2012 North American Video Telemedicine Customer Value Enhancement Award

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1 North American Video Telemedicine Customer Value Enhancement Award 2012 Frost & Sullivan 1 We Accelerate Growth

2 Customer Value Enhancement Award Video Telemedicine North America, 2012 Frost & Sullivan s Global Research Platform Frost & Sullivan is in its 50th year in business with a global research organization of 1,800 analysts and consultants who monitor more than 300 industries and 250,000 companies. The company s research philosophy originates with the CEO s 360-Degree Perspective, which serves as the foundation of its TEAM Research methodology. This unique approach enables us to determine how best-in-class companies worldwide manage growth, innovation and leadership. Based on the findings of this Best Practices research, Frost & Sullivan is proud to present the 2012 North American Customer Value Enhancement Award in Video Telemedicine to Vidyo. Significance of the Customer Value Enhancement Award The U.S. Healthcare sector presents numerous challenges - from ever escalating costs being expended without a resulting improvement in quality or efficiency, to poor end-toend management of diseases and conditions that ultimately lead to lowered health outcomes and poor quality of life. Unwieldy administrative and information systems and bottlenecks in workflow serve to complicate further the streamlined delivery of care. Additionally, unmet care delivery needs continue to present themselves as population and lifestyle dynamics change over time. Video conferencing is an important component to any business industry, and healthcare is no exception. With the growing number of actual healthcare services being provided through video conferencing technology, Frost & Sullivan feels that the opportunity for video conferencing in healthcare has evolved into its own distinct market space - rather than just another vertical for video conferencing providers. Outside of more traditional business applications for video conferencing in healthcare, there has been significant growth in utilizing video conferencing to actually provide healthcare services from healthcare providers to patients, commonly called video telemedicine. These services are already changing the way healthcare is provided by bringing specialists to hospitals in need, enabling visitations to patients in remote regions, or giving patients a more convenient visitation venue, such as a retail store. This intimate use of video conferencing in healthcare delivery has created a distinct set of needs and revenue opportunities, which in turn require a significant level of expertise and experience to produce value to the customer. Frost & Sullivan independent analysis affirms that Vidyo has displayed a superior, consistent effort to maintain and expand its value to the customer through both established and new applications of video conferencing in healthcare Frost & Sullivan 2 We Accelerate Growth

3 Best Practice Award Analysis for Vidyo The Frost & Sullivan Customer Value Enhancement Award is presented each year to the company that has demonstrated excellence in implementing strategies that proactively create value for its customers with a focus on improving the return on the investment that customers make in its services or products. This Award recognizes the company's inordinate focus on enhancing the value that its customers receive, beyond simply good customer service, leading to improved customer retention and ultimately customer base expansion. Vidyo s Performance in Video Telemedicine The 2012 Frost & Sullivan Customer Value Enhancement Award is presented to Vidyo for its recent activities in the video telemedicine market, most notably for its new innovative applications of video conferencing in the healthcare environment. Outside of traditional business applications, video conferencing in healthcare had become stagnated, limited to highly customized, remote consultation environments. However, recent advancements in technologies are allowing video conferencing to be implemented in a much broader range of environments. Largely by its continued effort to improve its value to its customers, Vidyo continues to remain a leader in video conferencing in healthcare by pushing the boundaries of video applications in these new environments along with continued collaboration and involvement with established, traditional healthcare ecosystem applications. A Market Ready to Dramatically Expand its Application Video conferencing in healthcare is by no means new and has been explored for over 25 years through pioneering programs such as the VA, Alaskan healthcare programs and even prison systems. However most of these legacy video conferencing healthcare systems were quite expensive and customized and only made sense for the more extreme situations of remote care. In the early and mid 2000s, more scalable and universally functional systems emerged, but many of that generation s systems suffered from overpromises that never delivered or were simply passed up by the very fast pace of technology in this market. The result was a healthcare market that was highly skeptical of these types of technologies for providing healthcare services. However, overall healthcare trends gave video conferencing in healthcare a much needed boost in the late 2000s, due to increasing healthcare specialist shortages and an overflow of underserved patient needs. These trends and others forced healthcare providers to seek out new and innovative ways to provide healthcare in the most efficient and cost effective ways possible. In addition, video conferencing technology and infrastructure had advanced to a state where a high level of accuracy and reliability were obtainable, resulting in video conferencing in healthcare entering into its current age of growth and establishment. In 2012 and beyond, Frost & Sullivan expects that there will remain a consistent exploration 2012 Frost & Sullivan 3 We Accelerate Growth

