The medical device industry has always depended on product innovation to drive growth. Industry is poised for a sustained period of extreme growth fueled by a level of innovation that is scheduled to accelerate. Most companies are growing. Nearly all are innovating at an increasing pace. The common challenge is how medical device manufacturers and their suppliers can simultaneously improve their financial performance, product innovation, and quality while growing at a significant speed.
Cambashi and its partners conducted a market study to address this challenge, with an objective to seek out best practices that maximize the chance for success – improving profitability within an environment of accelerating new product introductions while maintaining high quality standards. Based on the survey results, only a quarter of the respondents are able to achieve this level of performance.
This report is based on primary research conducted during the first half of 2012, with responses from medical device and life science manufacturers and their suppliers. It includes fresh data from a representative cross-section of this industry. Included are several sets of information designed to assist the industry in crafting strategies to not only grow, but to simultaneously increase business performance in areas such as costs, earnings, net operating profit, and return on assets.
1. Profile of “Advancers”
2. Strategies for Success
3. Advice from Peers
The medical device industry has enormous promise but is relatively immature in some of its business practices. As companies grow, and learn, we expect the competitive hurdles to rise. Advancers are already pushing higher expectations for customers, suppliers, employees, and shareholders. Every company in this industry must move beyond making trade-offs and into a culture of improvement and profitability to take full advantage of the unprecedented future worldwide opportunity.