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GIA Conference Presentation October-12

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Nadia Smulian

Smiths Medical is a medical device company that was founded in 1851. It has four divisions including Smiths Medical. Nadia Smulian discusses how the market intelligence team supports Smiths Medical's strategic goals by providing insights into competitors, markets, customers, and opportunities. The team tracks competitors, analyzes markets, models growth opportunities, and measures success to help guide strategic planning and investment decisions. The ultimate goal is to make market intelligence a core part of the company's culture and decision-making processes.

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www.smiths-medical.com ? 2012 by Smiths Medical: Proprietary Data Embedding Market Intelligence in Strategic Planning and Implementation Nadia Smulian Director, Market Intelligence October 2012
? 2012 by Smiths Medical: Proprietary Data 2 Nadia Smulian Oct-12 Smiths Group: how it all began 1851¡­ Early 20th century¡­ 1930s¡­ ¡­and now Clocks & Watches Avionics Car Speedometers & Odometers
? 2012 by Smiths Medical: Proprietary Data 3 Nadia Smulian Oct-12 FY 2012 sales ?3.04 Bn Headline op profit ?554 m Operating margin 18.2% EPS 92.6 Market cap ~?4.3 Bn FY2012 Sales
? 2012 by Smiths Medical: Proprietary Data 4 Nadia Smulian Oct-12 Smiths Medical: Bringing Technology to Life Deliver Medication Provide Vital Care Keep People Safe ? Reduce programming & delivery errors with intelligent pumps ? Relieve acute & chronic pain ? Treat cancer ? Manage acute and chronic airway conditions ? Maintain correct body temperature ? Monitor vital signs ? Assist reproduction ? Provide safe treatment access ? Prevent needle stick injuries ? Reduce cross infections Our mission is to help healthcare professionals make every intervention successful. Vision: Save lives by becoming the most valued global provider of innovative interventional medical devices in our chosen markets Vision: Save lives by becoming the most valued global provider of innovative interventional medical devices in our chosen markets
? 2012 by Smiths Medical: Proprietary Data 5 Nadia Smulian Oct-12 Market Intelligence is part of the Global Strategy team¡­ because we asked to be! Director Strategic Planning & Business Development Nadia Smulian Director Market Intelligence Director, Strategic Project Management Office Director, Business Intelligence Michael Munro, Market Intelligence Analyst Kathy Surry, Manager Market Intelligence ? Competitor tracking ? Strategic Analysis ? Economics ? Market modelling, news & trends President, Smiths Medical VP, Strategy & Business Transformation Clinical Marketing & Scientific Affairs ? Clinical & technology trends ? Voice of customer ? Sales performance ? Customer segmentation ? Sales targeting
? 2012 by Smiths Medical: Proprietary Data 6 Nadia Smulian Oct-12 Our activities support Smiths Medical¡¯s strategic growth drivers Global & Local Market Intelligence ?Competitor activities ?Market related ?Product related 1 2 3 4 5 Competitor performance tracking ?Benchmarking vs. major competitors ?Opportunities & threats ?Competitor views of our markets 1 2 3 Strategic analysis ?Strategic Direction ?Identifying & prioritising opportunities 1 2 3 4 Economic & market trends ?Integrated Business Planning ?Strategic planning ?Benchmarking vs. market 1 2 3 4 5 Market mapping ?Prioritising opportunities ?Support for investment 1 2 3 4 1 2 3 4 5 Market modelling ?Emerging markets ?Adjacencies 2 3 Smiths Medical¡¯s Strategy Gears: New products New markets New call-points Market penetration Efficiency
? 2012 by Smiths Medical: Proprietary Data 7 Nadia Smulian Oct-12 Mapping the Strategic Landscape Strategic Planning Page 7 Know the Market ? Size and growth ? Competitive landscape ? Drivers & trends ? Customer needs & behaviours ? Adjacencies & other opportunities Know the Competition ? Where are they being un/successful ¨C and why? ? What is their strategic direction? ? How are they/might they impact us? ? What do they think about the market? Know Yourself ? Portfolio strengths & weaknesses ? Capabilities ? Stakeholder expectations
