INDIAN SCHOOL OF BUSINESS CO17

TERM 2 : CSTR

HEALTHYMAGINATION AT GE HEALTHCARE SYSTEMS

HARVARD CASE ANALYSIS

Submitted By: Group L13

ANAMIKA BANERJEE: 61710432
DIVYA MARIA: 61710945
PRASHANT PRATAP SINGH:61710779
SOUMIK DE: 61710160

INDIAN SCHOOL OF BUSINESS CO17

TERM 2 : CSTR

Q1. WHAT SHOULD TOM GENTILE DO? SHOULD HE GIVE THE GREEN LIGHT OR HALT FURTHER
COMMERCIALIZATION OF HEP-ECHO? TEE-MAX, ULTRA-LIPO? OMEGA?

PRODUCT ECONOMICS ANALYSIS

Product

Cost/EconomicsEvaluation
7xmarginavailable.Thus,15%
costbenefitavailable.

Hep Echo
LowBreakevenpointof~350
units.

TEEMax

AccessEvaluation

Strategy

1.Bychargingalowprice(ashuge
1.Bestinclassimaging
marginavailable)theproductcan SustainingStrategy
performancesolution.2.Great
bemadeavailabletomidtier
Bringingbetter
improvementintermsof
hospitals.2.GEalreadyhasa
valuetoexisting
effectivity.3.Cannotquantifybut
NationalAccountsSalesTeamin
customers
>15%improvementexpected.
place.

Cannotchargeahighpriceas
Philipsisalreadyinthemarket
Cannotmeetclinicallyevident15%
withsimilarproduct.
qualityimprovementwithout
furtherinnovation.
Breakevenquantityis~1500
units.
Duetohighmargin15%cost
reductionpossible.

Noinformationavailable.

SustainingStrategy
Bringingbetter
valuetoexisting
customers

Go/NoGo
verdict

GO

NOTGO

Othercompetitorsinthemarket Lowenddisruption
providingthesimilarproductina
strategy offer
Lackofclinicallyrelevantbenefit. spalikeenvironment.Thus,no customersagood
improvementpossiblein
enoughproductat
accessiblity.
lowerprices

GO

NewMarket
BreakEvenpoint~4000units.
disruptionStrategy
Lowmarginhighvolumeproduct.
Nocompetitioninthemarket.A
Increasedthecapablity ofmidwifes
Offernon
Provideabetteralternative(Mid
totallynewuntappedmarket.
tounderstandrisksofpregnancy.
consumersa
wife~$45)toendcustomers
Thus,itimprovesaccessiblity.
simple,convenient
reducingprice90%
product.

GO

UltraLipo
Lowbreakevenpointof~100
units.3.$1Billionindustry.

Omega

QualityEvaluation

INDIAN SCHOOL OF BUSINESS CO17

TERM 2 : CSTR

Q2. WHAT ARE THE PRIMARY AREAS OF CONCERN FOR EACH OF THE PRODUCT CONCEPTS USING RYG
NPI EVALUATION CHART? WHAT ARE THE KEY VALUES OF USING THIS PROCESS?
HEP
ECHO

REASON

TEE
MAX

REASON

ULTRA
LIPO

REASON

OMEGA

REASON

Based on LOGIQ E9 Arcitecture.

Thus Easy to develop

Further innovation required for

making product better than existing
competition.

Similar technology available in the

market. Not difficult to develop.

Not difficult to produce as low

amount of RnD is required.

PRODUCT
ECONOMIES

Based on the LOGIQ E9 architecture,

the development cost low. And Huge
margin thus can be priced
competitively.

As the product technology is cutting

edge, uncertainity in meeting cost
targets.

Due to high margin 15% cost

reduction possible.

1. Break Even point ~ 4000 units.

2. Low margin high volume
product.

EVIDENCE
GENERATION

No clinical evidence available.

No clinical evicence without further

innovation.

Lack of clinically relevant benefit.

No clinical evidence available.

