How Philips’ diagnostic x-ray (DXR) division drives innovation and value in a saturated market

How Philips’ diagnostic x-ray (DXR) division drives innovation and value in a saturated market
4 minute read
Amar Devit

Philips, a leading healthcare technology company, sought to innovate its diagnostic x-ray (DXR) systems to keep pace with the evolving needs of hospitals and radiology professionals. With new DXR systems in development, Philips faced the challenge of differentiating its offerings in an increasingly saturated and commoditized market. For long-term business success, Philips needed to decide how to structure its current portfolio and future developments to cater to the needs of target audience segments.

“SKIM’s consultative approach and willingness to think alongside us were very much appreciated. They challenged us by asking the right questions, ensuring we were getting what we wanted out of the study.”

– Arjen Wyczisk | Senior Manager Business analytics MR/DXR | Philips

This portfolio decision was complex due to the significant R&D investments and multi-year development cycles. Philips had initial ideas about which features appealed to the different customer segments, however this decision required validation to justify the significant investments being made. Additionally, a saturated and increasingly commoditized DXR market presents challenges for innovation, making it difficult to maintain a unique portfolio without risking cannibalization of existing customer bases.

The solution: A robust approach to mapping customer preferences

To navigate this complex landscape and ensure success, Philips partnered with SKIM to leverage their expertise in advanced research methodologies. Right from the start, SKIM challenged Philips to clearly define the project’s ultimate goals:

  • What are the critical business questions that need answers?
  • What are the key trade-offs in product design that needed to be understood?

By evaluating and refining Philips’ research objectives and questions, it was possible to ensure the study was set up to deliver actionable insights.

The team chose a choice-based conjoint analysis to uncover the underlying drivers of customer choices, moving beyond simple preferences. A critical step in setting up a successful conjoint experiment is the co-creation of a realistic set of features to reflect the trade-offs DXR customers make in their purchase decisions. SKIM and Philips collaborated closely to ensure representative and well-balanced choice scenarios.

Uncover the underlying drivers of customer choices

The outcome: Data-driven insights for confident decision-making

The project provided a nuanced understanding of the DXR market, allowing for informed decision-making on product development, pricing, and positioning that would ultimately lead to a differentiated product portfolio and meet the unique needs of the diverse customer base.

The research findings were instrumental in guiding Philips’ mid to long-term innovation strategy. The project provided Philips with a clear direction and greater confidence in terms of:

  • How to differentiate with features that appeal to specific customer segments across different geographies
  • Which price points aligned with perceived value and willingness to pay
  • Which benefits to communicate in targeted messaging

The impact: Strategic alignment and long-term value

The collaboration with SKIM delivered both immediate and long-term value for Philips. The research findings not only supported the current development activities for the new DXR portfolio, but also provided a framework for future innovation initiatives further down the line.

Philips has leveraged the insights from the study to:

  • Refine product roadmaps: Prioritizing features that align with customer needs and preferences
  • Develop targeted messaging: Understanding the communications that will resonate with the unique priorities of different customer segments
  • Justify R&D investments and secure management buy-in: Using data-driven insights to guide portfolio direction and confidently move promising concepts further along the development roadmap

Additionally, the study has proven to be a valuable resource within Philips, with findings being used to support other projects and shape approaches in areas like AI. This highlights the enduring impact of the research and its ability to drive strategic decision-making across the organization.

“The insights from the market study have been invaluable. They’ve not only guided our product development decisions but also helped us justify investments and shape our approach in other areas like AI.”

– Yair Kerkmeester | Product Manager DXR | Philips

The partnership between SKIM and Philips showcases the power of collaborative, data-driven decision-making in a complex market. By leveraging SKIM’s expertise and research methodologies, Philips was able to confidently validate the innovation roadmap, optimize its product portfolio, and invest in solutions that will truly meet the needs of healthcare professionals.

3 takeaways for successful product innovation

This success story demonstrates the power of a data-driven, collaborative approach to product innovation and offers valuable lessons for brands navigating complex market landscapes. If you’re seeking to deliver products that truly resonate with your customers, here are three takeaways that will guide your success:

  1. Put the customer at the heart of innovation: Actively seek and integrate the ‘voice-of-the-customer’ throughout the innovation process. This customer-centric approach leads to the development of solutions that truly resonate with their needs and expectations, resulting in stronger customer relationships, heightened satisfaction, and increased engagement.
  2. Embrace data-driven decision-making: By harnessing the power of data, brands can make more informed decisions, reduce risks, and optimize their product development efforts by validating ideas before they are executed.
  3. Seek strategic partnerships: Collaborating with expert partners can provide a fresh perspective, valuable resources, and accelerated product development cycles.

Ready to unlock the power of data-driven decision-making for your product innovation? Schedule a consultation with a SKIM expert today and discover how we can help you navigate complex market landscapes and drive meaningful business results.

Topics
Healthcare
Amar Devit

Written by

Amar Devit

Amar Devit is a Senior Manager in SKIM's healthcare team. He is passionate about leveraging insights using tailored analytical solutions to support Pharmaceutical and MedTech companies with their innovation and commercial strategies. Amar has over 6 years of consultancy experience in healthcare with a primary focus on the MedTech industry.

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