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As commercial processes commoditize in a developed economy, they are outsourced or transferred offshore or both, leaving onshore companies with unrelenting pressure to

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

come up with the next wave of innovation. Failure to innovate equals failure to differentiate equals failure to garner the profits and revenues needed to attract cap

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

tal investment. It behooves us all to use our brains to get out in front of this Darwinian process.

For starters, we need to appreciate how broad the domain of innov

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

tion really is. Sure, it includes the type everyone knows about: disruptive innovation, the stuff of technology legend and Silicon Valley lore. But we should not be

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

blind to the existence of more mundane forms that are equally effective, as the following taxonomy illustrates:

Disruptive Innovation. Gets a great deal of attention

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

particularly in the press, because markets appear as if from nowhere, creating massive new sources of wealth. It tends to have its roots in technological discontinui

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

ies, such as the one that enabled Motorola's rise to prominence with the first generation of cell phones, or in fast-spreading fads like the collector card game Pokemo

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

.

Application Innovation. Takes existing technologies into new markets to serve new purposes, as when Tandem applied its fault-tolerant computers to the banking mark

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

t to create ATMs and when OnStar took Global Positioning Systems into the automobile market for roadside assistance.

Product Innovation. Takes established offers in

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

stablished markets to the next level, as when Intel releases a new processor or Toyota a new car. The focus can be on performance increase (Titleist Pro V1 golf balls

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

, cost reduction (HP inkjet printers), usability improvement (Palm handhelds), or any other product enhancement.

Process Innovation. Makes processes for established

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

offers in established markets more effective or efficient. Examples include Dell's streamlining of its PC supply chain and order fulfillment systems, Charles Schwab's

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

migration to online trading, and Wal-Mart's refinement of vendor-managed inventory processes.

Experiential Innovation. Makes surface modifications that improve custo

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

ers' experience of established products or processes. These can take the form of delighters (You've got mail!"), satisfiers (superior line management at Disneyland),

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

r reassurers (package tracking from FedEx).

Marketing Innovation. Improves customer-touching processes, be they marketing communications (use of the Web and trailers

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

for viral marketing of The Lord of the Rings movie trilogy) or consumer transactions (Amazon's e-commerce mechanisms and eBay's online auctions).

Business Model Innov

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

tion. Reframes an established value proposition to the customer or a company's established role in the value chain or both. Examples include chestnuts like Gillette'

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

move from razors to razor blades, IBM's shift to on-demand computing, and Apple's expansion into consumer retailing.

Structural Innovation. Capitalizes on disruptio

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

to restructure industry relationships. Innovators like Fidelity and Citigroup, for example, have used the deregulation of financial services to offer broader arrays

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

f products and services to consumers under one umbrella. Nearly overnight, those companies became sophisticated competitors to old-guard banks and insurance companies

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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Want a real ego boost? Then make yourself unnecessary. Your business will be more valuable if you can get it to the point that it grows in your absence.

When you are selling your products to clients, you don’t want to be pushy about it, you want to be persuasive.

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