For more background information and bibliography: Visit this page
If you prefer companies taking on the world by themselves instead of a relatively mellower approach outlined here, See part 2, for strategy A
Finally, if you want to skip the chase and straight up compare the two, go here.
Strategy B: Integration into the Existing Value Chain
In Strategy B, Figur8 becomes part of the existing MSK care value chain rather than disrupting it directly. Instead of targeting consumers, Figur8 positions itself as a technology partner to incumbents—such as insurers, employers, and digital health platforms.
“The central challenge of a value chain strategy is figuring out how to implement the startup’s idea to reinforce and enhance the value chain of an existing incumbent and, at the same time, establish and maintain bargaining power within that value chain.”
Figur8 is already well-positioned to do this. Its hardware is significantly easier to use and more efficient for collecting diagnostic data than traditional systems. This technical edge gives Figur8 leverage in forming partnerships, especially if it can demonstrate quality manufacturing and reliability at scale.
Customers in this strategy are employers seeking to reduce the risk of work-related MSK injuries. (Let’s be honest: desk jobs absolutely qualify as a hazard here.) Large employers provide access to a broad base of potential users. By bundling Figur8’s diagnostic offering into employer-sponsored insurance packages, individuals could access MSK assessment tools without worrying about upfront costs.
The first wave of adoption is driven by the simplicity and effectiveness of Figur8’s equipment. The second wave may come from insurers aiming to reduce payouts related to prolonged MSK treatments stemming from misdiagnoses.
In this model, patients won’t use Figur8 directly. Instead, when an insured individual reports an MSK concern, the system would already be integrated into the digital health infrastructure. The user is mailed the Figur8 tapes, and their data is collected remotely and interpreted by a healthcare provider. The system becomes a diagnostic tool for clinicians—not a self-serve consumer product.
This approach avoids the legal risks associated with self-diagnosis and ensures professional oversight. It also allows Figur8 to focus its software interface on healthcare professionals—who prefer detailed data and don’t need simplified explanations. With less pressure to “dumb down” the interface, Figur8 can push its tech further and even explore additional use cases (such as motion capture technologies used in film or sports performance tracking).
In the long run, Figur8 could become a horizontal layer in the MSK diagnostic stack, integrated across multiple health platforms and insurers as the go-to expert system for MSK data collection and interpretation.
However, the weaknesses of this strategy are also clear:
- Smaller companies may not be aware of Figur8 or may lack the scale to justify integrating it.
- Individuals who are self-employed, unemployed, or outside formal healthcare systems may not be able to access it at all.
For these reasons, Strategy B offers strong scalability and defensibility—but may leave out key demographics that Strategy A could serve more directly.
Customers
“A necessary condition for a value chain strategy to be successful is the ability to create value for a group of customers who are being served by the firm with whom you partner.”
The overall market dynamics of MSK conditions do not change under this strategy. The end users served by Figur8 are still individuals experiencing pain. However, in a value chain strategy, the direct customers of Figur8 are different: they are large corporations with employees at risk of MSK complaints, and insurance companies seeking to reduce claims driven by misdiagnoses or poor MSK management.
Well-funded firms with a sizable employee base should be targeted first. These companies not only have the resources to invest in employee health, but if they have a positive experience with Figur8’s system, they can become influential references for future business.
Initially, Figur8’s services can be bundled into employer-sponsored insurance plans. Figur8 would be paid based on usage volume rather than a large upfront purchase, reducing the barrier for adoption. While this model may increase initial premium costs, employers may be able to renegotiate rates later, as the system helps prevent prolonged and costly MSK treatments.
Positive reviews from employers, ease-of-use feedback from providers, and high satisfaction among end users will be instrumental in growing Figur8’s reach—not only across companies, but also within healthcare institutions. After its initial use for treating existing MSK conditions, Figur8 can further demonstrate its value by positioning itself as a preventative care tool.
In a post-pandemic world where remote healthcare and digital diagnostics have gained mainstream traction, Figur8’s ability to deliver reliable MSK feedback remotely will stand out. Healthcare providers are likely to notice this effectiveness and may become internal champions—early adopters within this strategy—who recommend Figur8 within their networks. Over time, the vision is for Figur8’s sMMG system to become standard diagnostic equipment within healthcare systems, much like thermometers or pulse oximeters today.
