What’s about to be discovered
Today America celebrates Christopher Columbus and his discovery of our great country, which is actually ironic as he never set foot in America. This small but well-known fact just goes to show something that Momma Kliff used to say, “You will arrive somewhere when you travel whether it’s where you actually wanted to be depended on how well you plan your trip.”
We thought of Mom today when we read that Phillips and Ypsomed have teamed up for – wait for it .. cloud based solutions for patients with diabetes. Per a story published on the FireceBiotech web site;
“Royal Philips plans to team up with Ypsomed to install digital, self-medication adherence tracking across a line of connected liquid drug delivery devices, including injection and infusion systems used in diabetes, multiple sclerosis and rheumatoid arthritis.”
Now anyone who has seen any Ypsomed device understands that this very competent team knows a thing or two about design. Ypsomed is well schooled in diabetes and understands the dynamics of this complex market. And like so many in our wacky world they too have way cool whiz bang toys.
However, as we keep stating what they don’t have is scale which again as we keep mentioning is critical in the toy business. Nor do they have anything that different from what everyone else has. Which makes us wonder how they plan on differentiating their cloud enabled toy from all the other cloud enabled toys.
Yet this problem is not unique to Ypsomed and is faced by Lilly who is also getting into the toy business or OnDuo another toy maker or …. Do we really need to list them all? Yes, the toy business is very popular these days as everyone seems to believe they can do what has never been done, that they can;
1. Increase insulin pump usage in the Type 1 market beyond 30%
2. Get insulin using Type 2’s to use a pump
3. Compete against established players Tandem, Insulet and of course Medtronic
4. Compete against all the insulin pump wannabes
5. Compete against all the Tyler wannabes
Like Mr. Columbus they have embarked on their journey with dreams of discovering a new world which would bring them riches beyond their wildest imagination. The only problem is also like Mr. Columbus they likely will never set foot in this brave new world. They will for all practical purposes spend lots of money, waste lots of time and end up like almost everyone else in the toy business frustrated that their dreams of greatest turned into a nightmare because of the harsh yet very real realties of how this business works.
Ypsomed might be different IF and this a huge if Phillips understands that this isn’t about the toys in the toy chest but money. Will they spend it on gaining formulary coverage or way cool whiz bang? Will they spend it on building a talented management team who can guide them through the treacherous waters of the toy business or will they spend it on way cool whiz bang? Will they become like everyone else and be fascinated with the toys in the toy chest or will they realize its not about the toys it’s about getting the toys paid for and played with?
All the toy makers are embarking on this journey most unfortunately are sailing blindly without a map. They will as Mom said end up somewhere, but will that somewhere be where they want to be? Will they make any money at all? As Mom used to say sure it’s possible but it’s also possible that an elephant can stand on a coffee table without it breaking. But look on the bright side the Cleveland Browns yes, the Cleveland Browns have won yes won two games already. Which just goes to show that yes dreams can come true.