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Case Studies in Patient Incentives

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Brand Positioning and Corporate Turnaround

A Case Study where Our Recommendations Make a Company Profitable

Situation:

An analytics based software company was not operating profitably. The company felt the solution was to focus on a new functional area which they thought was gaining momentum in the marketplace. Alpha 1C was asked to do a thorough review of the industry and the company’s operating model and to provide recommendations on how to best return to profitability.

Our Solution:

Alpha 1C’s in depth analysis revealed:

  • Margins were being negatively impacted by:
    • Custom application building
    • Major pricing reductions
    • Lengthy (unprofitable) implementation timetables
    • Product Development issues:
      • Appropriate market expertise did not exist within the company
      • “Co-development” approach with customers was problematic
      • Application methodologies were not tested on real data
      • Demos took too long to build, were inconsistently developed and were not fully functional
  • This new functional area that the company was so hot on, was actually not growing due to many “me too” products
  • Our formal recommendations addressed these issues and recommended that the company dramatically change its go-to-market approach

Result:

Alpha 1C helped the company standardize its software and its demo, substantially reducing the development timeframe, creating more consistency across the organization and fewer bugs in the application:

  • Demo development timeframe was reduced by over 75%
  • Implementation time on the standard application was reduced by 40%
  • Value based selling approach increased their average price by over 25%

The market responded to their unique new offering:

  • Their next two quarters were the best in the company’s history, with sales up over 100%.
  • The company turned profitable within a year of the initial engagement
  • Three months after turning profitable, the company was acquired

Timing:

  • The Alpha 1C team worked with the company for 18 months