The emerging innovation landscape of the NHS offers fresh opportunities for medical technology sales - if you can keep one step ahead. Andy Beech of OTD examines the dynamic relationship between innovation and key account management.
Televison programmes showcasing new performance talents are nothing new. Half a century before Britain's Got Talent or The X Factor, there was Opportunity Knocks - which started life as a radio programme in 1949, before it ran on TV from 1956 to 1990. Along the way, changes were made in terms of format and style to keep the audiences engaged. That's an example of incremental innovation: the gradual updating, improving and refreshing of existing products and services. Breakthrough ideas that provide new solutions, such as the invention of colour television, are termed radical innovation.
The two types of innovation are closely linked. A focus on continuous improvement produces what is termed an S curve: numerous small improvements followed by a major change. Incremental changes provide the groundwork for radical steps forward, which in turn call for new incremental changes. Innovation provides a step change that quickly transforms a process, product, system or service.
Another notable feature of innovative and creative thinking is that we are geniuses at it as children. For many of us, little by little it is discouraged until we give up. At school, did you ever hear "Stop looking out of the window and day-dreaming" or "That drawing looks nothing like an elephant"? In the workplace, do you hear "We've already tried that and it didn't work" or "You must be joking"?
The really good news about innovation and creativity, however, is that with the right leadership, good facilitation, a simple methodology and a little change in mindset and culture, we can all become geniuses again. It is that simple. The important thing is to take time to step out of the operational world of means to a familiar end and into the innovation world of new horizons.
Innovation workshops of the kind that OTD provides encourage divergent thinking and support people in making new mental associations and connections. Ideas are the starting point, but a key output from such a workshop is a list of actions. An individual or team then takes responsibility for achieving each of these actions.
Innovation: an unmet need
Opportunity is knocking for us as medtech industry professionals, and innovation is at the heart of that opportunity. The need for fundamental changes in healthcare service delivery to meet the growing healthcare need within the constraints of the health economy is recognised as a driver for the uptake of innovative medical technologies - and new systems for integrating these technologies into NHS commercial and clinical practice are becoming active.
The NHS innovation agenda offers us a huge and immediate opportunity to engage with our customers at a level, and in specific ways, that may not have been possible before. The NHS has Quality, Innovation, Productivity and Prevention (QIPP) at the heart of its strategy - which means that it is likely to be at the heart of many individuals' and teams' strategies. The NHS has its own dedicated Institute for Innovation and Improvement, which is trying to help it build a culture of continuous innovation and a mindset focused on improving results.
This mindset change will not happen overnight. It will need a concerted effort from people at all levels within the NHS to make it a reality. That is where the medtech industry can make a difference - not just by supplying products, but by assisting change at operational and commercial levels.
The NHS Innovation and Improvement Survey 2009 provides us with some key insights into the current situation and the needs for the future:
• Current innovation and improvement practice has improved in the last year from 5.4 on a 10-point scale to 6.3.
• The most useful tools that the NHS Institute could develop are education, training and assessment workshops related to improvement and innovation.
• The resourcing of innovation and improvement is insufficient - only 25% and 19% of NHS staff respectively expressed a positive view. This was identified as an area of weakness by the report.
An open door
So while innovation is a key strategic feature for the NHS, the people working in it realise they still have some way to go. In essence, this is likely to be a huge unmet and high-priority need for many of your customers. Where there is a big unmet need, there are also big opportunities. But how can we identify them?
A key feature of successful sales people and account managers is their ability to engage meaningfully with their customers and uncover business opportunities. They take the time to step into their customer's shoes and see the world from their perspective. What are their goals, what issues do they face, what resources do they have or lack, what keeps them awake at night?
As our key account management and selling skills workshops have shown us consistently, asking effective questions that uncover clinical, personal and organisational needs is the most powerful and effective part of the customer interaction. To be interesting to the customer, you have to be interested!
In addition to what we learn directly from our customers, there is a wealth of information sources out there that can help us identify opportunities. NHS Trust surveys and business plans can help us to identify their priorities and goals. Journals such as the Health Service Journal can also be a mine of information.
How to add value
As an account manager in the medtech industry, you will select your tactics and strategies according to your targeting and prioritisation of accounts. You will have some 'service' accounts where the investment of time and resources is low. These are 'quick win' business relationships. You will also have some 'key' accounts where you will invest a lot more time and resources to grow the business and build long-term partnerships, offering bespoke added value services and resources.
Medtech is a very competitive industry: we are all searching for new value added services that our customers need. Ideally, we want to identify needs that are at the top of our customers' priorities - and are aligned to our needs as well.
Value added products and services can be a bit like Christmas presents: offered with good intentions, but sometimes completely missing the mark in terms of what is really wanted. How many presents have you never used, or worn? Services can only be called 'added value' if they are recognised as adding value from the perspective of the customer. It's not the thought that counts: it's the concrete benefit.
There is now an important opportunity to provide your key account customers with the innovation and creativity tools they need to create improved patient experience and more efficient patient pathways. This in turn should improve patient access to your products, increase your business and build long-term loyalty within the account.
Discussions with these customers will establish whether this is an important area of unmet need for them, or would be an unwanted Christmas present. If it is important, then hurry - because your competitors will be asking the same questions.
Planning your service
There are two general ways of providing key account customers with innovation tools as an added value service: by building their internal expertise, and by providing external expertise when needed.
Which route you choose will depend on many factors, but could include the importance of the account, your available resources and priorities, and your customer's resources and capabilities.
If you are planning to provide a value added service for your key accounts, you may need to choose an appropriate company to work with. The criteria you may want to consider include:
• How broad is their innovation expertise?
• Do they have transferable innovation methodologies and materials?
• How well do they understand the medtech industry?
• How well do they understand the NHS?
Conclusion
The NHS innovation landscape requires clinicians and commissioners to find new solutions to the problems of modern healthcare. That means not only being receptive to new medical technologies that can help them achieve their goals, but also using new ideas in their service provision and commercial engagement.
Key points to keep in mind are:
• We can all be innovative and creative given the right leadership, culture, methodology and tools.
• Most of your customers are desperate for innovation tools.
• Provide value added services for your key accounts that are aligned to your mutual goals and needs.
• You can gain competitive advantage and build loyalty by moving quickly to provide the innovation tools your customers need.
So are you heading towards the new horizon... or are you just waiting for it to come to you?
Andy Beech is Director of Business Development at OTD, learning and development specialist for the pharmaceutical and healthcare industries.OTD delivers KAM consultancy and development programmes for the life science industries worldwide. OTD's new Team Innovation & Creativity programme dovetails the priorities of the NHS with the priorities of the industry in providing value added services through key accounts. For more information, visit www.otd.uk.com.
There is now an important opportunity to provide your key account customers with the innovation and creativity tools they need to create improved patient experience and more efficient patient pathways. This in turn should improve patient access to your products, increase your business and build long-term loyalty within the account.