Product is differentiated on its

technical capablities and reduces
repeat procedures thus saving test
cost for end customers.

Doesnot have high margin which can

be transferred to end customers.

Not difficult. As alternatives available

charges higher price. Thus
quantifiable.

Provide a better alternative (Mid

wife ~ $45) to end customers
reducing price 90 %

SUPPLY CHAIN

Because it is based on LOGIQ E9

architecture thus raw material would
be available.

New innovation would need new

raw materials thus no certainity.

Similar technology available in the

market. Not difficult to develop.

Simple product. Easy to produce.

MARKET ACCESS

No discussion in case.

Many competitors in the market and

difficult to obtain FDA approval.

New Market. No Barriers to

entry.

SALES AND
DISTRIBUTION

Not available as target customers are

SPA owners.

Not available as such. Needs

development as education level of
Midwife might create hinderence.

SERVICE AND
INSTALLATION

Not available as target customers are

SPA owners.

Not available as such

VALUE CREATION
TECHNOLOGY

ECONOMIC VALUE
QUANTIFICATION

VALUE DELIVERY

Similar to B2B selling to hospitals for

which GE has Experienced sales force
in place.
Similar to B2B selling to hospitals for
which GE has Experienced sales force
in place.

Phillips in the market. Thus would

not be easy to enter the market
with sub par product.
Similar to B2B selling to hospitals for
which GE has Experienced sales
force in place.
Similar to B2B selling to hospitals for
which GE has Experienced sales
force in place.

INDIAN SCHOOL OF BUSINESS CO17

TERM 2 : CSTR

Q3. USING THE PIM TOOL HOW WOULD YOU EVALUATE ULTRASOUND PORTFOLIO PRODUCT? WHERE
WOULD EACH OF THE NEW PRODUCT CONCEPT BE PLACED ON THIS MAP? HOW IS
HEALTHYMAGINATION IS LIKELY TO ALTER THE DISTRIBUTION OF THE MAP?

TechnologicalUncertainity
Rating
Range

Reasons

Rating
Range

Reasons

HepEcho $36Million

0 2

BasedonLOGIQE9
Arcitecture

0 2

B2BMarketspace

TEEMax $20Million

2 4

SomeRnD requiredto
makeproductcompetitive

0 2

B2BMarketspace

UltraLipo $10Million

4 6

Newproduct

4 6

0 2

Fairlysimplerproduct

4 6

Investment

MarketUncertainity

Omega

$6Million

NewSegment/Newtype
ofcustomers(Spa
Owners)
NewSegment/Newtype
ofcustomers(MidWives)

INDIAN SCHOOL OF BUSINESS CO17

TERM 2 : CSTR

Q4. WHY IS GE PURSUING HEALTHYMAGINATION? IS IT A BRANDING EXERCISE OR AN INNOVATION

STRATEGY? WHY NOW? ARE THERE RISK FROM BASING THE ENTIRE NEW PRODUCT INTRODUCTION
PROCESS UPON THREE PILLARS OF HEALTHYMAGINATION (COST, QUALITY AND ACCESS) ?
Why Pursue
Healthymagination?

Is it a Branding or innovation
Strategy?

Brand GE as a more caring

conglomerate.
Foster into new emerging
economies where demand
for healthcare is going to
increase and would demand
lower price.
Create brand loyalties
through first mover
advantage for unserved
consumers.
Focus on customer delight
by giving them 15% extra.
Disruptive innovation
strategy.

Both
Branding : It is similar to
CSR activity where in
corporate is trying to
create a caring image in the
minds of its customer.
Innovation: New product
development for customer
delight.

Why now?

Risks?

To boost stagnant profit

values with expected
growth in healthcare sector.
Increasing average age of
population and thus
healthcare spending. To
capture the opportunity.

Same 15% rule might not be

apply in all markets. Thus,
along with it market specific
decision to be taken.
Giving out extra and
charging less for it might
not help in improving
profits on balance sheet.