An alternate—and usually preferred—path for an established MedTech company is to launch a completely separate venture that is underpinned by growth- and transformation-oriented mindset. This will make it easier for the company to take full advantage of opportunities that might arise.
Consider this: A legacy organization currently generates 100% of its revenue. It creates a new venture, which contributes 10% of the organization’s revenue after its first year. Ten years later, that venture should generate 80% of revenue, and after 20 years, it generates 100% of the organization’s revenue. The legacy business is then shut down.
Jumping-off point to transformation
Many MedTech companies want to rapidly identify, validate, launch, and monetize new businesses that can unlock shareholder value and deliver new growth opportunities. We suggest parent company leaders begin this process by using the MReX market research as a jumping-off point for strategic planning. The questions below can help frame the transformation journey:
Which care locations deliver the best long-term outcomes for the patient, not just the lowest procedure cost?
How do alternative sites of care (outpatient services, retail services, and home-based services) take advantage of resources to provide more flexibly in care delivery and balance outcomes with the cost?
What external dynamics are shaping this new consumer-/patient-focused context?
How does this context differ from the old/existing one?
How do we build products and services that optimize the experience of consumers?
How can we quickly learn and adapt to create a competitive advantage?
Forming a new venture has many moving parts, and it is important to select a transformation strategy that provides measurable outcomes throughout the journey. Also important is selecting the right person to stand up and run the new venture.