Beachhead Market
Figur8’s beachhead should consist of elite companies with 250–1,000 employees. These organizations are often innovation-forward, value employee well-being, and are willing to invest in promising technologies—even before their full ROI is proven. Their relatively smaller size allows for flexibility if the system needs to be phased out or adjusted, which reduces buyer risk. Near-IPO startups or well-funded unicorns that are media darlings could be ideal candidates—they want to project innovation and often have the budgets to match.
Innovators
Following the beachhead phase, Digital MSK service providers and forward-thinking insurance firms that see value in reducing claims and improving user engagement can be onboarded. Digital MSK platforms may be a better early fit, as insurers are often more risk-averse. Still, Figur8 should seek out nimble, innovation-friendly insurance partners that recognize the long-term savings potential of improved diagnostics.
Early Adopters
Early adopters would include more traditional companies with a history of innovation but a greater need for proof of efficacy. These firms are likely to trust recommendations from existing partners—such as their insurance providers or MSK service platforms—who can vouch for Figur8’s effectiveness. This phase is crucial for expanding reach beyond tech-forward niches.
Late Majority and Beyond
Once Figur8 builds momentum with early adopters, the late majority will follow. These organizations will adopt based on visible success and market pressure, not experimentation. In parallel, hospitals and healthcare professionals—though not technically laggards—represent the final phase of adoption. Their validation would cement Figur8’s position in the healthcare system and drive widespread institutional purchases.
Eventually, early laggards from the consumer market could become beachhead customers for the next wave of institutional growth. As adoption deepens, Figur8 has the potential to replace outdated MSK diagnostic systems and become the new standard for MSK data collection—used across insurance networks, clinical care, and wellness programs alike.
Technology
Figur8 has developed the technology needed to serve incumbents—such as corporations and hospitals that currently refer patients to uncertain or inconsistent MSK diagnostic systems. Its hardware–software system positions the company firmly on a new S-curve, as required by a value chain strategy.
As discussed earlier, Figur8 can be integrated into the existing healthcare and employer value chains. While the technology trajectory under this strategy may be similar to that of Strategy A (disruption), Figur8 must now balance two goals: continuing to innovate and expand its capabilities while also ensuring seamless integration into its partners’ operational workflows.
A successful value chain strategy requires bridging the gap between old and new technologies. Figur8 has already validated its system against the gold standards for MSK diagnostics and has demonstrated comparable or superior performance. Its data signals have lower noise and smoother curves, improving interpretation accuracy. However, Figur8 must now ensure that physicians can interpret this new data despite its technical differences from legacy systems.
To address this, Figur8 is building an AI layer informed by biomedical expert input, enabling more accurate analysis and clinical translation of raw data into meaningful insights.
Another benefit of this strategy is that Figur8 is not required to simplify its data for lay users. The interface can prioritize clinical accuracy over user-friendliness. Gamification and retention tactics are no longer necessary, as the end user is a trained healthcare professional, not a consumer.
That said, the strategy does introduce other complexities. Figur8 will need to ensure interoperability with diverse platforms and data management systems used by employers, healthcare providers, and insurers. This will require the company to develop robust integration capabilities alongside its technical innovations.
Finally, as with Strategy A, Figur8 must build a strong supply chain to produce and deliver high-quality hardware at scale. Even within an institutional model, execution excellence is essential to becoming an indispensable player in the MSK care value chain.
Competitive Strategy
The primary competition in this strategy comes from incumbents in the digital MSK health management space, who already offer integrated MSK care services bundled with employer-sponsored health plans. While Strategy B envisions Figur8 collaborating with some of these companies, those that do not become partners will effectively become competitors.
By collaborating with digital MSK health providers, Figur8 can leverage their established supply chains and distribution networks. These companies may be eager to collaborate, as their current systems rely heavily on virtual consultations that may be even less accurate than traditional in-person diagnostics. Figur8’s hardware offers an opportunity to improve diagnostic precision within their existing models.
