order management, validation, and order submission, all accessible

from a single interface. In addition, the Heron scanner received the Readers’ Choice

Technology Award for being one of the most innovative products in 2017.

3DISC has a strong foundation in digital imaging technology for dental, medical, and

veterinary applications, with more than 10 years of experience, and is one of the leaders

in the value segment for dental and veterinary PSP systems. With the Heron intraoral

scanner, 3DISC further strengthens its competitive advantage in digital dentistry by

focusing on small to midsize practices, leveraging its expertise in digital imaging

technologies, and creating new products that address the needs of the digital dental

solutions industry. Therefore, 3DISC is the only digital dental solution provider that

focuses on value-based customers, especially small to midsize practices.



Conclusion

3DISC develops and manufactures the Heron IOS scanner in the United States. By

leveraging its expertise in digital dental imaging, the company provides affordable quality

intraoral scanners that can cater to a wide customer base.

With its FireCR PSP System and Heron intraoral scanner, 3DISC supports dental diagnoses

and the most common types of dental restorations, such as crowns, bridges, veneers, and

inlays and onlays, and has positioned its brand among dentists in the value-based digital

dental solutions market.

With its strong overall performance, 3DISC is recognized with Frost & Sullivan’s 2018

Competitive Strategy Innovation and Leadership Award.



Significance of Competitive Strategy Innovation and

Leadership

Any successful approach to achieving top-line growth must (1) take into account what

competitors are, and are not, doing; (2) meet customer demand with a comprehensive,

value-driven product or service portfolio; and (3) establish a brand that resonates deeply

with customers and stands apart from other providers. Companies must succeed in these

three areas—brand, demand, and positioning—to achieve best-practice levels in

competitive strategy.

Understanding Competitive Strategy Innovation and

Leadership

As discussed above, driving demand, brand strength, and competitive differentiation all

play a critical role in delivering unique value to customers. This three-fold focus, however,

must ideally be complemented by an equally rigorous focus on Strategy Innovation and

Customer Impact.



Key Benchmarking Criteria

For the Competitive Strategy Innovation and Leadership Award, Frost & Sullivan analysts

independently evaluated two key factors—Strategy Innovation and Customer Impact—

according to the criteria identified below.

Strategy Innovation

Criterion 1: Strategy Effectiveness

Requirement: Strategy effectively balances short-term performance needs with long-term

aspirations and vision for the company.

Criterion 2: Strategy Execution

Requirement: Adoption of best-in-class processes supports the efficient and consistent

implementation of business strategy.

Criterion 3: Competitive Differentiation

Requirement: Unique competitive advantages with regard to solution or product are

clearly articulated and well accepted within the industry.

Criterion 4: Executive Team Alignment

Requirement: The executive team is aligned along the organization’s mission, vision,

strategy, and execution.

Criterion 5: Stakeholder Integration

Requirement: Strategy reflects the needs or circumstances of all industry stakeholders,

including competitors, customers, investors, and employees.

Customer Impact

Criterion 1: Price/Performance Value

Requirement: Products or services offer the best value for the price, compared to similar

offerings in the market.

Criterion 2: Customer Purchase Experience

Requirement: Customers feel they are buying the most optimal solution that addresses

both their unique needs and their unique constraints.

Criterion 3: Customer Ownership Experience

Requirement: Customers are proud to own the company’s product or service and have a

positive experience throughout the life of the product or service.

Criterion 4: Customer Service Experience

Requirement: Customer service is accessible, fast, stress-free, and of high quality.

Criterion 5: Brand Equity

Requirement: Customers have a positive view of the brand and exhibit high brand loyalty.



Best Practices Recognition: 10 Steps to Researching,

Identifying, and Recognizing Best Practices

Frost & Sullivan analysts follow a 10-step process to evaluate Award candidates and

assess their fit with select best practice criteria. The reputation and integrity of the

Awards are based on close adherence to this process.

STEP OBJECTIVE KEY ACTIVITIES OUTPUT

1 Monitor, target, and screen

Identify Award recipient candidates from around the globe

• Conduct in-depth industry research

• Identify emerging sectors • Scan multiple geographies

Pipeline of candidates who potentially meet all best-practice criteria

2 Perform 360-degree research

Perform comprehensive, 360-degree research on all candidates in the pipeline

• Interview thought leaders and industry practitioners

• Assess candidates’ fit with best-practice criteria

• Rank all candidates

Matrix positioning all candidates’ performance relative to one another

3

Invite thought leadership in best practices

Perform in-depth examination of all candidates

• Confirm best-practice criteria • Examine eligibility of all candidates

• Identify any information gaps

Detailed profiles of all ranked candidates

4

Initiate research director review

Conduct an unbiased evaluation of all candidate profiles

• Brainstorm ranking options • Invite multiple perspectives on candidates’ performance

• Update candidate profiles

Final prioritization of all eligible candidates and companion best-practice positioning paper

5

Assemble panel of industry experts

Present findings to an expert panel of industry thought leaders

• Share findings • Strengthen cases for candidate eligibility

• Prioritize candidates

Refined list of prioritized Award candidates

6

Conduct global industry review

Build consensus on Award candidates’ eligibility

• Hold global team meeting to review all candidates

• Pressure-test fit with criteria • Confirm inclusion of all eligible candidates

Final list of eligible Award candidates, representing success stories worldwide

7 Perform quality check

Develop official Award consideration materials

• Perform final performance benchmarking activities

• Write nominations • Perform quality review

High-quality, accurate, and creative presentation of nominees’ successes

8

Reconnect with panel of industry experts

Finalize the selection of the best-practice Award recipient

• Review analysis with panel • Build consensus • Select recipient

Decision on which company performs best against all best-practice criteria

9 Communicate recognition

Inform Award recipient of Award recognition

• Present Award to the CEO • Inspire the organization for continued success

• Celebrate the recipient’s performance

Announcement of Award and plan for how recipient can use the Award to enhance the brand

10 Take strategic action

Upon licensing, company may share Award news with stakeholders and customers

• Coordinate media outreach • Design a marketing plan • Assess Award’s role in future strategic planning

Widespread awareness of recipient’s Award status among investors, media personnel, and employees



The Intersection between 360-Degree Research and Best Practices Awards

Research Methodology

Frost & Sullivan’s 360-degree research

methodology represents the analytical

rigor of our research process. It offers a

360-degree-view of industry challenges,

trends, and issues by integrating all 7 of

Frost & Sullivan's research methodologies.

Too often, companies make important

growth decisions based on a narrow

understanding of their environment,

leading to errors of both omission and

commission. Successful growth strategies

are founded on a thorough understanding

of market, technical, economic, financial,

customer, best practices, and demographic

analyses. The integration of these research

disciplines into the 360-degree research

methodology provides an evaluation

platform for benchmarking industry

participants and for identifying those performing at best-in-class levels.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth

and achieve best in class positions in growth, innovation and leadership. The company's

Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined

research and best practice models to drive the generation, evaluation and implementation

of powerful growth strategies. Frost & Sullivan leverages more than 50 years of

experience in partnering with Global 1000 companies, emerging businesses and the

investment community from 45 offices on six continents. To join our Growth Partnership,

please visit http://www.frost.com.

360-DEGREE RESEARCH: SEEING ORDER IN

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