In sports they call it the “three-peat”.
It is a term when a team wins three consecutive championships. The New York Yankees, Chicago Bulls and Los Angeles Lakers are some of the elite teams that have accomplished this feat. Currently were watching to see if Team Canada can pull off their third consecutive gold medal at the world hockey championships.
Recently, Creation Technologies won the ‘Highest Overall Customer Rating’ in Circuits Assembly’s Service Excellence Awards for the third year in a row!
This award is based solely on feedback directly from OEM customers to electronics industry analyst, Circuits Assembly, and is an incredible achievement.
Creation ranks first overall amongst all EMS providers in the $500M+ category across all 5 categories of:
- Value for Price
And while we are far from being compared to a sports dynasty, it demonstrates that we are achieving what we strive every day to deliver: consistent service to our customers.
Consistency is one of the key reasons why we have been successful for over 25 years. Our customers know our value offering and recognize that we put their needs first.
Being dependable is an art that comes with experience. These are some of the ways that we have been able to maintain consistency with our partners.
I get to be part of the best team in the world.
I am certain that a lot of CEOs say this, but I truly mean it. Creation is the most customer-focused company I have ever been a part of.
We have over 3,000 talented people, who have expertise, drive and heart. Every day in every business unit, they work together to solve problems, overcome challenges, and get things done.
This is a trait that cannot be taught. We choose people who have that innate desire to serve our customers and embrace our company’s core values.
The hallmark of our customer service model is our ability to react.
The needs of our customers have always dictated how our business operates. With our various experts and multiple years of experience, we are able to take a customer’s problem and quickly find an efficient and effective solution.
One of the main differentiators we have over our competition is our customer-focused team (CFT) model. For every customer, we have a dedicated team that ensures projects are completed on time and at the highest quality. When customers have questions, we make it a priority to find them answers in a timely manner.
At the end of the day, you won’t last very long with your customers or this industry for that matter if you don’t consistently build quality products.
To optimize performance and eliminate product failures, we leverage our engineering expertise, invest in best-in-class machines, and design a cost-effective test stand solution.
Delivering quality products is also achieved through being proactive. Our team identifies software or hardware issues early on in the process, so that products work properly in the field.
Winning our third Service Excellence Award in a row is proof of our Continuous Improvement efforts, and the amazing collaboration between so many people – our Creation team, our customers’ teams, and our suppliers’ teams – to deliver “service excellence” to our customers that clearly differentiates Creation in the EMS industry.
So cheers to another great year as we attempt to complete a “four peat”.
With institutions like Harvard University and MIT in its backyard, the city of Boston has a storied tradition for academic and research excellence. It should come as no surprise that the New England region also possesses a thriving medical technology and manufacturing sector.
Last week, Creation Technologies was one of over 400 suppliers that attended the BIOMEDevice Boston event. For two days, engineers, innovators, and suppliers connected and collaborated on projects that will transcend the health care industry.
For medical device OEMs that attended the show, filtering through the many design firm options can be a daunting task – with cost, quality, experience, and location all considerations.
In order to identify the right fit for your design needs, here are 5 questions you should be asking a potential design partner.
1. Is your process ISO 13485 Registered?
ISO 13485 represents the requirements for a quality management system for the design and manufacturing of medical devices. You should not even consider any supplier that does not have a registered quality system. Many design firms may say that they have compliant processes but have not obtained ISO 13485. While you may plan to execute the design project under your internal quality system, it is still important your partner has experience developing products within the controls of an ISO 13485 quality system. Their estimates will be more accurate, execution will be more efficient, and your design partner maybe able to assist in the continuous improvement of your internal quality system.
2. Who owns the Intellectual Property?
Your IP should be your IP. Many medical device OEMs elect to share their intellectual property with a design firm because the upfront development costs may initially appear to be less.
There are potential risks involved in co-developing your IP with a design partner such as:
- The design partner could potentially license that IP to your competitors and charge you an ongoing royalty on your own product.
