Open Innovation in Medical Devices (Emerging Market Perspective) D. A. Prasanna Accelerating Pharma...
If you can't read please download the document
Open Innovation in Medical Devices (Emerging Market Perspective) D. A. Prasanna Accelerating Pharma time-to-market, cost effectively Asia EuropeAmericas
Open Innovation in Medical Devices (Emerging Market
Perspective) D. A. Prasanna Accelerating Pharma time-to-market,
cost effectively Asia EuropeAmericas
Slide 2
Sharing experience in Open Innovation This talk is based on my
experience in the MedTech industry growing GE 100 fold in a decade
in India through innovation as a Strategic Advisor to InnAccel, a
MedTech Accelerator and In Ecron Acunova CRO bringing new devices
to market faster
Slide 3
Emerging Markets are attractive but need Affordable
MedTech
Slide 4
Affordability makes care accessible, expands market INDIA BRC
USA BRC INDIA 1000 4000 2000 8000 2012 2025 Per capita GDP (2012 $)
50000 Pop: 1.7 bill PC GDP: $8,221 PC HC Spend: $822 Pop: 1.4 bill
PC GDP: $3,183 PC HC Spend: $223 Pop: 1.7 bill PC GDP: $4,375 PC HC
Spend: $459 Pop: 1.2 bill PC GDP: $1,535 PC HC Spend: $58 Pop: 313
mil PC GDP: $51K PC HC Spend: $8,895 Key: PC: Per Capita HC:
HealthCare BRC: Brazil, Russia China Per Capita HC Spend estimated
at 7% of GDP and 10% of GDP for India and BRC respectively in
2025
Slide 5
Affordability is largely unmet in medical technology Medicines
and doctors service have become affordable in emerging market
MedTech remains unaffordable
Slide 6
Affordable MedTech- A large economic opportunity I I USA BRC
USA BRC INDIA 10 40 20 80 400 2012 2025 Per capita MT Spend 600 MT
Spend: $120 B PC MT Spend: $381 MT Spend: $5.4 B PC MT Spend: $4.4
MT Spend: $42 B PC MT Spend: $30 MT Spend: $156 B PC MT Spend: $86
MT Spend: $36 B PC MT Spend: $21 MT Spend: $225 B PC MT Spend: $643
Key: PC: Per Capita MT: MedTech
Slide 7
Emerging markets are Largely self pay markets High price
sensitivity Large volumes Low per capita spends Large public health
system Lack of skilled professionals Inadequate infrastructure
Alternate care environments (~50% of babies in India are born at
home today, necessitating new products for neonatal care - until
they can get to a hospital)...fundamentally different for MedTech
Innovators
Slide 8
Open innovation is the use of purposive inflows and outflows of
knowledge to accelerate internal innovation and expand the
markets.. -Henry Chesbrough Helps move mind-set beyond device cost
& features to Affordable procedure for the Patient/Doctor
Viable investment for the Hospital. Leading to a totally different
Productor Process solution!
Slide 9
Market Specific Affordable Products Solutions Transportation
Auto-Rickshaw Affordable Road Conditions (congested roads)
Appropriateness (often used by 1-2 pax only) Diagnostics Portable
Ultrasound Defeatured version of Japanese design Clinical
excellence at an affordable price Increased access via portability
Look outside for ideas and integrate them with internal technology
leading to a new product/solution for a new low-end market
Slide 10
Innovative Affordable Solution Around Product Tata Motors has
produced a $2,200 car, the Nano. Godrej & Boyce Manufacturing,
has developed a $70 fridge that runs on batteries, known as the
little cool
Slide 11
Innovative affordable solutions around Process Aravind Eye
Hospitals have reduced eye surgery costs by over 80% by applying
standardization principles from McDonalds Narayana Hrudayalaya has
made open heart surgery affordable (one tenth the cost in western
countries!) while maintaining the same standards of reliability
3nethra is a screening device for 5 leading causes of preventable
blindness and an algorithm to automatically screen patients;
available at one sixth of equivalent devices in the market Exploit
the frugal innovation culture to design and launch new
products
Slide 12
Innovation- in Clients Process & our Product Outcome in
Clients Process What limits user to make procedure affordable to
patient? Productivity? Shortage of professionals? Associated costs
like consumables? Work within Space constraints? Service supplies
bottleneck? Developing Product Product meets right need of market?
Technology reducing cost? Manufacturing ? New Product speed to
market Optimal regulatory pathway? Affordable solution needs open
innovation
Slide 13
Defining Market Specific Unmet Need If I had asked my customers
what they wanted, they would have said a faster horse. - Henry Ford
II Clinical observations through immersion observing not just a
specific clinical situation but the entire cycle of care
identifying the problem inherent in that situation / environment
reshaping ones understanding of the problem into a need
Slide 14
Innovation in clients process- Client Problem Innovative
Solution Patient fee/scan low 14hrsX 7days working Need Breakdown
fix