The next frontier of value creation
Product innovation alone as the competitive differentiator in the medtech industry is no longer sufficient to drive a sustainable advantage when considering the evolving healthcare ecosystem, rise of low-cost and non-traditional rivals, and technology advancement. Successful business models require a holistic systems approach to innovate and optimize product offerings, services, monetization model, commercial model, delivery model, and other internal operational processes. A properly designed business model can stand the test of time and create a profound business impact.
While medtech is still in the early stages of adopting new business models, pioneering companies have experimented with a wide range of new models such as subscription, risk-sharing, vertical integration, and platform-based models. This short article series will take a deeper dive into challenges and windfalls of business model innovation and address, 1) What exactly is a Business Model and 2) Why is Business Model Innovation So Hard? (Part 2 is linked at the conclusion of Part 1)