- The design partner could get acquired by another corporation, who might leverage the IP into its products, enabling the competition.
- The design partner could extend your joint IP, enabling future generation capability and leveling the playing field with your competitors.
- A lack of alignment on the long-term use of the IP can actually delay the development of the IP and the product causing undue risk of missing your market window and costing many times more than the originally perceived potential savings.
It is more beneficial in the long run to own your IP and leverage a design partner to develop and transition your product into volume manufacturing.
3. How do you Approach Unit Costing?
An experienced design partner will identify potential cost implications early in the development process. Many times, inexperienced design firms will adhere to demands to medical device OEMs without assessing the long-term implications. This could drive the unit costs up and delay the development program.
As a result, OEMs find out late in the process that they won’t meet their unit cost targets and their business assumptions were incorrect from the onset. If this is the situation, it is critical it is discovered as early as possible in the development cycle that product strategies can be reassessed and meaningful changes can be made to the project plan.
In order to control unit costs, it is also a good idea to partner with a design partner with strong manufacturing relationships so that accurate estimates of manufacturing costs are established. Many design-only companies struggle in the design to manufacturing transfer process because they don’t have the experience or the sophisticated tools required to execute seamlessly and are surprised when actual manufacturing cost information is available..
4. How Financially Flexible are you?
High upfront costs can be a huge barrier for medical device OEMs. Many design firms may demand full advanced payment of the entire program before starting the development project. This is a red flag because it indicates a lack of trust and financial controls. Additionally, a design partner shouldn’t be using your cash for their operational liquidity needs.
Design firms that are financially strained cannot be relied upon to make your product their priority. There are many projects risk that you and your design partner will need to face together, the risk of insolvency and staffing changes are not risks a design partner should bring to your product development effort.
Partnering up with an established design firm with strong financial footing may afford you better terms and credit, allowing you to be more flexible with your resources. Larger design firms also will have proper insurance and quality processes to support you in the event of a product liability claim.
5. How Far Along can you take us?
There are lots of design firms that will happily enjoy the revenue provided from developing your product for as long as they can. But to ensure program and product success, your partner’s financial motivations must be aligned with yours. If you partner is not capable of supporting your product through transition to production manufacturing and sustaining support, it will be difficult for your organizations to remain aligned. Invest your time with a design partner you can envision building a long-term relationship with. One who will be able to and motivated to serve you throughout the lifecycle of your product.
Find a company that is multi-disciplinary, that can help take your concept from napkin to manufacturing to after-market services.
And lastly, make sure you work with a company and people that you like. There will be times of conflict and challenging situations, so you will want to be with a design partner that will support you and understand your needs.
How Does Your Product Development Cycle Stack Up?
Did you know that Deere & Company reduced product development time for construction equipment by 60%, and IBM reduced direct costs in system assembly by 50%? And how did Fuji Xerox’s FX-3500 copier immediately capture 60% of the relevant domestic market?
All are historical reference points to be sure, and yielded varying short- and long-term ROI for each company.
But there’s no question that the ROI was significant.
So what about in 2017? Today, how are some of the most successful companies in the world achieving these measurable differences in development and commercialization times, product quality, and ultimate customer satisfaction?
Same answer as in 2016, 2015, 2014…
By breaking down walls with an integrated view of product commercialization (as well as everything that comes afterward), including leveraging proven methodologies like concurrent engineering.
Concurrent Engineering is not a new (or disruptive) idea.
But it takes a design-thinking and strategic mindset, and it requires exceptional program management and a lot of communication.
That may sound hard, and it is!
A common definition of concurrent engineering is that it’s a team-driven approach in which design engineering, manufacturing, product and test engineering and other teams are integrated and aligned on the same critical path to reduce the time required to bring a new product to market.
Building on the Toyota Production System and subsequent application of concurrent engineering, the automotive industry adopted concurrent engineering models in the early 1990s. Many electronics and pharmaceutical companies followed suit and adapted the approach for their own needs in the early 2000s.
