With the rising need to delicately balance medical devices’ security and patient safety, the medical equipment industry is facing several challenges like reducing costs, better demand management, improving efficiency, and allocating resources effectively. The need for following demand management best practices is increasing for medical devices manufacturers due to the surge in the demand for better healthcare products.
Poor demand management can result in operational inefficiency and issues pertaining to fulfilling orders, which emerges concurrently with an increase in the demand. Additionally, it can also lead to a loss of space, time, and can increase the operations cost. Therefore, it is important for medical devices manufacturers to follow some of the demand management best practices that can help them in tracking the medical devices better and stay ahead of their competitors.
At Infiniti Research, we understand the impact that following demand management best practices can have on your business. And to help companies manufacturing medical devices, our team of experts has highlighted three demand management best practices that companies must follow to improve the efficiency of their supply chain, reduce forecast errors, and become market leaders.
With an enormous market size of $156 billion, the medical device industry in the United States remains the largest in the world. Companies in the medical device industry consist of articles, instruments, apparatuses, or machines that are used in the prevention, diagnosis or treatment of illness or disease, or for detecting, measuring, restoring, correcting, or modifying the structure or function of the body for some health-related purpose. Although patients are the end-users of medical devices, manufacturers ideally focus their efforts towards selling their products to healthcare providers who in turn use them to serve the needs of patients.
Majority of the companies in the US medical device industry are concentrated in regions known for other high-technology industries, such as microelectronics and biotechnology. The states with the highest number of companies in the medical device industry include New York, California, Florida, Michigan, Pennsylvania, Massachusetts, Minnesota, Illinois, and Georgia. Compared to several other industries including telecommunications, automotive, and defense, the medical device industry invests a higher percentage of their yearly revenues into product innovation, reflecting the competitive nature of the industry and constant innovation and improvement requirements of existing technologies.
Medical device reimbursement is the payment made by a third party private or public insurer to a health care provider in exchange for the costs or payments incurred by the provider for performing the required procedure or using a medical device. There are three goals for any medical device reimbursement strategy, universal coverage from all insurers in all patient care settings, adequate physician and institutional reimbursement, and unambiguous coding. Reimbursement is the primary issue on every investor’s mind, and it is one of the first things healthcare companies think about when developing new products or medical devices. If the coverage under medical device reimbursement has no certainties, it becomes very difficult for companies to analyze the return on investment. This obstructs venture funding and also limits innovation. Consequently, it pulls back the patients from leveraging the benefits of advanced and new technologies. Thus, medical device reimbursement and coverage of payers play a very important role in making or breaking a medical device. There are several challenges associated with medical device reimbursement for manufacturers, which varies from countries to countries. In this article, we have listed down some of the most common challenges that every manufacturer faces in medical device reimbursement. Also, we have suggested a few solutions to deal with those challenges.
Clearly, with all the changes in recent years in the medical device industry, establishments are trying to stay up to speed with all the new and revised regulations and requirements. Moreover, because of the ever-fluctuating regulations, establishments in the medical device industry feel fairly restricted when it comes to adhering to new compliance terms. Just when we understand and begin to comply with the new “rules”, the rules themselves seem to shift and change.
Additionally, the FDA regulated medical device industry has been facing revenue and profitability challenges. Multiple factors pressuring the medical device industry’s revenues include increased clinical and regulatory standards, increasing overheads and R&D expenses, reductions in reimbursements, increased complexity of medical devices, and more demanding and diverse customer base.
- The client: Cardiac pacemaker manufacturer
- Size: >$8 billion in revenue
- Area of Engagement: Market Segmentation
The client – a leading manufacturer of cardiac pacemaker based out of Massachusetts, United States – approached Infiniti to conduct a comprehensive market segmentation analysis to target the right customers and develop a new product strategy for the Asian market. The manufacturing company wanted to gauge information on the potential of the Asian market and introduce their offerings in the market space. Furthermore, the client wanted to understand the factors hindering the growth of the market and devise effective strategies to introduce their offerings in the medical device industry.
