CbusineZ Corporate venturing in health insurance

“drive, focus, insights and speed”

Introduction

2

Drs J.G.B. de Groot Joep.de.groot@cz.nl

Currently: board of CbusineZ Past: DSM and Managing partner The Essence Consulting Experience in venturing: -  Set up 6 companies as a managing director

-  Served on 17 boards as a (non-)executive director

-  Involved in > 30 M&A deals

Index

3

Our environment Corporate Venture Office in practice: Why and How? Growth patterns and implications

CZ a main player in the Dutch health insurer market

4

3.3 mln affiliates

market share: 20%

turnover: € 6.5 billion

staff: 2.450 Fte’s

Top - 3 H.I.C.

supports 3 labels

5

The cost of healthcare have risen sharply

Rise cost of hospitalcare in Netherlands last 5 year

Cost increase in AWBZ (elderly care) in 10 year

30 % to 20 mrd €

66 % to 21 mrd €

6

In 1970:

72 year

In 2020 there are 3,3 mln 65+

Life expectancy has risen

LINH, RIVM,

+3

And will increase the coming years

65+ in 2010:

2,5 mln

This will lead to an increase in the number of elderly people

Baby in

2010: 83jr

7

We live longer.... But not always healthy...

LINH, RIVM,

50% doesn’t exercise enough

40% over weight 15% obesity 27% smokes

Unhealthy lifestyle is an important reason for chronicle illness

8

463.000 569.000

1.1 mln 1.2 mln

Because of higher life expectancy & unhealthy lifestyle the number of chronically ill will rise

Depression COPD Diabetes heartcondition

Can you imagine what this means for care delivery?

Index

9

Our environment Corporate Venture Office in practice: Why and How? Growth patterns and implications

Corporations have a ‘natural’ problem with innovation

10

Tendency to keep status quo

There is (or was) a reason for

doing things they way there

done…

A natural inertia to change

Different skills set

A corporation requires less

entrepreneurial and integral

skills.

No processes and experience

Corporations and departments have no processes nor

experience for guiding innovations

Innovation

Operational focus

Focus on ‘getting the

business right and controlled’

CbusineZ realises innovations that contribute to a more patient centric, sustainable healthcare

11

Participant Incubator

CbusineZ portfolio jan 2013

Previously

CbusineZ organisation: the elements have to aligned

13

Organisation

Culture

Process & Tools

Finance

People

Strategy

Corporate Venture Office

CbusineZ organisation: the elements have to aligned

14

Organisation

Culture

Process & Tools

Finance

People

Strategy

Corporate Venture Office

Position in the CZ organisation: at board level

15

Board CZ

Marketing

Healthcare procurement

Sales

Customer service

Declaration services

Staff

Board CbusineZ

Legally CbusineZ is a separate legal entity with its own board Functionally To the CZ organisation the CZ-CbusineZ board present themselves as one So CbusineZ is organised at C-level

CSF

CbusineZ organisation

16

Executive board

A. van Son J. de Groot

R. Yap

Business managers

JH Willemse B. v.d Kallen U. Soffers

GJ van Rossum H. Agten

Investment managers Support

A. Bonte T. Talen

CbusineZ network: CbusineZ, Venture managers and CZ innovators

17

CZ innovators

Vent

ure

maa

nger

s

CbusineZ

Executive board

A. van Son J. de Groot

R. Yap

Business managers

JH Willemse B. v.d Kallen U. Soffers

GJ van Rossum H. Agten

Investment managers Support

A. Bonte T. Talen

CbusineZ network: CbusineZ, Venture managers and CZ innovators

CbusineZ event: (Every 3 months) Deal flow Presentation on relevant topic (eg strategy, innovation lessons from Jobs) Thought provoking topic: (eg design, serious game) Networking

