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Name Simon BeardCompany Align TechnologyPosition Vice President and Managing Director, EMEAHQ California, USEmployees 4,400

EXECUTIVE INTERVIEW

Service with a smile

Align Technology has revolutionised the orthodontic industry, improving millions of smiles around the world with its tailored dental technology systems.

IMAGES DAVE PELHAM

In 1999, Align Technology pioneered a whole new market in the orthodontics sector. The medical device company launched the Invisalign® system, a product that works to straighten the teeth of teenagers and adults without the need for metal braces. It was an unheard of, but welcomed, innovation at the time. The clear removable aligner has since

gone on to improve the pearly whites of more than three and a half million patients all over the world, becoming a clear leader in the marketplace.

Invisalign clear aligners are offered in more than 90 countries across the globe and Align Technology has achieved superb sales growth since its inception. People know it by name and request it specifically from their orthodontists and general dental practitioners. The system is a combination of proprietary virtual modelling software, rapid manufacturing processes, and mass customisation. Treatment times vary from patient to patient, but on average a customer requires one full year of treatment, which is equivalent to 26 sets of Invisalign clear aligners. Align Technology provides all of the clinical education programs and the

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EXECUTIVE INTERVIEWEXECUTIVE INTERVIEW

tools that orthodontists or GP dentists need to offer the treatment option in their practices.

The Invisalign system set the benchmark for what Align Technology  could do and cemented its  spot in the medical technology (med-tech) industry. Following on from that success, the business introduced the iTero® intra oral scanner and OrthoCAD® services to help dental professionals deliver the most cutting-edge and effective treatment options to their patients.

The iTero intra oral scanner is an open architecture system that allows for compatibility with multiple laboratory-based CAD/CAM milling systems and over 3,000 dental labs. It works to provide a dental ‘chair-side’ platform, allowing for access to valuable digital diagnosis and treatment tools, with the potential to enhance the accuracy of records, treatment efficiency, and the overall patient experience. OrthoCAD services work hand in hand with the iTero intra oral scanners to provide digital services such as iCast®—a simplified storage and digital record retrieval service— and iRecord, which stores scanned data for the fabrication of

retainers, orthodontic appliances, and hard models.

Simon Beard, Align Technology’s Vice-President and Managing Director of Europe, the Middle East, and Africa (EMEA), says the pace of innovation within the organisation has been incredible, not only in terms of technology and software services, but also in terms of the business’ internal operations and staff. He first joined the group in November 2014, bringing with him more than two decades worth of experience. What he quickly noticed upon his arrival was the number of wonderful opportunities out there for

Align Technology to grow and further penetrate the market. Simon sat down with the The CEO Magazine to chat about Align Technology’s journey so far, how innovation has and will always be a crucial component to its operations, and how he plans to continue to direct the business on a positive growth trajectory.

The CEO Magazine: You have more than 25 years experience in the pharmaceutical and medical manufacturing sectors, working for companies such as Smith & Nephew and Johnson & Johnson. What initially attracted you to the role with Align Technology?

Simon: Before I took the job I was based in Singapore working with Smith & Nephew. I did quite a bit of research on Align Technology because it was a fairly big decision for me to make the move back to Europe. I think what I saw  first and foremost was the ambition  and drive that the executive team had for the business, and then the product itself. I do truly believe that we have an incredibly passionate group of people who work extremely hard and are very focused on trying to meet the customers’ expectations. I think the potential we have, not only across the core European market, but also much broader than that, is something that is very different to a number of other companies out there.

Align Technology is still a relatively young organisation and it has grown phenomenally over the last 15 years. Having said that, at the same time it is still very under-penetrated in the markets that we serve, as well as in the segments that we serve. I liked the people, I loved the product, and I saw incredible opportunities to grow a product that was not only technically very interesting, but one that offered patients a very different treatment option and experience.

There is a great sense of awareness in the marketplace, particularly with regard to the Invisalign product. Why do you think this modern method to treat malocclusions has become so popular, sitting on par with traditional treatment approaches?

