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1 Life Technologies™ Proprietary |
From Innovation to Execution Case Study from Life Technologies Vanee Pho PhD, MBA
Silicon Valley Product Management Association August 7, 2013
2 Life Technologies™ Proprietary |
Who Am I?
Senior Product Manager at Life Technologies MBA, Rady School of Management, UCSD, 2007 Post Doctoral Fellow at UCSF, 2003-2005 PhD in Psychology, Boston University, 2003
4 Life Technologies™ Proprietary |
Agenda Innovation to Execution: Case Study from Life Technologies
Path to Innovation
> Design thinking > Understanding the marketplace > Market analytics to differentiate the product > Positioning to win the market
5 Life Technologies™ Proprietary |
Situation
Context Consultants predict that
product growth market is expected
2009 Life Technologies acquires Biotrove’s OpenArray system for $80M
Opportunity Need to assimilate
acquired technology User workflow is not
optimal
6 Life Technologies™ Proprietary |
The Power of qPCR & OpenArray® Technology
Genetic Validation and Screening
7 Life Technologies™ Proprietary |
Agenda Innovation to Execution: Case Study from Life Technologies
Path to Innovation
> Design thinking > Understanding the marketplace > Market analytics to differentiate the product > Positioning to win the market
8 Life Technologies™ Proprietary |
The Design Challenge:
How might we enhance the customer experience by improving the workflow from ordering, experimental set-up and through data analysis?
9 Life Technologies™ Proprietary |
| Life Technologies Proprietary & Confidential |
Challenging Workflow Insert OpenArray Plate into Glass Slide
Use Tweezers to Push Plate
Seal with Glue
10 Life Technologies™ Proprietary |
Using Design Thinking Examine “How Might We...” to understand pain points and
customer needs
Synthesis: •100% Team Activities •3 days/week (6-7 hr/day) no “in and out privileges” •Storytelling •Themes •Opportunity Areas •HMW statements?
1-2 weeks 2-3 weeks
2-weeks 2 weeks
Pre-Kickoff: •Looking-in on current projects •Scheduling visits •Observation Guide
Observations: •On-site observations •Requires travel •2 team members/visit •Photos/recording/notes •6-10 external sites
Build: •3 days/week (6hr/day) •Brainstorm HMW
•extended team •Develop concepts •Prototype concepts •Limited feedback:
• 1-2 customers • internal
May April June
11 Life Technologies™ Proprietary |
We discovered that……
……… customers are excited by Life
Technologies acquiring BioTrove and have high expectations.
12 Life Technologies™ Proprietary |
Excited by Life Technologies acquiring BioTrove
“OpenArray is quite a contrast to what I usually get from AB. AB is really polished.”
13 Life Technologies™ Proprietary |
We learned that…..
………this is an Artisanal Workflow with many steps using non-standard lab techniques and non-standard tools.
14 Life Technologies™ Proprietary |
This is an Artisanal Workflow
“ Are you kidding me? I have 16 chances to make mistakes.”
15 Life Technologies™ Proprietary |
This is an Artisanal Workflow
“I do feel like we are making Valentines cards for kids.”
16 Life Technologies™ Proprietary |
We found out that…
…the user’s skill in executing the workflow has a large effect on data quality.
17 Life Technologies™ Proprietary |
Data Quality
The exact same genotyping experiment gives significantly different results when performed by skilled hands of Internal QC vs Field Trainer in OpenArray.
Internal Quality Control Field Trainer
19 Life Technologies™ Proprietary |
Instrument Sitting Idle
“It is hard to teach the OpenArray workflow to interns. I can trust the 7900 and it is so easy to use.”
20 Life Technologies™ Proprietary |
Instrument Not Maximized
“I couldn’t get other groups interested in OpenArray until we got the robot.”
21 Life Technologies™ Proprietary |
We heard that….
…feedback is key…users want to track progress throughout the workflow and when and why something went wrong.
22 Life Technologies™ Proprietary |
Feedback is Key
“The most important thing is to track samples and AB just leaves it up to you.”
23 Life Technologies™ Proprietary |
The OpenArray Journey Represents a Framework of Opportunities
Does not meet expectation
Somewhat meets expectation
Meets expectation
Delight
Disposal of Arrays
Workflow Steps
Purchase OpenArray
Learn the
workflow
Assay/Array
Ordering& Receiving
Results
Results Genotyping and Gene Expression Cycling Genotyping
Data Analysis
Gene Expression Data Analysis
Results
Results Experimental Setup
Encasing
Genotyping and Gene Expression Cycling Genotyping
Data Analysis
Loading
24 Life Technologies™ Proprietary |
Agenda Innovation to Execution: Case Study from Life Technologies
Path to Innovation
> Design thinking > Understanding the marketplace > Market analytics to differentiate the product > Positioning to win the market
25 Life Technologies™ Proprietary |
• Is there a market and how big is it?
