Medical devices 2030
Making a power play to avoid the commodity trap
Unsustainable healthcare costs and new competitors threaten the medical device industry.
While the outlook for medical device companies appears positive, unsustainable healthcare costs and new competitive forces threaten to alter the future industry landscape. If today's manufacturers fail to stake their claim in the evolving value chain, they risk being caught in the middle and becoming commoditized.
The days of simply manufacturing a device, and selling it to healthcare providers via distributors, have long vanished. Value is the new byword for success, prevention the preferred clinical outcome and intelligence the new competitive advantage. In this paper, we discuss the pathway to success in 2030 for medical device companies, following a three-pronged strategy:
- reinvent traditional business and operating models by integrating intelligence, delivering services beyond the device, and investing in enabling technology
- reposition for the future competitive landscape, to adapt to challenges presented by new entrants, new technologies and new markets
- reconfigure your position in the value chain of the future, by connecting directly with patients and consumers (B2C), vertically integrating (B2B) and/or transforming into `one-stop-shops' for care.
The paper looks into the underlying industry dynamics and, using numerous examples and case studies, highlights the exciting possibilities open to device companies.