Collaborate Rather Than Compete
In the early stages, Figur8 will collaborate with employers and their healthcare vendors to embed its technology into broader MSK management systems. These collaborations will require Figur8 to ensure compatibility with external supply chains, software ecosystems, and user interfaces that it did not develop in-house.
This approach comes with trade-offs. On one hand, Figur8 will depend on partners to access end customers. On the other, if the product proves successful, those very partners can become powerful advocates and open doors to new markets.
As traction grows, Figur8 can extend collaborations to insurers, who will be easier to convince once early adopters demonstrate reduced MSK-related incidents and costs. This shift enables Figur8 to scale adoption across larger corporations, especially those with thousands of employees, amplifying its impact.
Over time, as Figur8’s system becomes more widespread, it is likely that healthcare providers will begin requesting the hardware directly for in-clinic and institutional use. This marks a strategic turning point, nudging Figur8 into light-touch disruption—where it gradually displaces incumbent diagnostic hardware in favor of its own. Even so, the collaborative model remains dominant throughout most of the adoption curve, right up to the laggard phase.
Execute, Balanced Carefully with Control
To succeed, Figur8 must strike a careful balance between execution and control. While the first wave of customers—primarily employers—may hold more bargaining power, Figur8 can regain leverage through its ease of use, clinical accuracy, and integration capability.
As the product proves itself, Figur8 can build stronger negotiating positions with healthcare institutions and insurers. These stakeholders will value the system’s ability to reduce misdiagnosis, accelerate recovery, and provide measurable health improvements.
To maintain this advantage, Figur8 must win over healthcare practitioners by clearly demonstrating how its solution delivers superior outcomes compared to traditional tools. At this stage, Figur8 isn’t seeking novel applications for its tech; it is seeking widespread adoption. Sustained focus on execution quality and partner alignment will be critical to reaching that goal.
Organization
Founder’s Objective
The focus under this strategy, should be to enable employers and customer by extension a comprehensive system to accurately remedy and reduce the incidences of MSK injuries at workplace. Ultimate objective though should be to become the most pervasive system of MSK injury prevention, detection, and management through its hardware.
Internal Capabilities
Figur8’s current internal capabilities partially cater to value chain. They have a validated novel piece of technology. They are currently working on optimizing the accompanying AI solution. Therefore, the team already has the engineering and scientific expertise required to carry through a new piece of technology.
Figur8 would need a team of business developers capable of pitching the unique product to corporates who can benefit from the proposed value chain. Account management team will be required to retain the business.
Scalable robust supply chain will be indispensable therefor people who understand hardware sourcing and manufacturing. Even if the manufacturing is completely outsourced, Internal managers who understand tech will be required to execute flawless quality control.
External Positioning
Figur8 will be positioned as a hardware company which adds value to the employers existing healthcare management offering. It will access labs and hospitals after adding value to diagnostics process after introduction through employers to healthcare system, thus embedding themselves into the value chain permanently.
Ecosystem
Unlike disruption strategy which requires Figur8 to be close to early adapters crowd, Figur8 can have a wider selection of ecosystems to place itself into. Other than startup and innovation hubs, Figur8 should focus on placing itself in financial districts and corporate hubs of the country where it can easily carry out business development activities. New York could be excellent choice for this activity.
Value Creation Hypothesis
The core value creation hypothesis remains consistent across both Strategy A and Strategy B: Figur8 creates value through its field-ready hardware that collects objective MSK data while the user is in motion, outside of traditional clinical settings. When integrated with its AI-powered software, the system becomes more affordable and accessible than any existing diagnostic technology.
What changes in Strategy B is the target user. Rather than the end consumer, the primary users are now healthcare providers, who benefit from the system’s ability to deliver clear, data-backed diagnoses without relying on subjective judgment or physical “feel.” The value is in enhancing clinical decision-making by offering a consistent, evidence-based diagnostic tool that reduces uncertainty and improves outcomes.
Value Capture Hypothesis
Figur8’s patented hardware and its ease of use across different clinical and corporate environments form the basis for value capture in Strategy B. Within the existing value chain, the system allows employers to reduce the impact and cost of widespread but often overlooked MSK issues.
