2018 global smart rehabilitation enabling …...the neofect rapael smart glove uses a virtual...
TRANSCRIPT
2018 Global Smart Rehabilitation Enabling Technology Leadership Award
2018
BEST PRACTICES RESEARCH
© Frost & Sullivan 2018 2 “We Accelerate Growth”
Contents
Background and Company Performance ........................................................................ 3
Industry Challenges .............................................................................................. 3
Technology Leverage and Customer Impact ............................................................. 4
Conclusion........................................................................................................... 6
Significance of Enabling Technology Leadership ............................................................. 7
Understanding Enabling Technology Leadership ............................................................. 7
Key Benchmarking Criteria .................................................................................... 8
Best Practices Award Analysis for NEOFECT ................................................................... 8
Decision Support Scorecard ................................................................................... 8
Technology Leverage ............................................................................................ 9
Customer Impact ................................................................................................. 9
Decision Support Matrix ...................................................................................... 10
Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices ................................................................................................................. 11
The Intersection between 360-Degree Research and Best Practices Awards ..................... 12
Research Methodology ........................................................................................ 12
About Frost & Sullivan .............................................................................................. 12
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Background and Company Performance
Industry Challenges
Musculoskeletal diseases affect bones, joints, and muscles, and neurological diseases
affect the central and peripheral nervous system. These disorders can be painful and
debilitating, thus affecting the patient’s quality of life, activity, and productivity.
Millions of people worldwide suffer from musculoskeletal disorders. In the United States
alone, one in three people, or 75.7 million adults, suffer from back and neck pain, and
osteoporosis affected more than 10 million people in 2016. In the United States in 2015,
musculoskeletal disorders were among the leading cause of Disability-adjusted Life Years
(DALYs), second to mental health conditions. The burden of musculoskeletal conditions is
significant in terms of treatment and care as well as in terms of the impact on patients’
quality of life, mobility, and productivity. These conditions cost the US health system an
estimated $213 billion in annual treatment, care, and lost wages.
Neurological disorders and mental disorders were ranked as the leading causes of DALYs
in 2015 and contribute the most to the global disease burden in Europe. In the United
States, more than 100 million people suffer from neurological diseases, such as
Alzheimer’s, multiple sclerosis, migraines, epilepsy, and spinal cord injury, costing the US
health system $800 billion annually. Stroke, now recognized as a neurological disease by
the World Health Organization (WHO), is an extremely common condition that impacts the
patient’s overall quality of life. Every year, about 15 million people worldwide suffer from
a stroke, according to WHO. In the United Kingdom, about 100,000 people suffer from a
stroke every year. The National Health Service (NHS) and social care costs for stroke
patients are about £1.7 billion each year in England alone.
Health systems are straining to manage the burden of musculoskeletal and neurological
diseases worldwide, with rehabilitation as the common therapy for managing these
disorders. However, rehabilitation programs have an 85% dropout rate; therefore, the
following market needs must be addressed to achieve better adherence and success:
• Monotony—Rehabilitation can be extremely mundane as it involves repetitive
exercises that can become boring and demotivating for patients undergoing this
routine on a regular basis, sometimes for days or months.
• Cost—Rehabilitation involves high spending by insurance companies and
individuals.
• Convenience—Patients need to visit the rehab clinic often, sometimes three times
per week, which can be tiresome for patients already suffering from the loss of
basic mobility.
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• Personalization—Physical rehabilitation is currently limited to repetitive 45-minute
sessions with a physical therapist. These sessions are time bound and wide-ranging
and sometimes do not change with the progress and efficacy of treatment.
As with other fields, technological innovation in healthcare rehabilitation could be the key
to transforming the lives of thousands of people suffering from neurological and
musculoskeletal disorders, in addition to stroke survivors, by helping them normalize basic
actions and become independent. By tapping this opportunity and meeting market needs,
digital health is finding applications in this area as well. Digital health (e.g., tele-rehab)
can be extended to patients’ homes and made a part of their daily routines in a
convenient, more cost-effective way, to reduce the overall burden of the disease.
Technology Leverage and Customer Impact
Commitment to Innovation
Since 2010, NEOFECT has shown exemplary innovation in using digital health to increase
the efficiency and continuity of rehabilitation. The company’s RAPAEL Smart Rehabilitation
Solutions, both hardware and software, are cleverly designed biofeedback gaming systems
that motivate and empower recovering patients throughout their rehab programs.