? 2012 by Smiths Medical: Proprietary Data 8 Nadia Smulian Oct-12 Synthesis & discussion
? 2012 by Smiths Medical: Proprietary Data 9 Nadia Smulian Oct-12 Continuous monitoring Continuous discussion & insight generation Competitor performance tracking News monitoring Macroeconomics, Healthcare activity, etc News alerts with insights/ questions Ql¡¯y competitor performance & trends reports Monthly market trends reports Synthesis
? 2012 by Smiths Medical: Proprietary Data 10 Nadia Smulian Oct-12 Know the Market: The Global Market Map Competitor earnings calls, investor presentation, press releases etc 3rd Party Reports Analysts Reports Internal knowledge Market monitoring
? 2012 by Smiths Medical: Proprietary Data 11 Nadia Smulian Oct-12 Know the Market: The Global Market Map By major product segment: Market Size Market Growth rates: ? Historic & forecast ? Organic & other Market Shares ? Smiths Medical ? Main Competitors Franchise 1 Franchise 2 Franchise 3 Franchise 4
? 2012 by Smiths Medical: Proprietary Data 12 Nadia Smulian Oct-12 Understanding growth drivers & restraints Growth opportunities Risk assessment Products: Clinical trends Technology adoption Legislation ¡­ Regions: Economy Demographics Healthcare investment Regulation ¡­ Competitors: Landscape Winners /losers Actions¡­ & reactions New entrants & fast movers ¡­ Page 12 Customers: Requirements Buying behaviour Satisfaction with suppliers Call-points ¡­ Supported by continuous monitoring and synthesis
? 2012 by Smiths Medical: Proprietary Data 13 Nadia Smulian Oct-12 Opportunity ranking ¡°The essence of strategy is choosing what not to do.¡± ¨C Michael Porter
? 2012 by Smiths Medical: Proprietary Data 14 Nadia Smulian Oct-12 Market Growth 0 Page 14 Market Attractiveness Competitive Strength Profit potential 0 Market concentration 0 Barriers 0 0 Skills & Capabilities 0 Cost position 0 Competitive position 0 Product position 0 Opportunity ranking: existing & potential new initiatives
? 2012 by Smiths Medical: Proprietary Data 15 Nadia Smulian Oct-12 Opportunity ranking: existing & potential new initiatives Marketattractivenessscore Competitive strength score = Market size Develop/acquireStrategic partnerships Why bother? Maintain
? 2012 by Smiths Medical: Proprietary Data 16 Nadia Smulian Oct-12 Franchise Capabilities Customers Market Competitors Initiative 1 Initiative 2 Risk assessment ? Current activities ? Capabilities ? Potential reaction ? New legislation ? Regulatory bodies ? Changing practice ? Hospital economics ? Benefits? ? Technology? ? Routes to market? ? Credibility? Can we win?
? 2012 by Smiths Medical: Proprietary Data 17 Nadia Smulian Oct-12 Regional investment Market size modelling Market parameters: ? Patient numbers ? Bed numbers Clinical knowledge: ? Product usage ? Replacement frequency Local factors: ? Healthcare spend ? Local practice Estimated Market Potential
? 2012 by Smiths Medical: Proprietary Data 18 Nadia Smulian Oct-12 Regional investment Emerging markets comparator: Which countries are best for investment? Portfolio Gap Analysis: Which products are under-penetrated in a country? Country Market Size Historic Market Growth GDP Growth Import Spend Hospital Beds per 1000 Population Private % of Total Healthcare Population Growth % of Population over 60 Years % ofUpper- Middle/Rich Class Corruption Perception Index Intellectual Property Rights Index Ease ofDoing BusinessIndex Ease of Registration Overall Rating A ?5,883 -3.7% 9.9% ?365 0.8 11.0% 2.8% 4% 9.8% 2 125 172 1 2.6 B ?647 7.0% 2.7% ?137 0.4 44.8% 2.7% 4% 3.8% 2 117 183 4 1.5 C ?2,499 17.4% 4.9% ?2,255 1.2 23.1% 1.9% 5% 24.7% 3 NA 170 4 3.5 D ?16,826 10.2% 5.9% ?281 1.4 66.2% 2.7% 4% 15.0% 5.1 100 109 1 4.7 E ?1,693 -0.4% 4.0% ?257 0.3 32.9% 2.9% 5% 3.0% 3 107 137 4 1.4 F ?5,168 2.3% 6.9% ?99 1.1 26.4% 3.1% 5% 1.7% 3 75 127 1 4.2 G ?104,505 7.2% 2.3% ?765 2.8 59.9% -0.4% 7% 15.5% 5.1 32 35 2 5.9 I ?3,735 26.3% 6.3% ?145 1.9 40.5% 2.1% 5% 30.5% 3.2 84 84 4 3.7