By enabling more accurate and affordable diagnoses than traditional systems, Figur8 helps reduce the prevalence of misdiagnoses, thereby cutting down on unnecessary treatments and prolonged disability leaves. These outcomes create clear cost savings for employers and insurers—value that Figur8 can capture through commercial partnerships.
Crucially, Figur8’s ability to bridge old and new technologies—by integrating with existing workflows and platforms—will support user migration away from legacy systems. As described in the Technology section, Figur8’s adaptability will be key to gaining bargaining power within the healthcare ecosystem. The more seamlessly it integrates into employer and clinical operations, the harder it will be to replace, allowing Figur8 to retain pricing power and expand its footprint within the value chain.
Coherence and Linkages
Customer and Technology
Figur8’s technology enables its customers—primarily employers and healthcare providers—to reduce MSK-related costs and improve employee well-being. By offering an efficient, accurate diagnostic solution, Figur8 aligns directly with the needs of stakeholders focused on both financial outcomes and patient care.
Customer and Organization
Early customers under this strategy play a strategic role in Figur8’s organizational growth. Their adoption is critical to establishing Figur8 within existing healthcare ecosystems and driving its goal of becoming the new standard in MSK diagnostics.
Technology and Organization
While Figur8 already demonstrates strong alignment between its technical capabilities and organizational resources, scaling this strategy will require greater investment in sales, business development, and account management. To support growing demand, Figur8 must also strengthen its supply chain infrastructure and operations leadership to ensure consistent delivery and partner satisfaction.
Organization and Competition
Figur8’s success in Strategy B depends on collaborating with incumbents—rather than displacing them immediately. By working with existing players in the MSK and insurance ecosystem, Figur8 can accelerate adoption while gradually replacing outdated diagnostic technologies.
Competition and Customer
In this strategy, competition and customer are closely linked. Employers, who form part of the traditional MSK care ecosystem, may initially be tied to incumbent systems. However, once they adopt Figur8’s solution, they help integrate it into broader healthcare workflows. Figur8’s ability to transform these incumbents into customers is both a competitive edge and a signal of market validation.
TLDR
Strategy B positions Figur8 not as a disruptor, but as a critical enabler within the existing MSK healthcare value chain. Instead of selling directly to end consumers, Figur8 partners with employers, insurers, digital MSK platforms, and eventually healthcare providers to embed its hardware–software system into broader care delivery frameworks.
Customers
The ultimate beneficiaries remain individuals suffering from MSK pain, but Figur8’s direct customers in this strategy are corporations and healthcare partners. Early adoption is expected from mid-sized, innovation-focused employers, followed by digital MSK integrators and progressive insurers. As the technology proves itself, healthcare providers and hospitals may adopt Figur8’s system as part of their diagnostic toolkit.
Technology
The core value lies in Figur8’s field-deployable, low-noise diagnostic hardware, integrated with AI software. In this strategy, Figur8 must prioritize interoperability over user experience—designing for physicians rather than lay users. This shift allows deeper clinical focus but requires investment in data standardization and platform integration.
Competitive Strategy
Figur8 follows a collaborate-over-compete approach. It partners with incumbent digital MSK providers and insurers to gain access to users while providing technical uplift to existing systems. Over time, as its diagnostic quality outpaces legacy solutions, Figur8 may indirectly displace traditional MSK diagnostics, moving back toward soft disruption.
Value Creation & Capture
Figur8 creates value by enabling faster, more accurate, and affordable MSK diagnostics for professionals. It captures value by helping insurers and employers reduce claim volumes and treatment costs, while embedding itself into existing care pathways. Its patented, easy-to-integrate technology positions it as a scalable solution for institutional healthcare.
Organizational Needs
To execute this strategy, Figur8 must invest in sales, business development, and account management. It will also need a strong supply chain, robust integration support, and a team capable of navigating partnerships with large enterprises and medical institutions.
Coherence and Linkages
Every element of this strategy—from customer and tech alignment to organizational readiness and competitive collaboration—is structured to make Figur8 an essential component of MSK care. It turns incumbents into distribution partners and gradually builds a case for becoming the new standard in institutional MSK diagnostics.