Know the Market Space to Make Informed Decisions Current Portfolio
Opportunities Competition
• Conduct SWOT analysis, read the annual reports • Consult sales reps for competitive info
•Inconsistent branding, multiple software platforms •Crowded in various market segments •Requires RoHS compliance updates to hardware
Market Landscape
•Know your customers and the application space
26 Life Technologies™ Proprietary |
Analytics to Validate the Market and Differentiate the Product
Is there a market for such a large throughput? Do they
have the budget and are they planning to buy in the near future?
Are customers interested in another instrument and how can we make the instrument unique?
How much are customers willing to pay?
27 Life Technologies™ Proprietary |
Applied Biosystems’ Real-Time Open Array is the most commonly considered mid-density instrument for future purchases in North America and the
Illumina Bead Array is the 2nd most common
What brands/models are being considered? - North America Planned Purchases -
N=89
% o
f Res
pond
ents
Market Segment Life Tech Real
Time Open Array
Illumina Bead Array
Illumina iScan
Nanostring nCounter
Fluidigm Biomark
Sequenom MassARRAY Analyzer 4
Fluidigm EP1 Other
Academic (non Core) n=32 50% 31% 13% 25% 13% 9% 9% 13%
Biotech / Pharma / Product Development n=24
58% 29% 17% 21% 21% 13% 13% 13%
Service / Core n=11 45% 27% 18% 0% 0% 18% 18% 27%
Industrial (Non Pharma) n=2 50% 0% 50% 0% 0% 0% 0% 50%
Government n=14 57% 50% 14% 14% 14% 7% 0% 14% Public Health n=6 50% 17% 17% 0% 0% 33% 17% 17%
28 Life Technologies™ Proprietary |
About 1/3 of the sampled facilities expect to purchase an average of 1.3 mid-density instruments within the next 3 years
Do you believe your department will purchase any new mid-density instruments within the next 3 years?
- North America -
Avg # of Unit
1.2 1.0 1.2 1.0 1.0 1.5 1.3 % o
f Res
pond
ents
said
YES
Avg # of Unit
1.4 1.3 1.4 1.2 1.1 1.0 1.3 1.2
% o
f Res
pond
ents
said
YES
29 Life Technologies™ Proprietary |
Reliability and Data Quality are the two most important mid-density instrument features.
What are the most important features? - North America Overall -
N=183
Most Important
Least Important
Most Important
Least Important
77% 60% 53% 40% 42% 45% 16% 34% 23% 26%
11% 20% 13% 15% 6% 6% 4% 5% 5%
% of respondents ranked it Top 5
30 Life Technologies™ Proprietary |
The concept is well received 45% of the respondents gave a rating of 8 or above
High Interest
45%
How interested are you in using this new real-time PCR instrument? - North America -
Overall N=183
Average Interest Level = 7.0
Academic (non Core) (n=57)
Biotech /
Pharma (n=54)
Service / Core Labs
(n=23)
Industrial (Non
Pharma) (n=9)
Government
(n=26)
Public Health
(n=8)
Avg Interest 6.9 7.2 7.2 5.9 7.1 6.9
% of High Interest 44% 43% 52% 22% 53% 50%
Affymetrix / Illumina
(n=64)
BioRad /
Roche (n=85)
Fluidigm /
Nanostring
(n=11)
Life Tech
(n=114)
Life Tech-only
(n=43)
Open Array / ViiA7 (n=10)
Avg Interest 6.9 7.1 6.8 7.0 7.0 7.4
% of High Interest 45% 46% 36% 44% 42% 60%
Very Interested
Not Interested
at all
384 well +
(n=71)
96 wells or under (n=112)
Avg Interest 6.9 7.1
% of High Interest 38% 50%
31 Life Technologies™ Proprietary |
Optimal Price ~$110,000
Price where an equal # of respondents think it is
Expensive, but still possibly a buy
and Too Cheap to be of OK quality
Price where an equal number think it is a Bargain and Expensive
Price where less than 50% Think it is Too
Expensive to Buy and before Price Sensitivity becomes high
% o
f Cus
tom
ers
Global Van Westendorp Pricing Analysis - Initial Purchase: 12k Data Points or 384w* -
N=94
*Respondents who would purchase 12,000 data points or 384-wells block type
Optimal QuantStudio™ 12K Flex Price Is $110k
Price where less than 75% Think it is Too
Expensive to Buy Point
of Inflection ~$140,000
Max. Price $190,000
Min. Price = $85,000
Target AUP $140K
32 Life Technologies™ Proprietary |
Proposed Instrument Concept
+ = Model scenarios: leverage past financial models, with
updated assumptions − How much of competitors share would we gain? − Would we lose customers? − Would there be cannibalization of the other instruments or existing
bundling promotions?
