波士顿咨询BCG案例1

FindingRevenueGrowthIntheMadicalSoftwareIndustry1OverviewYourclientisGenCo,alarge,international,diversifiedcompanywithahealthcaredivisionthatproducesawidevarietyofmedicalinstrumentsandrelatedservices.Fiveyearsago,itexpandedintothehealthcaresoftwareindustrybypurchasingMedCount,whichmarketsadministrativesystemstolargeU.S.hospitals.Thesesystemsaredesignedprimarilyforback-officefunctions;theyarenotdesignedformanagingpatientsorprovidingotherphysicianandtechnicalsupport.Sinceitwaspurchased,thesoftwaredivisionhasfailedtodeliverthegrowthneededtojustifythemultipleGenCopaidforit.GenCofeelsithasalreadysqueezedmarginsasmuchaspossible,andnowislookingfornewsalesopportunities.MedCountturnedtoBCGtohelpidentifypotentialwaystoincreaserevenues.Howwouldyouapproachthisproblem?ClarifyEstablishunderstandingofthecaseFirst,letmemakesureIunderstandtheproblem.Theparentcompanyproducesmedicaldevicesandservices,butbeforetheacquisitionwasnotinvolvedinhealthcaresoftware.Thecompanyitpurchased,MedCount,sellsonlyadministrativesystemssoftwaretolargehospitals.Itisnowlookingforopportunitiestoincreaserevenues.Thatiscorrect.CouldItakeamomenttojotdownafewthoughts?Sure,thatwouldbefine.ApproachSetuptheframeworkIwouldsuggestusingthefollowingframework:First,I'dwanttounderstandthemarketsizeandgrowthratesforMedCount'smarketandrelatedsoftwaremarkets.Next,Iwouldliketoexplorethecompetitionandtheirmarketshares.Third,Iwouldliketoexaminecustomerrequirementsandthen,giventhoseexternalconditions,lookatthedivision'scapabilitiestounderstandhowwellprepareditistomeettheneedsofthemarketplace.FindingRevenueGrowthIntheMadicalSoftwareIndustry2Thatsoundsfine.Sowhatdoyouwanttoknowaboutthemarket?EvaluateEvaluatethecaseusingtheframeworkWell,thefirsthurdlewouldbetoidentifythemarketsthecompanywouldbeinterestedin.Besidesadministrationsystems,whatothertypesofmedicalsoftwaresystemsdolargehospitalspurchase?Therearemanysoftwaresystems,butforthesakeoftime,theteamfocusedonthreeprimarymarkets:administrationsystems,patientadministration,andphysiciansupportsystems.Whatdothosesystemsdo?Patientadministrationincludessystemslikeadmissionsandtracking.Physiciansupportsystemsaremorespecialized,forindividualphysicianprocedures.Iwouldliketoknowhowlargeeachmarketisandhowfasteachisgrowing.Iwouldusesecondarysourcessuchaspressreleases,analystreports,andpublishedmarketstudies,toobtainthisinformation.Great!Thatiswhatwedidduringthemarketstudy.Ourinformationrevealedthefollowingmarketsizesandgrowthrates.AdministrationPatientadministrationPhysiciansupportMarketsize($M);1,5001,0001,200Growthrate5%5%12%Fromasizeandgrowthperspective,physiciansupportsystemslookslikeaveryattractivemarket.I'dliketoknowalittleaboutthecustomersthemselves.Theclientiscurrentlytargetinglargehospitals.Approximatelywhatpercentageofthemarketdotheyrepresent?Wewereunabletogetanexactbreakdown,butweknowthatthesehospitalsmakeupthevastmajorityofthetotalmedicalsoftwaremarket.Thatwouldmakesense,sincethemoresophisticatedproceduresatahospitalmightnecessitatemoreadvancedsoftwaresolutions.Iknowthattherehavebeenalotofchangesintheindustryasaresultofmanagedcare.Idon'tknowmuchFindingRevenueGrowthIntheMadicalSoftwareIndustry3abouttheindustry,soIwouldwanttolookatmarketstudiesandpressclippingstogetabettersenseofthehospitalmarketingeneralandanytechnologyorsoftwaretrendsmorespecifically.Okay.Let'ssaythatyoudidthatandwerepresentedwiththissummaryofmarkettrends:Consolidationintheindustry,withthreetofourlargehospitalnetworksdominating45percentofthemarketCostcontrolsinstituted,particularlyastheselargehospitalnetworksacquiresmallerhospitals(centralizationoffunctionsbeingakeycostissue)ManyhospitalsseekingtoconsolidatetheirvendorbaseWithregardtotechnology,manyhospitalsupgradingtheiroldersystemsIfhospitalsareconsolidatingvendors,perhapsourclienthasanadvantageinbeingpartofalargermedicalcompany.Maybetheclientcouldalsogainsomeadvantagesbyexpandingintoothersoftwaresegments.Arethepeopleresponsibleforpurchasingsoftwareatthehospitalthesameforallthreesegments?Likeallthings,itdiffersbyhospital,butthelargerhospitalnetworks,havetriedtoconsolidatetheirpurchasingnotonlywithinbutalsoacrosshospitals.Isthedecisionmakerformedicalsoftwarethesameasformedicalinstrumentationanddevices?Insomecases,theheadofpurchasinginfluencesbothdecisions,butthepersonwhomakesthefinalchoiceisdifferent.SoftwaredecisionsareusuallymadebythehospitalITfunction,andthoseforinstrumentationbythemedicalstaff.IthinkIhaveaprettygoodunderstandingofthemarketfornow.Let'slookatcompetitionnext.Wecouldidentifyallthecompetitorsandbuildupthemarketsharesusingacombinationofpublicdataandestimates.Well,let'sassumethatyoudon'thaveaninfiniteamountoftimetolookatallthecompetitors.Youcanonlylookatthetopfivecompetitorsineachmarket.Youaregiventhefollowingdata:AdministrationSystemsSales($M)Growth(%)MedCount7004%HCSSoftwareSystems1007%MorningsideSoftware803%AdminSystemsSolutions702%HTISoftware5015%FindingRevenueGrowthIntheMadicalSoftwareIndustry4PatientAdministrationSales($M)Growth(%)HTI3005%RegistrationSoftwareSolutions2404%Si