- Technology is or will disrupt your sector - Hoping that it might miss you out is not a strategy! - You will need to embrace and adopt the technology to innovate to stay in the game - You also have the opportunity to explore how technology could enable your industry to disrupt another

1. CIO LEADERS SUMMIT SINGAPORE 2015 Ÿ X Sector Disruption Discussion
19th November 2015 Ÿ Singapore Ÿ The Propell Group
DISRUPTION
X-Sector
@enquirepropell
#HealthTech

2. Julien
de SALABERRY
Experienced regional head and GM. 15+
years in healthcare with leading brands
including Eli Lilly, Boston Scientific,
Baxter, GSK, Merck & Co. Significant
Asia Pacific Experience.
The Propell Group is a boutique venture
investor and adviser firm focused on
early stage companies in healthcare
technology
Co-Founder of Galen Growth Asia
Co-Author of iDisrupted
Founder & CIO Ÿ The Propell Group
M: +65 9488 7334 Ÿ julien@propellgroup.biz
@enquirepropell

3. ©2015 by The Propell Group - All rights reserved. Proprietary and Confidential.
• A short history on technology disruption and the innovator’s dilemma
• The resulting industry uncertainty
• Case Study: the Life Sciences industry reboot
• Can your sector un-disrupt itself by disrupting another?
Technology is disrupting all sectors

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The Kodak Moment
130 Year Old Kodak Died in January 2010
Disrupted by the digital camera which it invented in 1975

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The Innovator’s Dilemma
New Business Models
Lower performance points can grow to disrupt incumbents
DISRUPTION
DISRUPTION
DISRUPTION

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Industry Uncertainty: Big Priority for Healthcare
Demand vs Technology Uncertainty
Greater innovation management skills required than industries in the other quadrants
Source: HBR!

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• Targeted research through rational design model
• Customised clinical trials through pharmaco-genomics
• Real World Evidence research “n=millions”
• Customisable medical technology
• Digital marketing, tracking and sales
Rebooting The Life Sciences Industry

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• Data
• BioSensors
• Mobile Devices
• Frugal / Reverse Innovation
• 3D Printing
5 Key Technology Disruption Drivers in Healthcare

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Clinical Data: Next generation clinical trials
• Open-source platform that empowers researchers to design and
administer app-based health research
• Initial focus on breast cancer, diabetes, Parkinson’s disease, CV &
Asthma driven by leading teaching hospitals
• 5 year deal where AZ can access the patient-reported data to guide
R&D in respiratory disease, lupus, diabetes and oncology.
• Principal objective is to better understand patient experience and
perception
• Post launch real-time patient data from extremely large numbers of patients – n
equals millions
• Increasingly important data sets for market access and reimbursement
§ Velcade (J&J) for the treatment of Myeloma ($35,000 p.a.) was initially rejected by NICE
(UK). J&J agreed not to charge any patient not deriving benefit. Velcade was approved.

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Micro sensor for long-term monitoring of cardiac
rhythms
Single-channel ECG recorder that is portable,
easy to use and low cost (FDA approved)
• Rolled out across Apollo hospitals in India
Point of care Dx:
Cost effective cervical cancer screening system
• Piloted in Nepal, Kenya, Mexico, USA
IV flow monitor for safe and accurate infusion
• Y Combinator Accelerator graduate
Reverse/Frugal Innovation: MedTech For All

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• 3D printing or additive manufacturing is enabling both affordability and/or technical
leadership in medical device / hardware
• Rapidly moving from R&D and design activities to new therapies developing
around 3D printed products
3D Printing: Next Generation MedTech
AFFORDABLE MEDICAL EQUIPMENT
Glia Project - 3D printed stethoscope produced at
a cost of $5 performs as well as the $200
equivalent
LOW COST PROSTHETICS
University of Toronto, in collaboration with
Autodesk Research and CBM Canada, used 3D
printing to quickly produce cheap and easily
customizable prosthetic sockets for patients in the
developing world
DENTISTRY
Dentistry and orthodontics are already large users
of 3D printed devices with ~17 million clear
aligners produced p.a.
MEDICATION
Spritam (levetiracetam) is a new drug
(pharmaceutical company Aprecia) to control
seizures brought on by epilepsy. Approved by the
FDA. Uses 3D printing to create a pill which
dissolves more quickly on contact with liquid