However, the barriers for collaboration across disciplines, teams and partners stubbornly persist today, particularly in organizations where skills and responsibilities remain in siloes and resources are allocated according to each team’s budget and KPIs.
Today we operate in an environment where everyone is connected, online, and capable of taking action on that “great idea” 24/7.
To capitalize, the traditional linear and sequential system of product development – the ‘over-the-wall’ approach – must become a thing of the past for companies to succeed in 2017 and beyond.
Your Product Development Ecosystem – Flexible or Fixed?
With an integrated, concurrent engineering approach, everyone from design, engineering, purchasing, manufacturing, marketing, and finance is a stakeholder from product conception to marketplace.
More importantly, with an integrated approach, all of these stakeholders must be aligned and focused on the same timeline and outcome.
That may sound complex, and it is!
But the results are impressive:
- Fewer design changes;
- Fewer delays;
- A higher quality and more innovative customer-centric product; and
- A product (and brand) with staying power.
R&D and design engineers, for example, are often two steps removed from customer interaction. With an integrated and flexible development model, they can gain insight by collaborating with field and technical salespeople who have direct contact with customers. Just like ‘going to the gemba’ (to carry through with the Lean analogy), these are the folks that have the best information about what really matters in their marketplace for their solutions.
A 2009 survey found that implementing a concurrent engineering model positively affects development time, quality, and productivity.
- 30-70% Less Development Time
- 60-90% Fewer Engineering Changes
- 20-90% Faster Time to Market
- 200-600% Improvement in Quality
- 20-110% Increased Productivity in Management/Admin Functions
- 20-120 % Higher Return on Capital Investment
My Layman’s Take on the Role (and Power) of Concurrent Engineering and Integrated Teams
Fast-changing end-customer demand and needs, more varied and technically complex products, and more stringent regulatory and quality requirements can all easily be barriers to rapid product development and commercialization.
But in parallel (or, concurrently!), highly engaged teams and advanced, online collaboration tools are accelerating the development process, taking advantage of this 24/7 connected ecosystem.
Glass half full or glass half empty?
Just imagine what’s possible with expert, multi-disciplined teams working together. Especially when you can annex the power of exceptional partners to help you fill the gaps.
At the end of the day, in my role, I (get to) see concurrent engineering as a technical methodology that’s analogous to what all of us folks working in tech really want…
…a highly collaborative, systems-driven way for us to work together (be it with our in-house teams or outsourcing partners) to get things done that benefit our companies and benefit our customers.
I believe that integrated teams and concurrent engineering are a fast-forward button for time-to-market.
Global competition in the medical device industry is fierce and if your company is not constantly innovating and evolving, you are likely being left behind.
For medical device companies in the New York region, staying stagnant is not an option. This tight-knit community plans on being assertive in creating medical devices that will improve lives across the world.
In order to achieve this vision, the state of New York invested heavily (over $80 billion) in the local medical industry, specifically in three main areas:
- Academic institute bioscience R&D – $3.5 billion
- New York State bioscience economic output – $62.2 billion
- Job earnings in New York State – $16.8 billion
In addition, Gov. Andrew Cuomo (NY), recently introduced a $650 million initiative to grow life science research in the state.
Health Care companies rank in the Top 10 Largest Private Sector Employers in each of New York’s labor market regions. There are nearly 75,000 residents in New York employed in the biosciences, and about 13,000 of which are in medical devices.
But investing significant capital is just part of the overall equation in creating a culture of innovation and thought leadership. There are several exciting ways the state is making themselves at the forefront of the medtech industry.
One of the driving forces behind the multi-billion dollar local biomed industry is the MedTech Association. All year round, the association plans and participates in events like MD&M East and New York Medtech Week, designed to connect and grow the local industry. MedTech consists of more than 100 pharmaceutical, biotech and medical companies, suppliers, and academic institutions (Creation is a MedTech member).
At the annual MEDTECH Conference in October, some of the brightest minds in the state’s bioscience and medical technology space congregated for three days of idea sharing and collaborating.
