2015 Global Clinical and Research Flow Cytometry Company of … · 2015. 11. 2. · 2015 Global...

2015

2015 Global Clinical and Research Flow Cytometry Company of the Year Award

BEST PRACTICES RESEARCH

© Frost & Sullivan 2 “We Accelerate Growth”

Contents

Background and Company Performance ........................................................................ 3

Industry Challenges .............................................................................................. 3

Visionary Innovation & Performance and Customer Impact ........................................ 3

Conclusion........................................................................................................... 6

Significance of Company of the Year ............................................................................. 7

Key Benchmarking Criteria .................................................................................... 8

Best Practice Award Analysis for BD .............................................................................. 8

Decision Support Scorecard ................................................................................... 8

Visionary Innovation & Performance ....................................................................... 9

Customer Impact ................................................................................................. 9

Decision Support Matrix ...................................................................................... 10

The Intersection between 360-Degree Research and Best Practices Awards ..................... 11

Research Methodology ........................................................................................ 11

Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices ................................................................................................................. 12

About Frost & Sullivan .............................................................................................. 13



Background and Company Performance

Industry Challenges

Flow cytometry is an essential analytical tool for many applications such as cell analysis,

gene and protein expression profiles, and stem cell research. However, Frost & Sullivan

notes that its use in life sciences and medicine had been limited for years due to the cost

and complexity of instruments. In recent years, manufacturers have developed integrated

(instrument, software, and reagents) compact bench-top instruments at a much affordable

price. Increasing advances in lasers and optics have resulted in the decreasing size and

price of flow cytometers. Some of the newer equipment require smaller sample volumes,

generate less waste, are easier to set up, and have much less operating costs than most

conventional flow cytometers. The development of cost-effective instruments that can

provide timely access to experimental data have prompted end users to purchase their

own instruments - instead of using core facilities.

Manufacturers report to Frost & Sullivan how they have been challenged to develop

automated, integrated, easy-to-use, and affordable instruments, which can support end

users in life sciences research, pharmaceutical, and diagnostics sectors. Another challenge

involves the flexibility and user-friendliness of data management and analysis packages.

Requirements of acquisition and analysis of data are increasing with the increase in new

applications. Manufacturers find it quite challenging to develop software which includes all

analysis functions in a single program and make online and offline analysis consistent and

easy. In addition, regulated life sciences laboratories prefer to have data management and

analysis software in compliance with the Food and Drug Administration (FDA) regulations

for data submission. End users demand instruments that have an optional 21 CFR Part 11

compliance to meet their experimental needs. As such, manufacturers in the market are

faced with challenges to develop integrated instruments, which are easy to operate,

automated, cost effective, and also meet the needs of diverse research and clinical

applications.

Another challenge that is impacting the market is the establishment of core labs as result

of the consolidation of customer base which is restricting market expansion. Core facilities

are likely to impact the market growth in the US, Europe, and other key economies.

However, as individual purchases of more affordable innovative systems increase, the

impact of this challenge may reduce in the forthcoming years. For the research

laboratories, funding is always a challenge, and shrinking budgets slow down the flow

cytometry markets in academic research. As a result, Frost & Sullivan agrees that

companies will need to rigorously plan their strategies ahead of time to tackle these

issues.

The pharmaceutical industry has displayed a significant demand to strengthen the product

lines for use in high-throughput drug discovery processes. Patent expirations of

blockbuster drugs has stimulated pharmaceutical companies to invest and adopt drug



discovery research technologies - such as flow cytometry - to expedite the process of drug

development. Technological advancement leading to the development of more compact,

robust, and affordable instruments, as well as the increased diversity in life sciences

applications, are the main promoters of the healthy market growth.

Visionary Innovation & Performance and Customer Impact

Addressing Unmet Needs

BD Life Sciences – Biosciences, a segment of BD, has established a large and diverse

customer base by virtue of being the first entrant in the flow cytometry segment, with a

broad product portfolio that meets diverse needs of all end users. BD offers robust

products which incorporate innovative hardware, software, multiple reagents (including a

broad portfolio of bright fluorescent dyes), an automated set up, and stringent quality

control. In addition to being first to market, BD has established clear credibility for its

products among end users.

The clinical flow cytometry segment is dominated by BD, and the company governs more

than 50.0 percent of the clinical flow cytometry segment globally (per Frost & Sullivan

independent analysis). The company currently sells 4 IVD or CE-IVD flow cytometry

instrument platforms, consisting of the BD FACSCalibur™, BD FACSCanto™, BD

FACSCount™, and BD FACSPresto™ cell analyzers. BD also provides the most number of

clinical flow cytometers in the market today. Although Frost & Sullivan admits that there

are several other emerging entrants that are developing competitive platforms for clinical

applications, BD will still have an edge over the other new and niche market entrants, due

to the lack of FDA and regulatory clearance for these other products.

