Positioning within the Value Chain

Customers wants reliable, coordinated services. If one company is unable to offer all the necessary services, the customer needs an ecosystem based around the products and services of a primary partner within a value chain - today’s customers are won with ecosystems not products. What are the challenges and barriers, and what are the opportunities.

Page 2

Background to the Presentation

- Network Testing

- Global Supply Chain Integration

- Health Reform

- Lean in Government and Services

Page 3

Definition of the Value Chain In Connected Health Understanding Value

Series of activities that each provide value for the Customer.

The whole is greater than the sum of the parts for the customer.

Page 4

Who is the Customer for the Value Chain? The challenge of defining the customer

Page 5

Who are my Customers? Local, European and Global

EU Programmes

Local Authorities

National Programmes

Hospitals

Health ProvidersMultinational Companies

EmployersGP/Family Doctors

Community Care

Direct to Patients

Universities

Patient Forums

Direct to Citizens

Carer Forums Residential Care

Page 6

What Does the Customer Value? A move from activity to outcomes

Reduced Bed Days

Less sick days

Reduced Readmissions

Reduced Emergency

Admissions

Health organisations, whether pharmaceutical companies or healthcare providers, will increasingly be rewarded based on the outcomes they achieve

for their customers and patients.

Products and Service to compliment my

services

Not having to attend any unnecessary

reviews.

Page 7

Paying for Connected HealthTraditional Service V Cost dilemma

Cost/Budget

Service

Premium

Economy

Page 8

Idea Qualificatio

n Technology Push

New Requirements

Commercial sizing

Identify Funding

Product Development Trials Market

Preparation Market

Design

Development

Rapid Prototyping

Packaging devices

Micro-fluidics

Ethical approval

Pre-clinical Trials

Clinical Trials

Result analysis

Peer Review

FDA/EU Compliance

Formalise IP

Packaging

Manufacturing

Distribution

Partnering agreements

Sales and implementation

1 2 3 4 5

1 Year18 Months

2 Years3 years

4 years

Value Chain for Connected Health to MarketA lengthy journey

Page 9

Data driven Selection

Value in alerts and avoiding intervention

through data.

Bringing consistency and

intelligence

Appropriate intervention

Freeing up resources

bringing support.

Patient Selection and Recruitment

Alerting Clinical

Intervention

Data Interpretation

Service Response

Discharge Monitoring

Value Chain for Tele-CareIdentifying Value Add in the Value Chain

Referral to appropriate service

Reduced Failure Demand

Reduced admission

Clearer Diagnosis

Appropriate Intervention

Level

Early Discharge

Early Intervention

1 3 4 52

Page 10

Non-Value Add in the ChainCommercial Opportunities in streamlining the value chain

Non-Value • Transferring patient data from system to system

• Monitoring and maintaining equipment that’s not used

• Reviewing statistic that don’t impact outcomes

• Unnecessary administration

• Duplicating reviews between disciplines

Failure Demand • Inappropriate referrals

• Patients attending for information/education

• Reviews that don’t create value

• Screenings that are not necessary

ValueAdding

Essential Non Value-

Adding

Work

Waste

Dem

and

FailureD

emand

Page 11

Challenges of Operating in the Value Chain Areas to address in a business plan

· Defining who your customer is? · Defining what your customer wants today. (By Country)· Will the customer pay for what s/he wants today?· Identifying the channel to market· Identifying partners to deliver the value chain· Defining what your customer wants tomorrow· Managing relationships in a complex supply chain· Protecting your IP or your Value

Page 12

Barriers in Operating in the Supply Chain Areas that must be resolved

· Credible track record· Regulatory compliance per country· Standards – so many to choose from· Commercial risk· Time to market· Cash flow for small companies · Commercial patience for larger companies

Page 13

Value Chain Opportunities of the Healthcare of the future Four key themes emerging in the future of healthcare

· Delivering health reform moving toward universal access and healthier communities

· Improving outcomes through the use of health information and enhanced process / cost efficiency

· Delivering Intelligent Healthcare: Customer-centric innovation in health

· Driving new business models across healthcare through Personalised Medicine

Future of healthcare

Health reformHealth

inform

ation and

enhanced proce

ss/

cost

efficiency

Intelligent health

Personalise

d

medicine

Page 14

Leveraging the Opportunities in the Value Chain Focusing on the Value Chain to create realise opportunities

Supplier Side · Understand who your real

customers are. · Understand the value the you

create. · Seek to understand non-value add

in the value chain· Seek partners/customers in the

Value Chain to meet end customer need.

· Manage commercial risk but not over manage it.

· Create a portfolio of products to manage time to market

· Be realistic about the cost of sale.· Sell outcomes not product

Procurement Side · Create clarity on where real value

can be created· Create clarity on the partnering

with the Client side· Align your organisation to

minimise unnecessary time delays in procurement.

· Link commercial risk to reward. · Create realistic timescales.

Page 15

Further Reading on the Future of HealthcareEmerging Thought Leadership

What PA Consulting Does: · Delivering out of the ordinary programmes · Complex integration in healthcare · Innovative device development · Change management · Care pathway redesign · Supply chain transformation for products and services

Check out our material on the Future of Health Care at::

http://tiny.cc/vtx4d

Page 16

PA Health Contacts in Ireland Global Company with Local Presence

For more information, contact:

Name: Stephen McComb Potters Quay, Belfast Mobile: +44 7912 799188 E-mail: stephen.mccomb@paconsulting.com

Name: Sile RyanEmbassy House, Herbert Park LaneBallsbridge, Dublin 4Mobile +353 86806 2506E-mail: sile.ryan@paconsulting.com

PA Consulting Group is a leading management and IT consulting and technology firm. Independent and employee-owned, we operate globally in more than 30 countries and transform the

performance of major organisations in both the private and public sectors.