22 Jul What Is Your Value Proposition? In this week’s Tio video, Austin talks about his belief in his product as
What Is Your Value Proposition?
In this week's Tio video, Austin talks about his belief in his product as a new type of savory snack meal that could appeal to busy Americans. Here he is discussing his value proposition for the customer segment he serves.
Read the definitions below for Market (Customer) Segments and Value Proposition, and think about how they apply to your new idea:
MARKET (CUSTOMER) SEGMENTS: Defines the different groups of people or organizations an enterprise aims to reach and serve.
VALUE PROPOSITION: Describes the bundle of products and services that create value for a specific Customer Segment.
Then, for your initial post, answer the questions below:
- For whom are you creating value?
- Who are your most important customers and where is the customer experiencing the product or service (in person, online)
- What value do you deliver to the customer? Which customer needs are you satisfying?
- Which one of your customer’s problems are you helping to solve?
Post your initial response by Wednesday, midnight of your time zone, and reply to at least 2 of your classmates' initial posts by Sunday, midnight of your time zone.
1st person to respond to
JWI 575 Week 3
What is Your Value Proposition?
The process of clinical trials is a significant part of the overall investment necessary to develop a medical device (or drug) (FDA, 2014). In other words, the act of performing clinical trials does not directly regenerate revenue nor profit as it is a procedural task within a medical device development program. However, the idea I propose will tackle (i.e., will offer an innovative solution) the high rate of nonadherence or noncompliance within the clinical trial participants (Alsumidaie, 2017). Also, it will provide a method to monitor compliance for patients undergoing a prescribed therapy treatment. In particular, the product/service will focus on the "pulsed electromagnetic field" (Hetch, 2020) (PEMF) therapies, which is one of the main markets my company serves.
This product/service solution will target two main customer categories:
- PEMF Clinical Trial Leaders and Researchers (internal or external customer): This customer is responsible for obtaining inputs and insights from internal and external partners and clients to design, coordinate, and execute clinical trials that can deliver the expected/needed evidence to support the commercialization of a new medical device or drug (Genentech, 2021). The clinical trial leaders and researchers manage a substantial workload under tremendous pressure and urgency (Genentech, 2021). The proposed solution will reduce the clinical trial coordination and supervision time, reduce the overall cost, and elevate the data quality and outcomes resulting from the study.
- Clinicians (external customer): Modern PEMF medical devices are used by the patient at home (i.e., the patient can self-administer the therapy without a technologist or caregiver). The "clinician" (CMS, 2019) (i.e., a healthcare professional qualified to practice medicine) that partake in the PEMF therapy process is interested in the progress, well-being, and outcomes of the patients undergoing a PEMF therapy because typically they are managing chronic pain. The proposed product offering will enhance how the clinician assesses, monitors, and recommends changes to the patients under their PEMF therapy care. Also, it will facilitate and support an additional revenue stream to the clinician through the medical "reimbursement" (Validic, 2021) process.
The proposed product/service will create value to the identified customer categories through the following elements:
- Process Optimization: Typically, the success of a clinical trial within the PEMF market depends on the participant's report and the data collection managed by the clinical trial leader. The product/service idea will reduce these dependencies and elevate the reliability of the data acquisition process. The expectation is that this process optimization will create value through simplification, productivity (i.e., reduce the labor content and the required human resources), and reduction of the overall clinical trial execution cost.
- Enabling Patient Remote Monitoring: The proposed product/service has two components: (1) the acquisition hardware (i.e., the device that will acquire the PEMF therapy delivery information directly on the patient non-invasively); and (2) the "software-as-a-service" (Grant, 2021) (Saas) piece (i.e., the service that will work in conjunction with the acquisition hardware). These two parts will enable the clinician to monitor the patients remotely and generate an additional revenue stream. The Centers for Medicare and Medicaid Services (CMS) have formulated reimbursement codifications for a multitude of healthcare procedures and services (including for patient remote monitoring) (Validic, 2021). These codes are called current procedural terminology (CPT), and they designate the task or service a healthcare provider can offer (Pineiro, 2021). For example, CPT code 99454 reimburses physicians $51.61 (during a calendar month) to monitor physiological data remotely as part of the patient's treatment protocol (Validic, 2021). Since the acquisition hardware is durable (e.g., reusable for one particular patient) and the SaaS piece will support multiple patients simultaneously, the clinician customer will likely be interested in the care and financial benefits of the proposed product/service.
Value Proposition Statement
Reflecting on the targeted customers and the elements of value, the following is the initial "value proposition statement" (Shewan, 2018) for the proposed product/service: Empower your patients to live productively, pain-free.
