The MedTech industry landscape is currently experiencing unprecedented disruption. Where and how care is delivered is dispersing and expanding beyond traditional acute care settings. The COVID-19 pandemic has directly affected MedTech sales and revenue as elective surgeries, preventative procedures, diagnosis, monitoring, checkups and rehab have been canceled or postponed. And patient expectations around pricing transparency and personalized at-home care are growing daily.
These rapid changes have created an unfamiliar environment that is demanding faster transformation and an onslaught of new MedTech disrupters. So, it’s imperative that traditional MedTech companies reassess their core business offerings and future products and services with an eye for where and how they will stake their claim.
Three trends will transform the industry
For years, the MedTech industry has successfully brought new products to market through innovative science and engineering, with limited competition. That’s no longer the case. New players are entering the market unburdened by legacy offerings, cost structures and systems. As a result, we see three trends leading toward a transformation of the entire sector.
Challenging today’s business models
Players with legacy structures and operating models are currently not set up to respond quickly to innovative trends or compete with disrupters. Functions from R&D to sales will need to adapt. Here are some questions companies can ask to rethink current business models.
How to transform with purpose
For MedTech companies looking to meet today’s disruption, we recommend:
- Adopting a humanized mindset reset from product design through commercialization. Enable customer-centricity at scale, invest in new, insight-driven talent and embrace partnerships and M&A, all with a focus on customer outcomes.
- Modernizing your technology landscape. Technology is the mainstay of future business growth and operational effectiveness more than ever before. Consider building, buying or partnering to modernize legacy applications.
- Capturing and unleashing data insights. Establish a strong data backbone across the enterprise. Curated data sets can enable new innovations, personalized marketing and pricing optimization leading to new channels and markets.
A piecemeal or half-hearted approach will not ensure business success. With disruptors at the door, MedTech companies must purposely transform—by embracing the new connectivity and focusing on humanization, technology, and data & analytics.