If you read my post last week—“Is innovation out in MedTech?” —you may be thinking that innovation is dwindling in the industry. Not so fast. Despite the medical technology disconnect that our research has noted, companies are discovering ways to innovate based on changes to the healthcare system. How are these companies bucking the trend? It comes down to three ways that MedTech companies can repair the MedTech disconnect.
Innovate your business model
As product innovation becomes less valued, MedTech companies will need to hike their investments in business model innovation. For most companies—those whose offerings are often incremental enhancements—economic benefit will be an increasingly essential justification for adoption. Business model innovations can also mean new ways to streamline the process of health care delivery. For example, MedTech companies could help their customers develop standardization programs, rationalize inventories, improve usage levels and procure more cost effectively.
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. The audience is wider now, too. No longer are MedTech companies just communicating to physicians and nurses, key stakeholders now include administrators, payers, providers and even patients.
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. Do this and your efforts will pay off, likely in the form of increased agility to respond to inevitable future marketplace changes.
While the disconnect between product innovation and financial performance is widening, MedTech companies don’t need to sit and watch their profits vanish. Now is the time for them to act and address this paradigm shift. Those that do will make significant strides toward driving positive financial outcomes and maintaining their commitments to improve patients’ lives.
To learn more:
Read: “The MedTech Disconnect: Realigning Innovation to Succeed.” [PDF 1.4MB]