Case Study - USA Medical Sector

We were asked to develop a Value Selling process and tool-set for our client's new medical product that was shortly due to be launched into the US market. The client had already been to a major consultancy for considerable support but was not convinced that their resulting 'Value Estimator' provided them with the right way forward. Below is a brief outline of the major 'Before' and 'After' positions of this Lucidus intervention.

Before... Excel Value Estimator & Cost Model:

  • Two major spreadsheets (containing 27 complex worksheets and countless thousands of formulae)
  • No visibility between high level results, value drivers and base data inputs
  • Benefit logic totally hidden and/or unfathomable to potential customers
  • Limited base data flexibility
  • Huge data collection requirement to drive benefit & cost calculations
  • Major benefits unidentified
  • Included some inappropriate benefits
  • Included some inaccurate calculation of benefits
  • Sales staff unable (& unwilling) to use the tool interactively with their customer in any meaningful way
  • No "What if" functions
  • No visible linkage between end customer value and our client's product pricing strategy
  • Limited graphical outputs
  • No automated reporting outputs
  • No identification of qualitative benefits

After... Lucidus Value Simulator

  • A single integrated tool-set that identified full relevant costs and benefits with great accuracy and clarity - all in the business language of the potential customer
  • Benefit logic, base data & assumptions articulated in a way that was easily understood, tested & interactively changed by customers to reflect their individual business needs
  • More focused benefit modelling led to a 55% reduction in data items collected
  • Interactive "What if" scenarios could be undertaken on all base data & assumptions - thereby generating trust
  • Additional benefits (previously thought too complex) were clearly identified and calculated, offering $millions of extra value
  • Automated Word & Excel reporting outputs
  • Full range of additional qualitative benefits articulated
  • Detailed insights given to client on their product pricing strategy
  • Sales team trained to use the tool-set with all levels of customer contact, particularly senior management - the decision-makers

Before... Direct customer feedback

  • No Direct Customer Feedback - Sales people were reluctant to use it with real prospective customers.

After... Direct customer feedback

  • "phenomenal"
  • "does a great job of looking at derivative impacts upstream & downstream to both costs and revenues generated by the solution"
  • "very unique & comprehensive approach"
  • "the transparent decision logic available for every value calculation is extremely helpful"
  • "we'd love to look at this approach on all major investments"