The Role of Product, Service, and Business Model Innovation in MedTech

MedTech companies in India developed their own vaccines for COVID-19 rather than adapting from other countries. This is because the one-size-fits-all approach will not work in the MedTech industry. Companies need innovation in their products, services and business models to align with specific country’s needs if they aspire for global expansion.

It is expected that the global sales of MedTech will grow by 4% YOY by the end of 2024 and it shows the significance of global expansion. The role of product, service, and business model innovation is crucial in this scale-up process.

Role of Innovation in MedTech Company’s Global Success

Global success of the MedTech companies relies on constant innovation and adaptation. The differences in healthcare infrastructure, regulations, diseases, medications, and medical practices between the countries demand innovation in their services. A product designed for the Indian medical device market might be unaffordable or impractical in other countries.

The MedTech companies should consider the factors like consumer expectations, behaviors, local government needs, and regulations while planning for innovation. Below are the three major areas where the MedTech companies should bring innovation for assured success.

• Products: Development of devices and technologies by understanding the local needs.
• Services: Adapting to different healthcare infrastructure and providing efficient care.
• Business Models: Embracing market requirements and adapting to the changing market needs.

Let’s explore more on the role of product, service and business models in ensuring global success for the MedTech companies.

Addressing Diverse Patient Populations with Product Design Innovation

When it comes to MedTech, every country has its unique needs, preferences and anatomical considerations. For instance, invasive surgical tools are prevalent to medical technology in India. This is due to factors like patient anatomy, surgical preferences, or infrastructure constraints.

Companies should do market research and identify local requirements before designing their products. Bringing innovation in the products after considering these factors will ensure success in the targeted country.

Also, these products will not only be functional, but also serve the purpose of the local needs. This localization will help to foster stronger relationships with healthcare professionals and patients. Product design innovation also extends its role for MedTech companies growth in following ways.

• Companies can capture a huge market share by designing products for underserved markets.
• Innovative products that address unmet needs will open a new market opportunity.
• Products designed to be cost effective can reduce healthcare costs, thereby increasing patients’ satisfaction.
• It can also attract collaborations with reputed research institutions and healthcare organizations.

Some of the future trends that MedTech companies can make use of in their produce design innovation are:

• Integration of AI-powered tools to understand unique patient needs.
• Utilizing 3d printing for custom product design.
• Using telehealth and remote monitoring to improve healthcare access for underserved populations.

Providing Exceptional Patient Care with Service Design Innovation

Service design innovation streamlines operations for the MedTech companies while enhancing patients’ satisfaction. It enables the companies to follow a customer-centric approach which helps to meet customer needs efficiently and improve companies’ revenue growth.

Identifying operational inefficiencies, improving patient outcomes, reducing costs and time to market products are some of the benefits of implementing service design innovation. It also benefits the healthcare services by letting them treat more patients and improving sustainability.

Companies can plan their service design innovation around specific patient groups and create new market opportunities. For example, healthcare technology in India can build its service around elderly people or those in rural areas.

The smart service designs can help to focus on such underserved areas effectively. It helps to check for a regular supply of products in demand and can track vaccines delivered at different locations. These innovations ensure that healthcare is accessible to everyone at nominal costs.

With service design innovation, medtech companies can:

• Build strong patient relationships and foster loyalty.
• Improve patient satisfaction and operational efficiency by implementing advanced tools like AI.
• Scale up their services corresponding to the growth of the company.
• Open new revenue streams like telehealth services.

Some of the recent trends in service design innovation are:

• Introduction of affordable DTC hearing aids.
• Encouraging patients to manage their health using gamification techniques.
• Employing AI chatbots to personalize patient interactions and predict potential health risks.
• Integrating remote care to provide comprehensive care at the comfort of patients.

Meeting Global Market Needs with Business Model Innovation

Business model innovation helps MedTech to find new growth opportunities and improve patient outcomes. New business models can track their patients’ care path that helps in providing increased value to their patients. The innovative business models follow a patient-centric approach rather than focusing on products and aids in addressing patient’s unmet needs.

Value-based care model is one such business model innovation that focuses on better patient outcomes. It is designed to drive innovation in technologies that meet patient’s clinical needs while saving their costs. The other benefits of implementing business model innovation are:

• Exploring new revenue models like pay-per-use subscriptions and risk sharing leases.
• The patient-centric model will enhance customer loyalty.
• Companies can create unique value propositions to stay competitive.
• Along with the product innovation, business models can ensure sustainable growth.
• It can help to offer the most cost-effective healthcare services.

Companies can consider the following trends for their business model innovation:

• Embrace advanced technologies like AI and machine learning to create personalized health care models.
• Introduction of subscription-based models.
• Switching from product-centric to patient-centric and outcome-based approaches.

Bottom Line

MedTech has a crucial role in the healthcare industry. The product, service and business model innovation in MedTech can empower companies to adapt evolving market dynamics, create competitive advantages, and drive positive change in the healthcare industry.

These innovations can also help companies for increased revenue growth, they also provide customer loyalty by making healthcare access affordable. Considering environmental sustainability while implementing innovations can make companies stand out from the competition.

The single-use disposable products used in medications contribute to a large amount of non-recycled wastes. Innovations through designing end-of-life products, value chain partnerships in services, and business models encouraging take-back initiatives can be used to ensure sustainability. From geographical discrepancy to rising costs in healthcare can be eliminated in the future using these innovations.