How Can Market Segmentation Engagement
Market segmentation analysis helps companies in the medical device industry to define markets and effectively allocate resources. Through a robust market segmentation analysis, companies can identify target groups and efficiently market them to a set of targets. Furthermore, conducting an effective market segmentation analysis allows companies to discover niche segments and business opportunities and devise new ways to position their products across the target segments.
Summary of our market segmentation solution
To help the cardiac pacemaker manufacturer plan actionable strategies to develop new products and efficiently reach out to the Asian market target segments, the market segmentation experts at Infiniti carried out a blended approach comprising of interviews and discussions with leading stakeholders across the medical device industry. The experts further collated information from various proprietary sources such as hospitals and healthcare aggregators to identify target groups and aggressively market to these defined segments.
The Solution Benefits and the Business Impact
By understanding the latest developments in the cardiac pacemaker market space, the client was able to position their products across the Asian market. Additionally, the client was able to identify ways to segment and approach the market in an effective manner. Infiniti’s market segmentation engagement further assisted the client to identify the potential competitors and devise effective marketing strategies to target well-known end users of cardiac pacemakers. This further helped the client improve competitiveness and profitability.
In the coming years, cardiac pacemakers are expected to be automatically programmed according to patients’ physiological needs, particularly the magnitude of the current applied to the ventricle and automatic adjustment of stimulation amplitude. Additionally, leadless cardiac pacemakers are in trial implementations, and researchers are learning ways to harvest bodily energy to recharge a pacemaker’s battery.
A must-read case study for strategy specialists and decision makers looking to develop an understanding of the cardiac pacemaker market
The spending on commercial health insurance grew 4.4% to $991 billion in 2014, or 33% of total national healthcare expenditures, while out-of-pocket expense rose 1.3% to $329.8 billion, or 11 % of domestic healthcare expenditures.
The global healthcare industry comprises of sectors including pharmaceuticals, medical wearable devices, and medical imaging. The spending on healthcare and medical devices has been radically increasing in recent years, and stakeholders in the medical wearable devices are facing the need for technology and operational efficiency to address the social determinants of health. Additionally, with the recent shift from a volume-based to a more value-based environment, players in the medical wearable devices space are facing the need to deploy innovative care delivery methods to meet the relentless demand among the consumer segment. The industry is also largely influenced by factors as such:
- Innovations: Leading organizations in the medical wearable devices space are concerned about offering advanced medical assistance while compromising on the costs. To address such concerns, leading businesses must rely on R&D and innovations to improve healthcare outcomes and reduce costs.
- Increasing spending on healthcare: The overall spending on healthcare services is increasing owing to the incidence of several macroeconomic factors such as increasing aging population and the growing prevalence of chronic disorders. Therefore, to meet the rising needs of the end-user segments, organizations are facing pressures to bring about robust clinical innovations to improve their service levels.
To combat such factors, organizations in the medical wearable devices space are leveraging market opportunity assessments. Market opportunity assessments provide firms with a better understanding of the overall market scenario by categorizing the market in terms of products and services. Additionally, with shifts toward a more consumer-driven economy, market opportunity engagement assists companies in sustaining the challenges and the barriers to entry.
The Business Challenge
- The client: Medical wearable devices manufacturer
- Size: >US$ 9 $billion in revenue
- Area of engagement: Market opportunity
The client, a leading medical wearable devices manufacturer with retail units spread across the globe, wanted to profile the prominent competitors and devise an accurate go-to-market strategy and business strategies. The client also wanted to identify the potential barriers to enter niche market areas and understand the market sizing and growth projections of the wearable devices industry. Furthermore, the client wanted to categorize the demand-supply scenario for their offerings and accordingly tailor resources.
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Infiniti’s market opportunity experts carried out extensive research comprising of interviews and discussions with leading stakeholders across the medical wearable devices space to help the client improve business efficiency. The experts at Infiniti further compiled information from a wide array of secondary sources such as paid industry databases, company presentations, and industry forums to help the client understand the competitive scenario.
The Solution and the Business Impact
With the help of Infiniti’s market opportunity engagement, the medical wearable devices manufacturer identified potential market opportunities and was able to meet the needs and requirements of the customers. This engagement also helped the client design a robust go-to-market strategy by considering the data gathered from SWOT analysis. This helped them gain a holistic understanding of the market and improved their offerings.
