DR Systems (A)

By William Barnett, Asaf Farashuddin
1994 | Case No. SM7
Gadi Maier, CEO of DR Systems, looked forward to the exciting though uncertain future of the firm he had joined less than a year ago. DR Systems, a provider of computerized storage, transmission and processing of medical imaging, appeared poised to take advantage of the trend towards process and costrationalization in the health care industry. However, while the innovations conceived by the two physicians who had founded the firm provided a first-mover-advantage, the threat of entry by a major competitor loomed as a possibility. Gadi faced the task of obtaining adequate financing to grow the firm beyond the clinical trial phase to critical size. Managing the anticipated growth and marketing the firm’s product provided additional challenges. As he thought about these issues, Gadi considered the wisdom of his own decision to leave a lucrative executive position at Oracle Corporation to take over this fledgling enterprise.
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