4 of new applications for video conferencing in healthcare. With the ratio of price to value consistently improving, the expansion of video conferencing in healthcare is already on the dramatic rise. Rapid expansion of applications for video conferencing in healthcare is forecast to continue for at least the next five years, in addition to constant growth in already established applications of video such as in telemedicine. Vidyo has already established itself as a leading provider for video conferencing in healthcare applications, but sets itself apart from its peers by keeping ahead of the curve and implementing its products and services in new and novel ways. Vidyo s video conferencing solution is based on a flexible software platform that delivers quality at disruptive price points that enable new markets and usage scenarios. The Vidyo platform has an extensive suite of Application Programming Interfaces (APIs) that lends itself to adaptation and integration into healthcare ecosystem tools by both Vidyo and its partner community. This allows for implementation over the public network, which is critical for large scale telehealth programs and for any program that reaches out to patients homes. Privacy remains a necessary component of to any healthcare system. Video conferencing systems in healthcare need to be compliant with HIPAA regulations, and Vidyo achieves this through its encryption scheme. In addition, it is important to point out that Vidyo is an owner-controlled system, which provides the level of administration and configuration required to manage all aspects of large scale telehealth programs. The result is video communication integrated with the natural workflow, such that the experience for the care provider and patient is closer to a traditional in person visit than the siloed video conferencing solutions of the past, enabling physicians to focus on patient care instead of technology. Vidyo s Performance in Traditional Value Offerings While there are many niche examples of video conferencing in healthcare, some distinct examples of repeatable and sustainable business applications have been explored and defined. The most notable of these are video consultation, remote specialty services, and physician education and collaboration. Vidyo is a long standing industry leader in these traditional value offerings for video conferencing in healthcare through a variety of continued relationships and partnerships. These relationships provide the foundation of value for Vidyo in healthcare upon which it continues to build with new and innovative video applications. With video consultation, Vidyo provides general healthcare services, such as a physician visit remotely through video conferencing technology. Vidyo s collaboration with the Ontario Telemedicine Network is one of the largest of such efforts in the world, with over 165,000 consultations carried out remotely each year and growing. Vidyo s work with American Well is another example which offers a complete online healthcare delivery service to patients. Workflow integration is another key concern for remote consultation highlighted by Vidyo s recent work with AMD telemedicine on integration of various medical devices and imaging software into the video conference, providing a fully integrated point of care, simplified for the use of the physician Frost & Sullivan 4 We Accelerate Growth