I attended MEDTECH 2016 and it was inspiring to see the passion and interaction between all the attendees. Just witnessing the crossover between PHDs and innovators and suppliers showed how many people from diverse backgrounds are influencing the movement.
In addition to networking opportunities, MEDTECH is always an opportunity for me to learn and gain awareness of the infrastructure and programs in place around the state. I look forward to this year’s event.
Building and Collaborating
If you want to be a leader in the medical technology field, you must invest in the most advanced facilities. Part of Gov. Cuomo’s plan is making 3.2 million sq. feet of innovation space and 1,100 acres of development land available tax-free for New York colleges and universities.
The University at Albany Health Sciences Campus Tour was featured at MEDTECH 2016, and really helped demonstrate the chain reaction of thought leadership. Over the past decade, the University at Albany Foundation transformed the former 95 acre Sterling Winthrop pharmaceutical complex into a thriving, collaborative biotech campus model.
The multi-purpose facility fosters an environment where life-science technologies, highly skilled work forces, and pioneering academia can co-exist and thrive. It is an encouraging example of how various stakeholders are able to share ideas.
With all of the activity and commitment to innovation, it is easy to get excited about the future of the state. New York is an example of a proactive region, willing and able to put forward the resources necessary to develop itself into a global player in medical technology.
Helping innovative OEMs succeed is what Creation Technologies is most passionate about. With several Creation business units nearby, we are always excited about collaborating with medical OEMs in the New York region and supporting them through the evolution.
The ability to locate, track, and manage your products throughout the supply chain using embedded RFID (radio frequency identification device) chips is undeniably valuable in terms of cost savings, efficiency, and customer satisfaction.
In 2017, advances in real-time and point-to-point location and tracking technologies are dramatically improving supply chain visibility.
From automotive to healthcare, OEMs have an increasing selection of sophisticated technologies and are tailoring them to their assets and applications.
From production floor to ICU, OEMs engaging with sophisticated EMS providers like Creation Technologies are leveraging tracking to monitor changes to a device’s position over time and accelerate improvement.
Here’s an example of how location and tracking technologies can be put to work:
- At the development stage, bar-coded active RFID components are specified to capture data at the product/module level once in production.
- In volume production, each assembly is outfitted with a unique, active RFID tag that carries critical, product-identification information in its updateable embedded chip. This is essential for Medical Device OEMs, recording DHR and DMR information required for FDA-approved devices, especially significant with the new FDA UFI requirements in force as of 2016.
- An active RFID reader receives the signal from the active tag as it leaves the dock, enabling geotargeting and geotracking throughout the supply chain.
- Each device can then be tracked on rail cars, containers, airplanes or trucks via GPS or ultra-high-frequency RFID. In fact, the vehicle itself is tracked using monitoring, navigation, and routing. Did I mention that Creation has expertise serving Transportation OEMs who offer this service to their customers?
- Once the device arrives at your end customer’s location, an RFID tag can be assigned that piggybacks off of existing Wi-Fi systems to ensure the product’s availability when and where needed.
It’s a Good Time to Buy a Hybrid
Did you know? Bar codes and RFIDs share the same circa-1940 “birthdate”.
Bar codes enjoyed wider adoption because, for decades, tagging a product with a set of thick and thin lines was far less expensive than embedding a chip into a device and reading it.
Fortunately, RFID technology has advanced significantly, and prices are dropping as adoption increases.
RFID tags currently range from $.07 to $100 per tag. The wide range of costs depends on an equally wide range of options around type (active or passive), memory, packaging, volume of order, emission technology (i.e. acoustic, optical) and other factors.
Satellite and cellular technology advancements are also reducing costs, increasing coverage, and expanding product and application opportunities.
The Right Product in the Right Place
Moving the right product to the right place accurately, with quality assurance and traceability, is key to eliminating supply chain waste and improving process efficiencies.
And the location and tracking technologies for that critical cradle-to-grave journey have finally arrived.
So here’s my close…
The Creation Design Services team can help you design in RFID, and design out waste.
