Digital Transformation in the Medical Device industry: From challenges come opportunities

Last week I was in a discussion about the advances in remote robotic surgery, and marveling at the technology required. But it doesn't end there - from medical implants and glucose sensors to large imaging systems, there is a wave of innovation in every aspect of medical devices. So how does an industry transform themselves to provide unrivaled healthcare in the future?

I recently sat down with Jim Thompson , our Industry Leader for Medical Devices and Pharmaceuticals, as we recorded an upcoming podcast series, to discuss the changes he’s seen in the industry over the course of his career, and how the impact of software and digital transformation has revolutionized much of this industry in the past few years. ?

As we are all consumers of healthcare, the issues and opportunities faced by this industry over the past five years have been broadly under the spotlight: from the speed to market of drug development and approvals, to supply chain challenges like offshoring, manufacturing capacity and logistics. We often discuss the software and electronics in our autos, airplanes and consumer electronics such as smart phones, but the addition of digital elements, electronics and software to the medical industry has not only supported manufacturers through these challenges but has also powered the innovation of more and more sophisticated medical devices as well.

The impact to people

These medical innovation have the potential to positively impact a large segment of the population with better insights into their health and more options for treatment. For example, the new smart devices for diabetes treatment, which not only monitor blood glucose levels but can also deliver appropriate dosage of the necessary medication at the right time, are transforming the treatment of a disease that some call a silent epidemic. What’s even better, many of the innovations brought to medical devices by ‘smart’ electronics and software have allowed patients easier access to healthcare at home instead of requiring a trip to a medical facility, greatly improving access to healthcare.

It's not just treatment options that have benefitted. Thanks to digital innovations, there has been a culture shift in our awareness of our own physical beings: how much we move, how long we sleep, how fast our hearts beat, and so forth. Electronics and software make it possible for us to monitor all this and more through a small device on our wrist (think of Fitbit, Apple Watch and similar devices). While these are not medical devices in the regulatory sense, they can give us a better awareness of what is happening in our bodies and may provide some food for discussion with our healthcare providers. ?

The impact to business

We often talk about digital transformation here at Siemens, so let’s dive into how that has played out in pharma and medical devices for the manufacturers. These two industries may not be as far along the path to digital transformation as other industries such as automotive or aerospace, often due to the industry’s need to be risk-averse, and the need to comply with regulatory requirements for pharmaceuticals and medical devices. In these environments, it is not unusual to be more difficult to change processes that currently work even if the future benefit is more efficiency and productivity, because there is such a high bar for maintaining (or even improving) product quality and patient safety.

So where are we seeing the impact of digital transformation? First, in pharmaceuticals, we are seeing the impact of digitalization on in some applications in the area of biochemistry, and in the production of new drugs, vaccines and other pharmaceuticals, and this trend will continue to accelerate. In contrast, the medical device industry is moving quickly to adopt digital transformation, as it’s closer in its engineering and manufacturing processes to other discrete manufacturing industries. The use of digital twins and software have allowed manufacturers to build better devices, including incorporating more automation, such as with surgical robots, and importantly, manage the increasing complexity of new device types.

Second, as we move into the era of “software defined products” (everything from smart watches to automobiles) manufacturers of medical devices have to consider not only how they manufacture, but also how they will ensure software updates happen appropriately. Software updates allow for a device to be updated, to enhance its functionality and extend its life. However, this can be trickier for medical devices since you wouldn’t expect a patient to power off their life-critical device just to run a software update. Additionally, these devices are subject to strict regulatory requirements, and this can include the software that powers them. This includes the realm of how these devices communicate (via Wi-Fi or Bluetooth or NFC) and also the cybersecurity surrounding the information they can carry and transmit.

Finally, we will continue to see more investment in and realization of technology trends such as AI, automation and industrial metaverse in the medical device and pharmaceutical industries. The evolution of healthcare needs means we have to improve productivity in how healthcare is delivered, which means the incorporation of more automation, software and smart devices. An area where AI has the potential to make a very large impact is in pharma, because of how it allows for modeling and predictions based on large volumes of data. This will significantly positively impact the speed and precision in the development of therapeutic drugs.

If you’d like to learn more about this topic, I invite you to explore my full conversation with Jim in our upcoming podcast series which will be available soon. Watch my feed for when it is released.