Defining the optimal business model for a new dashboard for anaesthesia equipment and technology
The question
Our client was developing a new dashboard for anaesthesia equipment and technology. Before actually launching this new product, they wanted to collect some feedback from potential customers in order to predict the success of the dashboard. They came to SUAZIO for this and asked us to execute a concept testing trajectory that would provide them with both positive and negative feedback on their product.
The end goal
Our client was looking to define an optimal business model and price for their new dashboard, in order for it to become the first choice in OR environments. As a means to acquire this knowledge, we focused on four different segments: the purchasing roles, concept testing, pricing and ease of implementation of software according to the IT directors.
The end goal was to gain insights concerning the financial workings within a hospital, knowing who carries which responsibility – in order to advise our client properly on how to market their product.
Our approach
For this case, we conducted 60 in depth qualitative telephone interviews, during which we used the Van Westendorp pricing questions. We questioned 60 US profiles, all of them being Chiefs of Anaesthesia, OR directors or IT directors. A summary of the subjects we focused on, the things we needed to take into consideration and the outcome of our interviews:
Concept testing
Firstly, the respondents were shown a series of informational slides and provided details regarding implementation, cost savings, and other benefits. We recorded their initial opinions, doubts and responses and cast it into a summary of pros and cons – of which the pros took the lead.
Pricing
Next up: pricing and payment preferences. We talked about upfront and ongoing costs via the Van Westendorp pricing questions such as, for example:
– If you had to estimate what you think the cost would likely be for the upfront charges, what price would you estimate on a per OR basis?
– At what price would you begin to think the upfront charges are too expensive to consider?
– At what price would you begin to think the upfront charges are getting expensive, but you still might consider it?
Segment differences considering decision makers
For this research, it was super important to always take into consideration the segment differences we’d be dealing with: which decision makers would be involved in such a purchase and the implementation? For this we mainly looked at the purchasing/financial titles, OR directors, Chiefs of Anaesthesia and IT Department main decision makers. We wanted to find out how different they viewed certain purchasing variables, which of them they found the most important and how those criteria differed according to their profile.
We asked them several questions, such as…
– What are the top reasons why low flow techniques are valuable
– What are the top environmental and patient concerns
– What is the interest in concept/top reasons
– What are the most valuable aspects of concept
… and compared the answers one to another, so we could get a clear view of their differences and their common interests.
Ease of implementation
Following that, we specifically zoomed in on the IT directors because we needed to know their level of influence when it comes to entering into a service contract. When asked to provide feedback regarding the most pressing challenges related to the implementation of new equipment or software, responses were varied. Most frequently mentioned challenges included integration with other software/devices and the acceptance of staff.
The outcome
Overall, with an average score of 7.8, the concept proved successful in attracting positive interest. This overall positive evaluation of the product was mostly because of the cost savings it brings along with it.
Our pricing insights are based on different business models such as subscription, variable costs and fixed cost. As a result of our extensive research, we gained a better understanding of the likelihood to purchase – which allows our client to make an informed decision when it comes to launching their product.
This typical economic value proposition case proves that SUAZIO is the perfect partner to help put a new product on the market: we have loads of experience concerning the economics behind Medtech and IVD – and know, like no other, how to find out the financial reality of selling products in a hospital context, whilst always taking into consideration the decision makers and their needs and challenges.