After commercialization, the global Creation Technologies team can help you provide your customers (and auditors) with the peace of mind that positions your brand as a leader in traceability and reliability for complete manufacturing, fulfillment and after-market services.
And with Creation’s proprietary Vision system and Customer Portal, you get the visibility and traceability you need from the point of launch throughout the product lifecycle.
Contact us anytime to learn more about how we can help you mix it up with RFID.
Now that the hype around the new year (Chinese New Year included) has settled and resolutions have been broken, people are pretty much back to their regular routines.
While gym traffic may be neutralized, the year is still early and there are exciting things on the horizon.
For us in the electronics industry, the new year means more innovation and finding ways to make manufacturing smarter, faster and more cost efficient. With technology changing daily and manufacturing processes evolving, OEMs and EMS providers constantly have to adapt. But trends are not always limited to technology, it could also be the improvement of processes.
Here are 5 electronics manufacturing trends to look out for in 2017.
1. Riding the IoT Wave
It’s impossible to talk about trends and electronics without mentioning the Internet of Things (IoT). Smart electronic devices being connected to the Internet is nothing new. But the presence of these connected devices will likely soar, as IoT spending is expected to jump from $480 billion in 2016 to $1.7 trillion by 2020. In the EMS industry, this means machines are able to collect more data, allowing them to be more responsive and make better real-time automated decisions. From a supply chain standpoint, the IoT will continue to predict customer demand and always have the appropriate stock of parts and supplies.
2. 3D is Not Just for the Movies
The effort towards faster turnaround times and manufacturing efficiency is being enhanced by 3D printing technology. In 2017, OEMS will likely use 3D more – and use it in a big way. Some industry experts predict that more 3D printing and additive manufacturing processes will be used to make large-scale pieces and final production parts.
3. OEMs in the Market for the Aftermarket
According to a Harvard Business Review study, more than $1 trillion is spent yearly on assets that are already owned. For decades, the sale of aftermarket parts have been controlled by third party resellers and other suppliers. With the margins and demand high, more OEMs are looking to capture a larger slice of that market by investing in inventory and technology that will keep products operating at a high-level for a long period of time.
4. Cobots Take Over
In the ‘80s movie “Back to the Future”, people envisioned the 21st century to be filled with flying cars and robots. While we are not walking side-by-side with robots on the street yet, they are becoming more visible in manufacturing facilities across the globe. But robots are not taking over jobs, they are working side-by-side with manufacturing employees – hence the term “cobots”. The cobots are designed to assist the human worker in completing tasks in an efficient manner. Cobots are expected to increase in 2017 because they are cost-effective, collaborative, productive, and easily adaptable.
5. All Eyes on Risk
Well this one isn’t as exciting as cobots, but something you might see more of in 2017.
No matter the industry, re-evaluating business objectives is always top of mind for companies when transitioning into a new year. In the electronics manufacturing industry, both OEMs and contract manufacturers will put a higher priority on risk management. Manufacturers will focus on supply chain stability and business continuity planning to lessen risk derived from unforeseen market conditions.
So there you have it. Just a few trends to keep in mind as you continue to make strides in 2017. You might want to take your cobot with you though.
Let’s be honest, tradeshows can be a bit crazy. With massive exhibition spaces filled with an infinite amount of people, booths and conference sessions over multiple days, it can sometimes be overwhelming to make best use of your time (especially if it’s your first visit to a particular show).
While MD&M West is not as big as a CES or Comic Con, it is one of the largest medical technology tradeshows in the world, attracting more than 20,000 engineers and executives. It’s a great place to be.
Because designing and manufacturing medical devices is a huge part of what Creation does best, we enjoy making the annual trek to Anaheim, CA (really not so much a trek as a hop, skip and a jump from our San Jose location) to exhibit, network and learn about the trends in the industry.
For medical device OEMs planning on attending MD&M this February, we created a guide based on our experience that will help you maximize your time, conserve your energy, and get the most ROI out of your trip.
