Explore how Medtech companies are reinventing their strategies for growth, harnessing digital innovation, and transforming operations to thrive in a dynamic global market.
Navigating Value Creation and Innovation
Medtech companies have historically delivered innovation centered on patient care. However, in the face of recent market disruptions and a challenging macroeconomic climate, these companies need to reinvent themselves across multiple dimensions. A critical aspect of this transformation involves reimagining research and development (R&D) to drive sustainable growth. Effective R&D is no longer just about funding but also about developing and managing a compelling R&D portfolio, adopting agile practices, and utilizing next-generation digital tools.
Harnessing Software Innovation
The integration of software is becoming a key driver of growth in medtech. Companies are encouraged to shift their product development approaches and operational models to function like software firms. This transformation involves building robust tech stacks, adopting best practices in software development, and strategically sourcing intellectual property and talent.
Digital Health Ecosystems
The advancement of digital health ecosystems offers significant opportunities. Medtech companies can play a larger role in these ecosystems by leveraging their devices and data assets to improve care outcomes. The COVID-19 pandemic has accelerated the development of digital remote-management solutions, which is an area ripe for growth and innovation.
Building a Next-Generation Commercial Model
To transform their commercial models, medtech leaders should focus on building foundational capabilities, creating an omnichannel customer experience, and harnessing the power of ecosystem selling. This approach is crucial for resilience and identifying strategic customers and high-potential opportunities.
Reimagining Operations
Operations are becoming a differentiating factor for medtech leaders. Targeted initiatives to rebuild supply chains with resilience as a priority and capturing the full value of digitalization are essential. This involves driving innovation with a design-to-value approach and redesigning manufacturing and distribution networks to balance costs, increase flexibility, and expand market access.
Commitment to Environmental, Social, and Governance (ESG)
ESG considerations are increasingly influencing stakeholder decision-making. Medtech companies can differentiate themselves by focusing on objectives such as achieving net-zero emissions, addressing health inequities, and promoting diversity, equity, and inclusion in the workplace.
Adapting to the Post-COVID M&A Environment
In the current macroeconomic environment, M&A can improve value creation for medtech companies. However, they need to adapt their approaches to dealmaking, focusing on earnings growth and selectively targeting programmatic M&A. Investing more in corporate venture capital to access early-stage innovations could also be beneficial.
Competing in Global Markets
Competing in global markets, especially in rapidly growing economies like China, necessitates a heightened focus on adapting to local market dynamics and cultural nuances, a factor that proves to be of paramount importance for businesses seeking to gain a foothold and thrive in such diverse and evolving environments. Medtech companies should consider expanding their presence in these markets, either through direct investments or strategic partnerships.
Embracing Hybrid Sales Models
The future of medtech sales is increasingly leaning towards hybrid models. This involves a combination of remote and field sales to develop and close deals and provide after-sales support. Medtech companies should focus on talent acquisition, training, and developing a robust sales organization that can thrive in a hybrid selling environment.
Strategic and Corporate Finance
A deep understanding of value pools and trends in the industry is vital. Medtech companies must engage in initiatives across portfolio strategy, innovation, growth strategy, and transactions to stay ahead of the curve. Implementing these strategies effectively requires a thorough knowledge of disease treatments and health systems.
Medtech companies are at a pivotal juncture where they must adapt to emerging trends, leverage digital transformation, and focus on innovative strategies to sustain growth and stay competitive.
