Project Enterprise Assessment

1. Introductions
Advisory Board
Dr. David Potter : Entrepreneurial Project Advisor
Ms. Sharon Meeke : Business Mentor
Dr. Kamran Sartipi : Technical Mentor
Tarek Sadek : Enterprise Developer
Team
Luis Quiroz : Project Manager
Mohammed Amjad : Business Partner
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2. Today’s Agenda
The Opportunity
The Market
The Customer / End User
The Competition
The Technology Development
2

3. MacMedia
Innovative Media Channel for Pharma & Physician
Tollgate One
Presentation
Luis F. Quiroz
quirozlf@mcmaster.ca
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4. Defining the term “detailing”
Promotion activity to explain to physicians features and benefits of products.
Carried out by sales representative who use face-to-face interaction
eDetailing”
Use of any digital technology in the detailing process. Example, Internet or
Video Conferencing
4

5. Background
The Selling Model of the Pharmaceutical Sector
"Right now, the selling model for pharmaceuticals is reach and frequency.
Reach as many customers as you can as often as you can,“… "That's why we
have these armies of salespeople out there.“
John Constantine, director of global learning support at GlaxoSmithKline
According to the statistics…
Annual Total Spending in Professional
Advertising Estimate Number of Sales
In the U.S. (Millions USD) Representatives in the U.S
1995 2000 2005 1996 2007
$4,318 $5,996 $7,206 35,000 100,000
The New England Journal of Medicine, August 16, 2007 Prescription For Success in Sales. Feb 19, 2007. Chemical &
Engineering News
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6. However; reality is….
35% of physicians are not seeing reps at all
Only 8% of the visits last for more than 2 minutes**
Average sales rep field visit is USD 200*
Physicians are doing their own search for product information and unbiased
sources
E-detailing has not taken off as a real alternative due to lack of initiatives
Lower Promotion High Promotion
Efficiency Costs
The Conclusion
The pharmaceutical industry needs innovative technologies to reach
healthcare professionals in a broad scale with high frequency by using
more efficient, more cost-effective means and more unbiased sources to
meet doctors’ information needs
*Effective e-detailing. IBM Institute. 2006
**Elling ME, Gogle HJ, MackhAnn CS et al 6

7. The Solution – A New Concept in E-detailing
A channel for pharmaceutical products tailored to each physician’s needs by using
Multimedia Files delivered by a Push method over for standalone computers,
laptops and notebooks.
The product provides unbiased reference sources bundled with samples delivery
orders and sales reps appointment requests.
A multimedia file
The file is pushed over with unbiased
the internet sources
developed by
MacMedia
References
The file reaches the
physician’s PC Also Samples delivery and
laptop or notebook Sales rep visit can be requested
as an “update”” Pharmaceutical
Samples Sales Representative
Appointment Requests
A Message Center
icon indicates that a
presentation is ready
to be executed and
displayed A detailing session supported by unbiased
sources is delivered over PCs, laptops or
notebooks 7

8. The Value Proposition
The pharmaceutical sector could cut costs in promotion per detailing visit between
15% and 50% and raise its ROI up to 2.48*.
The pharmaceutical sector will increase its business and reduce its excessive
number of sales representatives.
Advantages for Pharmaceutical Companies
Better reach in less time
More cost-effective
Better relevance (ways to discover and retain records of doctors’ needs,
preferences and aptitudes toward products)
New tool to bring pharmaceutical detailing to doctors in remote places
Advantages for Physicians
Convenience
- Detailing multimedia presentation comes along with unbiased sources
Request for pharmaceutical samples and sales reps visits at a click of
a button
Significant time saving
Increased productivity
*Lathian Seminar, June 2005
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9. Business Model
= KEY TECHNOLOGY
PROVIDER
Provide
Summarizer Pay a license
technology fee
tools
•Convert marketing info
into Multimedia
•Add unbiased sources
using Xerox Summarizer
technology
Pharmaceutical marketing
literature is handed out
•Assemble package with
services
The package
is pushed over
MacMedia the network to
Pharmaceutical
= SERVICE PROVIDER reach PCs, laptops
Company = CUSTOMER
or notebooks
Detailing
service is Physicians
Charge ($) based on the number delivered = END USERS
of packages received by
each physician
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10. Service Components
Delivery / Execution Component
Conversion Distribution
component component
Collection of
Marketing literature/ Internet
catalogues
Physicians
Information
is converted
into
Multimedia File is pushed
Interaction / Request component
Summarized
unbiased
resources
are appended Requests from users :
•Samples
•Appointments with
The package is MacMedia Content sales representatives
assembled with services Server
10