BD has the highest brand recognition within the flow cytometry segment in both

developed and developing nations. Its success in global markets can be attributed towards

its consistent track record of reliability and supply chain excellence for timely delivery of

reagent and supplies. In order to tackle the pressure from funding and lack of budgets,

the company also provides various financing programs to make instruments affordable to

a larger customer base.

Implementation of Best Practices

Frost & Sullivan ongoing research monitors the way that BD leads the flow cytometry

segment through its organic growth strategy. The company’s growth is primarily driven by

its extensive research and development capabilities, strong pipeline, ability to leverage

new applications, and an established large customer base.

BD became interested in flow cytometry as early as 1970 and developed the first

fluorescence activated cell sorter. The technology brought about a revolution; ever since

then, the BD FACS cell analysis platforms became standard equipment in every research

laboratory.



One additional factor that provides a competitive edge and distinguishes BD is its offering

of high-quality customer technical support and maintenance services. BD have established

themselves in providing excellent technical support for instruments. Furthermore,

marketing strategy plays a key role in increasing the installed base. BD has an extensive

sales force and infrastructure required for aggressive marketing, such as personal

demonstrations of instruments in laboratories and trade shows, and constant updates

about new products and technologies to end users through newsletters, magazines,

scientific journals, webcasts, seminars, and technical magazines. Quality customer service

and technical support, breadth and depth of product portfolio, established credibility of

technology, and simple-to-use data analysis packages are some of the factors responsible

for the establishment of the brand for BD in the flow cytometry segment.

Customer Service Experience

The technical expertise from BD is committed to its customers’ success. Their support

systems offered by field service engineers help customers achieve optimal instrument

performance. Their customer service is well renowned for product installation, future

upgrades, and application support. Flow cytometry training courses are held at BD training

centers worldwide. These courses combine theory and practice so the user can take full

advantage of the capabilities of the system. Both instrument and application support is

rendered through field visits or telephone with flow cytometry specialists. To maximize the

uptime of the instruments, BD is also equipped with remote troubleshooting technology.

Given their locations across the globe, a technical service engineer can be dispatched to

the location for onsite service and maintenance. The site has the flexibility to choose from

different maintenance agreements for long term support. BD’s service contracts have

different options such as unlimited phone support, onsite service repairs, guaranteed

response time, preventative maintenance, and software revision updates. BD also offers

specialized services - including Installation Qualification and Operational Qualification

(IQ/OQ) - to help customers document their instrument performance.

Blue Ocean Strategy

The development of flow cytometers are cost intensive and require extensive research

expertise in fields of fluidics, optics, and electronics. The competitive factors for flow

cytometers for clinical use revolve around price, performance (accuracy and productivity),

ease of use, and quality control offered by the software.

Frost & Sullivan appreciates the fact that BD has had tremendous success with bringing new

innovative systems to the market in the past 10 years. To combat laboratory consolidation

and establishment of core facilities, BD offers affordable, easy to use, compact, flexible

bench top systems with multiple lasers capable of multi-parameter analysis, as well as a

combination of high speed sorting with analysis and capacity to perform both multiplexed

bead and cellular assays. To tackle the shrink in the end user base, BD became the first

entrant to tap into the market for clinical applications of flow cytometry. This opened up



new sites for installation. The company also focuses extensively on offering customized

technical support and services, thereby maintaining additional revenue flow through service

and maintenance contracts. Diversification of its product portfolio is another strategy that

BD has championed; for example, BD offers products with different configuration which

covers various applications within research and clinical use. The top-of-the line machine BD

LSR Fortessa is one example. This instrument by BD can detect up to 18 colors. The

company was the first to market this multicolor, bench-top, high-throughput flow cytometer

that is capable of both analyzing and sorting.

BD has been the leading provider of innovative technology and has established itself as

the true gold standard in automated sorting and dual laser systems. In addition, BD

provides a range of reagents (including a broad portfolio of bright fluorescent dyes) and

robust software packages for the systems.

Conclusion

Frost & Sullivan firmly believes that BD has an excellent strategy to combat the

competitive factors pertaining to the flow cytometry market such as price, performance,

throughput, data acquisition and analysis, marketing and distribution infrastructure, and

time to market. BD offers easy to install and flexible systems for end users in which they

can add on applications based on their needs. The company has also offered stringent

quality control and standardization in their data analysis packages. Using such advanced

features has helped BD to maintain its competitive advantage. BD has gained the first

mover advantage by marketing innovative, affordable and compact flow cytometry

systems for research and clinical use; this has given the company a strong opportunity to

capture the market share in a massive way, leading to impressive financial performance in

2013 and 2014.