Do Your Homework
This might seem like common sense, but it is always a good idea to get familiar with the lay of the land ahead of time and start planning.
You wouldn’t go to Disneyland without mapping out which rides or shows to visit first would you?
- Save Time, Register in Advance
The first thing you want to do is to preregister for the show. Doing this in advance helps you get set up and ready to go so that you are not spending your first hours standing in lines.
- Scout Your Prospects
Next, look at the list of exhibitors on the MD&M West website and determine which booths you want to visit, whether an EMS provider or a plastics manufacturing specialist. You also want to plan your visits based on proximity. Try setting up meetings in advance.
Our suggestion is to visit the websites of the companies that you are interested in. Create a spreadsheet and make notes on each, so you have their basic information (their services, location, clients, etc.) available and you can prepare questions you want to ask. In the spreadsheet, also put down their booth location. Download and print out a floor map as well. The MD&M West team does a great job of making this easy.
- Be ‘In The Know’
You also want to go to the conference schedule to see what learning sessions, keynote speeches and networking events are must-dos. With MD&M West, you have the option to export the schedule via email, spreadsheet or print. Remember some sessions are free while other conferences and workshops have fees (for which you might have to register or pay in advance).
Beat the Clock
With multiple things going on simultaneously during an event, time management is crucial if you want to maximize your productivity. Being aware of the schedule and peak times will help eliminate delays, lines and missed opportunities.
- Get Ahead
Without question, you want to be early every day (especially the first day).
Since MD&M West opens at 10 am, it is best to head to the Anaheim Convention Center before 9 am to beat the rush. The parking lot and late-morning shuttles fill up very quickly. Typically, the first two days are the busiest, while the crowds thin out drastically on Day 3.
- “Do” Lunch
The lunch crowds are also large, so unless you consider waiting in a 50-person line a prime networking opportunity (do you want chicken or beef?), you are better off going to the concessions or Starbucks during off-peak hours (example: 11 am or 2 pm).
For those who are not feeling the food at the convention center, there is a food court on the first floor of the neighboring Hilton Anaheim with faster and cheaper dining options. But those get crowded as well.
Remember, MD&M West is a marathon not a sprint. Makes sure to pace yourself for the three days and don’t try to do and see everything. Take breaks during the day, whether that is a walk outside or resting on any free comfortable chair in the hallways.
Dress for Success (and Here We Really Mean Substance over Style)
The most important item you can pack for MD&M West is good walking shoes.
The exhibit floor at the Anaheim Convention Center is over 800,000 sq. feet – so that is a lot of walking!
The majority of people dress in business casual, so unless you have a crucial meeting, you can leave your shiny shoes or heels in the hotel room.
- Bring It
On top of attire, bring a backpack to hold water, snacks, business cards (we know you wouldn’t miss this!), a notebook, and room for all the brochures and free swag you will be collecting at the booths you visit. From laser pens to t-shirts to the candy that keeps you going – collecting free swag is the best part of tradeshows!
- Meet and Mingle
Conferences are not solely about fulfilling immediate business goals and closing deals onsite.
Professionals in every industry recognize the value of building relationships and having fun together to recognize alignment and shared vision – at Creation we know the importance of liking the people you do business with, and at events we have the opportunity to share laughs, games, gimmicks, cocktail hours, impersonators and entertainment at booths and on stage.
Again, pace yourself, it is a three-day show.
Educate Yourself: Network and Ask Great Questions
Whether you are in the market for a new EMS provider or need design assistance, make sure you find the company that is right for you to partner with.
- Is This a Fit?
When visiting different booths, come prepared. You only discover if a company is a fit if you ask good, relevant questions. The more specific the better.
For example, if you are looking for an EMS partner, you can ask about:
- Traceability and Visibility – Do you have a tool that tracks every step of your work?
- Design – Are your facilities ISO 13485-certified and FDA-registered?
- NPI – How fast can you get a new product out?
