The ‘New Normal’ Change is never easy, but it doesn’t have to be paralyzing, ei

The ‘New Normal’

Change is never easy, but it doesn’t have to be paralyzing, either. It’s no secret that the medical device industry is slow to embrace change—it took the sector decades, after all, to warm up to the idea of outsourcing. But there are changes in the industry—namely, tighter regulation, pricing pressures and strict quality standards—that are not going away. The industry must get used to these changes (they are the “new normal,” according to finance and medtech experts) and welcome them rather than hoping they quickly pass. The industry also needs to reinvent its business model, perhaps experimenting with new research and development, commercial and customer service paradigms to find the magic formula that will return the sector to its glory days.

“The companies best positioned for success will be those that develop new offerings and solutions most relevant to a changing ecosystem,” states a report from global advisory services firm Ernst & Young. “Medtech companies have always taken on risk to innovate new products and technologies. Going forward, one of the biggest risks may be the failure to innovate beyond the product and develop new offerings in new ways.”