5 On the more consumer focused, wellness side of video consultation, Vidyo works with the NHS s SmokeFreeLife program, which offers free face-to-face consultations with smoking cessation advisors in an effort to decrease the effects of smoking in the population. In reference to remote specialist services, there is an ever increasing need for medical specialists in high need areas in the healthcare system, and video conferencing has shown it can provide an effective solution. One of the most successful applications of video in healthcare has been through various telestroke or teleneurology programs. One example of this is the Massachusetts General Hospital telestroke program. By utilizing Vidyo s products and services, Massachusetts General Hospital developed its highly acclaimed telestroke program, which allows remote specialists to make a timely diagnostic assessment remotely. Lastly concerning physician education and collaboration, Vidyo is the technology behind the CyberFish Cybermedical Community, a 10,000 medical professional strong community in Switzerland. CyberFish specifically offers the ability for these healthcare professionals to interact with each other through a video conferencing platform. Overall, these examples highlight the strong foundation of customer value delivered by Vidyo and its partners leveraging Vidyo s customizable platform. Vidyo s Performance in New Value Offerings Vidyo earned this recognition through the company s continued efforts to build upon its past success in healthcare and expand its value offering with new and novel applications for its video conferencing products and services. Overall, these new opportunities are currently numerous and untested, and it takes a discerning eye to filter out which could provide the most value. This first requires a significant understanding of user needs, which in healthcare are obviously unique and complex. This understanding is often best provided from existing customer feedback, and Vidyo encourages extensive feedback from its network of healthcare customers. Even after the appropriate needs have been identified, execution in fulfilling these needs can be a significant task, as many times the solutions have never been done before. Vidyo s success shows they are capable of executing upon customer needs, and constant diligence is strived for to keep its customer value constantly ahead of the curve. Three different areas that Vidyo is pioneering in expanding customer value are in remote home care, retail telehealth, and the intensive care setting. In the remote home care setting, for example, Vidyo is working with Videra, which specializes in facilitating at-home geriatric care in the Nordic region. Video in-home monitoring has failed to gather traction in the past; however, current advances in technology are enabling new inroads to be made in this environment. Retail telehealth is a highly emergent space that is trying to provide healthcare services in the very consumer driven retail market. In retail telehealth, Vidyo collaborates with Health Spot, which provides a self sufficient kiosk that can host a complete diagnostic consultation, including video conferencing with a physician in any retail environment. Finally, Philips is incorporating Vidyo s Adaptive Video Layering Technology into a new clinical platform for communications and collaboration for use in 2012 Frost & Sullivan 5 We Accelerate Growth

6 a hospital intensive care unit (ICU). With this tool at the ICU s disposal, healthcare providers are beginning to see the complete value that video conferencing can offer them when combating inefficiencies and workflow concerns. Overall, each of these new applications represents a significant new opportunity for video conferencing in healthcare and exemplifies Vidyo s commitment to continually improving its customer value in a variety of important care settings. Conclusion The progression of video conferencing technology and changing healthcare needs and priorities are enabling new opportunities through the expansion of video conferencing in the healthcare environment. This movement has created a dramatic opportunity for the industry to improve its value to the customer by expanding the applications of video conferencing. By constantly striving to improve its value offering for its customers, Vidyo is involved and experienced in virtually every traditional application of video conferencing in healthcare, and the company truly sets itself apart from competitors by constantly expanding its applications and solutions in new, novel ways. Overall, Frost & Sullivan firmly believes that Vidyo has successfully identified and prioritized new and novel applications for video conferencing in healthcare by continually enhancing its customer value and driving innovation in a demanding industry. For this achievement, Vidyo is the worthiest recipient of the 2012 Frost & Sullivan Customer Value Enhancement Award. The CEO 360-Degree Perspective TM - Visionary Platform for Growth Strategies The CEO 360-Degree Perspective model provides a clear illustration of the complex business universe in which CEOs and their management teams live today. It represents the foundation of Frost & Sullivan's global research organization and provides the basis on which companies can gain a visionary and strategic understanding of the market. The CEO 360-Degree Perspective is also a must-have requirement for the identification and analysis of best-practice performance by industry leaders. The CEO 360-Degree Perspective model enables our clients to gain a comprehensive, action-oriented understanding of market evolution and its implications for their companies growth strategies. As illustrated in Chart 5 below, the following six-step process outlines how our researchers and consultants embed the CEO 360-Degree Perspective into their analyses and recommendations Frost & Sullivan 6 We Accelerate Growth

7 CEO's 360-Degree Perspective Model Critical Importance of TEAM Research Frost & Sullivan s TEAM Research methodology represents the analytical rigor of our research process. It offers a 360-degree view of industry challenges, trends, and issues by integrating all seven of Frost & Sullivan's research methodologies. Our experience has shown over the years that companies too often make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission. Frost & Sullivan contends that successful growth strategies are founded on a thorough understanding of market, technical, economic, financial, customer, best practices, and demographic analyses. In that vein, the letters T, E, A and M reflect our core technical, economic, applied (financial and best practices) and market analyses. The 2012 Frost & Sullivan 7 We Accelerate Growth

8 integration of these research disciplines into the TEAM Research methodology provides an evaluation platform for benchmarking industry players and for creating high-potential growth strategies for our clients. Chart 3: Benchmarking Performance with TEAM Research About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit Frost & Sullivan 8 We Accelerate Growth

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