11. The Subscription Model – One Alternative
Physician’s
Pharmaceutical Link to information
Company’s MacMedia’s is recorded into
website website McMedia’s
database Message
Center
Software
download
User will fill out a subscription
according to his topics of interest.
The subscription is submitted
References
Message Center Software
is downloaded and ready
Pharmaceutical
Samples
to alert the user on:
Physician will Sales Representative
Visit Bookings
new drug releases
access to a pharmaceutical new drug versions
company’s website drug recalls
other topics or products
related to their specialties
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12. Medium Higher
Performance Performance
Unbiased sources of
information
Key Service Rich in value (key information)
Features Available (24/7)
Easy to use
Content flexible to update and
customizable for other applications
Push Delivery
(alerts or message centers)
Entertaining
(Appealing to the eyes)
Multimedia e-detailing for Multimedia based including
PCs offered by MacMedia interactivity
Compatible with internet
browsing
Combined with drug sample
Current Multimedia orders
e-detailing Combined with sales rep
offerings for PCs appointment requests
Tailored to each physician’s
needs
Ongoing creation of an
intelligence system that feeds
on doctors’ current needs,
preferences and behaviors
toward products
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13. Drivers for e-detailing
Three major trends
The existence of similar products in the pharmaceutical industry makes
marketing the only tool to create a difference among them
Product changes due to modifications in formularies or switches from
prescription drugs to OTC versions requires a high speed channel for
dissemination
Current needs of cost cutting
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14. Projection of E-detailing Market Size – North America
e-detailing Estimate for standalone computers 2008 - 2011
(Based on 1% of Total Promotion Costs)
$700
$589
$600
$536
$485
$500
$440
Millions USD
$400
$300
$200
$100
$0
2008 2009 2010 2011
U.S. $404 $447 $495 $545
Canada $36 $38 $41 $44
Total N.A. $440 $485 $536 $589
Secondary research indicates that pharmaceutical companies spend,
on average, 1% of their total promotion cost on e-detailing for standalone
computers
The New England Journal of Medicine, August 16, 2007
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15. Projection of End-users in North America
Projected Number of Physicians in North America
1,200,000
974,727 984,291 993,952 1,003,711
1,000,000
800,000
600,000
400,000
200,000
0
2008 2009 2010 2011
U.S. 901,937 910,357 918,855 927,432
Canada 72,789 73,935 75,098 76,279
Total N.A. 974,727 984,291 993,952 1,003,711
Physicians’ rate growth in the U.S. is on average 0.93% a year whereas
in Canada the rate is about 1.57% a year.
Euromonitor Report 2007
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16. The Customers
Major Pharmaceutical Companies in North America
Advertising Multimedia
Expenditure in Advertising
Company
USD included in Sales of major companies
(2007)* Expenditure *
Accounted for 45% or about
Lilly (Eli) & Co. $4,497,000,000 Y
USD 290.1 billion of worldwide
Pfizer Inc $2,152,500,000 Y
sales in 2006**
Johnson & Johnson $1,900,000,000 Y
Genentech, Inc. $439,000,000 Y
Abbott Laboratories $227,882,000 Y
Wyeth $130,000,000 Y
Customer grouping
Allergan, Inc $118,000,000 N
based on priority to target
NBTY Inc. $104,000,000 N
Type of customer Priority
King Pharmaceuticals, Inc. $85,044,000 N
Pharmaceutical 1st
Merck & Co., Inc $27,000,000 Y
without CRM
Watson Pharmaceuticals, Inc. $9,400,000 N services
Schering-Plough Corp. N/A N Pharmaceutical with 2nd
CRM services
Hospira Inc N/A N
Forest Laboratories, Inc N/A N CRM: Customer Relationship Services
Bristol-Myers Squibb Co. N/A N
Barr Pharmaceuticals Inc N/A N
Source : Lexis-Nexis – ADVERTISERS 2008 *
Mergent Online. November 2007**
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17. The Competition in North America
Major PCRM Companies
in North America
Allscripts
Aptilon
WebMD Health Corp
inVentiv Health Inc
Dendrite
Lathian Systems
Quintiles Trans-national
Companies that offer Customer Relationship Management Services (PCRMs)
PCRM may cover a full range of solutions such as Customer-facing Operations,
Internal Functional Operations, Performance Marketing Analysis, Customer Survey
Analysis and others.
MacMedia plans to target at the Customer-facing Operations service interfacing
between pharmas and doctors to promote products
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18. Classification of Competition
Products Currently Available in the market to Macro Level grouping of Competitors from
offer detailing the Competitive Strategy Perspective
Electronic Sales Type of Strategy Company
detailing representatives
Low Cost Contract Sales
Allscripts inVentiv
Organizations
Aptilon Quintiles
(CSO)
WebMD Highly fragmented
Dendrite Contract Sales  Allscripts
Lathian Organizations (CSO) Differentiation  Aptilon
inVentiv  inVentiv
 WebMD
Video Phone
conferencing Highly fragmented Focus  Lathian
Aptilon Contract Sales (Combination of cost  Dendrite
Lathian Organizations (CSO) and differentiation)  Quintiles
CSOs are outsourcing companies in the low-end market . CSOs provide basic
services such as call-centers and hiring of sales representatives. Numerous
Differentiators offer comprehensive solutions such as Customer-facing
Operations, Internal Functional Operations and others.
Differentiators provide best services, create high value; and therefore, control
prices
Focus companies center in a few services. These companies take advantage
of the expertise in their specialties 18