- Transfer – Do you have experience with Class I, II, or III devices? (domestic and offshore)
- Competitive Analysis
Besides booth visits, MD&M West provides a platform to network. There will be opportunities to meet people within your specific industry, and find opportunities to collaborate or share ideas during different networking sessions or workshops. You will also be in contact with a lot of your competitors – which is not necessarily a bad thing. You can learn from what they are doing well as well as identify what areas you need to improve in.
Make sure to be friendly, give and take business cards, and follow up with your new contacts after the show. You never know how those relationships can benefit you down the line.
Fun in the Sun
Although MD&M West may be a business trip, you might as well turn it into a mini-vacation. There aren’t too many places better than Southern California in February.
- Plenty of Options
After the show ends on Thursday, you can potentially spend the weekend in one of the several nearby cities like Los Angeles, Palm Springs or San Diego. But perhaps staying local is best. Anaheim is home to Disneyland, which is the happiest place on earth!
So now that you know what to expect from MD&M West, you can now take full advantage of this great opportunity. After your three days, you should go back home with exciting new contacts, new ideas, and a better understanding on what steps you need to take to be a major player in the medical device industry.
If you are lucky, you will also come home with a nice tan.
The start of a new year always brings people a sense of optimism. For those in the medical technology industry, it is the prospect of new innovative devices and solutions that will better humanity.
But for all the good that medical devices bring, the industry itself is complex, filled with many regulatory requirements and barriers. It is also a very competitive field, where every OEM is looking for any advantage to differentiate itself.
In the ever-changing landscape of the medical technology industry, there will always be new threats as well as new opportunities. Being aware, equipped, and adaptable is the key for OEMs to stay ahead of the game.
These 17 medical device trends may give you a glimpse of what to expect in 2017. Which ones have already affected your team or business model?
- The Continued Rise of Wearable Tech – Wearable medical devices like glucose monitors and exercise trackers are projected to experience double the revenue growth of the overall device market. The global wearable device market was valued at over $13.2 billion in 2016.
- Solving Cybersecurity Threats – The Internet of Things (IoT) has made it possible for medical devices to be smarter and more predictive when it comes down to patient care. The downside to devices connected to the cloud is the possibility of hacking. Expect OEMs to put a higher emphasis on cybersecurity in 2017, especially around HIPAA data protocols and exchange mechanisms.
- Mergers Spur Growth – In the past few years, medical device OEMs have used mergers and acquisitions to boost growth. In 2015 and early 2016, there were over 150 major medical device company acquisitions and mergers. Expect that trend to continue in 2017.
- The Trump Effect – With the new presidential administration about to begin, there is a lot of speculation on how this will impact the health care industry. Look for the industry to try to work with the new administration to lower medical device user fees (MDUFA) and improve the FDA regulatory process.
- Increased R&D Spending – Innovation is what drives this industry. Medical device OEMs spend an average of 7% of revenue on R&D, which is more than most industries.
- Steady Revenue Growth – The medical device market is expected to experience steady growth in the next half decade, although it will be by a small margin of 2.8 percent annually.
- The Collaborative Care Movement – Medtech hardware and software companies will play a larger role in this movement, which encourages a well-rounded, collaborative effort between physicians, family members and caregivers. The goal is to provide the best possible care and attention to the patient.
- Betting Big on AI – Despite criticism about the exact ROI of artificial intelligence (AI), large companies like IBM have still invested significant capital in the last few years on the technology for its medical devices. This year, smaller companies are expected to also experiment with AI in their products.
- Medical Device Impact on Behavioral Health – Hand-in-hand with the Collaborative Care Movement, expect further growth in behavioral health diagnostic tools to help patients self-treat symptoms of conditions like depression, anxiety, and PTSD.
- Hospital Consolidation – More than 100 hospital consolidations occurred in the USA alone in the last half decade, leading to fewer buyers. The trend of consolidation is expected to slow down in 2017 due to a tougher consolidation approval process.
- The Emerging Technology Experiment – Emerging technologies such as drones, AI, and virtual reality are expected to be tested out more by medical device OEMs in 2017. Companies will evaluate how these technologies impact their business models, needs, and operations.
