Lifecycle Management
New technologies come and go (the life cycle of a specific type or variation of medical device is typically 5months to 10 years (av. 18months), and the same can be said medical device businesses. Consider the typical life cycle of a product, from pre-launch to decline, and its’ relative performance in between. Do businesses achieve or actually maximise sales growth along this entire curve through default or through consciously and strategically reinventing the product and/or service offering and it’s value? In other words, are businesses successful because of themselves or in spite of themselves?
The product lifecycle is a familiar strategic tool describing sales trends over time literally from invention until demand fades. Typically a non-linear growth curve, sales and profit in each stage of a particular product’s life is variable relative to demand and competitive positioning.
Translated into a demand curve, where health technologies are used in relevant interventions, another dimension to this is the application, and the overall clinical outcomes of treatments.
While this life cycle model curve typifies theoretical sales performance, it does not reflect the length of time in each phase, nor variable sales trends and inhibitors within each phase. Different circumstances may arise that may impact sales, creating a “gap” that needs to be addressed, narrowed and ideally eliminated, so as to ensure sustainability of business sales and profit. Life cycle management serves to minimise sales gaps and re-invent growth opportunities using appropriate strategy.
Potential gaps may be anticipated and minimized before product launch, or through anticipating the impact of industry dynamics on the product, and taking necessary tactical action to minimise, if not eliminate them. Also, identifying and understanding the right customer and environmental issues helps predict business outcomes.
BRANDTECH Healthcare Technology Consulting cc offers such a strategic approach to clients for growing business and extracting value through all phases.