19. Skills Exhibited by PCRMs
Skills in the PCRM Sector
Pharmaceutical Market knowledge Marketing and Sales knowledge
IT and programming expertise Public Relations Skills
Systems Analysis & Solutions skills Strategic Management skills
SWOT Analysis for the PCRM Sector
Strengths Weaknesses
Renown companies very well established Multi-business and big organizations that still
in the pharmaceutical industry with need to combine independent information
customer oriented cultures sources and other useful tools so as to fit them
into their products
Opportunities Threats
E-detailingoffers potential growth Privacy issues
Healthcare professionals use online Rapid change of technology
resources nowadays Failure to wisely integrate multiple products
Existence of serious inefficiencies in the and services
pharmaceutical promotion Limited number of computer programmers/
designers with experience in the B2B sector
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20. Motivations and Skills Tools MacMedia PCRM
Competitor
PCRMs focus on pharma’s needs Multimedia Purchase Yes
rather than on doctors’ needs Technologies
Programmers /
MacMedia’s product has potential to designers with
Hire Yes
experience in
turn into an intelligence system so e-detailing
as to ensure service repeat and Journal Subscribe No
loyalty Subscriptions
Summarization Purchase/License No
MacMedia’s product will improve Technologies
market penetration Physicians’ DB Purchase/Hire Yes
Service
e-detailing
Intelligence
MacMedia Pharma
Company
Service = Loyalty
Repeat
Competitive Advantage
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21. Incumbents’ likely Response
Main PCRMs could counteract with own version (growth-driven strategy).
If PCRMs cannot respond soon due to organizational issues, they would
consider to integrate MacMedia’s detailing product into their offerings
(co-opting strategy). Example: Inventiv
Type of PCRM Threat of Attack Most Likely Response
CSO Very Low None
Focus Moderate to Low Buy out
Compete with own
Differentiator High
version
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22. The Technical Feasibility
Technology Description Products/Brands Accessibility Criteria
Combination of multiple AdobeFlash
Features
Multimedia content formats: Audio, AdobeDreamweave Purchasing
video & sound Prices
r
License
Software that produces Xerox Summarizer conditions
Summarizer
synopsis of a large Intellexer License fee
Technology Features
document Summarizer
Prices
Computer or device on Features
Server a network that manages Numerous brands Purchasing
network resources Prices
Site location on the Numerous software Features
Website Purchasing
World Wide Web products Prices
The New England
Journal of Medicine
Impact factor
Medical Scientific journals The Lancet
Subscription
Journals devoted to the field of Journal of the Subscription
conditions
Database medicine American Medical
Association Prices
etc
JIF: Frequency that an average article in a journal has been cited in a given period of time
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23. The DB - The Heart of the Service
Pharma_1 Pharma_2 Pharma_3 Pharma_4
Doctor_1 A1, B1,D1 A2,F2 B3,F3,G3 C4,L4,O4
Doctor_2 A1,C1 E2,G2,T2 C3,F3 C4,E4,S4,X4
Doctor_3 L1,M1 A2,P2,H2,I2 D3,F3,G3, P3 F4,M4
Doctor_4 P1, Q1,Y1 B2,C2 B3,M3,T3 C4,F4,M4, W4
To start the service, a physicians’ DB must be purchased or hired from a third
party
To obtain an extensive range of information on products, doctors must
subscribe in as many pharmaceutical companies and choose as many topics in
their specialties
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24. Architecture Alternatives
First Alternative
Pharma 1
Version 1
Products
Requires access to
Pharma 2 DBs of pharmaceutical
Products products.
Pharma 3
Products
Statement of
MacMedia confidentiality
Pharma 4
Products
MacMedia First Alternative
Version 2
Create POS where
physicians are referred to
Pharma 1 POS MacMedia’s website and then
Products subscribe
Pharma 2
Products
POS Requires access to Dbs of
pharmaceutical products
Pharma 3
Statement of confidentiality
Products
POS= Point of Subscription
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25. Architecture Alternatives
Pharma 1 Second Alternative
Products
Integrates with PCRMs’
Pharma 2
Products
DBs
Pharma 3
Products PCRM MacMedia
Pharma 4
Products
25

