The Trident Of Innovation: The Wisdom Of Neptune!
By THOMAS HICKEY
Partner
[DECEMBER 1, 2022] – If you reach back to your high school years and Mythology class, you’ll likely remember that Neptune, God of Freshwater and the Sea, wielded a powerful trident, a three-pronged scepter that could, with a single wave or poke, create serene calm or absolute calamity. Back 400 years B.C., it was wise for characters in those tales to remain on ol’ Neptune’s good side lest ye face a torrent of unwanted struggles and challenges … or ultimate demise.
The image of Neptune’s trident came to mind recently as I reviewed transcripts of several podcasts I’d hosted that focused on the challenge of medical-device commercialization. Like the trident, there are three common points that emerged from the transcripts that can be the difference between a successful launch of a medtech innovation or encountering wave after wave of chaos:
- Customer Immersion
- Selecting the Right Investor[s]
- Finding the Right People with the Right Focus
Start-Up versus Large Corporate
Before we take a closer look at the trio of key considerations , let’s compare the differences in the commercialization journey for an ambitious start-up and a well-oiled, well-funded large corporation that has navigated these seas many times before. There are plusses and minuses that vary in each environment.
With a start-up, there’s greater flexibility and more opportunity for every team member to make a significant contribution on the voyage to market success. A great idea that comes to mind in the morning could realistically be vetted and implemented by the end of that workday in a smaller environment. Some start-ups say, “We’re building the ship while we’re sailing it.”
There can also exist a lesser degree of sophistication in start-ups which means occasional, painful learning “on the fly” and having to correct missteps that a more experienced organization would have known to avoid.
Start-ups also tend to have a more energetic vibe that those of an entrepreneurial bent thrive on. There’s a newness to everything and every day, sometimes even from hour to hour. This keeps things fresh, alive and alluring for all involved.
In a large corporate environment, things tend to move more slowly [the difference between turning a runabout and turning a cargo ship], and there are chain-of-command hoops to leap through called committees, project teams, legal, regulatory, human resources, etc. Having said that, large businesses tend to be more robust when it comes to resources [human and financial capital] and have a toolbox full of proven processes and procedures that can help you steer a more efficient course to market. Experience is the greatest teacher, after all.
There is one important point-of-commonality in today’s healthcare marketplace for both start-ups and big companies: The days of free-spending are long, long gone and unlikely to return. Today’s healthcare environment is value-based so be sure you’re honoring that, regardless of company size. Remember, most new medical technology increases case cost so you must be able to demonstrate how the increased cost is offset by improved patient outcomes and/or a more efficient provider workflow. It is especially important to convince surgeons who tend to be skeptical of new products or innovations.
With this in mind, let’s look now at the trio of key considerations …
Customer Immersion
The first stages of your voyage will be the most challenging, trust me. Maybe even all-out chaotic whether you’re a start-up or big corp. This is when immersion with customers or potential customers is critically important. These are the people who can help guide you by identifying specific needs in specific healthcare spaces, and share with you the various subtleties and nuances you need to keep in mind as you strive to make your innovation the right and perfect fit – the best available solution for an existing gap or need.
Your customer or potential customer will validate for you whether or not there exists an actual need and, if so, if it may negatively impact physician workflow. A great innovation that disrupts workflow can induce the Trident’s wrath so tread carefully and listen to what they’re telling you!
Part of what makes the early-going so rough is, plain and simple, you don’t yet have all the answers no matter how much you may think you do. Adopting a mindset of lavish listening gives you the opportunity to gather the various pieces of the puzzle you need to “get” the big picture. False pride, wrongful assumptions and being “too in love” with your innovation can run you aground before you ever hit the high seas.
Thick skin is also an asset [and a necessity] and if you do hear “your baby is ugly”, understand the people telling you that are also the people who can help you transform your beast into a beauty. The more you listen and refine your innovation based on what you hear and learn from your customer or potential customer, the greater their receptivity when it comes time to make the big pitch. As an added bonus, those who give you guidance along the way and see their feedback being acted upon will feel a shared sense of pride and involvement in the evolution of your innovation which tills the soil of receptivity.
Selecting the Right Investors
In every quest to raise capital, you’ve got to present a compelling story backed by solid data; clearly articulate your value proposition; and include a proposed timeline-to-market with key milestones identified. However, even this may not be enough as investment timing is always a consideration for those with the deepest pockets. What isn’t appealing today may be the perfect opportunity for investors a year or two down the road.
