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Accenture research has discovered three ways medical technology companies can ensure profitability and maintain their commitment to improve patients’ lives.
MedTech companies’ commitments to broadly defined, clinically oriented missions are becoming less likely to hit financial success.
This is not to say that innovation is out. In fact, some companies continue to generate strong profits from breakthrough products, even in the face of financial concerns, such as earnings levels that lag R&D spending. However, change is afoot.
Accenture’s High Performance Business research reveals who the medical technology high performers are, and the trends and recommendations needed to repair the disconnect in this evolving industry.
For the past several years, Accenture has applied the HPB framework to the medical technology industry to help understand what companies are performing well and why. In 2011, we published the full report, "Achieving High Performance: Reinventing Medical Technology for a Dramatically Different Future."
In 2014, we again applied the Accenture HPB framework to the medical technology industry and included 19 “pure play” global MedTech competitors in the analysis. We also added another 11 companies as an extended peer set of diversified companies. Our analysis spanned 2005-2013, and the results provide deep insight into the industry’s performance and its challenges.
MedTech companies now have the opportunity to truly partner with their customers to deliver comprehensive solutions that increase quality of care and cost effectiveness. To ensure profitability and remain competitive, Accenture has three recommendations for medical technology companies of all types. These include:
Innovate Your Business Model – As product innovation becomes less valued, medical technology companies will need to hike their investments in business model innovation.
Connect With the New Customer – MedTech companies will have to cater to new types of customers by crafting different kinds of offerings—including adjunct services and information-based packages that help customers deal with economic pressures.
Excel at Operational Excellence – Now is the time for MedTech companies to address what many other industries have already faced: the need to scrutinize every process for its value to customers and for ways to increase efficiency.
May 16, 2014
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