2018 Global Value-based Digital Dental Competitive Strategy Innovation and Leadership Award

Transcription

1 2018 Global Value-based Digital Dental Competitive Strategy Innovation and Leadership Award 2018

2 Contents Background and Company Performance Industry Challenges... 3 Strategy Innovation and Customer Impact... 4 Conclusion... 7 Significance of Competitive Strategy Innovation and Leadership... 8 Understanding Competitive Strategy Innovation and Leadership... 8 Key Benchmarking Criteria... 9 Strategy Innovation... 9 Customer Impact... 9 Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices...10 The Intersection between 360-Degree Research and Best Practices Awards...11 Research Methodology...11 About Frost & Sullivan...11 Frost & Sullivan We Accelerate Growth

3 Background and Company Performance Industry Challenges Digital dentistry is the use of digital technologies in place of traditional techniques for dental procedures. The most common digital dental solutions used by dentists and dental practices include digital intraoral radiography and computer-aided design (CAD)/computer-aided manufacturing (CAM) solutions, such as intraoral scanners. The main advantages of digital dentistry over conventional dentistry methods include improved efficiency and faster turnaround time of devices, such as crowns and bridges, and improved accuracy of procedures and manufactured devices. In intraoral imaging, more dental practices are moving from analog to digital systems; therefore, practices are looking for products that can reduce their efforts in updating to digital systems at affordable rates. CAD/CAM solutions are used in dental restorations and include intraoral scanners and milling systems. Milling systems are still a niche segment in most dental practices. Dentists use hand-held intraoral scanners to make digital impressions. Conventional methods of creating dental impressions using molds for dental restorations lack precision and accuracy and can result in a slower turnaround time. Therefore, intraoral scanners, with their improved accuracy, precision, ease of use, and less turnaround time for restorations from dental laboratories, are slowly expected to replace conventional molding techniques in dental practices. However, certain challenges with existing intraoral scanners and intraoral imaging need to be addressed. For example, existing intraoral scanners are expensive. Among dental practices, group practices and hospitals have the highest adoption rate of intraoral scanners because of their spending power and higher number of patient visits. However, in solo practices that contribute the major share among dental practices, with more than 70% of practices in both Europe and the United States, this technology adoption is low. Therefore, penetrating solo practices is critical to gaining market share and a competitive advantage. In addition, intraoral imaging has a high maintenance cost for dental practices. Another big challenge with existing intraoral scanners is the equipment s ergonomics or ease of use. Because intraoral scanners are hand-held equipment, the ability to use them comfortably is important for dentists. Dental practices are looking for companies that can provide both high-quality intraoral imaging and intraoral scanners at an affordable price, especially for solo dental practitioners who form the value segment. 3DISC is a digital dental solution provider of compact and affordable computed radiography PSP systems for dental professionals and is launching a new, easy-to-use, and affordable intraoral scanner for dentists, which is expected to challenge existing products in the market. Frost & Sullivan We Accelerate Growth

4 Strategy Innovation and Customer Impact Strategy Effectiveness The United States has about 90,000 solo practices, and Europe (Germany, France, Italy, Spain, and the United Kingdom) has more than 110,000 solo practices, of which 15% in the United States and 5 to 10% in Europe have intraoral scanners, and only 15 to 20% of dental practices have completely moved to digital intraoral imaging. As a competitive move, 3DISC, by leveraging its experience in imaging, has entered the intraoral scanners market, thereby making it a pure play value-segment company for digital dental solutions. The adoption of imaging equipment and intraoral scanners in solo practices is vital for companies success because approximately 70% of all dental practices in the United States and 75% of all dental practices in Europe are solo practices. 3DISC has been selling PSP systems for more than 10 years and is one of the key companies in the market because it primarily caters to affordable practices. 3DISC has a focused strategy of providing solo practices with the benefit of affordable pricing, in the range below $30,000, without any annual licensing fees for intraoral scanners. According to Frost & Sullivan s end-user survey among dentists, more than 90% of dentists believe device cost and maintenance cost are the main challenges restraining the adoption of current intraoral scanners and digital intraoral imaging systems in the market. Therefore, with its focused strategy, 3DISC successfully caters to the needs of stakeholders in the imaging segment and is now aiming to cater to the needs of major stakeholders of dental practices: solo practices in the intraoral scanners market. Strategy Execution The Heron intraoral scanner is developed and manufactured in Virginia. To gain a competitive advantage by addressing existing challenges, 3DISC has incorporated a bestin-class solution in terms of both design and workflow. An important criterion to ensure the scanner is simple and easy to use is weight. Dentists prefer lightweight scanners as they are easier to handle, especially when taking impressions of oral cavities. 3DISC s Heron intraoral scanner is one of the lightest weight scanners in the market, weighing only 145 grams. In contrast, the average weight of other scanners is approximately 310 grams. The company s performance is expected to grow in the short term because of its imaging solutions and in the long term fueled by the intraoral scanners market. This entry into the intraoral scanners market strategically places 3DISC among the select five companies that provide both intraoral scanners and intraoral imaging equipment for dental practices. Frost & Sullivan We Accelerate Growth

