asclepius consulting
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Asclepius ConsultingGROUP 2
What makes a market attractive? How will you segment the healthcare information systems market in India and which segments would you recommend to Asclepius?
No. of BedsSector
Healthcare Organizations
Public
30-100 100-300 >300
Private: Charitable Organizations
10-100 100-300 >300
Private: Corporate Houses
10-100 100-300 >300
Private organizations:Resources to afford the systemsIncentive to improve processes and improve efficiency which can act as a differentiatorNo. of beds above 100:The hospitals having beds less than 100 can manage their processes manually as well and might not see significant benefit from the HMISThey are also not likely to have enough resources to afford the HMIS
What are the factors that you will take into account while deciding on a sales strategy? Identify the same with relevance to Asclepius and its target market.
Cost Creating company’s own sales force was expensive than scaling the reseller network
Technical Knowledge Company salesperson were required to close the deal as resellers weren’t adept to sell the product on their own despite extensive training
Scalability Asclepius goal was to sell the basic product to as many hospital as possible. It was faster to scale up the reseller network. For every 10 resellers one sales support representative was allocated.
Resource Allocation Creating company’s own sales will drain limited company resources. After Sales Support and Maintenance
Generally resellers provided maintenance and additional incentives were given to them for support work. But serving could be done remotely which would cut costs and ensure accountability.
Account Management In order to earn profit, company had to sell more modules to a single contact. The company had develop a good account management program.
Consulting Asclepius had to provide insights to its clients to help improve their service. Experienced professionals were required for this purpose.
Describe the decision making unit (DMU) at a large hospital? How is understanding the DMU relevant to the sales strategy for Asclepius?
•Decisions are made by a committee consisting of both Administrators and Doctors
•It was believed that the top-down approach of getting buy-in from the top management was a better approach due to past experience.
•Convincing the IT and administrative staff was easier after getting buy-in from the top.
Proposals were evaluated on the basis of:Total expenditureBenefits of process improvementAny significant improvements in quality of care to
patients
Buying Centre
Economic Buying
Influence: MD or CEO
User Buying Influence:
Lower, Middle Levels and
Doctors
Advocate: None
Technical Buying
Influence: IT Department
Discuss the purchasing behavior of the various segments. How will you utilize this information to devise your go-to-market strategy?
Segment(Based on no of beds) Purchasing Behaviour
30 to 100 Found value in Basic Administration, Billing, Pharmacy, OPD and IPD Modules. Price Sensitive Hesitant to Change
100 to 300 Found value in all modules Needed support in overall process management Installation was of strategic importance Robustness, Scalability and ease of use important. ROI essential Credibility of Vender important
More than 300 Found value in all modules Needed support in overall process management Installation was of strategic importance Robustness, Scalability and ease of use important. ROI essential Credibility of Vender important Need management consulting service
Go to Market StrategyNo of Beds 30 to 100 100 to 300 More than 300Target Contact CEO/MD
directly/through referrals
Contact CEO/MD directly/through referral, hire consultants, RFC process
Contact CEO/MD directly/through referral, hire consultants ,RFC process
Product Portfolio
Basic modules with additional modules as per requirements
Complete Package with customization.
Develop an account management process with end to end process management and support.
Pricing Module wise pricing Licence based pricing Licence based pricing
Promotion Research and provide Cost- Benefit Analysis for addition modules. Offer discounts for each addition.
Focus on customization and cost saving due to web- based system architecture (10-15k per machine).
Provided initial offering at a discounted price as the revenue for maintenance and support will be substantial
Selling Strategy
Leverage reseller network
Apart from reseller use own sales rep and referrals
Apart from reseller use own sales rep, referrals and experienced consultants
What are the various go-to-market alternatives in front of Asclepius? What are their pros and cons and which model would you recommend?
Selling Costs
Sales Volume
Own Sales Force
Independent AgentsOwn Sales Force
Control over the entire selling process
Opportunity to build relationships with the clients for further sales
Not cost effective when the sales volume is low
Additional source of revenue from maintenance and service
Better knowledge of the products and technical details
Re-Sellers
More Cost effective when sales volume is low
Wider reach and better network of customers
Only basic knowledge of products, could not address complex queries
Required the presence of a senior manager from Asclepius for site-visits
and deal closure
No relationships with clients for selling more complex products
Assumptions:Effort required for easy to medium sales process =1
Effort required for Moderate to Tough sales process =2Effort required for Tough sales process =3
Rational:Potential market value per effort is highest for 30-100 beds Day care centres at more
than Rs. 44 crores
Average Revenue earned per reseller per annum = Rs. 9,30,000
Fixed Cost = Rs. 85,00,000 Variable Cost per reseller= 1,82,800
At Breakeven: Fixed Cost = ContributionContribution per reseller = Rs. 7,47,200
Hence Number of resellers = 12 and number of sales person = 2
Total potential leads= 2203Number of warm leads per reseller = 50
Hence, total resellers required to effectively cover the market = 45
& number of salesperson = 5
Microsoft Excel Worksheet
Based on the data provided in the case, how many salespeople or resellers would Asclepius need to have to a) break even and b) to effectively cover the market.