Although wearable devices are not yet a mainstay in the healthcare field, most medical device providers are adding wearable components to their product lines. Additionally, to grasp the impact of this trend, firms have to understand how it differs from widely-used consumer products, the market drivers causing the demand and, perhaps even more important, what is powering these devices.
A must-read case study for strategy specialists and decision makers looking to develop an understanding of the medical wearable devices industry.
Today, the healthcare sector is shifting toward a customer-oriented environment to offer fast, reliable, and cost-effective diagnostic services to the patients. Also, with the growing concerns pertaining to the availability of good healthcare facilities, governments across the globe are implementing certain initiatives to offer favorable treatment options. In the hospital segment, cardiac pacemaker plays a pivotal role in addressing concerns pertaining to treating life-threatening cardiovascular diseases. To effectively counter cardiac conditions and go on par with the rising need for heart rate management devices, renowned manufacturers in the medical devices space are facing the need for a customer segmentation study. With the help of customer segmentation services, businesses in the cardiac pacemaker space can profile the potential customers and focus their marketing efforts on a broad range of customers. Moreover, in the cardiac pacemaker space, businesses can understand customers’ buying characteristics and devise a robust business strategy to target new demographics.
To differentiate customers and implement a value-based approach, renowned companies in the cardiac pacemaker space are approaching companies like Infiniti. Infiniti’s customer segmentation study helps companies discover the needs and preferences of the customers and drive marketing efforts to target specific customer segments. Moreover, companies in the medical devices space can identify key differentiators and tailor their resources to maximize cross and up-selling opportunities.
The Business Challenge
A renowned cardiac pacemaker manufacturer with a considerable number of manufacturing units spread across the globe was facing certain predicaments profiling potential customers and maintaining robust customer relationships. The cardiac pacemaker manufacturer wanted to improve customer services and enhance loyalty and retention. With the help of a customer segmentation study, the client wanted to divide customers into segments based on their needs and behaviors and relatively stay ahead of the competition.
The primary objective of the engagement was to determine the most and the least profitable customer segments and allocate their marketing budgets accordingly.
Want more information about our customer segmentation services?
To assess the buying patterns of the customers, Infiniti’s customer segmentation experts carried out extensive research methodology comprising interviews and discussions with prominent stakeholders in the medical devices market space. Also, to better understand the innovations in the cardiac pacemaker space, our experts further compiled information from proprietary sources such as paid industry database, company presentations, media aggregators, and newsletters.
Benefits of Customer Segmentation Solution:
- Understood the buying characteristics of the customers and anticipated the most profitable customer segments
- Tailored the resources accordingly to precisely meet the needs of the customers
- Improved customer service and enhanced customer loyalty and retention
- Identified new products and designed products to meet the customer expectations
- Effectively determined the profit potential of each segment by analyzing its revenue
Benefits of Our Integrated Approach
The customer segmentation solution offered by Infiniti helped the cardiac pacemaker manufacturer identify the most and the least profitable segments and accordingly allocate resources. Also, the engagement further helped the client address concerns pertaining to customer attrition and customer retention capabilities. With the help of the engagement, the cardiac pacemaker manufacturer was further able to segment customers into different groups with similar needs and maximize their ROI.
A must-read case study for strategy experts and decision makers looking to to target new demographics for medical devices.
The medical device industry is under pressure to offer healthcare and medical assistance to patients at affordable prices, thanks to the growing competition and technological advancements in the market. One of the factors that has increased the level of market competition is the ever-changing consumer needs and expectations from the healthcare industry players and the entry of new medical device manufacturers in the surgical instruments landscape. The only way to stay abreast of the latest trends and developments in the medical device industry and tap the hidden growth potential in the market is to undertake market opportunity assessments. But what are the benefits of the market opportunity assessment for the surgical instrument manufacturers in the medical device industry, you ask? Here’s what.
