The Perspective from Market Edge
For more than 20 years, Market Edge has been providing consulting services and strategic guidance to category leading Fortune 500 companies in various industries throughout the world. In today’s highly competitive healthcare industry, the economic value of a new product, service or device is now given as much weight as its clinical value. Faced with new rules of reimbursement, increased regulation and rising costs, stakeholders today are requiring a clear view of a product’s economic impact before taking steps toward approval. Even products currently on the market are being scrutinized like never before. For a new product to succeed, impressive clinical value is no longer enough. Instead, new products must deliver a compelling Value Proposition that will resonate with a variety of stakeholders, from payors to providers, physicians and more. In today’s environment, where both economic and clinical value (ECV) are equally relevant, keeping economics at the core of innovation creates a significant competitive advantage.
For a new product, including an economic assessment at the very onset of innovation is critical to ensuring its long-term success. Integrating ECV into new product development—and reassessing it at regular intervals—ensures that stakeholder perspective is accounted for at all stages of the product lifecycle. It also creates a thorough understanding of a new product’s potential value and any barriers that might be associated with its economic Value Proposition. New product teams that ignore or deemphasize economic value may face product adoption challenges down the road, including delays, increased competition and derailed financial goals.
In our work with clients in healthcare, med-tech and pharmaceuticals, Market Edge has helped clients identify and quantify the most impactful economic factors based on both clinical and administrator perspectives (Figure 1). We then collaborate with clients to validate these perspectives and guide new product development through a better understanding of the value drivers and potential evidence required for adoption.
Our Innovation and New Product Development tools, paired with our close collaboration with stakeholders, have proved integral in facilitating new product adoption and use.