Vscan

Download as pdf or txt
Download as pdf or txt
You are on page 1of 2

Vscan: GE Healthcare’s Pocket-Sized Imaging Device

“This could be the stethoscope of the 21st century,” observed GE’s CEO Jeffrey Immelt, as he
demonstrated the device at a San Francisco technology conference. Roughly the size of a
smartphone, GE Healthcare’s Vscan device incorporates powerful ultrasound technology to
provide physicians with imaging capabilities at the point-of-care. “The device may be used by
primary care doctors to more quickly diagnose ailments such as gallstones, by critical-care
workers to quickly confirm symptoms such as fluid on the heart, and by cardiologists trying to
determine how well a heart is pumping.” Vscan is portable and can be easily taken from room to
room, facilitating its use in many clinical, hospital, emergency medicine, or primary care
settings.

The innovative product was developed by GE Healthcare engineers from around the world, led
by a new product development team in Norway. Vscan represents one of the first innovations to
issue from a major strategic initiative at GE Healthcare, termed “healthymagination.” Under this
vision, GE plans to invest $6 billion by 2015 in the development of innovations focused on
reducing costs, increasing access, and improving the quality and efficiency of health care around
the world.

The $8000 Vscan device, which offers image quality equivalent to that of a far more expensive
midrange ultrasound console also produced by GE, has received approval from the U.S. Food
and Drug Administration and from regulatory bodies in Canada and Europe.

Questions:

1. From a B2B marketing perspective, explain the concept of a disruption innovation and
the reasons why a company might work to create this type of product or service. What
are the three key criteria a disruption innovation should meet? (6 marks).

Disruptive innovation represents a product or service that is not as good as currently


available alternatives, but disruptive technologies offer other benefits: they are simpler,

This study source was downloaded by 100000847260214 from CourseHero.com on 03-12-2023 23:51:32 GMT -05:00

https://www.coursehero.com/file/58688939/Vscandocx/
more convenient, and less expensive products that appeal to new or less demanding
customers.

According to Clayton Christensen's “The Innovator's Dilemma”, disruptive innovation


should meet two criteria:

a. Originate in low-end or new-market footholds


b. Innovation must be disruptive to all the significant competitive firms in the industry

2. Does the Vscan represent a disruptive innovation? Will it cannibalize sales of GE


Healthcare's more advanced and much higher priced imaging equipment? (4 marks)

The Vscan has been categorized as a disruptive innovation by healthcare marketing


specialists because it disrupts the imaging market and it originated in low-end footholds,
targeting first care and emergency medicine. However, it will not be disruptive to
competitive firms in the industry or cannibalize the market because large scale imaging
machines are still needed in medicine.

3. What marketing strategies should GE Healthcare follow to speed the adoption of Vscan
in the United States and around the world? (5 marks)

GE Healthcare should use digital marketing strategies as well as offline strategies to


speed the adoption of Vscan. They should build a strong, comprehensive website that
allows non-experts understand just how easy the product is to use, this must be
accompanied by simple print and digital promotional materials that can be used on sales
calls and trade shows. People who receive this material should be able to understand it
without an explanation from an expert.

This study source was downloaded by 100000847260214 from CourseHero.com on 03-12-2023 23:51:32 GMT -05:00

https://www.coursehero.com/file/58688939/Vscandocx/
Powered by TCPDF (www.tcpdf.org)

You might also like