? 2012 by Smiths Medical: Proprietary Data 19 Nadia Smulian Oct-12 Measuring success Organic growth vs. major competitors Source: Competitor Quarterly/Annual Reports and Investment Analysts¡¯ reports All growth figures are at constant currency and exclude acquisitions/divestitures Competitors¡¯ Quarterly Growth (%) in Competing Segments Quarter % organic revenue growth Competitor average Adjusted for H1N1 Historic Forecast ¡°However beautiful the strategy, you should occasionally look at the results.¡± ¨C Winston Churchill Share trends
? 2012 by Smiths Medical: Proprietary Data 20 Nadia Smulian Oct-12 How to Communicate Strategic Intelligence to Top Level Executives ? Answer the questions that they get asked ? How are we doing compared to our major competitors? ? What is happening to market growth ¡­and what will happen? ? Be first with the news ¨C and add insight ? Be part of the schedule ? Regular inputs to monthly Divisional Board meetings and Quarterly Board reviews ? Don¡¯t be afraid to communicate directly ¨C as long as you have something useful to say
? 2012 by Smiths Medical: Proprietary Data 21 Nadia Smulian Oct-12 The ¡°Market Intelligent¡± Company ? MI team proactively creating and sharing global competitor & market insight ? Core part of strategic planning & performance review ? Culture of MI-driven decision making ? Part of everyone¡¯s mindset & something everyone does ? Network of trained local intelligence co-ordinators ?MI that is global and local ?Deeper & broader insight ? Closer integration of customer insight
www.smiths-medical.com ? 2012 by Smiths Medical: Proprietary Data at the heart of strategy

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GIA Conference Presentation October-12

  • 1. www.smiths-medical.com ? 2012 by Smiths Medical: Proprietary Data Embedding Market Intelligence in Strategic Planning and Implementation Nadia Smulian Director, Market Intelligence October 2012
  • 2. ? 2012 by Smiths Medical: Proprietary Data 2 Nadia Smulian Oct-12 Smiths Group: how it all began 1851¡­ Early 20th century¡­ 1930s¡­ ¡­and now Clocks & Watches Avionics Car Speedometers & Odometers
  • 3. ? 2012 by Smiths Medical: Proprietary Data 3 Nadia Smulian Oct-12 FY 2012 sales ?3.04 Bn Headline op profit ?554 m Operating margin 18.2% EPS 92.6 Market cap ~?4.3 Bn FY2012 Sales
  • 4. ? 2012 by Smiths Medical: Proprietary Data 4 Nadia Smulian Oct-12 Smiths Medical: Bringing Technology to Life Deliver Medication Provide Vital Care Keep People Safe ? Reduce programming & delivery errors with intelligent pumps ? Relieve acute & chronic pain ? Treat cancer ? Manage acute and chronic airway conditions ? Maintain correct body temperature ? Monitor vital signs ? Assist reproduction ? Provide safe treatment access ? Prevent needle stick injuries ? Reduce cross infections Our mission is to help healthcare professionals make every intervention successful. Vision: Save lives by becoming the most valued global provider of innovative interventional medical devices in our chosen markets Vision: Save lives by becoming the most valued global provider of innovative interventional medical devices in our chosen markets
  • 5. ? 2012 by Smiths Medical: Proprietary Data 5 Nadia Smulian Oct-12 Market Intelligence is part of the Global Strategy team¡­ because we asked to be! Director Strategic Planning & Business Development Nadia Smulian Director Market Intelligence Director, Strategic Project Management Office Director, Business Intelligence Michael Munro, Market Intelligence Analyst Kathy Surry, Manager Market Intelligence ? Competitor tracking ? Strategic Analysis ? Economics ? Market modelling, news & trends President, Smiths Medical VP, Strategy & Business Transformation Clinical Marketing & Scientific Affairs ? Clinical & technology trends ? Voice of customer ? Sales performance ? Customer segmentation ? Sales targeting
