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"