Effective innovation and product development (I&PD) can be fundamental to the value that market-leading medical device companies deliver to patients and customers. They have realized that it’s not a question of whether they should have an I&PD strategy, but how they can leverage it best.
Unearthing answers to that question often requires navigating a few challenges. Increasing I&PD costs have put pressure on the medtech industry to improve their return on investment. In fact, recent Deloitte research found that life sciences companies experienced the largest drops in return between 2011 and 2017 among the sectors studied during that time period. But product portfolios and market environments are complex and vary by company, making it difficult for medtech companies to compare their own performance to other companies in the industry.
Since 2018, Deloitte has collaborated with AdvaMed to collect data from medtech companies to underpin performance benchmarks for companies to assess and improve their I&PD performance. Specific financial and operational metrics allow direct and objective peer-to-peer benchmarking at the business unit/divisional levels. We also establish a framework of metrics that companies can evaluate over time, including measures related to revenue growth, portfolio investment, and execution performance.