The NEOFECT RAPAEL Smart Glove uses a virtual reality (VR)-based hand rehabilitation
therapy solution that helps patients carry out muscle strengthening exercises in an
enjoyable manner using games and in the convenience of their homes, which are two
critical needs in the market. This solution has an added advantage over competing
solutions as it is available as a wearable device with artificial intelligence (AI) and Big Data
analytics capabilities.
NEOFECT’s latest product, RAPAEL Smart Pegboard, is a digital pegboard developed for
stroke rehabilitation and is a fun and interactive tool with about 30 games that keep
patients engaged and motivated to continue their therapy.
Commitment to Creativity
Healthcare gamification is a fitting tool to motivate patients to complete rehabilitation
sessions with some token of appreciation and accomplishment in the end. In addition, the
different types of available games eliminate a major challenge of rehabilitation: monotony.
To ensure the patient adheres to therapy and receives effective treatment, NEOFECT
continues to launch products that display creativity and resourcefulness. Most products in
the market use digital health in the form of mobile devices and apps that instruct the
patient through exercises. NEOFECT is the only company that uses games as a mode of
rehabilitation and uses game boards. The company’s latest product, NEOFECT Pegboard, is
a disruptive leap in this direction because most smart rehabilitation products in the market
are bulky and immovable; however, the NEOFECT Pegboard is small and portable.
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With its smart wearable gloves for stroke patients and children with developmental
disorders, wearable hand robots for paralyzed patients, and game boards that enhance
the therapy experience, NEOFECT has brought effective treatment to demotivated rehab
patients in the form of gaming.
Commercialization Success
With its innovative products, NEOFECT manages all key concerns regarding rehabilitation.
The company’s products are available for use by clinics/hospitals and individuals in Korea,
Europe, and the United States. The company has been expanding its footprint since its
inception in Korea in 2010. Moreover, NEOFECT and has over 15 sales partners worldwide
(the Americas, Europe, the Middle East, and Asia) and is looking to expand to match its
growing demand.
NEOFECT’s revenue in 2017 were over $4 million, and the company has attracted the
attention of global investors. Furthermore, NEOFECT has earned over $25 million in
investments since 2010, which clearly indicates the company’s commercial potential for
investors.
Application Diversity
NEOFECT’s rehabilitation solutions primarily target patients suffering from musculoskeletal
and neurological diseases, such as stroke. While all the exercises and games work to
normalize movements by invigorating muscles and stimulating visual and auditory senses,
variations can be incorporated to cater to patients’ preferences and progress, thereby
delivering customized, optimal therapy by leveraging AI.
For example, by using AI and Big Data capabilities, RAPAEL’s learning algorithm
automatically adjusts the difficulty of the rehabilitation games based on the patient’s
range of motion and goals; therefore, the patient’s therapy remains positive, motivating,
and progressive.
While the company’s competitors do not differentiate their products for different
demographics, NEOFECT has a product for children suffering with developmental
disabilities: RAPAEL Smart Kids. This device is an exo-glove that uses sensors and
biofeedback mechanisms to provide cognition therapy and physical therapy.
Price/Performance Value
A key deterrent for continuing rehabilitation is the high cost. NEOFECT has successfully
mitigated this issue by launching the RAPAEL Smart Glove as a business-to-consumer
(B2C) rental model, which is not a common model in the smart rehabilitation market.
For $99 a month, patients can rent the US Food and Drug Administration (FDA)-approved
smart glove and companion Android tablet to rehabilitate their hands and wrists at home.
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This payment model removes the burden of having to pay the full amount up front,
thereby making the cost of treatment more affordable.
Furthermore, the NEOFECT Pegboard is priced at $2,000, which makes it an affordable
purchase for smaller outpatient clinics and individuals. Even though this cost appears
high, the closest competing solution is priced at approximately $15,000, thereby providing
the same rehabilitation experience at one-tenth the price.
Customer Ownership Experience
Patients suffering musculoskeletal and neurological disorders often experience poor quality
of life, with their disabilities affecting their independence. NEOFECT’s rehab gaming
products provides users with much-needed enthusiasm and encouragement. Unlike other
home rehab devices, NEOFECT’s flagship product, RAPAEL Smart Glove, is available on a
monthly rental model, making the limited ownership worth the money.