17

CZ innovators

Ven

ture

maa

nger

s

CbusineZ

Executive board

A. van Son J. de Groot

R. Yap

Business managers

JH Willemse B. v.d Kallen U. Soffers

GJ van Rossum H. Agten

Investment managers Support

A. Bonte T. Talen

We celebrate the successes and acknowledge the business manager/ CZ innovator

19

CbusineZ organisation: the elements have to aligned

20

Organisation

Culture

Process & Tools

Finance

People

Strategy

Corporate Venture Office

CbusineZ attracts employees from CZ and ‘reprograms’ them

21

14

Board CZ

Marketing

Healthcare procurement

Sales

Customer service

Declaration services

Staff

Venture

Opera

CbusineZ

Investment managers Venture manager Consultant

1

1

2

3

2

3

Intensive coaching program: from “corporatee” to innovator Attitude -  Results Instead of process -  Don’t tell me why it can’t be

done, tell me what you need -  Connect instead of protect

Skills -  Focus, focus, focus -  PRISMA (problem solving)

Speed -  Enourmous acceleration

What is the biggest difference between working for CZ and for CbusineZ?

22

A. Bonte

T. Talen

In my opinion is the biggest difference that CZ has a control and process driven culture. It requires you to think: “does it fit and what pre conditions”. It tries to avoid risks in every aspect of work. CbusineZ expects you to think in terms of possibilities and forces me to think/work without boundaries up front

For me the big difference between working at CZ and CbZ is focus. Focus on theme's, goal setting, results. And focus leads to speeding up!

CbusineZ organisation: the elements have to aligned

23

Organisation

Culture

Process & Tools

Finance

People

Strategy

Corporate Venture Office

CbusineZ developed (only last year) a process and tools to manage innovations and ventures

24

0. Idea Generation

1. Screen lead/idea

3. Develop mature Venture

2.1 New Venture

2.2 Participation M&A

BP Start up Scale up Expansion Exit Venture

4. Exit Venture

dealflow en innovatie-mngt Cbusinez 18-okt-11Innovatiesnaam soort CVM-status BMngr Mijlpaal gereed% gereedNIEUWE VENTURES CVM-status

Businessplan 1 1/2 dermatologie NV NV-2 Opstart + M&A-3 TT 01-12-11 25%

Introductie PROMS NV NV-2 Opstart JvV/JdG 01-09-11 95%

Matching Talen: marktplaats voor Vp NV NV-2 Opstart TT 01-12-11 30%

Nieuw Concept voor B&G (profielgericht verzuimmngt) UVV NV-2 Opstart TF 09-07-11 10%

Centrale inkoop voor v&v huizen NV NV-1 Businessplan JN 01-02-12 0%

Premium Care & Living NV NV-1 Businessplan BLE ?

PARTICIPATIES CVM-status BM Mijlpaal % gereed

Plannings- communicatiesysteem voor mantelzorg NV MA-2 Screening aanbod NvL 01-10-11 90%

Fusie en schaalvergroting WMO KT Part MA-2 Screening aanbod JdG 15-11-11 50%

Bekijken mogelijke participatie in Medicinfo van APO Part MA-2 Screening aanbod JdG 01-12-11 25%Fusie PROMs en Miletus & aanscherpen CQI Part MA-2 Screening aanbod JdG 01-12-11 0%Verkoop Huisartsenscan aan derde partij Part Ex-4 Onderhandelen voorwaardenABO 01-01-12 50%

Projecten CVM-statusZorgregelaar Proj PJ-4 Uitvoering ABO 01-04-12 25%

Lichtere cardio processen met ehealth (Philips) Proj PJ-3 Ontwerp TK/JdG 29-06-11 10%

ZDF: Proces rondom verstrekking aan- en uittrekhulp verbeteren Proj PJ-3 Ontwerp JD 22-06-11 10%

