The two Valleys of Death in Technology The two Valleys of Death in Technology Commercialization Commercialization

IEEE Life Sciences Grand ChallengesIEEE Life Sciences Grand ChallengesSingaporeSingapore

December 2013December 2013

Bijan Dorri

OutlineOutline

•Product Development StepsProduct Development Steps

•Two Valleys of DeathTwo Valleys of Death

•Real Life ExamplesReal Life Examples

•GuidelinesGuidelines

Step 1 - Technology Development : Retiring Technical Risks

• Basic Research

• Discovery

• Invention

Doing it Once! – Prototype

Step 2- Product Development : Retiring Produciblity & Regulatory Risks

• Detail Design

• Manufacturing & Supplier Development

• Clinical Trials

• Regulatory Approvals

Can Make Many & Has Permission to Market

Step 3- Commercialization: Retiring Market Risks

• Market Validation

• Market Creation

• Re-imbursement

Profitable Product

Basic ResearchDiscovery

Patenting

Valley ofDeath 1 Product

Design

ClinicalTrials

ProductDevelopment

Regulatory

Valley ofDeath 2

TechnologyDevelopment

MarketCreation

Re-imbursement

Technology Development

Product Development Commercialization

Two Valleys of Death

5 Real Life Examples

MR SurgeryBreast

Tomosynthesis Limb MRI64 Slice CTCardiac CT

Unmet Clinical NeedImmediate Market

No DV1 or 2

Replacing Existing Product

10 Years in DV2

Replacing Existing Product

20 Years in DV2

Changing Clinical Practice

Died in DV2

Pocket Ultrasound

New Clinical Utilization of

Existing ProductTech Died in DV1

Going through DV2

1 2 3 4 5

2005 2000 1992 2010 1994

Technology Portfolio Management

Market Risk

Tech

nolo

gy

Ris

kPocket Size UltrasoundNew Detector for CT

New SW for Clinical Decision

Affordable Accessible ECG

Investment Guidelines

Innovation Type

•Solves Unmet Clinical Need

•Under the hood of existing product

•Replaces Existing Product

•Changes Clinical Practice

DV1

$

$

$$

$$

DV2

$

0

$$

$$$