Alsumidaie, M. (2017). Non-Adherence: A Direct Influence on Clinical Trial Duration and Cost. Applied Clinical Trials. Retrieved from https://www.appliedclinicaltrialsonline.com/view/non-adherence-direct-influence-clinical-trial-duration-and-cost
CMS. (2019). Quality Measures & You: Clinicians. Center for Medicare and Medicaid Services. Retrieved from https://www.cms.gov/Medicare/Quality-Initiatives-Patient-Assessment-Instruments/MMS/QMY-Clinicians
FDA. (2014). Basics About Clinical Trials. Unites States Food and Drug Administration. Retrieved from https://www.fda.gov/patients/clinical-trials-what-patients-need-know/basics-about-clinical-trials
Genentech. (2021). Global Clinical Leader. Genentech. Retrieved from https://www.gene.com/careers/detail/202105-113963/Global-Clinical-Trial-Leader
Grant, M. (2021). Software-as-a-Service (Saas). Investopedia. Retrieved from https://www.investopedia.com/terms/s/software-as-a-service-saas.asp
Pineiro, J. (2021). Medical Billing CPT Codes: What is CPT? Meditec. Retrieved from https://www.meditec.com/blog/cpt-codes
Shewan, D. (2018). 7 of the Best Value Proposition Examples We’ve Ever Seen. WordStream. Retrieved from https://www.wordstream.com/blog/ws/2016/04/27/value-proposition-examples
Validic. (2021). Your Guide to Reimbursement for Remote Patient Monitoring. Validic. Retrieved from https://validic.com/your-guide-to-reimbursement-for-remote-patient-monitoring/
RE: Week 3 DiscussionCOLLAPSE
Hope you are all having a great week. Please see the following week 3 DQ post.
For Whom Am I Creating Value?
The market segment in which I am targeting is small businesses in Ontario that operate within the retail and service industries whose revenue is typically less than $6 million dollars a year (ASQ, 1). Importantly, segmenting a market is critical to focus resources, increase customer retention, lower cost of acquisition, and improve the chances of selling to customers (OpenView, 2). Ultimately, value is created whenever a customer agrees to pay for a product or service but it’s important to understand that utility diminishes over time (Frakt, 3). As a result, continuous improvement will be needed to relentlessly drive value for the customer.
Who are your most important customers and where is the customer experiencing the product or service (in person, online)
The most important customers are those that fit within the strategic direction of the company, its defined market segment and who finds value in our service. Furthermore, the purpose of a business should be to create and retain these customers over the long-term whereby you have the greatest potential to maximize profitability (Sherman, 4).
In addition, since my service is about enabling data analytics for small business, customers are mostly going to be experiencing this online. Specifically, leveraging advanced analytic technology is mostly completed through cloud services. However, I do believe in the importance of meeting with customers directly, understanding their pain and incorporating them directly in the solution (Chick, 5).
What value do you deliver to the customer? Which customer needs are you satisfying?
I believe the value that we can deliver is enabling the client to obtain customer and market insights so that they can drive value for their own customers and create a competitive market advantage. Additionally, one of the most important things for a business to do is to not only create an offensive strategy but to also mitigate risk by establishing an economic moat (Gallant, 6). Data analytics provides the intelligence necessary for customers to make agile, forward leaning decisions instead of always chasing their tail.
Which one of your customer’s problems are you helping to solve?
The main problems that I am helping to solve is to remove the barrier to entry for accessing cost effective data analytics services and to empower my customers with the business intelligence needed for them to win. As I look at the anticipated services, there is room for improvement to ensure the offerings are deep, intelligent, complete, empowering and elegant (Kawasaki, 7). Increasing the product pipeline to meet these key characteristics will help to maintain stickiness to my brand over the long term.
Looking forward to your feedback.
- ASQ. (2021). What Is A Small Business? American Society for Quality. Retrieved from https://asq.org/quality-resources/small-business
- OpenView. (2010). What is Market Segmentation? Open View Venture. Retrieved from https://www.youtube.com/watch?v=pxcNVrwkroU&t=12s
- Frakt, J. &, Piper, M. (2014). Microeconomics Made Simple.
- Sherman, L. (2012). If You’re in a Dogfight, Become a Cat!
- Chick, I. (2018). The Why of Innovation. Medium. Retrieved from https://medium.com/@isabelachick/the-why-of-innovation-b69e5420044a
- Gallant, C. (2021). What is an Economic Moat? Investopedia. Retrieved from https://www.investopedia.com/ask/answers/05/economicmoat.asp
- Kawasaki, G. (2015). The Art of the Start 2.0.