Market Opportunity Assessment Benefits the Medical Device Industry
A thorough market opportunity assessment can help organizations in the surgical instruments landscape to gain a strong foothold in the competitive market environment and meet the growing needs of the healthcare industry. The medical device industry can effectively develop products and services that resonate with their target customers as it’ll help drive business sales. The surgical instruments manufacturers can make use of business intelligence and market intelligence tools to identify the potential market risks and new market entry barriers to devise effective risk mitigation strategies. It is extremely essential for the surgical instrument manufacturers to gain in-depth knowledge about the industry’s competitive landscape and assess the market attractiveness. Apart from this, a market opportunity assessment helps surgical instruments manufacturers to devise fool-proof go-to-market strategies and retain their market shares in the medical device industry.
Recently, Infiniti Research helped a leading company in the medical device industry to assess the market and competitive landscape, current product offerings, and build robust market entry strategies for the medical device manufacturing space. Read the complete case study here.
The Infiniti Way
The rule of thumb to survive in the market, create lasting impressions, realize business objectives, and drive profitability is to listen, identify, and analyze customer and market information.
“In this dynamic and competitive market environment, it is essential for organizations to gain an in-depth knowledge of their target customers and leverage these insights to improve their decision-making process.” says a leading senior market analyst at Infiniti Research
With more than 14 years of experience, Infiniti Research has worked with several clients across the globe and provided various business intelligence services that has helped them make strategic business decisions wisely. We have worked with over 120 plus clients, including 55 Fortune 500 companies and helped them build capabilities and drive bottom-line growth by leveraging the constant influx of information and data. With the help of our team of expert analysts and consultants, we strive to complement our client’s business objectives to discover growth opportunities and drive business excellence.
To know more about market opportunity assessment in the medical device industry
- Impress Your Investor with a Thorough Market Analysis
- Competitor Analysis and Market Intelligence in The Medical Device Industry
- Market Access and Reimbursement System in the British NHS
Today, the medical instruments landscape is facing relentless pressure to offer immediate medical assistance to customers at affordable costs. Also, with the ever-changing demand for surgeries, the medical device space is witnessing the entry of a considerable number of players. To stay relevant in this competitive environment and meet the rising needs of healthcare, leading organizations in the surgical instruments space are advocating the need for robust market opportunity assessment. Market opportunity assessment helps leading brands effectively connect products and services with the customers. Through a robust market opportunity engagement, organizations can understand the potential challenges and barriers for their entry across niche market segments.
For the sustenance of every organization, it is indispensable to understand the competitive landscape and market attractiveness. With years of expertise in offering a plethora of services, Infiniti’s market opportunity solutions helped the client understand the current market landscape in terms of the market requirements and SWOT analysis. Moreover, our solutions helped the client gain accurate and actionable data on the surgical instruments manufacturing space and devise an effective go-to-market strategy.
The Business Challenge
Today, several organizations in the medical industry are highly relying on market opportunity assessments to identify potential risks to penetrate across niche and targeted market segments. Like similar other organizations in the medical device space, a renowned surgical instruments manufacturer was facing a predicament understanding the pain points and unmet needs in the market and the potential market opportunities.
The client wanted to assess the market landscape in terms of the competitors, their current offerings, and devise an effective go-to-market approach to effectively reach out to the target segments. Furthermore, the client wanted to bridge the barriers for the entry or market growth and implement robust business plans to retain their current foothold in the surgical instruments manufacturing space.
To understand the behavior and preferences of the customers, the client approached Infiniti’s market opportunity assessment experts. Infiniti’s analysts carried out a blended approach comprising of interviews and discussions with leading stakeholders in the surgical instruments manufacturing space. In addition, the experts further crafted a dashboard collating information across various proprietary databases such as paid industry databases, company presentations, magazines, and newsletters in the medical device manufacturing space.
Market Opportunity Assessment Solution Benefits:
- Identified the market landscape in terms of the key competitors, the trends, and market drivers
- Validated the potential market opportunities and gained insights on market size estimates
- Identified the market requirements and the barriers to entry
- Gained actionable insights on the existing pain points and unmet needs prevailing in the market
- Understood the relative strengths and weaknesses of competitors
- Gained information on the purchase cycles, purchase history, and the willingness to invest
Benefits of Our Integrated Approach
In a span of eight weeks, the client was able to segment the market based on customer preferences and develop a go-to-market strategy. Also, the client was able to focus their efforts on core business competencies and ensure adequate market segmentation and forecasting for the specific products and offerings.