5 Competitive Differentiation In the digital intraoral imaging and intraoral scanners market, most products fall either under the high-end segment with full features or the value-based segment with minimum functionalities. The main challenge with the high-end segment is affordability. In terms of intraoral scanners, most dentists, especially in small to midsize practices, primarily perform basic restorations, such as crowns and bridges; therefore, small to midsize practices are looking for scanners that can provide basic restorative impressions for these specific types of restorations. In addition, in the low-end segment, image quality, speed, and ergonomics are the biggest drawbacks. In digital intraoral imaging, practices are looking for digital solutions that can optimize their workflow and provide high-quality images. 3DISC is the only company that caters to the value segment, with its affordable FireCR PSP System for imaging and Heron scanner for intraoral scanning. 3DISC s Heron IOS scanner combines the low-end segment with the high-end segment and provides a valuebased product with ergonomically superior performance for dentists. 3DISC s FireCR PSP System is designed to provide fast, high-quality readings of reusable dental imaging plates, thus enabling better patient care. Frost & Sullivan believes that 3DISC has positioned itself as a value-segment solution company, thereby providing it with a competitive advantage, compared to other market participants. Price/Performance Value Existing PSP Plate Systems typically cost between $7,000 and $20,000, depending on size and capability, and dental practices must already be configured with operatory workstations and dental imaging software. 3DISC s FireCR PSP System is priced at less than $7,000, and its compact and lightweight features allow it to be placed even in the most space-challenged dental office. Existing intraoral scanners are expensive, with an average cost of approximately $25,000 to $40,000. Moreover, intraoral scanner manufacturers charge an additional annual software licensing fee of $1,500 to $2,000 per computer. Considering that the average lifetime of equipment is 5 to 7 years, a dental practice with one computer connected to an intraoral scanner on average spends $32,500 to $50,000. In addition, the annual software licensing charges will increase, depending on the number of computers connected. 3DISC offers PSP plates with various features and optional add-ons and an intraoral scanner with optimum features to support the most common impressions for dentists as well as provides best-in-class and easy-to-use software at no additional charge. In addition, the Heron scanner uses QuantorClinic, which is the software application for order management and scanning, and shares files with the lab. Furthermore, the software Frost & Sullivan We Accelerate Growth