In addition, while competing smart rehab devices typically offer repetitive exercises and
tele-consultation, NEOFECT’S products offer interesting virtual games, such as squeezing
an orange, pouring a cup of coffee, or piloting an airplane, thereby making the
rehabilitation process more exciting and positive.
Conclusion
With thorough market research and by accurately identifying market needs, NEOFECT has
made a mark in the rehabilitation market using digital health and gamification. The
company’s products achieve adherence to rehabilitation, which otherwise has a high
dropout rate, without compromising on the efficacy of treatment in the patient’s home.
The low cost and the rent-for-use model are key drivers for use as they make treatment
more affordable. In addition, NEOFECT’s product range caters to different age groups
suffering from stroke and other musculoskeletal and neurological diseases, thereby
providing customers with unparalleled value for their money.
For its strong overall performance NEOFECT has earned Frost & Sullivan’s 2018 Enabling
Technology Leadership Award.
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Significance of Enabling Technology Leadership
Ultimately, growth in any organization depends upon customers purchasing from a
company and then making the decision to return time and again. In a sense, then,
everything is truly about the customer—and making those customers happy is the
cornerstone of any long-term successful growth strategy. To achieve these goals through
enabling technology leadership, an organization must be best-in-class in three key areas:
understanding demand, nurturing the brand, and differentiating from the competition.
Understanding Enabling Technology Leadership
Product quality (driven by innovative technology) is the foundation of delivering customer
value. When complemented by an equally rigorous focus on the customer, companies can
begin to differentiate themselves from the competition. From awareness, to consideration,
to purchase, to follow-up support, best-practice organizations deliver a unique and
enjoyable experience that gives customers confidence in the company, its products, and
its integrity.
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Key Benchmarking Criteria
For the Enabling Technology Leadership Award, Frost & Sullivan analysts independently
evaluated two key factors—Technology Leverage and Customer Impact—according to the
criteria identified below.
Technology Leverage
Criterion 1: Commitment to Innovation
Criterion 2: Commitment to Creativity
Criterion 3: Stage Gate Efficiency
Criterion 4: Commercialization Success
Criterion 5: Application Diversity
Customer Impact
Criterion 1: Price/Performance Value
Criterion 2: Customer Purchase Experience
Criterion 3: Customer Ownership Experience
Criterion 4: Customer Service Experience
Criterion 5: Brand Equity
Best Practices Award Analysis for NEOFECT
Decision Support Scorecard
To support its evaluation of best practices across multiple business performance
categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool
allows our research and consulting teams to objectively analyze performance, according to
the key benchmarking criteria listed in the previous section, and to assign ratings on that
basis. The tool follows a 10-point scale that allows for nuances in performance evaluation.
Ratings guidelines are illustrated below.
RATINGS GUIDELINES
The Decision Support Scorecard is organized by Technology Leverage and Customer
Impact (i.e., these are the overarching categories for all 10 benchmarking criteria; the
definitions for each criterion are provided beneath the scorecard). The research team
confirms the veracity of this weighted scorecard through sensitivity analysis, which
confirms that small changes to the ratings for a specific criterion do not lead to a
significant change in the overall relative rankings of the companies.
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The results of this analysis are shown below. To remain unbiased and to protect the
interests of all organizations reviewed, we have chosen to refer to the other key
participants as Competitor2 and Competitor3.
Measurement of 1–10 (1 = poor; 10 = excellent)
Enabling Technology Leadership
Technology Leverage
Customer Impact
Average Rating
NEOFECT 10 10 10.0
Competitor 2 8 7 7.5
Competitor 3 7 7 7.0
Technology Leverage
Criterion 1: Commitment to Innovation
Requirement: Conscious, ongoing adoption of emerging technologies that enables new product development and enhances product performance
Criterion 2: Commitment to Creativity
Requirement: Technology leveraged to push the limits of form and function in the pursuit of “white space” innovation
Criterion 3: Stage Gate Efficiency
Requirement: Adoption of technology to enhance the stage gate process for launching new products and solutions
Criterion 4: Commercialization Success
Requirement: A proven track record of taking new technologies to market with a high rate
of success
Criterion 5: Application Diversity
Requirement: The development and/or integration of technologies that serve multiple
applications and can be embraced in multiple environments
Customer Impact
Criterion 1: Price/Performance Value
Requirement: Products or services offer the best value for the price, compared to similar offerings in the market.
