The human body is noted as the biggest data platform — and big tech is already in the game. With a recent push away from therapeutic devices into analytic-based solutions, huge players, like Amazon, Apple, Alphabet, CVS Health, and many more are developing new ways to deliver on-the-spot, high-quality care from anywhere in the world.
Unfortunately, even with constant research and new investments, Medtech is feeling the repercussions. At this year’s medtech Conference, Ernst & Young published a recent report, Pulse of the Industry 2018, which found Medtech revenue growth increased by just 4 percent to $379 billion.
To many business leaders, this is a large amount of revenue. However, for this medical field industry giant, the 4 percent increase marked the 10th consecutive year for single-digit revenue growth. This sharp decline is from 15 percent average annual growth achieved from 2000 to 2007.
With technological advancements being made in the medical industry each day, it’s hard to imagine such a drastic decrease in Medtech’s numbers. So, what gives?
It turns out, even a seemingly untouchable industry, like Medtech, can be impacted by those powerhouse corporations. Big tech has been eyeing-up healthcare as an immensely profitable space for years — and the threat of their invasion on Medtech territory continues growing. But the Medtech industry isn’t the only one dealing with relentless and intrusive competition.
Whether it’s big corporations or a competitor coming in down the road, all companies are susceptible to succumbing to the pressures of competitive business. When facing disruptors in your own industry, take a note from Medtech and keep pushing forward, no matter who you’re up against.
Here are three crucial lessons you need to learn from the Medtech vs. the big tech tug-of-war:
Dive into a digital transformation
Thanks to the accelerating pace of business changes, company leaders in virtually all industries no longer have time to assess their competition, develop strategic plans, and eventually adopt new strategies.
Instead, 90 percent of businesses around the globe are implementing formal digital transformations, according to a survey of 573 global business leaders by Forbes Insights, How to Win at Digital Transformation. Medtech companies are doing just that by using the industry’s digital transformation to create even deeper, more powerful connections with customers. As a result, they’re creating fierce customer loyalty — something that’s become a necessity beyond offering quality products.
Disrupt and transform your own existing practices to create individualized experiences for customers and clients. By digitally connecting with dedicated customers now, you’ll be better equipped and prepared when ready-for-battle competitors hit the market with new products.
Before setting your plan in stone, get insights from both inside and outside of your company walls. Empower current customers and consumers by polling them on what digital capabilities would enhance their experience with your company and their lives, overall.
Then, reach out to your team. Ask them to look at every angle of how data and digital capabilities will propel your company into the future. At this point, you can begin looking at the most efficient and effective ways to invest and evolve.
Get over the fear factor and focus on long-term goals
The bottom-line. You must focus on the numbers, of course. But this focus is heightened to an often detrimental degree when a major disruptor comes to town. As Medtech companies race to battle big tech, they focus on short-term gains, such as buybacks and tuck-in acquisitions.
However, as Pamela Spence, EY Global Life Sciences worded it in a press release for the above Ernst and Young report, “…as the shift of power from providers and payers to patients and consumers continues, this business-as-usual approach no longer works.”
This means, as disruptors are breaking into their territory, Medtech must disrupt their own strategies to survive. The same applies to any other industry.
Even when bottom-line numbers are cause for concern, take a step back and consider long-term goals. Rather than racing to find small gains wherever possible, put your research and development team to work. Use the insights collected by consumer testings to develop customer-centric products.
As you journey on the path to long-term growth, keep your data updated. Consumers aren’t only looking for new technological products. They want to see an increase in analytics and data to prove your products are centered on and capable of meeting their needs.
If a disruptor isn’t a cause for concern yet, get proactive. Set aside company funds for paying bills, salaries, and other necessities to keep the company running without a hitch. Should times get tough, you’ll have a nest egg ready to take your mind off of those pesky short-term goals and gains. This will give you room to push fears aside and bravely focus on what’s ahead.
Prove you’re an Industry 4.0 leader
Once upon a time, you were able to provide your team with an educated guess of your competitors’ business plans. Even better, for the most part, you knew who your competitors were and if someone new hit the market, it took them a while to catch up to your success.
In today’s constantly changing technological world, however, this isn’t the case. Look at medtech, for example. Unexpected competitors are popping up all around. And those competitors are well-established, wealthy companies prepared to aggressively take action in the healthcare sector.
As the trending term Industry 4.0 quickly catches on, it’s critical you brand yourself as a company prepared to develop with it. Industry 4.0, representing a fourth manufacturing revolution denoted by the smart and autonomous systems powered by data and machine learning, is accelerating in popularity with the general public.
The more well-known the term becomes, the more consumers will be researching your ability to continue developing with evolving technology. Remaining stagnant and ignoring the relevance of AI trends in your field will welcome new disruptors into your territory — and beyond.
Prove you’re prepared for Industry 4.0 and excited for all the possibilities it will provide. Share plans for new developments with consumers and even bring them in on development decisions, when possible. Ask your team to post fun selfie videos, sharing their role in product changes and their excitement for what each alteration means for consumers.
How are you preparing for the changing medtech trends? Let us know!