33 Life Technologies™ Proprietary |
Agenda Innovation to Execution: Case Study from Life Technologies
Path to Innovation
> Design thinking > Understanding the marketplace > Market analytics to differentiate the product > Positioning to win the market
34 Life Technologies™ Proprietary |
QuantStudio™ 12K Flex Target Segments
0.0
50.0
100.0
150.0
200.0
250.0
Mar
ket S
ize
(US$
M)
Academic PI
Applied Markets CRO
Therapeutic Area Group
TL & Hosptial Group
Academic Core
Mid-density (un-allocated)
Industrial Ag
Clinical & Service Lab
BioPharma Core
Genome Center
Scalability Driven Flexibility Driven Speed & Throughput Driven
Key Customer Segments
Academic PI (non-Core) Biotech startup
Academic Core Translational & Hosptial Group Biopharma Therapeutic Area Group CRO Applied Markets
Genome center BioPharma Core Clinical & Service Lab Industrial Ag
Key Applications
• Candidate mRNA & miRNA analysis
• CNV • SNP genotyping • dPCR
• Pathogen detection • GEx (both candidate & targeted
discovery; mRNA & miRNA) • dPCR
• SNP genotyping • Pathway analysis/targeted
discovery • miRNA profiling • Biomarker screening
Entry configuration
• 96- or 384-well block • Multiple block purchase (OA with either 96/384-well or TAC block)
• OA block
$45M
$227M $208M
35 Life Technologies™ Proprietary |
Scalability Driven Flexibility Driven Speed & Throughput Driven
Key Value Drivers
• Low throughput need initially with intent of scaling toward mid-density in the future
• Consistent results/minimize variability
• Requires flexibility to investigate variable number of targets & samples per project basis
• Faster decision making • Workflow ease • Reliable results • Low cost per sample
• Desire a focused set of targets with ultimate goal of screening thousands and thousand of samples
• Low cost per data point • Faster decision making • Reliable results
Entry Level Instruments
QuantStudio 96 or 384 well QuantStudio OA plus TAC/384W/96W QuantStudio OA
Value Proposition
With limited resources, you can get the most reliable results and plan for the future with the most scalable qPCR instrument on the market today
You need the right answers quickly - get high quality data fast with the most flexible qPCR instrument on the market today
Your time is precious and people are counting on you, screen the right set of markers quickly with the best in class mid-density platform on the market today
Benefits
• Integration of TaqMan Content • Robust light technology/block
design • Easy workflow;
• 5 interchangeable blocks • Easy workflow with minimal
hands on time • LIMS/automation capability
• 12,000 data points in 1 hr 40 min runs • Best in class mid-density workflow • Integration of fixed & custom TaqMan
content
Target Segments & Value Propositions
36 Life Technologies™ Proprietary |
Mid Density Price/Value Strategy Mix
1 Premium Strategy
2 Penetration Strategy
3 Superb-Value Strategy
4 Overcharging Strategy
5 Average Strategy
6 Good-Value Strategy
7 Rip-Off Strategy
8 Cream-Skimming
Strategy
9 Cheap-Value Strategy
High Medium Low Hi
gh
Med
ium
Lo
w
Life QuantStudio 12K Flex AUP $140K
Sequenom AUP $205K
Fluidigm EP1 AUP $120K
Fluidigm Biomark HD AUP $190K
Wafergen AUP $110K
NanoString AUP $237K
BeadXpress AUP $90K
Roche LC1536 AUP $200K
Life NT Cycler AUP $86K
PRICE
*Value parameters defined in “Value & Pricing Matrix” detail slide in appendix
38 Life Technologies™ Proprietary |
Results One Year After Launch
2012 AOP 2012 Actuals
Unit Actuals vs Plan Overall Install Base
Recent Opportunities Regional Breakdown
39 Life Technologies™ Proprietary |
Lessons Learned More Application Focus at Launch
Realize Project Scope & Breadth Early Understand Sales Compensation Structure
Strategize Product Replacements and Discontinuance Plans
40 Life Technologies™ Proprietary |
Thank You!
K. Ridley Quantstudio Technical Specialist
Life Technologies, Asia-Pacific
41 Life Technologies™ Proprietary |
The QuantStudio™ 12K Flex Real Time PCR System is For Research Use Only. Not for use in diagnostic procedures. © 2013 Life Technologies Corporation. All rights reserved. The trademarks mentioned herein are the property of Life Technologies Corporation and/or its affiliate(s) or their respective owners.