Business Strategy versus Product Strategy A case Study Presentation by Dr. Andreas O. Tobler Special guest: Dr. J. Michael Delmage, CEO of Transvivo, Inc. May 18, 2011

The Idea Every company starts with an idea! The idea is usually either a business (strategy) or a product (strategy).

Business Strategy Business Strategy starts with a strategic vision, identifying your business objectives and deciding how to best achieve those objectives, for example “To become within the next five years a major player in the dialysis market based on my revolutionary product idea/invention”

Product Strategy Product Strategy is the selection - based on your idea/invention - of the actual product(s), and how you get from your idea/invention to successfully selling that actual product(s), for example: “To successfully select, design/develop, build and commercialize within the next five years a new medical device that will revolutionize the dialysis market”

Product Strategy Essential Steps Idea Generation/Selection  Development Manufacture Commercialize For each step, design action plan and assess resources, time and risks

Business Strategy 1. Identify your business objectives, e.g. what future course will you take, what will your organization do, who are your clients and how do you intend to excel (business plan) 2. Decide how you will reach your business objectives, e.g. determine how you will allocate your resources and what strengths, weaknesses and opportunities you may have

Product Strategy Idea Generation/Selection Know your product(s) and the respective essential steps Know your capabilities Know your resources Know your timelines  Select the appropriate product(s)

Product Strategy Development  Product design & engineering  Market research & analysis  Approvals

Product Strategy Product Design/Engineering Objective of product design/engineering is:  to create a product with excellent functional utility and sales appeal at an acceptable cost and within a reasonable time  to produce the product using high-quality, low-cost materials and methods  to produce the product on equipment that is or will be available when production begins  that the resulting product is competitive with or better than similar products on the market in terms of quality, appearance, performance, service life, and price

Product Strategy Market Research & Analysis Objective of market research & analysis is to:  gain a more detailed understanding of consumers  reduce the risk of product/business failure  forecast future trends Market research & analysis is based on a systematic, objective collection and analysis of data about a particular target market, competition, and/or environment.

Product Strategy Approvals  FDA  EU  Other Complicated, lengthy process!

Product Strategy Manufacture Product manufacturing has many aspects, from prototype to the final mass production of the product Don’t underestimate the complexity of product manufacturing and scalability

Product Strategy Commercialize Commercialization is the process of introducing a new product into the market It is the final stage of new product development, and the one where the most money will have to be spent for advertising, sales promotion, and other marketing efforts Consider own sales force versus distribution agreement Projekt OP VK - CZ.1.07/2.3.00/09.0035 Tento projekt je spolufinancován Evropským sociálním fondem a státním rozpočtem České republiky