Case Study:
Becton, Dickinson and Company
Background.
BD is an American medical technology company that manufactures and sells medical devices, instrument systems, and reagents. BD employs nearly 70,000 people in more than 50 countries throughout the world. Today, BD is divided into three segments: BD Medical, BD Life Sciences and BD Interventional.
BD Life Sciences Technical Services is the customer facing business unit that is responsible for the lifecycle support of the company’s products and services. Services are delivered through field base technicians, technical support centers, maintenance and repair depots, and a growing portfolio of technology-based solutions.
BD Technical Services team called on the advisory services of CT Management Consulting to assist the team in defining, developing and launching a portfolio of “subscription-based services” that are targeted at customers unmet needs and enhancing the overall value proposition provided by BD.
Development Plan.
Vision.
We began with a Discovery Phase focused on identifying, categorizing, and quantifying customers unmet needs.
This included analyzing market dynamics, customer trends, and technology transformation which led to the establishment of a market-based vision for the future of BD’s Technical Services division. We concluded that customers would be attracted to a value proposition of “Defined Outcomes” verses just physical products and/or discrete services.
Strategy.
We then utilized these results from the Discovery Phase to; assess BD’s current capabilities vs. the customer’s needs and identify the business case for filling the gaps.
We established a services growth strategy that first focused on capturing existing service entitlement revenue (55% margin growth), followed by accelerating the transformation into new service offering (8X growth rate), and culminating with transitioning from a one-time fee for service business model to a subscription-based business model aligned with customer’s outcomes (40% increase in win rate).
Execution.
The Strategy was adopted by the BD Global Management Board and incorporated into the companies 5-year Strategic plan.
We implemented a series of “New Commercial Offerings” utilizing a new services introduction process (NSI) targeted at timely delivery of the business case results. The first new services offering (Managed Services) is producing significant customer uptake and is expected to contribute to the margin growth of the division.
Reception.
CT Management recieved the following feedback from Eduardo Bonefont, VP Life Sciences, Technical Services:
“The proposal to senior management went very well. Thank you for your assistance in helping us move forward in this great direction. It was great to work with CT Management to give us the right nudge to move forward with this strategic growth imperative”