- Focus on Women’s Health Technologies – More companies and startups are developing innovative products and services to address childbirth, contraception, and medical conditions specific to women.
- Don’t Sleep on Sleep Tech –Many of the most inventive and intelligent new gadgets were introduced this month at the Consumer Electronics Show (CES), the biggest consumer technology tradeshow in the world. One of the hottest digital trends was ‘Sleep Tech’, devices and diagnostic tools for sleep and stress reduction.
- Robots go to Rehab – This year, expect to see robots being more prevalent in the rehabilitation sector. They have been instrumental in helping people with Parkinson’s disease and those rehabilitating their hand functions as a result of a stroke. Digital Health recapped some of their favorite rehab robotics in their CES 2017 review, here.
- Cardiovascular Advancements on the Rise – According to a report by GlobalData, cardiovascular innovations are trending upwards. Two specific cardiovascular innovations—coronary bioresorbable vascular scaffolds (BVSs) and peripheral drug-coated balloons (DCBs) have made regulatory progress in the past year.
- Larger Presence of 3D Medical Printing – According to the US International Trade Administration, in 2017, 3D medical printing technology is expected play a larger role in the development of innovative new devices, including applications for surgical planning and biomaterials.
- New Changes to EU Regulatory Requirements – The EU will be issuing newer and tougher regulatory requirements for medical devices, including a separate one for in-vitro diagnostic devices.
Like every year, the medical device sector will experience technological advancements as well as industry challenges. Hopefully when 2017 is all said and done, the innovation and passion within the industry will continue to push the needle forward and make global health care better.
How are solution providers like Creation Technologies innovating to drive long-term growth and success as companies, and as business leaders in manufacturing and the high-tech sector? Collaboration plays a defining role.
Bhawnesh Mathur, Creation’s President and CEO, recently shared his thoughts on collaboration throughout the business ecosystem on the Manufacturing Innovation panel on the Strategy & Development Track at MEDTECH 2015 in Buffalo, New York:
“The world has discovered that you don’t have to have a lot of patents [to be successful]. We say that patents are a measure of how innovative we are, or that our country is, but that isn’t necessarily the case.
I think what we’ve learned in the last several years is that collaboration between, i) academia and businesses, and ii) businesses working together and sharing resources and costs, creates technology that makes the country more innovative, and helps the country become more growth-oriented.
With the deployment of NNMI – the National Network for Manufacturing Innovation where companies and academia are working together – that [organizations] are working together because I think they believe that we can develop technology better, faster, that way. I think they believe we’ll create more jobs in North America that way, they believe there is a faster route to innovation that way. It’s a model that doesn’t [provide a particular company with] a lot of patents.
I think what’s happened to the world over the last several years is that, while I absolutely agree with [others on the panel] that you have to protect customers’ intellectual property, and trade secrets and capture [critical information] in your QMS (Quality Management System), that this fear that we’ve got to have thousands or millions of patents to be “good” is something that runs contrary to collaboration and working together to [create] a more robust economy.”
Now us marketing folk are always thinking about our value proposition and how we can drive customer success. At Creation, though, it’s literally everyone across the company who thinks about our enterprise value as more than just a measure of growing revenue and improving profitability. As more than just a function of winning business.
I’m proud, and lucky, to have a CEO, a leadership team, and a company culture dedicated to building strategic partnerships through collaboration, candor and shared objectives. A team that sees collaboration as intrinsically tied to innovation and long-term success. As the responsibility of a corporation in the economic ecosystem.
To the MEDTECH conference attendees, Bhawnesh posed the question:
“Do we want to share with each other, or patent what we know? It’s an interesting dilemma. My observation is that [the global mindset] is changing more toward working together and delivering more success.”
Our motto of Working Together to Build the Future is core to the value we believe Creation Technologies provides as an EMS partner. What role do strategic relationships and collaboration play in your organization’s plans for growth and long-range contribution as a business leader?
Watch the video: