Developing a Value Proposition for a Healthcare Services Business

Propr ietary & Confiden0al

DevelopingavaluepropositionforaHealthcareServicesbusiness

MidProjectWorkSession

PROPRIETARYANDCONFIDENTIAL

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§  Projectcharterandapproach

§  Whatwelearnedoverthepastfewweeks

§  Arecommendedvaluepropositiontotakeforward

§  Nextsteps

Agenda


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DevelopavaluepropositionthatarticulatesthebiggerbenefitderivedbythetotalServicesportfolio

Developaunifyingconceptthatclarifiesthevalueofthecombinedportfolioinwaysthatdifferentiatesthebusinessandjustifiesthepremiumsitdesires.

Craftlanguagethatconveysanelevatedvalueinwaysthatarecompellingtoexternalandinternalaudiencesanddistinctfromcompetitors.

Demonstratehowthevaluepropositioncanbedimensionalizedtoenhancemeaningfordifferentaudiences.

Identifykeyimplicationsonsales,marketingandservicedeliveryrequiredtoauthenticallydeliverthevalueproposition.

ProjectObjectives


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Deliverables

1.ValuepropositionstatementfortheServicesbusinessAstatementthatclarifiesthreekeyelements: A.Whothetargetisinwaysthatspansegmentsandaudiencesinthe

business’saddressablemarket

B. TheoverarchingbenefitoftheServicesbusinesstothetargetcustomers

C. Howthatbenefitwillbedeliveredthroughoffersandexperiences2.OverallmessageXthemeforthebusiness

Averbalizationofthevaluepropositioninaconcisesentenceorphrasethatisimmediatelyintuitiveandcleartointernalstakeholders,butnotmeanttobeexternallycommunicated(nota“tagline”)

3.Keymessages(3–5max)fortheoverallbusinessstory

3–5keymessagesoftheoverallServicesvaluepropositionexpressedinshortparagraphswithclearlinkagestothe4servicelines


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Scope

Insights Strategy Creative Execution

Whatthemarketistellingusaboutthatisimportant

Howwewillpositionthebusinesstowin-inwaysthatarerelevant,credibleanddifferentiated

Howthatpositionedshouldbeexpressedverballyandvisually

Howthatpositioningshouldbeexperiencedinthemarket

InputsintothefocusofthisprojectMostofthiswasdonepriortothisproject-PRTM(somenewinsightsweregeneratedaspartofthisproject)

Thefocusofthisproject

Phase2ofthisproject

Future


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Anexampletobringthatscopetolife

Insights Strategy Creative ExecutionStaplesconductedextensiveresearchwithsmallandmedium-sizedbusinesses.Thisresearchrevealedacommoninsightamongthelargestsegments:

Staplesbuilttheirbrandstrategyoffofthiskeyinsight,andmovedtowardabenefitterritoryof“convenience”

Thetagline,“thatwaseasy”capturedtheessenceofthepositioningstrategyinwaysthatmovedtargetcustomers

A“brandeditem”,the“easybutton”furtherseededthepositioningtomakeitimmediatelyrecognizable.The“convenience”positioninghasbecomeastrategicfoundationforthebusiness

Targetsegmentsvaluetheirtimemorethansavingmoneyonofficesupplies

Thestrategywasarticulatedasa“hassle-freeshoppingexperience”

“Thatwaseasy”


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Approachasmarkedbykeyworksessions

2wavesofresearch

15/23

26/1

36/7

46/13

58/30

69/7

Architectinganewframework(valuepropositionarchitecture)

Finalizeavaluepropositionarchitecturewithexecutiveteam(usingIBMcase)

Initialconceptsplayedoutinarchitecture

Refinementstothreeconcepts

Enhancedconceptsbasedonresearch

Finalizerecommendations


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Earlyinourprocess,weidentifiedkeythemesthatstemmedfromcustomerneeds

1.  Atrustedpartnerandproblem-solverwhocanhelpnavigateandmanagecomplexity

2.  Operationalefficiency,productivityandcoordinationtodomorewithlimitedresources

3.  Accesstotheirvastwealthofdatatomakebetterdecisionsacrossallaspectsoftheirbusiness,fromoperationstopatientcare

4.   Integrationandconnectivityacrosssystems,equipment,locationsandcarefacilitytypes(in-hospital,clinics,at-homecare)

5.  Moreknowledgeandeducationtogetsmarteraboutrunningeveryaspectoftheirbusiness,fromoperationstostafftraining

CustomersWant:


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Inthatearlyworksession,wealsoidentifiedimperativesforCompanyX’svaluepropositiondevelopment

q  ElevatetheconversationtoamoreC-suitelevel

q  Increaseourrelevancytodifferentcustomers(outsourcersandin-house)

q  DifferentiateCompanyXfromtier1playerslikevs.Siemens(high-tech),Philips(patientexperience)andAramark(traditionalmodel/laborplay)

q  LeverageCompanyX’scredibilityinareassuchasproductivity,business-savvy,etc.whileavoidingthosethatarefurtherfromtheServicesperspective(e.g.goingtooclinical)

Thevaluepropositionmust

Criteria


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§  Nextsteps

Agenda


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QualitativeinterviewswereconductedbyITGtogainfeedbackonthethreevaluepropositionsConcepts:

A:“Howdowemakehealthcareworkbetter?”

B:“Today’sleadinghealthcareprovidersaremoreproductive”

C:“Today’shealthcareprovidersneedapartnerofsubstance”

SampleSizeandMethodology:

•  TelephoneinterviewswithDirectorsorC-Levelexecutives

•  10respondents(3In-house,7Outsource)

•  ConductedbyITGmoderatorsduringJuly2012


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Allconceptsscoredhighonrelevancyandcredibility,butnotondifferentiation,sowegeneratedsomenewinsights

WeinterviewedfourCompanysalesleadersandfivecustomers

Goals:

a)  UncoverwhatmakesCompanyXServicesuniquevs.competitors

b)  Identifynew,potentialterritoriestoconsiderinthevaluepropositionc)  Gainfeedbackon(some)valuepropositionelements

Structure:

•  45-60minutephoneinterview–highlyqualitativeandconversationalinnaturevs.“scoring”


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TheinterviewssurfacedpotentialareasofdifferentiationforCompanyXrelativetocompetitors

Nocompetitorstandsoutasuniqueinthecategoryoverall,buteachseemstohavestrengths“Everyoneisatthesamelevel.Noonecompanyisawow.”

“Productivity”wasperceivedtobeadifferentiatedforCompanyXrelativetootherhealthcareservicescompetitors“Ihaven’theardmuchaboutthis[productivity].WhatI’mhearingisaboutcustomerserviceandsatisfaction.”“WhatdoIhearnow?Uptime.Nothearingthis[productivity]somuchfromserviceproviders.”

CompanyXpeopleareanasset–strongperformers,CompanyXisable“CompanyXpeoplearestrong.Customerservicehasimprovedoverthepast9-12months.”“Theyaregreatpeople,bright.Theybringalotofideastothetable”.

CompanyXappearstobeleadingon“flexibility”benefitwithitsSharedServiceAgreement“NowCompanyXisthemostflexibleoftheOEMsinimagingservices.Thisisareversalfromthe90’s.”“They[CompanyXpeople]arebending,arelessrigid.Theyarelookingatthingsdifferently.Collaborating.”

CompanyXseemstobeleadingonIn-Housesupportofferingsvs.competition“CompanyXisaheadonin-housesupportofferings.[Competitors]don’thavetheprograms.”

CompanyXsizecanbeaconcerntocustomers“It’shardtolet[CompanyX]intoyoursandbox.It’salittlebitthreatening.”“CompanyXissuchahugeentity,they’reinsomanythings,youcan’tcomparethemtoanyoneelse.”


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Thebiginsightsweusedtoenhanceourconcepts

§  “Productivity”isadifferentiatedmessagewithintheimmediatecompetitiveset,butneedsamodifiertoincreaseitsdifferentiationagainstindirectcompetitors

§  CompanyXappearstohaverealmomentumintheareaofflexibilityandcollaboration,asstatedandfeltbycustomers–wehaveagoodstorytotelltoin-housecustomers

§  CompanyXgetsalotofcreditforitsinfrastructureandleadingtechnology-drivensolutions,butthesecanbeabit“toomuch”forlessthansophisticatedcustomers,orthosewhowanttocontrolmoreoftheoperationsin-house

§  EventhelargestofcustomerscanfeelthreatenedbyCompanyX’sscaleandbrandpower,sotakingamoreapproachable/lessoverbearingtonecangoalongway

§  “CompanyXpeople”andabilitytoexecutelikenootheristhe“secretsauce”whichlendscredibilityanddistinctivenesstoanyvalueproposition,butshouldbeusedasasupportpointvs.theconceptitself

§  Therearetwoessentialcustomertypeswithdistinct,butnotcompeting,needs–onewhodesiresahighdegreeofflexibilityandanotherwhoneedsexpansiveenterprise-widesolutions(especiallythoseintegratingseveralnewsystems)-thisisattheheartofthestrategicchallenge


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§  Nextsteps

Agenda


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Werecommendablendedterritory,centeredon“productivity”,totakeforward

Makingcustomerssmarterthroughtechnologydrivenintelligence

Flexibilityandawillingnesstoworkw/customersontheirterms(partnership-like)

Helpingcustomersgetmoredoneandincreasetheirproductivity

Helpingcustomerswiththeircomplexsystemsthroughtotalsolutions

Smart

Flexible

Productive

Comprehensive

Leveragethisasaproofpointofanotherconcept

Integratethisintoa“productivity”concept

Takeforward,butmodifywith“flexibility”conveyedasacustomerbenefit

Integratethisintoa“productivity”concept

RecommendedTerritory


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Aflexiblearchitectureweagreedupon

WorkbetterPOV/ValueProposition

Anchors

Pillars

Intelligent

CXODecision-makers

Departmentoperators

Coordinated

Productive

People

Planning

Assets


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ConceptNarrative

Productivity,thewayyoudefineit

Productivity,insynchwithyou

Customcapacity

Weunderstandthateachhealthcareproviderisuniquewithindividualcharacteristics,challenges,andpathstowardimprovingthehealthoftheircommunitiesandbusinesses.Manyprovidersarestrugglingtomaintainoperations,whileothersaregrowingevenlargerandmorecomplex.Theonecommonthingamongallofthemisanintensifyingneedtoincreaseproductivityoftheirsystemstothriveinhealthcare’snewreality;buttheyneedtodoitinwaysthatworkwithintheirspecificandidiosyncraticoperations.

AtCompanyXHealthcare,wehelpprovidersincreasetheirproductivityinwaysthatarein-synchwiththeiroperations.Whetherharnessingthescaleoflarge,complexsystemswiththemostsophisticatedtechnologysolutions,orequippinginternalservicestorespondquicklytooperationaldelaysandlowershortandlong-termcosts,webelievewearethebestoptiontoequipyourservicesteam.Weareadaptingtothenewrealitiesofourindustry,whileatthesametimecontinuingtoinnovateenterprise-widesolutionsthatenablehealthcareproviderstoimprovethehealthanddriveoutcomesoftheircommunitiesinanincreasinglycomplexenvironment.


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KeyElements

POV Today’shealthcareprovidersneedtoincreaseproductivityoftheirsystemstothriveinthenewrealityofhealthcare;buttheyneedtodoitinwaysthatworkwithintheirindividualbusinessoperations.

ValueProposition

Productivity,thewayyouwantitWhetherharnessingthescaleoflarge,complexsystemswiththemostsophisticatedenterprisesolutionsorequippinginternalservicesteamstorespondquicklytooperationaldelaysandlowershortandlong-termcosts,helpsprovidersincreasetheirproductivityinwaysthatarein-synchwiththeirindividualoperations.

Pillars Flexible&AdaptiveHighlyflexible,open-mindedandcustomerfocusedtodefinesolutions(offersandterms)thatfityour,specificneeds

ExecutionalExcellence

Themostrobustinfrastructureandaprovenabilitytoexecuteacrossyourvastnetwork,

Intelligent&Advanced

Themostadvancedtechnologiesthatprovideinsightsresultingsignificant(notincremental)andenduring(notshort-term)improvements


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Howwemighttalkabouttheconceptwithadepartmenthead

ValueProposition

helpsprovidersincreasetheirproductivityinwaysthatarein-synchwiththeirindividualoperations.

Offerareas People

Equippingthosewhodo

Wehelpprovidersboostemployees’outputandimprovetheirskillsthroughworldclasstrainingandcapabilitybuilding.Weworkcloselywithservicesteamsinwaysthatmakethemachievetheirspecificobjectives,andservetheirinstitutions.

Planning

Layingthefoundationforoperationalimprovement

Wehelpprovidersmakedifficultlong-termdecisionsabouttheiroperationsinwaysthatalignwiththeirbusinessandpatientfocus,byprovidingstrategicresourceplanninggroundedinwhatwill

mattersmosttotheorganization’sfuturefinancialhealth.

Assets

Optimizingsystemstoperformbetter

Weintegratesmarttechnologiesandanalyticsthatenableproviderstokeeptrackoftheirentireassetbaseandcontinuouslyimproveitsutilizationforefficiency,patientsafety,andresiliencytochangingdemands.


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Howdoesthisconceptstackupagainstourcriteria? q  ElevatetheconversationtoamoreC-suitelevel

q  Increaseourrelevancytodifferentcustomers(outsourcersandin-house)

q  DifferentiateCompanyXfromtier1playerslikevs.Siemens(high-tech),Philips(patientexperience)andAramark(traditionalmodel/laborplay)

q  LeverageCompanyX’scredibilityinareassuchasproductivity,business-savvy,etc.whileavoidingthosethatarefurtherfromtheServicesperspective(e.g.goingtooclinical)

Thevaluepropositionmust

Criteria


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Howwemighttranslatethevalueproposition

In-house Outsource

CXO

POV §  Healthcareprovidersareunique,buttheyallneedtoincreasetheirproductivityinwaysthatworkwiththeir,individualbusinessoperations

ValueProp

§  Emphasize:equippinginternalservicesteamstorespondquicklytooperationaldelaysandlowershortandlong-termcosts

§  Emphasize:harnessingthescaleoflarge,complexsystemswiththemostsophisticatedenterprisesolutions

Pillars §  Emphasize:CustomerService

§  Strongsecond:Substantial§  Emphasize:Intelligence

§  Strongsupport:Substantial

Dept.Head

POV §  Healthcareprovidersareunique,buttheyallneedtoincreasetheirproductivityinwaysthatworkwiththeir,individualbusinessoperations

ValueProp

§  Emphasize:equippinginternalservicesteamstorespondquicklytooperationaldelaysandlowershortandlong-termcosts

§  Emphasize:harnessingthescaleoflarge,complexsystemswiththemostsophisticatedenterprisesolutions

Offerareas

§  Emphasize:Assets

§  Strongsecond:People§  Emphasize:Assets

§  Strongsupport:Planning


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Differentdimensionsof“productivity”and“thewayyouwantit”wewillexploreincreativedevelopment

optimization

efficiency

Gettingmoredone Increasing

capacity

Fastercare

coordinated

continuousimprovement

custom

dimensional

personalized

agile

yourway

recognition

workswithmyorganization

insynch

costout

ProductivityFlexibility


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Implicationsofthisstrategy

§  Continuetoimprovecustomerserviceatscaleandwithconsistency

§  Continuetobuildconsultative/collaborativesellingskillsamongsalesforcemovingtowardachallengersellingmodelcenteredaroundaPOVandinsights

§  Integratehigherlevelbenefitsincommunications(e.g.“systemproductivity”vs.“rapidresponse”)/leverageanddimensionalize“productivity”

§  Expressamoreapproachable,personableandstraight-shootingpersonality(notnecessarily“partner”),whileatthesametime,doingitinawaythataimshigh

§  GetthewordoutthatthereisachangeatCompanyX/leveragecustomerswhohaveexperiencedthechange

§  Tapintodigitalchannelsthatallowfortailored/segmentedmessagesandincreasedinteractivity

§  Considerevolvingtheserviceoffernamingconventionstoalignwithandreinforcethisnewapproach

§  Enhancetechnologyplanningoffer(opportunitytodifferentiate)

Developing a Value Proposition for a Healthcare Services Business

Marketing

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