  • 6. ? 2012 by Smiths Medical: Proprietary Data 6 Nadia Smulian Oct-12 Our activities support Smiths Medical¡¯s strategic growth drivers Global & Local Market Intelligence ?Competitor activities ?Market related ?Product related 1 2 3 4 5 Competitor performance tracking ?Benchmarking vs. major competitors ?Opportunities & threats ?Competitor views of our markets 1 2 3 Strategic analysis ?Strategic Direction ?Identifying & prioritising opportunities 1 2 3 4 Economic & market trends ?Integrated Business Planning ?Strategic planning ?Benchmarking vs. market 1 2 3 4 5 Market mapping ?Prioritising opportunities ?Support for investment 1 2 3 4 1 2 3 4 5 Market modelling ?Emerging markets ?Adjacencies 2 3 Smiths Medical¡¯s Strategy Gears: New products New markets New call-points Market penetration Efficiency
  • 7. ? 2012 by Smiths Medical: Proprietary Data 7 Nadia Smulian Oct-12 Mapping the Strategic Landscape Strategic Planning Page 7 Know the Market ? Size and growth ? Competitive landscape ? Drivers & trends ? Customer needs & behaviours ? Adjacencies & other opportunities Know the Competition ? Where are they being un/successful ¨C and why? ? What is their strategic direction? ? How are they/might they impact us? ? What do they think about the market? Know Yourself ? Portfolio strengths & weaknesses ? Capabilities ? Stakeholder expectations
  • 8. ? 2012 by Smiths Medical: Proprietary Data 8 Nadia Smulian Oct-12 Synthesis & discussion
  • 9. ? 2012 by Smiths Medical: Proprietary Data 9 Nadia Smulian Oct-12 Continuous monitoring Continuous discussion & insight generation Competitor performance tracking News monitoring Macroeconomics, Healthcare activity, etc News alerts with insights/ questions Ql¡¯y competitor performance & trends reports Monthly market trends reports Synthesis
  • 10. ? 2012 by Smiths Medical: Proprietary Data 10 Nadia Smulian Oct-12 Know the Market: The Global Market Map Competitor earnings calls, investor presentation, press releases etc 3rd Party Reports Analysts Reports Internal knowledge Market monitoring
  • 11. ? 2012 by Smiths Medical: Proprietary Data 11 Nadia Smulian Oct-12 Know the Market: The Global Market Map By major product segment: Market Size Market Growth rates: ? Historic & forecast ? Organic & other Market Shares ? Smiths Medical ? Main Competitors Franchise 1 Franchise 2 Franchise 3 Franchise 4
  • 12. ? 2012 by Smiths Medical: Proprietary Data 12 Nadia Smulian Oct-12 Understanding growth drivers & restraints Growth opportunities Risk assessment Products: Clinical trends Technology adoption Legislation ¡­ Regions: Economy Demographics Healthcare investment Regulation ¡­ Competitors: Landscape Winners /losers Actions¡­ & reactions New entrants & fast movers ¡­ Page 12 Customers: Requirements Buying behaviour Satisfaction with suppliers Call-points ¡­ Supported by continuous monitoring and synthesis
  • 13. ? 2012 by Smiths Medical: Proprietary Data 13 Nadia Smulian Oct-12 Opportunity ranking ¡°The essence of strategy is choosing what not to do.¡± ¨C Michael Porter
  • 14. ? 2012 by Smiths Medical: Proprietary Data 14 Nadia Smulian Oct-12 Market Growth 0 Page 14 Market Attractiveness Competitive Strength Profit potential 0 Market concentration 0 Barriers 0 0 Skills & Capabilities 0 Cost position 0 Competitive position 0 Product position 0 Opportunity ranking: existing & potential new initiatives
  • 15. ? 2012 by Smiths Medical: Proprietary Data 15 Nadia Smulian Oct-12 Opportunity ranking: existing & potential new initiatives Marketattractivenessscore Competitive strength score = Market size Develop/acquireStrategic partnerships Why bother? Maintain
  • 16. ? 2012 by Smiths Medical: Proprietary Data 16 Nadia Smulian Oct-12 Franchise Capabilities Customers Market Competitors Initiative 1 Initiative 2 Risk assessment ? Current activities ? Capabilities ? Potential reaction ? New legislation ? Regulatory bodies ? Changing practice ? Hospital economics ? Benefits? ? Technology? ? Routes to market? ? Credibility? Can we win?