I think the biggest turning point was probably around 2008-2009 when the concept of the Invisalign system really came to life for our customers. They recognised the high quality and effectiveness of the product and wanted to know more. It was at this time when Align Technology began the first in a

series of new product innovations in its G-series which led to the launch of Invisalign G3 which was a third generation iteration of the Invisalign system. I think that made the biggest difference and since then there have been further iterations, for example last year we launched Invisalign G6. As you can see in just five very short years we have improved the Invisalign system beyond recognition. We have improved the material we use, the capability of the products, and now we are able to treat more complex malocclusions.

The majority of our business at the moment is with orthodontists but we are

“We’ve had the privilege of working with Align since the beginning, through all their stages of adoption and growth, and have helped them transform their vision into reality through mass-customised, automated, and additive manufacturing. It’s been an amazing and educational journey.” - Chuck Hull, Executive Vice President, CTO, and Co-Founder, 3D Systems

“I do truly believe that we have an incredibly passionate group of people who work extremely hard and are very focused on trying to meet the customers’ expectations.” – Simon Beard

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EXECUTIVE INTERVIEW

also working to expand the use of the Invisalign system to general dental practitioners as well. A continued area of focus for us is around patient awareness and conversion. Invisalign is an incredible brand when you look at the awareness with patients. I wish it would be the only product that patients asked for, but they do request other options; however, patients certainly do not ask for anything else to the same extent as Invisalign aligners. We are spending a lot of marketing dollars on creating that awareness and when they ask for Invisalign treatment we want to make sure that’s exactly what they are getting, not a cheap, less effective replica.

So constant innovation is crucial?

Yes, we need to be innovative with regard to the product and with regard to the way we are doing business. I think that’s

an important message to share. We work with innovative partners, such as 3D Systems, who have been crucial in developing the application of stereolithography, or the 3D printing technology we use to mass customise the moulds of each patients’ dentition. This is then used to thermoform the Invisalign clear aligners. We produce over 175,000 individual components a day, and every single one of these medical devices is customised to an individual dentition.

3D Systems has been our partner in the development of this technology for a long time. What Align Technology was able to create in those very early days was actually unique to the industry. Nobody else had ever considered the use of this technology with the application that we brought. We are the world’s leading and largest user of 3D printing.

We don’t print the aligners themselves, we print a mould and then the aligners are thermal formed over them. Therefore, one of the key things we do with innovation is on the 3D printing front.

What growth has Align Technology seen in the main marketplace, and what are the company’s plans for evolution in the next three to five years?

We have been growing in high double digits for a number of years now and we have very ambitious plans for the future. We see major opportunities both geographically and across our customer  base.

I think expansion of the business geographically across the EMEA region is a really key strategy for us. The potential for Align Technology’s products in the core European markets such as the UK, Germany, France, Italy, and Spain, as well as newer markets such as the Nordics, Benelux, and Eastern Europe is vast.

I think if we look at the core five markets within the UK, Italy, Spain, France, and Germany over the next few years they are still going to be an important and big focus for us as an organisation. However, even though they represent a high proportion of our business, they are still under-penetrated. Then when we talk

“Align Technology has optimised its global supply chain through its collaboration with UPS. UPS was engaged early in the planning process to help Align enable its global commercial strategy, through a well-designed multi-modal logistics network.” - John Menna, Vice-President, global strategy, and healthcare logistics, UPS

“We have been growing in high double digits for a number of years now and we have very ambitious plans for the future.” – Simon Beard

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EXECUTIVE INTERVIEWEXECUTIVE INTERVIEW

about international expansion we are growing very, very rapidly and there is further intent to grow the business outside of those core European markets. We have penetrated less than 10 per cent of a huge market.

There is obviously huge scope and potential for growth then within your core markets as well as these newer marketplaces?

Absolutely. If you look within our customer channel there are also major opportunities to grow. I anticipate that we will continue to grow exponentially in terms of brand awareness over the next three to five years.

What do you think will be the biggest challenge to this predicted growth?

I can’t single out one thing because there are so many challenges that we are faced with. I think, first of all, all of the challenges we have at the moment are actually good challenges because they are all associated with growth. I have worked within other med-tech segments over the past five years where the focus wasn’t on growth; instead it was on consolidation and the bottom line because the markets weren’t actually achieving growth. For us, it is all about

growing steadily and this means that, for me, it is an absolute pleasure to turn up to work every day. I believe that all challenges related to growth are positive.