ZDF: serious game ontwikkelen Proj PJ-2 Opstart JdG 01-04-12 50%

Mental ehealth in 2e lijn Proj PJ-1 Projectplan NS 10%

Verbeteren inzet Best Doctors proj PJ-1 Projectplan ABO 5%

IDEE EN VERKENNINGFASE 1-2

Arbo diensten te koop? 2. verkenning TT 90%

Informatieuitwisseling binnen ouderenzorg met MMG 2. verkenning HA ? 75%

Ondersteuning BMI 30-35 2. verkenning TT 70%

Model ziekenhuis met Bernhove 2. verkenning JdG 50%

Bekijken mogelijkheid KZN voor fysiotherapie 2. verkenning GvR 50%

KZN voor AWBZ ism buurtzorg&omaha systeem 2. Verkenning HA ? 25%

Qiy als alternatief voor het EPD (incl investering/toezicht) 2. Verkenning WCA 01-09-11 10%

Kwaliteit meten door gezondheidswinst te bepalen 2. verkenning JdG 10%

DICA als benchmark voor oncologie 2. verkenning JdG 10%

Obesitas ondersteuning met mobiel (icm Rabobank) 2. verkenning JdG 5%

Deal Flow contract library Venture Mngt model

Business plan

Marketing & sales

Partner network

Organisatie

Product

Intellectual Property/

Strategic assets

Delivery processes

Managing director

Team & key personnel

Structure & governance

Financial performance

Financial structure

Control

strategy

Organisation

Product Fi

nanc

ial

Strategic goal

1. Market Map 2a. Strategic goal for the parent 2b. Needed results 3. Business goals for the Venture 4a. Needed links with the parent 4b. Needed links with other Ventures in the portfolio 5. JV partner selection and abilities to be transferred

Strategic Goal Map

Strategic Goal Map

Deal flow list facilitates progress by transparency and killing projects that won’t progress

25

dealflow en innovatie-mngt Cbusinez 18-okt-11Innovatiesnaam soort CVM-status BMngr Mijlpaal gereed% gereedNIEUWE VENTURES CVM-status

Businessplan 1 1/2 dermatologie NV NV-2 Opstart + M&A-3 TT 01-12-11 25%

Introductie PROMS NV NV-2 Opstart JvV/JdG 01-09-11 95%

Matching Talen: marktplaats voor Vp NV NV-2 Opstart TT 01-12-11 30%

Nieuw Concept voor B&G (profielgericht verzuimmngt) UVV NV-2 Opstart TF 09-07-11 10%

Centrale inkoop voor v&v huizen NV NV-1 Businessplan JN 01-02-12 0%

Premium Care & Living NV NV-1 Businessplan BLE ?

PARTICIPATIES CVM-status BM Mijlpaal % gereed

Plannings- communicatiesysteem voor mantelzorg NV MA-2 Screening aanbod NvL 01-10-11 90%

Fusie en schaalvergroting WMO KT Part MA-2 Screening aanbod JdG 15-11-11 50%

Bekijken mogelijke participatie in Medicinfo van APO Part MA-2 Screening aanbod JdG 01-12-11 25%Fusie PROMs en Miletus & aanscherpen CQI Part MA-2 Screening aanbod JdG 01-12-11 0%Verkoop Huisartsenscan aan derde partij Part Ex-4 Onderhandelen voorwaardenABO 01-01-12 50%

Projecten CVM-statusZorgregelaar Proj PJ-4 Uitvoering ABO 01-04-12 25%

Lichtere cardio processen met ehealth (Philips) Proj PJ-3 Ontwerp TK/JdG 29-06-11 10%

ZDF: Proces rondom verstrekking aan- en uittrekhulp verbeteren Proj PJ-3 Ontwerp JD 22-06-11 10%

ZDF: serious game ontwikkelen Proj PJ-2 Opstart JdG 01-04-12 50%

Mental ehealth in 2e lijn Proj PJ-1 Projectplan NS 10%

Verbeteren inzet Best Doctors proj PJ-1 Projectplan ABO 5%

IDEE EN VERKENNINGFASE 1-2

Arbo diensten te koop? 2. verkenning TT 90%

Informatieuitwisseling binnen ouderenzorg met MMG 2. verkenning HA ? 75%

Ondersteuning BMI 30-35 2. verkenning TT 70%

Model ziekenhuis met Bernhove 2. verkenning JdG 50%

Bekijken mogelijkheid KZN voor fysiotherapie 2. verkenning GvR 50%

KZN voor AWBZ ism buurtzorg&omaha systeem 2. Verkenning HA ? 25%

Qiy als alternatief voor het EPD (incl investering/toezicht) 2. Verkenning WCA 01-09-11 10%