12. ©2015 by The Propell Group - All rights reserved. Proprietary and Confidential.
• Technology is or will disrupt your sector
• Hoping that it might miss you out is not a strategy!
• You will need to embrace and adopt the technology to innovate to stay
in the game
• You also have the opportunity to explore how technology could enable
your industry to disrupt another
Technology is disrupting all sectors

13. ©2015 by The Propell Group - All rights reserved. Proprietary and Confidential.
Watchmaker Fossil Group Inc. has agreed to acquire startup
Misfit Inc., a maker of wearable fitness trackers, for $260M
• Fossil will incorporate Misfit’s technology into products
that look like traditional watches, rather than rubber
fitness trackers
The Tag Heuer Connected has recently been unveiled in
New York, amid the fanfare of being the first 'luxury'
Android Wear smartwatch
• As well as being a partnership between Tag and
Google, and boasts an Intel chip inside.
Watch Industry: Déjà vu!
Reaction: Initial market entry of wrist wearables was dismissed as a fad. Similar attitude was taken when
the LCD Quartz watches entered the market in the 70s aka The Quartz Crisis
Action: Numerous new wrist wearable products and their resultant traction e.g. Apple Watch have
triggered a number of acquisitions and partnerships to mitigate the impact.

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Founded only in 2003, Tesla has launched a car with
architecture which is completely different (systems and drive
train are engineered from the ground up around the battery)
• Other automakers have simply inserted the battery as a
module into a standard platform
Ford has announced the company’s vision to transform
the car into a next generation platform for mobile health:
• Working with WellDoc to connect its DiabetesManager
service, to encourage drivers to double check their
blood sugar right when they get behind the wheel
Car Industry: Kicking & Screaming
Reaction: Timid attempts to embrace technology with products such as the GM Volt or the Honda Pryus
Action: The challenge faced by the incumbent manufacturers is having to cannibalize the profits of their
existing lines by making completely new vehicles from the ground-up to compete. Scandals like VW are
precipitating consumer opinion towards alternatives

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The retailer unveiled its “PoloTech apparel,” a “smart shirt”
made in partnership with OmSignal:
• The shirt is skintight and comes fitted with sensors that
track biometric states, including steps, heart rate and
breathing
Snaps up the biggest names in fitness tracking apps to
consolidate & change the nascent digital fitness market:
• Acquired MapMyFitness for $150M in 2013 (20M
users), MyFitnessPal for $475M (80M users) &
Endomondo for $85M (20M users) in 2015
Sports Industry: Technology is a fashion
Reaction: Big brands largely driven by fashion creating niche players focused on fitness
Action: Technology is enabling the more visionary apparel manufacturers to understand the correlation
between active individuals and sports gear and buying up more of the fitness space by building fitness app
empires alongside sports clothing, thus getting access to big chunks of the fitness communities

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Other Sectors: Sharing is best!
• Biggest limousine and taxi fleet in the world
• Does not own any vehicles
• Signed a global agreement w/ Practo, a physician booking platform
• Biggest retailer in the world
• Does not own any stores (well 1 w.e.f. Nov 2015!)
• 3rd party sellers are a laboratory
• Biggest provider of accommodation in the world
• Does not own any dwellings
Reaction: Incumbents are managers of assets of variable utilisation they invariably own who are providing
a product / service to a consumer
Action: New entrants are service providers leveraging poorly utilised assets they don’t own

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Innovation Ambition: Choosing your innovation focus
Innovation Ambition Matrix
Moving from incremental to transformational
Source: HBR!

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• What / Who do you expect will impact, disrupt and/or disintermediate
your industry, sector or value chain?
• What do you perceive to be the potential new entrant disruption threats
into your industry/sector? Why?
• What sectors could your industry and/or organisation enter to disrupt?
Why?
• What does it mean for you as an individual?
Please discuss the following Qs