  • 17. ? 2012 by Smiths Medical: Proprietary Data 17 Nadia Smulian Oct-12 Regional investment Market size modelling Market parameters: ? Patient numbers ? Bed numbers Clinical knowledge: ? Product usage ? Replacement frequency Local factors: ? Healthcare spend ? Local practice Estimated Market Potential
  • 18. ? 2012 by Smiths Medical: Proprietary Data 18 Nadia Smulian Oct-12 Regional investment Emerging markets comparator: Which countries are best for investment? Portfolio Gap Analysis: Which products are under-penetrated in a country? Country Market Size Historic Market Growth GDP Growth Import Spend Hospital Beds per 1000 Population Private % of Total Healthcare Population Growth % of Population over 60 Years % ofUpper- Middle/Rich Class Corruption Perception Index Intellectual Property Rights Index Ease ofDoing BusinessIndex Ease of Registration Overall Rating A ?5,883 -3.7% 9.9% ?365 0.8 11.0% 2.8% 4% 9.8% 2 125 172 1 2.6 B ?647 7.0% 2.7% ?137 0.4 44.8% 2.7% 4% 3.8% 2 117 183 4 1.5 C ?2,499 17.4% 4.9% ?2,255 1.2 23.1% 1.9% 5% 24.7% 3 NA 170 4 3.5 D ?16,826 10.2% 5.9% ?281 1.4 66.2% 2.7% 4% 15.0% 5.1 100 109 1 4.7 E ?1,693 -0.4% 4.0% ?257 0.3 32.9% 2.9% 5% 3.0% 3 107 137 4 1.4 F ?5,168 2.3% 6.9% ?99 1.1 26.4% 3.1% 5% 1.7% 3 75 127 1 4.2 G ?104,505 7.2% 2.3% ?765 2.8 59.9% -0.4% 7% 15.5% 5.1 32 35 2 5.9 I ?3,735 26.3% 6.3% ?145 1.9 40.5% 2.1% 5% 30.5% 3.2 84 84 4 3.7
  • 19. ? 2012 by Smiths Medical: Proprietary Data 19 Nadia Smulian Oct-12 Measuring success Organic growth vs. major competitors Source: Competitor Quarterly/Annual Reports and Investment Analysts¡¯ reports All growth figures are at constant currency and exclude acquisitions/divestitures Competitors¡¯ Quarterly Growth (%) in Competing Segments Quarter % organic revenue growth Competitor average Adjusted for H1N1 Historic Forecast ¡°However beautiful the strategy, you should occasionally look at the results.¡± ¨C Winston Churchill Share trends
  • 20. ? 2012 by Smiths Medical: Proprietary Data 20 Nadia Smulian Oct-12 How to Communicate Strategic Intelligence to Top Level Executives ? Answer the questions that they get asked ? How are we doing compared to our major competitors? ? What is happening to market growth ¡­and what will happen? ? Be first with the news ¨C and add insight ? Be part of the schedule ? Regular inputs to monthly Divisional Board meetings and Quarterly Board reviews ? Don¡¯t be afraid to communicate directly ¨C as long as you have something useful to say
  • 21. ? 2012 by Smiths Medical: Proprietary Data 21 Nadia Smulian Oct-12 The ¡°Market Intelligent¡± Company ? MI team proactively creating and sharing global competitor & market insight ? Core part of strategic planning & performance review ? Culture of MI-driven decision making ? Part of everyone¡¯s mindset & something everyone does ? Network of trained local intelligence co-ordinators ?MI that is global and local ?Deeper & broader insight ? Closer integration of customer insight
  • 22. www.smiths-medical.com ? 2012 by Smiths Medical: Proprietary Data at the heart of strategy