Kwaliteit meten door gezondheidswinst te bepalen 2. verkenning JdG 10%

DICA als benchmark voor oncologie 2. verkenning JdG 10%

Obesitas ondersteuning met mobiel (icm Rabobank) 2. verkenning JdG 5%

Simple list with Ventures & projects with their status and milestone deadline

Managers want to show progress The deal flow makes the progress transparent. Managers want to show progress to the board and the rest of the CbusineZ community

Facilitates killing projects Corporate habit: We have invested a lot of effort in this project, so it would be a shame to stop now... Kill and kill early! Ventures/projects that won’t progress are killed! “Don’t be temped to let it simmer”

Index

26

Our environment Corporate Venture Office in practice: Why and How? Growth patterns and implications

An ideal venture develops in phases and when reaching it goals develops new business

27

Valu

e of

the

Vent

ure

BP Start up Scale up Expansion Time

Develop mature venture

BP Start up Scale up Expansion

At Business plan phase the business concept and organisation is designed

28

Valu

e of

the

Vent

ure

Time Develop mature venture

Result : Business plan Important: -  Quantitative research with potential customers and

partners -  Clear value proposition -  Design of the value delivery organisation -  “real world” financials

BP Start up Scale up Expansion

At Start up phase the organisation will be build and launching customers will start

29

Valu

e of

the

Vent

ure

Time Develop mature venture

Result : Organisation and key personnel

Product / service 0.1 Launching customers

Important: -  Updated business plan with new insights -  Top quality CEO and key personnel -  Marketing & Sales plan for next phase

BP Start up Scale up Expansion

The hurdles to reach ‘critical mass’ are to successfully scale up operations and improve product

30

Valu

e of

the

Vent

ure

Time Develop mature venture

Result : ‘Critical mass’ & satisfied customers

smooth operation cash flow positive / break even

Important: -  Use of customer feedback to improve product -  Focus on customer needs AND delivery -  Cash to finance the growth

BP Start up Scale up Expansion

The challenge in Expansion phase is the balance between growth and professionalization

31

Valu

e of

the

Vent

ure

Time Develop mature venture

Result : Desired market share & profitability Important: -  Professionalise processes

& control -  Team able to expand &

control -  Cash to finance Growth

BP Start up Scale up Expansion

A mature ventures needs to foster it’s core while developing new business

32

Valu

e of

the

Vent

ure

Time Develop mature venture

Result : Profitable core & New business Important: -  Rationalise & improve core

product and processes -  Develop new business -  Keep up the ambition!

Core

Stand Still

Unfortunately... Ventures “sometimes” deviate from the optimal growth pattern

33

Valu

e of

the

Vent

ure

BP Start up Scale up Expansion Time

Develop mature venture

Crashed

Slow grower

Flat liner or Zombie

We had no tool to analyse organisational maturity and to coach the venture director

34

How good are the ventures in the portfolio?

BP Start up Scale up Expansion

Val

ue o

f the

Ven

ture

Time Develop mature venture

Core

How can we help ventures to progress to the next phase?

Bell-Mason framework

35

We’ve changed some aspects because of our environment, CSF in our experience & mature phase

36

Business plan

Marketing & sales

Partner network

Organisatie

Product

Intellectual Property/

Strategic assets

Delivery processes

Managing director

Team & key personnel

Structure & governance

Financial performance

Financial structure

Control

strategy

Organisation

Product Fi

nanc

ial

Strategic goal

Based on literature, experience and case study we devoloped our own rules set

37

Venture management literature

Subject literature

Experience

Cases

CbusineZ Venture Management Heuristic rules set