1.Intuitive Surgical
Team 4:
Asad Butt
Cristina Pedroza
Dinesh Kurian
EszterHamori
Joel Samen

2. What is the da Vinci Robot?
3. Agenda
Intuitive
Industry
Analysis
Outlook
Recommendations
Pictures of the da Vinci robot were borrowed from the Intuitive website.
4. Da Vinci as a Disruptive Technology
Performance
Minimally invasive surgery, or conventional MIS
Traditional, open surgery
Time
Now
5. Intuitives (Relatively) Quick Ascent
Today
1980s
1999
2000
FDA Approved; First Robot for Laparoscopic Surgery
Prototype Developed by Stanford for a U.S. Army Contract
More Than 1,676 Units Installed in More Than 1,500 Centers Worldwide
Introduced da Vinci Robot
http://www.intuitivesurgical.com.
6. Intuitives Solid Financial Growth
NASDAQ
Intuitive Surgical
* 2010/2009
Source: ww.sec.gov
7. Agenda
Intuitive
Industry
Analysis
Outlook
Recommendations
8. Intuitive isthe Industry
Bargaining Power of Suppliers
Bargaining Power of Customers
Threat of New Entrants
Threat of Substitute Products
Competitive Rivalry in Industry
Low Threat
Heavy Competition Between Part Makers
Intuitive Builds Robots Itself
Medium Threat
Hospitals Can Stick with Traditional Surgery
High Cost of Machines a Consideration
Medium Threat
Competitors Entering Soon
Opportunity for Intuitive to Further Differentiate
High Threat
Many Surgeons Prefer Tradition
LaparoscopicStill an Option
Very Low Threat
No Other FDA Approved Surgical Robot in Market Currently
9. Agenda
Intuitive
Industry
Analysis
Outlook
Recommendations
10. The Early Bird Catches the Worm
Channel and Location
Input
Cardica (CRDC)
Luna Technologies, Inc.
Capacity
Not Available to Many New Entrants
Swiss Precision Machining
High Tech
Capital Intensive
Once in a Hospital, No Room for Another Robotic Surgical Platform
11. Theof Learning

Surgical Procedures
Learning Curve
Endometrial Cancer case-matched control study (122 patients)
40 min. decrease in average operating time
61% less blood loss
53% reduction days in hospital
Value of Data
Teaching/Learning/Best Practices
http://seekingalpha.com/article/264371-intuitive-surgical-s-ceo-discusses-q1-2011-results-earnings-call-transcript
12. ...Also Takes Place at Home
Manufacturing Process
Managing Efficiency
Cellular layout: continues flow assembly line
Sub-assembled parts delivered to WIP stations
Eliminating stock room
Kanban implementation
Web based B2B replenishments systems CRM integration
http://www.themanufacturer.com/us/profile1848/Intuitive_Surgical
13. Building a Reputation
Second-Order
First-Order
http://leeds-faculty.colorado.edu/madigan/4820/Presentations%202010/2009%20Examples/ISRG%20final%20draft.pdf
14. Spending Money to Make Money
Millions Spent Creating and Marketing da Vinci
To Leverage Costs:
Continue to Innovate
Prevent Incumbent Inertia
Development of Key Technologies
Education of Buyers
Developing Supporting Infrastructure
Investing in Complementary Products
Maintain Product Leadership
Create Lock-In
15. Team Practice Makes Perfect
Edmondson et al. Speeding up team learning. Harvard Business Review (2001) vol. 79 (9) pp. 125-134
16. Intuitives First Mover Uncertainties
New Market
More Technically Capable NewEntrant
Highly Uncertain Demand
High Cost of New Technology
Excess Capacity?
Current Capacity vs. New Products?
Inputs for Ultrasounds and EKG
3D Displays,
High-Tech Console
17. Agenda
Intuitive
Industry
Analysis
Outlook
Recommendations
18. Poised to Maintain Industry Leadership
Increased Sales

More Sales in U.S. Market

19. Expand Overseas 20. Marketing Increase to Hospitals, Surgeons, and Potential PatientsMore Hospitals with Devices
More Surgeons Using Devices
More Patients Want Surgeries
More Surgeries with Devices
21. Poised to Maintain Industry Leadership
22. Going After New Surgeries
New Instruments
Simulator
Currently used in general
Expand to other
common surgeries
Long Tail of Surgeries
23. Intuitive Continually Updates
3D HD
Dual Console
24. Continue to Innovate
Technological Leadership
R&D 8% Revenue
Patents
Low to Medium Risk
Patent Expiration
Competition
Patent Variations on da Vinci
25. Coming Soon: Rivals
Five Years Out
The Enemy: Sofie
26. Promising Financial Future
27. Paging Dr. WALL-E
28. Agenda
Intuitive
Industry
Analysis
Outlook
Recommendations
29. Users Trained as Leaders for Change
Supplement Training
Team Learning
Change Management
Community

Medical Conferences

30. Web Resources