Strategic partners specializing in lifecycle management can provide the skills and resources that medical device companies need to keep up with the demand for efficiency and innovation, according to a whitepaper from healthcare research firm Frost & Sullivan.
According to the report, innovation is the key to success for medical device companies. "Not only must companies produce superior products, but they must also effectively manage each product's entire lifecycle to achieve success, including everything from research and development and regulatory through manufacturing and distribution."
Medical device companies have traditionally viewed innovation in terms of product design and clinical research, the Mountain View, Calif.-based company stated. “However, companies in the industry are increasingly looking at innovation in terms of new business models that are more reliant on strategic supply chain partnerships in order to lower costs, gain access to skills and resources and allow them to enter new markets faster."
A strategic product lifecycle partner can help companies maintain their focus on the capabilities that deliver competitive advantage, while outsourcing functions that are less critical to the value of the company, the firm asserted. By outsourcing manufacturing and sustaining engineering functions, a company can focus on innovation and new product development.
In addition, the researchers wrote that partnerships can be used as virtual extensions of research and development to help maintain strategic focus, operating flexibility and cost effectiveness across the portfolio. Partnerships can enable the original equipment manufacturer to tap into skills they don't possess inside the four walls of their organization, Frost & Sullivan concluded.