For Subscribers

Can Ignoring Clients Boost Your Sales? A tech company sees gains by turning its attention away from 60 percent of clients.

By Kristan Schiller

Opinions expressed by Entrepreneur contributors are their own.

Imprivata

Back in 2009, Imprivata was enjoying decent sales of its flagship tech product to banks, financial institutions and healthcare facilities. The Lexington, Mass.-based company's sign-on technology allows professionals to log in and out of multiple-user computer stations with the swipe of a card or fingerprint, without the time-sucking and less-than-secure method of logging in user names and passwords multiple times a day. Sales had increased 8 percent over the previous year, but CEO Omar Hussain thought they could be even better.

The Fix
After surveying the collapsing financial services industry and seeing projections for healthcare's growth, Hussain took a gamble. He turned his attention away from 60 percent of Imprivata's customers to focus on healthcare--a risky move in the midst of a recession. But doing so allowed Imprivata to shift from adapting a technology that attempted to be all things to all industries, to focusing on the specific security, compliance and productivity needs of doctors, nurses and providers--while also playing a role in streamlining the medical-care process.

The Results
Thanks to the push into the healthcare industry, Imprivata saw its healthcare business increase approximately 40 percent in 2012, with sales topping $50 million. The company's single-sign-on technology is now in use in some 1,100 U.S. hospitals, including Kaiser Permanente and Johns Hopkins, as well as in facilities in Europe, the Middle East and Australia.

A Second Opinion
Joseph Walent, lead analyst for the healthcare IT services sector at Technology Business Research in Hampton, N.H., isn't surprised by Imprivata's success. "This is something we're seeing on a larger scale. Companies like SAIC, Northrop Grumman and Lockheed Martin are shifting gears to more aggressively approach the healthcare industry," he says. "This is an industry that is just starting to integrate IT to increase efficiencies, control costs and improve outcomes."

However, Imprivata would do well to keep tabs on its more established competitors, he warns. "They could face incredible competition from these much larger government defense contractors, since healthcare is more immune to spending cuts than new weapons."

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Leadership

Lead From the Top: 5 Core Responsibilities of a CEO

Knowing exactly what the chief executive's role entails is critical for steering a company to success.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Side Hustle

After a 12-Year-Old's Side Hustle Made Over $4,000 in 1 Day, He and His Dad Grew the Business to Nearly $50,000 a Month: 'It Takes Commitment'

Madden Forrest and his father, Steven, turned their passion for football into a lucrative business.

Business News

Here Are the 10 Highest-Paying Jobs For New Graduates With a Bachelor's Degree — and They All Start at Six Figures

According to a new report from Resume Genius, finding a high-paying job as a new grad is possible, even in this market.

Business Ideas

How to Start a Home Design Business

Take your knack for interior design and remodeling to the next level by starting one of these five home design businesses.

Business News

Investment Firm CEO Tells Thousands in Conference Audience That 60% of Them Will Be 'Looking for Work' Next Year

There were over 5,500 people at SuperReturn International 2025, making it the largest private equity event in the world.