Not every deal is going to make sense for every investor and you can expect more “Thanks but no thanks” along the way than “Yes, I’m interested”. It takes many shots on goal to score the first point which is why thick skin is vital. Again, a rejection today doesn’t mean a rejection forever which is why you need to stay on investors’ radar after you’ve been politely turned away. Don’t assume they’re blowing you off forever. By and large, they’re not. Remember, timing is critical ... their timing.
Like customers and potential customers, immersion with investors is also critically important and helpful. Investors are highly intelligent people and they may see problems or potential problems that you do not that need to be addressed before they’ll entertain future pitches.
Again, listen lavishly. Find out what matters most to each particular investment group. What are they currently invested in and why are they doing it? Know their passion points and what grabs their attention then act responsively and let them know you’ve honored their feedback. Another thing to keep in mind is that through it all, you as entrepreneur, are vetting investors as much as they are vetting you.
It’s equally important for investors to be patient as the process unfolds, especially once an agreement has been reached. The journey will, no doubt, include unexpected zigs and zags so regular, two-way communication and updates are important.
On another note, most people seeking funds tend to assume it’s all about ROI for investors – and it is but with a qualifier. Considering an investment opportunity is also a very fundamentally human process – you sitting across a desk or conference table from a potential investor and sharing a conversation based on helping medical providers and their patients while also demonstrating how your innovation will put a fair amount of change in everybody’s coffers.
All parties must feel positive about your innovation, its journey to market, and the respective value it represents to be a success. This takes human engagement and open communication. Yes, the value prop, data, projections, models and timelines are critically important but the people and the passions within the discussions matter, too.
Finding the Right People with the Right Focus
Building the right team is a critical, critical step. If you get it right early on, you’re on your way. If you stumble out of the gate, commercialization will undoubtedly take longer … if ever at all. Large corporations generally have in place the team members they need. If they don’t, they can easily spot-hire and fill gaps. But start-ups must start from scratch on a tighter budget which is why hiring is a key make-or-break inflection point.
Take the necessary time to hire the best people for the right roles. This may not always be the most technically skilled person because there are nuances [soft skills] that will be important as you refine your innovation and move closer to commercialization.
These nuances include finding passionate people who are collaborators; who can work independently and reliably; and who truly share your vision. These are the people who will power through the rough times and be standing by your side when the inevitable storm has passed.
Teams that share a singular vision are purpose-driven teams and are always willing to go the extra mile and work hard even when it would be easier to seek satisfaction elsewhere. In healthcare particularly, having team members who are dedicated to helping others are those who will bring your purpose to life. This is the wellspring of your company’s culture.
In retrospect, this trio of key considerations – the tip of the trident – seem obvious but each phase can be daunting, especially when you’re just getting started whether you’re a large organization or an ambitious start-up. Successfully managing all three components of the trident – the right product concept, the right investor[s] and the right team -- might not gain you super-powers but it will help you navigate often-turbulent seas.
Finally, please remember Excelerant Consulting is always available to help you put together a plan that keeps you on Neptune’s good side on your journey to marketplace success. Contact us today!
info@excelerantconsulting.com
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ABOUT THOMAS HICKEY --Thomas is an expert at developing innovative strategies and tactics and possesses a deep understanding of sales strategy and sales channels that combine to produce impressive results. With more than 35 years’ experience in the medical device industry and executive-level experience with manufacturers and Group Purchasing Organizations [GPOs], Thomas is skilled at launches, start-ups, international distribution, technology assessment, and assessing market feasibility. He has successfully launched several products and hired, coached, trained, motivated and optimized literally hundreds of independent and distributor sales team members.
ABOUT EXCELERANT CONSULTING
Excelerant Consulting is the go-to organization for med-tech companies that need to position products and services successfully for value analysis committees, contract acquisition, and sales modeling and execution to commercialize the launch of medical devices or services with Group Purchasing Organizations [GPO], Integrated Delivery Networks [IDN], or Regional Purchasing Coalitions [RPC]. Our clients rely on us to enhance their product positioning, navigate corporate contracting opportunities, and provide sales support to accelerate sales growth.
For more info, contact Excelerant Consulting at info@excelerantconsulting.com.