Over the years, MedTech companies have typically built their products around a standard of care delivery that has proven to be relatively stable. Their products are generally used for episodic care delivered in a physician’s office or hospital.
Altering course could be a challenge for some MedTech companies
Most large MedTech firms have historically engineered hardware products using a linear and sequential waterfall-development approach where the specifications are defined beforehand.
A major product release is typically followed by regular, scheduled updates. In the new, rapidly evolving context of consumer-focused health care, software-oriented products move to the forefront.
Developing and rapidly iterating on these offerings (and continuously learning) will likely require that companies adopt an agile approach that supports smaller and more frequent product updates.
Jumping-off point to transformation
Many MedTech companies want to rapidly identify, validate, launch, and monetize new businesses that can unlock shareholder value and deliver new growth opportunities. We suggest parent company leaders begin this process by using the new context as a jumping-off point for strategic planning. The questions below can help frame the transformation journey:
- Which care locations deliver the best long-term outcomes for the patient, not just the lowest procedure cost?
- How do alternative sites of care (outpatient services, retail services, and home-based services) take advantage of resources to provide more flexibility in care delivery and balance outcomes with the cost?
- What external dynamics are shaping this new consumer-/patient-focused context?
- How does this context differ from the old/existing one?
- How do we build products and services that optimize the experience of consumers?
- How can we quickly learn and adapt to create a competitive advantage?
- What is the most critical uncertainty for the longevity and viability of this business, especially when conditions/contexts change quickly?