You may not realize it, but you may not be READY to demonstrate the value of your device or medtech solution, even if you think you are.
It helps to know where you are in this journey and what to do to move forward toward a goal of communicating credible and compelling value narratives. Check out the figure below:
There is a lot of information there, but let’s break it down into managable parts.
First, the blue boxes reflect common “stages” start-ups find themselves in regarding value demonstration; the bullets under each box reflect common characteristics, to help you identify where you might be.
- Considering Value: This stage tends to include early-stage firms who have identified a need and have started to develop a solution to address it. However, their “value” strategy is pretty loosely defined, and they often are still unsure of how to monetize their innovation. Firms here often realize they need to explore value but they don’t really know where to start.
- Understanding Value: In this stage, firms have often settled on a monetization strategy, but there are still significant gaps in their overall knowledge of value. Perhaps they haven’t fully examined everyone who will be affected by the change they are proposing or how disruptive that change could me. Firms here often see some push-back in their value strategy from the external stakeholders they wish to convince.
- Quantifying Value: Firms who are ready to start quantifying value have established their desired audience and may even have external champions who believe in their value. These firms need to quantify value to support these external champions and to be able to identify the types of materials to create to communicate value.
- Communicating Value: At this final stage, firms are nearing an important event like a fund raise or even market entry. They understand their value and have quantified what they can, and now need to determine how best to encourage implementation and wider adoption. These firms need to develop credible and compelling messaging around their value that is specific to the decision-makers they have identified.
Once you identify your current stage, you can then determine the most appropriate next steps to move you forward.
If you are Considering Value, you would be best served to explore possible sources of value for different stakeholders involved in the care you wish to improve. These stakeholders will typically include patients, clinicians, administrators, and/or payers, among others. Think about where value comes from for these stakeholders (e.g., outcomes, payments, experiences, efficiency, etc.), and see if you can align a monetization strategy with those value sources. For example, if a provider would experience value in the form of lower costs or greater reimbursement, perhaps monetizing through provider investment would be appropriate.
If you are in the process of Understanding Value, you may want to assess your current situation to identify specific gaps and difficiencies. This free assessment provides a readiness score, which can be improved by walking through a 4-step framework the addresses the components that affect value. This will set you up to be able to quantify value.
If you are ready to Quantify Value, then you will need to collect information or data in order to calculate metrics like ROI or cost-savings. This is a considerable lift, and involves investments of time and resources to do it well. However, as stated elsewhere, such an investment is typically rewarded.
If you reach the stage where you will Communicate Value, then you will need to design and develop specific materials to disseminate the value messages you have chosen. These may be white papers, value briefs, economic analyses, or a combination of things. Consider the audience for whom they are intended and how they will be used. Also realize that you may need to equip external champtions with materials that they can easily leverage when they are relaying the value message to key decision-makers.
There is a lot here, but if you are committed to demonstrating value so that you can raise funds or encourage adoption in the market, there are tangible, practical steps for progressing along this journey. And, as always, we are here to help. Reach out to schedule a free call to discuss your situation.