Strategic Choices for Medical Device Majors: People #conversationsthatmatter #medicaldevices #organizationdesign #strategy #thoughtleadership

As the medical devices market in India grows, many medical device majors struggle to keep India relevant with its unique profile of high volume and low profitability. To succeed at a time like this, it is imperative to develop a coherent strategy to be able to navigate the complex labyrinth medical device players face.

One of the Strategic choices we make are around People. It is one of pillars of the strategy and a very important one.

The commonly observed “People” approaches to profitability are:

-?????????Approach #1: The ‘People as a cost’ approach which sees employees as a cost to be minimized / optimized. This is closer to a retail model, where the investment in people is very little over market pay, reduction in R&R costs, training costs, team building costs. Organizations try to standardize to reduce decision making by frontlines.

As a consequence, these organizations are likely to face issues like low ownership, morale, operational problems, customer service problems, reduced productivity or high turnover.

-?????????Approach #2: The ‘Value driven approach’ on the other hand does not see people as a cost to be minimized. This less used approach sees people as drivers of value creation, profit and customer service. These organizations invest in people, skill upgrade, motivational events and activities. It is more likely to see good management principles being implemented in these organizations as the team morale, trust and sense of ownership is higher.

-?????????Approach #3 which is #1, but articulated as #2.

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Navigating the realm of medical device sales involves building and nurturing customer relationships, partnering through the journey of introduction and adoption of new technologies, providing personalized post-sales support, and effectively countering increased competition, with the humane objective of delivering better patient outcomes.

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In today's medical device landscape, a successful sales framework involves an organization that takes a proactive role in fostering relationships with key customers and stakeholders. It’s also essential to provide robust support for technology integration and post-sales services. The value-driven approach aligns well with achieving these goals.

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Since the ‘People as Cost’ approach has higher prevalence, one possibility for evolution of the device market is emergence of large professionally run distribution organizations, or independent national sales organizations which combine portfolios of multiple companies as an offering for customers. We are already seeing this start to happen, both online as well as offline.

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How do you view the evolution pathway of medical device sales in India?

Do you think that medical device companies will continue to own sales and distribution channels or will we evolve towards independent national sales organizations which distribute multi-brands online and offline?

?#conversationsthatmatter #medicaldevices #healthcare #organizationdesign #strategy #thoughtleadership #leadership #teams #peoplemakethedifference #futureofsales #futureofhealthcare