26. Resources Plan and Estimate Time Allocation
for the Technical Realization
Estimate Skills/ Human Estimate
Phase Timeline Tasks
Time Profile Resources Cost
Information Collection,
CPA or SEU
Jun 08 Processing and Delivery 1
Systems Design Jul 08 Client/Server $34,200
3 months
Aug08 Architecture
CPA or SEU 1
Website Design
Application Development CPA or SEU 1
Sep 08
Website Development
Prototype Oct 08 $38,100
3 months Server Setup/Website CPA or SEU 1
Nov 08
Upload
Server testing
Testing Dec 08 CPA or SEU 2 $10,500
1 month Service testing
CPA or SEU 2
Jan 09 Business Case
Implementation MEEi Candidate $21,000
2 months Feb 09 Business Plan
1
Mar 09 Presentation to Investors CPA or SEU 2
Commercialization $27,000
2 months Apr 09 Road-shows MEEi Candidate 1
Grand Total $130,800
CPA: Computer Programmer Analyst/Designer SEU: Systems Engineer Undergraduate
26

27. Technical Realization
Control of Product Components
Physicians/
Medical Server/
Marketing Multimedia Summarizer
Component Journals
Intelligence Application Internet
Technology
DBs Domain
DB
Under
MacMedia’s YES YES NO NO YES
Control
27

28. Product Risk Analysis
Measure to
Type Source Risk Level Impact
mitigate risk
Summarizer Validation of
Not efficient Low High
Technology features
Not Updated Validation of
Technical Physicians’ DB Low High features
Not
Comprehensive
Validation of
Medical Journals
Not efficient Low High Journal Impact
Subscriptions
Factor Index (JIF)
Explore other
Xerox technology Not exclusive
Low High suppliers and
Supplier license
conditions
Information is Select peer-
Business End Users Low High
biased reviewed journals
Product
End Users Low High Permanent VOC
dissatisfaction
JIF: Frequency that an average article in a journal has been cited in a given period of time
28

29. MILESTONE OVERVIEW
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
08 08 08 08 08 08 08 08 08 08 09 09 09 09
Complete
VOC
Investigation & Market Financial Business
Preliminary Market Plan
Analysis Secondary draft
VOC Secondary
Research
Completion
Design Systems
Tollgate
Systems design
One
design draft completion
Technical
screening &
Prototyping selection Prototype
ready
Tollgate
Two
Testing
Testing
completion
Tollgate
Implementation Business Three
Case
Commercialization Road
shows
29

30. Next Steps:
look for expert advice at McMaster to have IP protection of the service
idea and also advice on technology licensing
apply for resources through the school for the prototyping phase
look for technical expertise to develop the systems design
30

31. Thank You
Q&A Session
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