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  • July 2000 (Revised November 2001)
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Catalyst Medical Solutions

By: Amy C. Edmondson, Richard M.J. Bohmer and Naomi Atkins
  • Format:Print
  • | Pages:28
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Abstract

Faced with a drop in the NASDAQ, four eHealth entrepreneurs must decide between two distribution strategies for their new company's technology. The team, comprised of three full-time resident physicians and an MBA, has developed software to enable electronic documentation and billing of medical and surgical procedures. The initial strategy was to distribute the technology through individual hospital intranets. Under pressure from venture capitalists and a "dot-com" frenzy in the market, the team starts to develop an "Internet portal" strategy, distributing the software over the Internet and adding traditional e-commerce services. When the stock market crashes in April 2000, the team must decide whether to push on with the Internet strategy or return to the intranet model. Throughout the case, a variety of new product development and team learning issues are explored: What is the optimal team composition? How quickly can the team overcome technical challenges? Who should their lead users be? How well do they understand the market? How quickly can they learn to work together, raise money, and build partnerships?

Keywords

Product Development; Health Care and Treatment; Distribution; Strategy; Venture Capital; Applications and Software; Partners and Partnerships; Borrowing and Debt; Information Technology Industry; Service Industry

Citation

Edmondson, Amy C., Richard M.J. Bohmer, and Naomi Atkins. "Catalyst Medical Solutions." Harvard Business School Case 601-014, July 2000. (Revised November 2001.)
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About The Author

Amy C. Edmondson

Technology and Operations Management
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