Last week, Accenture participated in AdvaMed 2014. The event is in its eighth year and is the premier venue for the MedTech industry, with more than 2,300 industry professionals in attendance representing nearly 900 companies and stakeholder groups from 29 countries. During the event, which was held in Chicago at McCormick Place on Oct 6-8, 2014, Accenture attended several sessions which reinforced several key industry themes– namely, that powerful external forces are disrupting the traditional strategies utilized by medical technology leaders to innovate and drive profitable revenue. Companies are facing greater economic pressures, a reformed health care system, new hospital and physician alignments, and new technological challenges. These forces are culminating to create a MedTech innovation disconnect and are forcing leaders across the industry to realign their innovation practices to succeed.
In our latest MedTech POV - The MedTech Disconnect - Realigning Innovation to Succeed - Accenture identified three ways that medical technology companies might improve both their top and bottom lines. These steps—innovate your business model, connect with the new customer, and excel at operational excellence—are helping medical device companies prove their economic value to drive positive financial outcomes while maintaining their commitments to improve patients’ lives.
It was clear from the discussions and plenary sessions during the AdvaMed event that MedTech companies are taking steps to repair the disconnect and are beginning the process of creatively restoring innovation across the industry. In turn, MedTech leaders are capitalizing on the opportunity to truly partner with their customers by creating and delivering comprehensive solutions that increase the quality of care and cost effectiveness of the solutions they provide. They are debunking the innovation myth and we see that high performing MedTech companies are realigning to reward shareholders and ensure success. In fact, the latest AdvaMed Value and Innovation for Life Infographic highlights some of the most innovative solutions created by the industry, helping patients add 5+ years to their life expectancy.
One clear way to achieve this level of success is for MedTech companies to connect in non-traditional ways with the new customer. As economic pressures reshape healthcare delivery and customer business models, medical technology suppliers will need to understand how those shifts alter buyer perceptions. Product features and benefits continue to become less significant, and MedTech value propositions need to change to reflect this shift. Leaders are catering to these new types of customers by crafting differentiated offerings, articulating the value of those offerings to a wider variety of stakeholders, and hiring/training sales reps to successfully partner with a broader set of economically driven stakeholders. These stakeholders are not just physicians and nurses, but economic buyers such as administrators, payers, providers and even patients.