Presented by Doug Thompson Black Box LLC New Zealand Trade & Enterprise

1. Ivan Thompson & Co.
Product Value Analysis
for Smartlink 2000©
Health Guide Book
Proving and Selling Your Value Story
Three Short Examples
LC
Box, L
Black

2. Key Concepts
Business Strategy
A Buyer’s Business Strategy
is supported by Key Success Factors
each associated with Value Activities
which are affected by Products the Buyer uses
KSF
VA
KSF
VA
KSF
VA
Product X
VA

3. What A Vendor Must Understand
Target buyer’s
strategic
objectives
How the
objectives
are achieved
How the product
helps achieve
the objectives

4. The Case Logic Model
Understand the Buyer’s Problem – specify the problem
that needs to be solved from the buyer’s perspective
Choose a Direction – make the case for the selection of a
high level intervention strategy
Expect a Result – outline the benefit streams that could be
typically expected by choosing that direction
Adopt a Solution – propose a technical solution to the
problem that will achieve the expected result.
Demonstrate Success – summarise the likely results of
the application of the solution to the defined problem.

5. Finding Data Can Be Challenging
• The most challenging part of the Case Logic Model is the
Demonstrate Success step: obtaining data to quantify
the product’s impact; sources include:
–
–
–
–
–
Primary data the vendor collects from customer sites
Credible third-party studies of customer sites
Customer-led studies
Internal (vendor) data from tests and experiments, extrapolated
Published studies of similar products, extrapolated

6. Working With Customers
• Examples of working with customers to obtain data
– Alaris’ Medley© IV pumps
– McKesson’s Fulfill-Rx© software
– QuadraMed’s SmartLink 2000© system
Ivan Thompson & Co.
Product Value Analysis
for Smartlink 2000©

7. Product: Medley with Guardrails©, a smart infusion pump product sold by Alaris, Inc.
Target Buyer: Acute care hospitals
Data Source: Alaris collected data from each customer via regular downloads showing every case where
their product alerted a nurse about a drug they were administering, and whether the dose was changed
Product Value Data: Alaris Smart Pumps
Impact of Smart Pump Alerts on IV Programming and ADE Incidence
6% Other
39%
No ADE
33% Dose
Below
Minimum
61% Dose
Above
Maximum
Distribution of 23,405
Dosing Alerts
43%
Minimal
ADE Risk
84%
Proceeded
Anyway
13%
Programming
Change
3% Dose
Cancelled
Resolution of 14,167
Dosing Above Maximum Alerts
57%
Severe &
Moderate
ADE Risk
Risk ofADEsw/o
Programming Changes
61%
Adverse
Drug
Events
EstimatedADEsPrevented
by Programming Changes
1.9 ADEs
per 1,000
Patient Days

8. Product: Fulfill-Rx©, a software product sold by McKesson, Inc.
Target Buyer: Hospital pharmacies
Data Source: We visited a customer hospital to interview staff and collect primary data; we
also left data collection worksheets for the customer to complete over the following months.
Drug Ordering Process Before and After Fullfull-Rx ©

9. Product: HealthFlow©, a healthcare workflow engine sold by Araxsys, Inc.
Target Buyer: Home care providers
Data Source: We made direct observations and analyzed data from Araxsys’ beta site, MatureWell,
to document current value activities and identify how HealthFlow had improved these activities.
Screening and Home Assessment Sub-Processes: SmartLink Impacts

10. Tomorrow’s Topics
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•
•
•
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Finding existing data on product benefits
Convincing buyers to help collect product benefits data
Designing and carrying out on-site data collection
Understanding the buyers’ perspective
Using benefits data creatively