Besides that, the biggest challenge is one that we have really been focusing on within our team. We want to be making sure that we focus our time on the most important things and this means making sure the team stays focused and aligned on the company’s vision. We want to improve the experience for the customer and their patients, as well as make the process more f lexible and responsive. We have so much opportunity that the biggest concern is that we could spread ourselves very thin. It does feel like a privilege to be in this position though.

How is Align Technology supporting its staff as the business grows? What do you believe has been the key motivational factor that has kept employees passionate and loyal?

If you look at the Invisalign product (it is a product – there is no other way to look at it) and then you look at the treatment option that is currently offered to most patients, I think this is motivation enough. Do you want this high-tech, digital solution to tooth straightening, or would you prefer to have pieces of metal

put in your mouth to straighten your teeth? I think this creates an incredible passion within the team. A lot of them have actually used the product themselves, which is something we do encourage. When they experience the effectiveness of the Invisalign system it subsequently makes them very passionate about it.

With running the company in mind, what are the key areas of focus for Align Technology to improve upon over the next 12 months?

The biggest areas that we are focused on at the moment are how we measure our customer experience. To achieve this we have introduced a Net Promoter Score system. While the company has done a lot of things really, really well we believe that, as an executive team, the more we can do to improve the experience for the customer the better. As our systems and our processes service the customer on a day-to-day basis, we want to be an easy and simple company to work with. We are constantly reviewing how we can make those systems more f lexible and how we can really stay relevant to what the customers are dealing with on a daily basis. If we can do that—and we are already seeing progress although there is still a lot to do—then there is no doubt we will be successful.

How has Align Technology worked with its key external partners over the years to form stable relationships?

If you look at it from an operational point of view we have an incredibly sophisticated manufacturing process. We have the largest custom-made manufacturing operation in the world because every single aligner that we make is individual to the patient that is going to be treated. You can only imagine the complexity of the technology

to be able to achieve this. We can’t do it alone so we have had to team up with the most innovative and efficient partners out there. That is absolutely  critical.

Your supply-chain partnerships have obviously been vital for your success and growth. What benefits have you seen at Align Technology as a direct result of forming these relationships?

Let me give you an example. If the stereolithography capabilities mentioned earlier were not developed with the help of our partner 3D Systems, then our ability to customise and scale the business to the extent we have, with over three and a half million patients around the world, would not have been possible. The ability to deliver the product and to innovate in clear aligner treatment would not be where it is today. So I would say that these relationships are not only critical, but they are a key enabler for our business and our growth. Similarly, Align Technology has a crucial and large leading polymer partner that has helped develop our patented and proprietary SmartTrack® aligner material. This innovative material is used on all Invisalign clear aligners.

Another example is that if we did not partner with UPS, our ability to efficiently receive and process customer orders would be negatively impacted. Forty per cent of our business now comes through an intra oral scanner, but the remaining 60 per cent is delivered to Align Technology by UPS packages from around the world. While we do use other providers in certain countries, UPS is our global partner. They are a key enabler to our operations and, through our partnership, we have really streamlined our processes to be as efficient and effective as possible. The sheer number of unique parts that are firstly manufactured and then shipped

direct to doctors and practices is phenomenal. We don’t have big warehouses around the world; most of our products are shipped direct to the customer. Our customers expect a great service and when you are working with the likes of a business such as UPS we know that’s exactly what they are going to get.

That must be fantastic in terms of lead times for customers too, due to this direct shipping approach?

Yes, and this is something we are always trying to improve upon. If we could ship the day after the customer sent in their finalised impression that would be even

more wonderful, but the existing turnaround times are already very impressive. In terms of getting better we are looking at how we can get closer to our customers as our business continues to grow. A key aspect of being able to improve the customer and patient experience is being in the market and having our operations closer to the customer base. This is in terms of acquisition, in terms of when we get the case up front from the doctor, and in terms of having the ability over the next few years to produce the products in the local market. So you will see us pushing our operations over the next several years so that we can get closer to where our customers are located.

“A key aspect of being able to improve the customer and patient experience is being in the market and having our operations closer to the customer base.” – Simon Beard