Criterion 2: Customer Purchase Experience
Requirement: Customers feel they are buying the most optimal solution that addresses both their unique needs and their unique constraints.
Criterion 3: Customer Ownership Experience
Requirement: Customers are proud to own the company’s product or service and have a
positive experience throughout the life of the product or service.
Criterion 4: Customer Service Experience
Requirement: Customer service is accessible, fast, stress-free, and of high quality.
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Criterion 5: Brand Equity
Requirement: Customers have a positive view of the brand and exhibit high brand loyalty.
Decision Support Matrix
Once all companies have been evaluated according to the Decision Support Scorecard,
analysts then position the candidates on the matrix shown below, enabling them to
visualize which companies are truly breakthrough and which ones are not yet operating at
best-in-class levels.
High
Low
Low High
Customer Impact
Technology Leverage
Competitor2 Competitor3
NEOFECT
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Best Practices Recognition: 10 Steps to Researching,
Identifying, and Recognizing Best Practices
Frost & Sullivan analysts follow a 10-step process to evaluate Award candidates and
assess their fit with select best practice criteria. The reputation and integrity of the
Awards are based on close adherence to this process.
STEP OBJECTIVE KEY ACTIVITIES OUTPUT
1 Monitor, target, and screen
Identify Award recipient candidates from around the globe
• Conduct in-depth industry research
• Identify emerging sectors
• Scan multiple geographies
Pipeline of candidates who potentially meet all best-practice criteria
2 Perform 360-degree research
Perform comprehensive, 360-degree research on all candidates in the pipeline
• Interview thought leaders and industry practitioners
• Assess candidates’ fit with best-practice criteria
• Rank all candidates
Matrix positioning of all candidates’ performance relative to one another
3
Invite thought leadership in best practices
Perform in-depth examination of all candidates
• Confirm best-practice criteria • Examine eligibility of all candidates
• Identify any information gaps
Detailed profiles of all ranked candidates
4
Initiate research director review
Conduct an unbiased evaluation of all candidate profiles
• Brainstorm ranking options • Invite multiple perspectives on candidates’ performance
• Update candidate profiles
Final prioritization of all eligible candidates and companion best-practice positioning paper
5
Assemble panel of industry experts
Present findings to an expert panel of industry thought leaders
• Share findings • Strengthen cases for candidate eligibility
• Prioritize candidates
Refined list of prioritized Award candidates
6
Conduct global industry review
Build consensus on Award candidates’ eligibility
• Hold global team meeting to review all candidates
• Pressure-test fit with criteria • Confirm inclusion of all eligible candidates
Final list of eligible Award candidates, representing success stories worldwide
7 Perform quality check
Develop official Award consideration materials
• Perform final performance benchmarking activities
• Write nominations • Perform quality review
High-quality, accurate, and creative presentation of nominees’ successes
8
Reconnect with panel of industry experts
Finalize the selection of the best-practice Award recipient
• Review analysis with panel • Build consensus • Select recipient
Decision on which company performs best against all best-practice criteria
9 Communicate recognition
Inform Award recipient of Award recognition
• Announce Award to the CEO • Inspire the organization for continued success
• Celebrate the recipient’s performance
Announcement of Award and plan for how recipient can use the Award
10 Take strategic action
Upon licensing, company is able to share Award news with stakeholders and customers
• Coordinate media outreach • Design a marketing plan • Assess Award’s role in future strategic planning
Widespread awareness of recipient’s Award status among investors, media personnel, and employees
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The Intersection between 360-Degree Research and Best
Practices Awards
Research Methodology
Frost & Sullivan’s 360-degree research
methodology represents the analytical
rigor of our research process. It offers a
360-degree-view of industry challenges,
trends, and issues by integrating all 7 of
Frost & Sullivan's research methodologies.
Too often companies make important
growth decisions based on a narrow
understanding of their environment,
leading to errors of both omission and
commission. Successful growth strategies
are founded on a thorough understanding
of market, technical, economic, financial,
customer, best practices, and
demographic analyses. The integration of
these research disciplines into the 360-
degreeresearch methodology provides an
evaluation platform for benchmarking
industry participants and for identifying those performing at best-in-class levels.
About Frost & Sullivan
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and achieve best-in-class positions in growth, innovation and leadership. The company's
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research and best practice models to drive the generation, evaluation and implementation
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please visit http://www.frost.com.
360-DEGREE RESEARCH: SEEING ORDER IN THE CHAOS