To succeed at business model innovation, companies will need to build new capabilities, including:
- Focusing on capital efficiency to use scarce resources wisely.
- Initiating ecosystem-wide scanning to better understand a changing health care environment.
- Fostering collaborative cultures to tap the strengths of diverse players.
- Becoming open data enterprises to pool data and develop insights.
- Adopting disease/value pathways to identify and fix "value leakages."
- Using scalable processes with appropriate metrics for robust business model innovation.
Patrick Flochel, EY's Global Pharmaceutical Sector Leader concludes: "The medtech industry faces significant challenges, but for companies that can deliver differentiated health outcomes in cost-efficient ways, there are strong opportunities for growth.
Clearly, firms need new capabilities, but they can also redeploy existing strengths which will be very useful in the new health care environment: customer-centric design, the ability to identify and fill gaps for customers, and medtech's core strength in engineering new solutions for complex challenges. In doing so, they will do much to restore the trust of customers and investors, which will make business model innovation easier in future."
Notes to Editors
How EY's Global Life Sciences Center can help your business
Life sciences companies — from emerging to multinational — are facing challenging times as access to health care takes on new importance. Stakeholder expectations are shifting, the costs and risks of product development are increasing, alternative business models are manifesting, and collaborations are becoming more complex. At the same time, players from other sectors are entering the field, contributing to a new ecosystem for delivering health care. New measures of success are alsPage: 1 2 3 4 Related biology technology :1
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