Flavia Antonia Cortrie

This is the second part of the article. Should you find out more about the five types of solutions offers that could innovate the medtech sector, please click here . By definition every solution, regardless of its design, targets a specific customer challenge. The key to configuring effective solutions is to understand the customer’s needs, but majority of medtech companies find this as a main obstacle. [1] Moreover, to develop a solid solution, it is important to identify which internal and external factors will shape the solution’s configuration and to what extent. This requires a thorough analysis to nail down the specific factors that need to be considered. Key questions to answer among others are: What is the customer’s challenge? How open is the market for a solution (i.e. mind-set)? How able is the customer to accept a solution approach? What is the level of ownership? How could the solution be monetised? Are there items within the existing portfolio that could contribute to a solution? What are the internal capabilities for selling solutions (e.g. sales force)? Which resources are available for developing and commercialising solutions? Is there any infrastructure (e.g. IT) that could support solution implementation? Solution offering diamonds in the medtech sector More and more medtech companies are introducing solutions to the market. Besides the operator model with the well-known example of full cath lab management, there are various facets of solution offering tailored to the individual company and customer setting. Below, we present two companies that have had considerable success in implementing this framework. Case 1: A leading supplier of fertilisation products developed a solution to increase the effectiveness of its pharmaceuticals. In addition to its drugs, the supplier launched lab technologies and introduced Standard Operating Procedures for labs to ensure process quality. Through this measure, the company...
From the medtech sector’s growth figures [1] and revenue outlook [2] , you would assume the industry’s success is guaranteed. Across the world, the population is aging, pushing up the demand for medical devices. However, as we dig a little deeper into market trends, we see that a positive revenue outlook doesn’t necessarily result in profitable growth. In fact, the medtech sector is below average at improving its margins. [3] What we have seen during the last years, is that market pressures are mounting steadily due to price erosion with increased competition, constrained healthcare budgets and drop in reimbursement rates. In order to face the budget pressure and patient demands for more information and higher involvement, healthcare providers expect medtech suppliers to support them in improving their treatment efficacy and efficiency by going beyond plain product-selling and product related services. Full customer solutions, combining products, services and new business models to solve specific healthcare providers’ problems, offer considerable and incremental value to customers and help medtech companies to differentiate themselves from competition. For this reason the concept of solution offering is on the rise as the Holy Grail for future commercial growth opportunities within the medtech industry. Unfortunately, our experience shows that most companies are unable to fully monetize this opportunity. [4] Five types of solution offers In our work within the medtech sector, we have started to see innovative solution offers implemented – each one helping customers to tackle one or more specific challenges. That does not necessarily mean that these have to be full-blown sophisticated approaches in order to be successful and useful. Depending on the maturity of their core offers and the financial muscle, companies choose the one that suits them best. As such, we have identified five main types of solution offers: Operator model: This solution...