6 is built on exocad s original equipment manufacturer (OEM) software platform, which is one of the most widely used CAD/CAM software platforms in the dental industry. The FireCR PSP System uses QuantorDent Imaging Software, and it also offers a TWAIN driver, that enables easy image acquisition, processing, and management; supports efficient workflow; and requires little training. The software s intuitive workflow allows users to enhance images, thereby providing the possibility of more precise diagnoses. Customer Purchase Experience 3DISC s FireCR PSP System and the Heron intraoral scanner are small and lightweight devices. The FireCR device has an inbuilt memory that can store the last 100 images and offers a full range of imaging plate sizes: 0, 1, 2, 3, and a full size 4c. The full size 4c imaging plate enables dentists to capture more teeth and roots on the same image, without having to stitch several smaller images together, which is an inconvenient and inefficient process. In addition, the Heron IOS scanner contains a hand-and-mouth piece and a 360-degree rotatable tip to provide an optimal ergonomic grip. The Heron IOS scanner offers premium features that are seldom seen in the value-based segment, such as color capture and a built-in heater to prevent fogging. The scanner allows fast scanning, and impressions can be opened in a stereolithography (STL) or polygon (PLY) format, which are compatible with most CAM milling systems in dental laboratories for the widest dental laboratory integration. Another potential benefit for customers is that dentists can collaborate with dental laboratory technicians on patient cases through the scanner s user interface. Brand Equity With the Heron intraoral scanner and the FireCR PSP System, 3DISC offers a complete turnkey solution with easy-to-handle devices as well as intuitive software platforms, QuantorDent and QuantorClinic, both of which support the entire digital imaging diagnosis and impression processes. QuantorClinic is an all-in-one software that allows workflow, including scanning, order management, validation, and order submission, all accessible from a single interface. In addition, the Heron scanner received the Readers Choice Technology Award for being one of the most innovative products in DISC has a strong foundation in digital imaging technology for dental, medical, and veterinary applications, with more than 10 years of experience, and is one of the leaders in the value segment for dental and veterinary PSP systems. With the Heron intraoral scanner, 3DISC further strengthens its competitive advantage in digital dentistry by focusing on small to midsize practices, leveraging its expertise in digital imaging technologies, and creating new products that address the needs of the digital dental solutions industry. Therefore, 3DISC is the only digital dental solution provider that focuses on value-based customers, especially small to midsize practices. Frost & Sullivan We Accelerate Growth

7 Conclusion 3DISC develops and manufactures the Heron IOS scanner in the United States. By leveraging its expertise in digital dental imaging, the company provides affordable quality intraoral scanners that can cater to a wide customer base. With its FireCR PSP System and Heron intraoral scanner, 3DISC supports dental diagnoses and the most common types of dental restorations, such as crowns, bridges, veneers, and inlays and onlays, and has positioned its brand among dentists in the value-based digital dental solutions market. With its strong overall performance, 3DISC is recognized with Frost & Sullivan s 2018 Competitive Strategy Innovation and Leadership Award. Frost & Sullivan We Accelerate Growth

8 Significance of Competitive Strategy Innovation and Leadership Any successful approach to achieving top-line growth must (1) take into account what competitors are, and are not, doing; (2) meet customer demand with a comprehensive, value-driven product or service portfolio; and (3) establish a brand that resonates deeply with customers and stands apart from other providers. Companies must succeed in these three areas brand, demand, and positioning to achieve best-practice levels in competitive strategy. Understanding Competitive Strategy Innovation and Leadership As discussed above, driving demand, brand strength, and competitive differentiation all play a critical role in delivering unique value to customers. This three-fold focus, however, must ideally be complemented by an equally rigorous focus on Strategy Innovation and Customer Impact. Frost & Sullivan We Accelerate Growth

9 Key Benchmarking Criteria For the Competitive Strategy Innovation and Leadership Award, Frost & Sullivan analysts independently evaluated two key factors Strategy Innovation and Customer Impact according to the criteria identified below. Strategy Innovation Criterion 1: Strategy Effectiveness Requirement: Strategy effectively balances short-term performance needs with long-term aspirations and vision for the company. Criterion 2: Strategy Execution Requirement: Adoption of best-in-class processes supports the efficient and consistent implementation of business strategy. Criterion 3: Competitive Differentiation Requirement: Unique competitive advantages with regard to solution or product are clearly articulated and well accepted within the industry. Criterion 4: Executive Team Alignment Requirement: The executive team is aligned along the organization s mission, vision, strategy, and execution. Criterion 5: Stakeholder Integration Requirement: Strategy reflects the needs or circumstances of all industry stakeholders, including competitors, customers, investors, and employees. 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. Criterion 5: Brand Equity Requirement: Customers have a positive view of the brand and exhibit high brand loyalty. Frost & Sullivan We Accelerate Growth

10 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 bestpractice 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 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 Present 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 to enhance the brand 10 Take strategic action Upon licensing, company may 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 Frost & Sullivan We Accelerate Growth

11 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-degree research methodology provides an evaluation platform for benchmarking industry 360-DEGREE RESEARCH: SEEING ORDER IN THE CHAOS participants and for identifying those performing at best-in-class levels. About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages more than 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 45 offices on six continents. To join our Growth Partnership, please visit Frost & Sullivan We Accelerate Growth