Hill-Rom was also well prepared for the assault. The company had not become a near monopoly because they easily gave up ground in their homeland. Hill-Rom had world-class information systems, with data that gave a complete view of the type and age of beds for every hospital in the country. They knew which hospitals may be in the market for new beds. Every time their sales and marketing leadership discovered that Stryker was in an account, they moved swiftly to block. There were many reasons that the market for beds with low-air-loss mattress and other advanced features had become a rental market: the fundamental technologies were expensive to implement and required considerable cleaning and maintenance.
Similarly, the iPhone, perhaps the greatest consumer electronic product ever launched, pushed the envelope just far enough. Apple took risks, but they were calculated risks. Stryker fell into the trap of the illusionist, attempting to go too far beyond the possible. But, when you believe in an illusion, the allure of it is incredibly compelling. Plans are developed and sold to senior management or investors, egos become attached to it, and the train inevitably heads toward the proverbial wall at the end of the tunnel.
Winning the endorsement of nurses in the emergency room or recovery room where the nurse managers frequently made the purchase decision was an effective strategy for stretchers. It also worked for specialty beds. On the patient floors, however, the nurses were ancillary to the decision-making process. Med-surg beds were a significant purchase, and hospital administrators, not nurse managers, were the decision-makers.
Similar to Confederate commander Robert E. After several years of struggle with frontal assaults and two wholesale changes in the bed division leadership, Stryker eventually found a path to success in the med-surg bed market. But, if they would have reacted differently upon recognizing the folly of their first flanking attack, it is likely they could have avoided much of the personal and career carnage.
Four years after their initial launch, Stryker found that flank and started having success. The sad part is that the technology needed to exploit this exposed flank was actually completed in the initial bed development program. Hill-Rom had a significant weakness: unreliable bed-exit technology that raised an alarm only after the patient had already fallen.
High numbers of patient falls from the bed-side, with associated costs and liabilities for the hospital, were a huge hidden issue. With Stryker at the forefront, the issues associated with falls gained heightened awareness. Progressive hospitals began to understand that falls were costing them and the healthcare system millions of dollars.
Over time, the secure bed saw Stryker gain upwards of 50 percent share in the med-surg hospital bed market. If the bed leadership from the original program had maintained a determination to attack a flank of the enemy, they may have been able to keep their jobs and see great success by adopting this approach years earlier.
Their path to victory was strewn with significant financial losses, ruined careers, and painful personal hardship. In all that carnage, there were valuable lessons from which planners and leaders can learn. If you base your flanking attack on developing new technology, ensure you go no further than the leading edge of what is possible.
Conduct brutally honest technology assessments and genuinely understand the capabilities and limitations of your team and of the technology extant in the industry.
Many great business plans entail pushing the technology envelope at the leading edge. However, many notable failures push too far and end up on the bleeding edge. Recognize the situation for what it is and find another exposed flank to attack.
Find another flank with clear differentiation that matters to the decision makers in the target market and go after it with vengeance. The success you are seeking will still come. Gary Morton graduated from West Point with honors and had a five-year career as a tank officer, the highlight of which was being part of an extraordinary unit that achieved unprecedented results at the US Army's grueling National Training Center—the only unit to ever win every simulated battle it fought.
Today, he is retired from Stryker and lives with his wife in the Midwest, where he writes and invests. For more information, visit www. What Is a Break-Even Analysis? Creating something innovative? Determine if it's at the leading edge, which is realizable, or at the bleeding edge, which is beyond your capabilities. Optimism in the Face of Uncertainty:… Next Article. Leading edge, not bleeding edge Often, executing a flank attack involves developing new technology. Find yourself at the bleeding edge? Case study: A hospital bed upstart mistakes bleeding edge for leading edge The battle for the hospital bed market began in the early s.
Was this article helpful? Starting or Growing a Business? Check out these Offerings. Liked this article?
Try these:. Tim Berry. Back To Top.
Try the 1 business planning software risk-free for 60 days Start Your Plan No contract, no risk. It is not that only workers earn good amount but even the company does, because these days no one works for nothing, everyone works for money and hence it is true in case of Damongo too. They are waiting for something miraculous to happen so that they can finally be happy and feel better about themselves and their lives. They live the same routine every single day and are miserable with the lives they have settled for.
They all want to feel better and be healthy emotionally, mentally and physically. I can give them a mind body soul transformation. I guide them in knowing the true purpose of life and what it means to be healthy. I make them into the best version of themselves. Business owners who are great at their craft but not at online marketing.
Customers now search online way more than search in. The business owners are left in the dust and replaced by national companies, who have the money and staff to market themselves but who more-often mess up a job. A solution to their lack of online presence that is built by working with business owner, step-by-step so we keep them informed and in-the-know. This lets them do what they are great at without having to hire another person full-time to do their marketing. It was a useful post and I read many articles like that..
What we need is honest and clear sharing of pertinent details on how to build a profitable business. Solution : creating content that resonates with bloggers who want to build their online business, putting strategies in place to become more visible via social media. Fantastic post, I loved it and took a lot of it into consideration for ideas to incorporate. I then decided to offer these deals so that my clients can easily decide what package best fits their situation, do you have any tips to help maximize the the amount of packages I can potentially sale, or to better close the larger package deals?
Great article and website, Derek! Solution: Talk to an expert gemologist and jewelry industry veteran who will find the perfect diamond or diamond ring for you. Website: RockShopper. As the result, it hurts their sales because of these owners tried to juggle these paperwork themselves on top of managing their business.
Do you need a RECHARGE? Most people do. Even the most talented people get bogged down every now and again. The main cause of business failure is the failure to take action because making the first move can be hard! But you can start now by. Recharge: Lessons to Revitalise Yourself, Your Team or Your Business in 60 Minutes or Less [Alan Hargreaves] on cantrodalata.cf *FREE* shipping on qualifying.
My solution: Provide outsource bookkeeping service by keeping track of their expenses, sales and monitoring their accounts so these business owners can focus on their business goal.