Med-Tech Companies are poised to capitalize on global opportunities; however, they must balance the risks and rewards of globalization. When Axendia’s research team surveyed Med-Tech executives we found that:
- 73% expect an increasing rate of new product introductions in emerging markets
- 72% are globalizing to improve the rate of product innovation
- 65% see the global regulatory environment as the top business threat
- 55% are globalizing to speed up time-to-market
But you don’t have to take our word for it. CEOs from leading Med-Tech companies are turning to emerging markets for double digit growth.
“We also continued to see strong returns on our investments in the emerging markets with combined revenue in Brazil, Russia, India and China growing 35% in the quarter. As we further build our capabilities in these countries, we expect this growth trend to continue…” commented Michael F. Mahoney, CEO & President at Boston Scientific.
“Our international revenue grew 7% in Q4, including 20% growth in emerging markets, with strong finishes to the year, with growth well in excess of 20% in Central and Eastern Europe, Greater China and India. Looking ahead, I believe sustained emerging market growth greater than 20% continues to be a realistic goal,” stated Omar S. Ishrak – Chairman & CEO at Medtronic.
According to Alex Gorsky, Chairman & CEO at Johnson & Johnson “…the emerging markets present significant growth opportunities by growing at CAGR rates double of that of the developed world…”
The Challenge is that global healthcare needs range from broad access to basic healthcare to highly sophisticated care for a narrow fraction of the population. At the same time healthcare models are shifting to from “one size fits all” to personalized care tailored to each patient’s anatomy, therapeutic regimen and expected customer experience.
As a result, medical device companies are at an innovation crossroads. They must seek new ways to develop, design and manufacture products that meet the needs of both the broad market and the individual patient – all while increasing quality of care and reducing healthcare costs.
Med-Tech globalization calls for a new innovation paradigm across ideation, engineering, design and manufacturing processes dedicated to meet customer experiences, cost constraints, and the specific requirements and pricing structure of each segment of the global market.
We refer to this innovation paradigm as a “platform approach” – taking a cue from the automotive industry. Auto makers have been utilizing a platform approach to build cars appealing to a different consumer and price point as well as regional models based on the same powertrain/platform.
“As we build our platform approaches with brands that endure and products that can grow and ultimately lead in the marketplace…”said Johnson & Johnson’s Gorsk. “…R&D leaders are harnessing our deep internal expertise and platform capabilities throughout the organization to develop customer focused solutions that combine our capabilities and expertise across our portfolios,” he added.
Using this approach, Med-Tech companies can offer a continuum of products based on a single platform designed to meet various healthcare delivery models, levels of sophistication, customer needs and market cost constraints. This platform approach allows companies to build on earlier successes with previous generation products and apply continuous improvement using their own device as a predicate.
Leading Med-Tech companies applying these innovation practices to develop customer focused solutions that:
- Improve and create new products and patient experiences
- Resonate with end users, increase adoption and enable better patient outcomes
- Meet global regulatory requirements
- Support value-based healthcare
- Speed time-to-market and profitability
To learn how leading Med-Tech companies are institutionalizing innovation as a business imperative across the global organization, join me for a conversation with industry thought leaders:
- Stuart Karten of Karten Design as he shares firsthand insights on how leading Medical Device companies are improving health outcomes through design and innovation
- Cathi Crist of Kalypso as she discusses how product lifecycle management (PLM) facilitates innovation.
This educational Webinar will be held on Wednesday, Dec. 3rd, 11 a.m. US ET