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.
1. Humanization of everything
Trailblazers have an opportunity to change the way products are designed and services delivered, empowering patients and providers.
2. Technology anywhere, everywhere
Technology has been the lifeline of the healthcare market during the pandemic. It will continue to be at the center of everything.
3. Data & analytics as an asset
Data is the currency to uncover and create value. More effective use of data will catalyze better outcomes for all MedTech ecosystem participants.
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.
Do your products and services address the total customer experience throughout the provider and patient journey?
Do you use learnings from customers to improve products and experiences?
Does your organization represent customers and patients in a way to deliver on the promises they expect?
Is your technology a liability or an enabling asset?
How many ERP, PLM or CAPA systems does your organization have?
What new technology could you adopt to support an improved customer experience, connected devices, integration and leverage of external data sources and health records, and connect with other ecosystem partners?
Data & analytics
Does your current data strategy and capability reflect that data is becoming the new currency for MedTech?
Are your medical devices designed to capture data?
If so, do you have the enterprise capability to use that data to create better outcomes and new revenue streams?
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.