Digital transformation, happening in many industries these days, is the shift to integrating technology into the previous regular operations of that sector. From the name itself, it seems as though the MedTech industry has already been digitally transformed, because devices and technology are front and center in the industry. Contrary to that, there are still plenty of MedTech companies undergoing digital transformation, both in how they plan, develop, and position their products, and how their company itself runs. The driving force behind undergoing digital transformation is competition. Businesses are using their new technological integrations to do all their business better and faster using advanced data analytics. And to stay competitive, companies need better pricing and product strategies, which are accessible through thorough data analysis of their performance. Some of the main opportunities for applying digital transformation effectively for MedTech companies are the following: pricing and strategy, workforce and collaboration, and delivery of product.
Pricing and Strategy
Understanding where a certain MedTech product lies in the field of available products is key to understanding the value proposition and important features of that product. Take the recent rise in wearable technology. Each device in the market has its unique branding and strategy for how users can expect to use the device, and what tracking and features make that product stand out from the rest. If each device is marketed the exact same way, with the exact same pricing to it, consumers would use arbitrary attributes in order to make their decisions. To best understand the users and what they need, data can be collected from potential or current wearable tech users. This feedback can be integrated into the positioning and marketing strategies to best set a product apart from the rest.
In this manner, customer feedback and subsequent integration can also help better place price points for products. If companies can better understand how much a potential customer would pay to solve a current need they have, companies would be able to price their product more effectively, so that the purpose and price align to drive more purchasing. This would then lead to more effective development pipelines that understand the return on investment (ROI) based on the features that are more popular or necessary for the product users. Leadership teams could use this in order to better plan business strategies for the future and for the long-term, based on relevant user feedback data.
But with such a wide range of customers served by the MedTech industry, feedback would need to be collected from a variety of audiences, from patients to physicians and from pharmacy techs to clinical trial researchers. Gathering and harnessing this data for business decisions is where digital transformation comes into play. Parsing and analyzing silos of data and being able to turn those distinct data points into useful insights into the market landscape required powerful analytics, usually powered by artificial intelligence and machine learning. This way, the data can effectively be summarized into trends and understandings of the “what” and “why” behind how customers purchase products, and companies can have reliable data on which to base their decisions and planning.
Workforce and Collaboration
Digital transformation within a company itself can lead to a more effective and productive workforce and development pipeline. As we’re seeing the healthcare industry evolving to become more digital, so too are all industries connected to healthcare slowly digitizing their practices. According to a recent survey by SYSPRO, “two-thirds of [MedTech] businesses said that they could ultimately operate effectively based upon digital initiatives that they had undertaken.” Digitization allows for more seamless collaborative and innovative work across companies, which leads to better products and business outcomes down the line. By starting with a solid foundation of digital integration for companies, employees are able to more effectively get their work done and plan for the future.
And the stability of digital transformation is never more apparent than during a global pandemic, where all work in MedTech quickly shifted to remote and virtual. The MedTech companies who had already undergone a digital transformation were better able to weather than pandemic, because they were already on a solid foundation of productive and effective digital work across the company.
Delivery of Product
The digital transformation of a supply chain for MedTech companies is the most complex piece of transition for this exercise, but also the most effective and actionable. By shifting to a digitally driven supply chain, companies can not only track data in various disparate areas of the chain, but they can also analyze the data across the board to see how the digitization and interactions across the supply network lead to higher efficiency. According to the same SYSPRO survey, during the pandemic, 60% of respondents reported that their businesses were affected by supply chain disruptions and 47% of businesses were unable to function due to staff needing to be on-site to access their respective software. Through digital transformation and strategic planning, the same supply chain work could be accessible and possible from anywhere, leading to a safer and more secure business model, better equipped to handle any adverse events.
A traditional supply chain consists of a linear process, ranging from development and planning, to sourcing and production, to delivery and user support. But in the digital version, all these different areas can better talk to and support each other, through a digital core of all of the available data. Plans in the development pipeline can inform better sourcing and production, and impact future ideas for those areas. Common issues in user support can easily feed back to informing the production and even development areas in how to avoid such issues in the future. Because all of the supply network data is digital, it’s easier to see a bigger picture of all of that data at once and see opportunities to utilize it holistically to drive business growth and decisions.
The Power of OSG in Digital Transformation
Digital Transformation is a complex, and often intricate, project for a business to undertake. Since the whole process is about reshaping a business from its very foundations to being more technologically driven, digital transformation takes time and expertise in order to do it correctly. Here at OSG, we’re equipped with the tools and data analytics to create order from the chaos of such an elaborate undertaking. Let us help your business focus on customer centricity while transitioning to more effective and digitally information planning for future development. Our solutions o360 and PatientX360 are designed for getting a 360 degree view of your customers and business, in order to give you the best understanding of opportunities for innovation and evolution. Reach out to us today!