Due to its strong overall performance and competitive strategy, Frost & Sullivan is proud

to present BD with the 2015 Global Company of the Year Award.



Significance of Company of the Year

To receive the Frost & Sullivan Global Company of the Year Award requires a company to

demonstrate excellence in growth, innovation, and leadership. This kind of excellence

typically translates into superior performance in three key areas: demand generation,

brand development, and competitive positioning. These areas serve as the foundation of a

company’s future success and prepare it to deliver on the two criteria that define the

Company of the Year Award (Visionary Innovation & Performance and Customer Impact).



Key Benchmarking Criteria

For the Global Company of the Year Award, Frost & Sullivan analysts independently

evaluated two key factors — Visionary Innovation & Performance and Customer Impact —

according to the criteria identified below.

Visionary Innovation & Performance

Criterion 1: Addressing Unmet Needs

Criterion 2: Visionary Scenarios Through Mega Trends

Criterion 3: Implementation Best Practices

Criterion 4: Blue Ocean Strategy

Criterion 5: Financial Performance

Customer Impact

Criterion 1: Price/Performance Value

Criterion 2: Customer Purchase Experience

Criterion 3: Customer Ownership Experience

Criterion 4: Customer Service Experience

Criterion 5: Brand Equity

Best Practice Award Analysis for BD

Decision Support Scorecard

To support its evaluation of best practices across multiple business performance

categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool

allows our research and consulting teams to objectively analyze performance, according to

the key benchmarking criteria listed in the previous section, and to assign ratings on that

basis. The tool follows a 10-point scale that allows for nuances in performance evaluation;

ratings guidelines are illustrated below.

RATINGS GUIDELINES

The Decision Support Scorecard is organized by Visionary Innovation & Performance and

Customer Impact (i.e., the overarching categories for all 10 benchmarking criteria; the

definitions for each criteria are provided beneath the scorecard). The research team

confirms the veracity of this weighted scorecard through sensitivity analysis, which

confirms that small changes to the ratings for a specific criterion do not lead to a

significant change in the overall relative rankings of the companies.



The results of this analysis are shown below. To remain unbiased and to protect the

interests of all organizations reviewed, we have chosen to refer to the other key players in

as Company 2 and Company 3.

DECISION SUPPORT SCORECARD FOR COMPANY OF THE YEAR AWARD

Measurement of 1–10 (1 = poor; 10 = excellent)

Company of the Year

Visionary

Innovation &

Performance

Customer

Impact Average Rating

BD 9 9 9.0

Competitor 2 8 7 7.5

Competitor 3 7 7 7.0


Criterion 1: Addressing Unmet Needs

Requirement: Implementing a robust process to continuously unearth customers’ unmet

or under-served needs, and creating the products or solutions to address them effectively

Criterion 2: Visionary Scenarios Through Mega Trends

Requirement: Incorporating long-range, macro-level scenarios into the innovation

strategy, thereby enabling ―first to market‖ growth opportunities solutions

Criterion 4: Implementation Best Practices

Requirement: Best-in-class strategy implementation characterized by processes, tools, or

activities that generate a consistent and repeatable level of success.

Criterion 3: Blue Ocean Strategy

Requirement: Strategic focus in creating a leadership position in a potentially

―uncontested‖ market space, manifested by stiff barriers to entry for competitors

Criterion 5: Financial Performance

Requirement: Strong overall business performance in terms of revenues, revenue growth,

operating margin and other key financial metrics

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 like 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

Decision Support Matrix

Once all companies have been evaluated according to the Decision Support Scorecard,

analysts can then position the candidates on the matrix shown below, enabling them to

visualize which companies are truly breakthrough and which ones are not yet operating at

best-in-class levels.

DECISION SUPPORT MATRIX FOR COMPANY OF THE YEAR AWARD

High

Low

Low High

Cu

sto

mer I

mp

act


BD

Competitor 2

Competitor 3



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 players and for identifying those performing at best-

in-class levels.

360-DEGREE RESEARCH: SEEING ORDER IN

THE CHAOS



Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices

Frost & Sullivan Awards 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 best-practice 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 winner

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



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 almost 50 years of experience in

partnering with Global 1000 companies, emerging businesses and the investment

community from 31 offices on six continents. To join our Growth Partnership, please visit

http://www.frost.com.

http://www.frost.com/

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