Roadmap to sustainable innovation for medical device manufacturers

© 2013 Planview, Inc. | 1 | Confidential #StateofPD

The State of Product Development in 2013Medical Device Manufacturers: A Need for Speed and a

Roadmap to Sustainable Innovation

Maureen Carlson,Appleseed PartnersCarrie Nauyalis,Planview


Welcome & Introductions

Maureen CarlsonChief Researcher, Appleseed Partners

Carrie NauyalisNPD Solution Evangelist, Planview


Agenda• About the Study• New: Innovation Management Maturity Model• Current State and Trends• Desired Future State• The Four Missing Elements• Recommendations & Next Steps


Study Background

Why?“Too many projects for our resources!”

Need for Faster Innovation

To learn about the state of product portfolio management, innovation and trends

Who?Surveyed more than 500 globally‐based Product Development Leaders. Today, we focus on nearly 100 participants from Medical Devices Industry!

How?Fourth Benchmark Survey since 2009 conducted by Appleseed Partners and OpenSky Research, commissioned by Planview. Initial phone survey that informed an online survey conducted in August‐September, 2013


New Data, New Perspectives

What do you want to learn this year?


What is the difference on What is the difference on pain points, business risks,

productivity and commercial success for the

most mature companies compared with the least

mature companies?


Ranking on Innovation Management Maturity: 3 Vectors

• Organization Structure• Center of Excellence to Manage Innovation

PeoplePeople

• Commercialization Process• Stage Gate® or Phase‐Gate Process• Ideation through Prioritization; and Launch to Sunset

ProcessesProcesses

• Automating with Best of Breed Applications

• Integrated Tools across the EnterpriseToolsTools


CURRENT STATE: INNOVATION MANAGEMENT MATURITY

Part I


Innovation Management Maturity Model

PEOPLE PROCESS TOOLS

Level 1

Level 2

Level 3

Level 4

Level 5


Innovation Maturity ̶ People

0% 5% 10% 15% 20% 25% 30% 35% 40%

Level 1

Level 2

Level 3

Level 4

Level 5

13%

35%

30%

13%

9%

Medical Device Manufacturers: Which of the following best describes the innovation maturity level of your company in terms of

PEOPLE?

N=91


Innovation Maturity ̶ Process

0% 5% 10% 15% 20% 25% 30% 35% 40%

Level 1

Level 2

Level 3

Level 4

Level 5

9%

24%

40%

18%

10%


PROCESS?

91N=


Innovation Maturity ̶ Tools

0% 10% 20% 30% 40% 50%

Level 1

Level 2

Level 3

Level 4

Level 5

11%

23%

45%

19%

2%


TOOLS?

91N=


Innovation Maturity ̶ Overall

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Level 1

Level 2

Level 3

Level 4

Level 5

7%

31%

43%

19%

1%

Medical Device Manufacturers: How would you rate your company’s OVERALL maturity level?

91N=


CURRENT STATE: PAIN POINTS & RISKS

Part II


Pain Points


Risks

0% 10% 20% 30% 40% 50% 60% 70%

Missing the voice of the customer/marketrequirements and developing the wrong product

Not meeting the expected revenue targets of theproduct

Unclear priorities as business conditions change

Time to market – i.e. missing competitive or seasonal windows

48%

53%

58%

60%

What are your greatest risks when managing a product portfolio? (Rank in order of top 3)

N=91


Risks


CURRENT STATE: STRATEGIC PLANNING, DATA, CULTURE

Part III


Strategic Planning

What is your most pressing concern with regard to managing your product portfolio?

“Having alignment established across a matrix organization quickly and sustainably as priorities change and resources allocations

evolve to meet changing environment”

“Lack of strategy/alignment to resources”

“Expediting time to market and having good decision making criteria for prioritization”


Data

I don't know22%

Yes25%

No53%

Is your company killing products early enough in the commercialization process?

N=91


Data

0%

20%

40%

60%

80%

100%

Level 1&2 (N=34) Level 3 (N=39) Level 4&5(N=18)

15%28%

39%

53%

56%44%

32%

15% 17%

Is your company killing products early enough in the commercialization process? (By Maturity Level)

I don't know

No

Yes

Caution: small sample sizes. Data is directional only.


Data

0% 20% 40% 60%

Opportunity costs are not clear

Everything passes approval due to an undefined strategy andsupporting metrics

Gated process is driven by personality instead of data

Kill criteria is unclear or nonexistent

Lack of rigor in determining highest return, highest valueproducts

29%

30%

33%

47%

42%

27%

31%

40%

48%

58%

Why isn’t your company killing more products or projects during the commercialization process? (Select top 3)

MEDICAL DEVICEMANUFACTURERS (N=48)

ALL PARTICIPANTS (N=280)

Caution: small sample size for Medical Device Manufacturers.. Data is directional only.


Data

0% 10% 20% 30% 40% 50% 60%

Other

We do not have access to data

We have access to data, but it can be inaccuratefor various reasons

We have access to data, but it is not timely orcurrent

We have immediate access to accurate data

0%

11%

53%

19%

18%

Which of the following best describes your access to accurate data necessary to make product decisions?

N=91


Data by Maturity Level

0% 50% 100%

Other

We do not have access to data

We have access to data, but it can beinaccurate for various reasons

We have access to data, but it is nottimely or current

We have immediate access toaccurate data

0%

18%

68%

3%

12%

0%

8%

51%

31%

10%

0%

11%

28%

17%

44%

Which of the following best describes your access to accurate data necessary to make product decisions?

(By Maturity Level)

Level 4&5(N=18)Level 3 (N=39)Level 1&2 (N=34)

Caution: small sample sizes. Data is directional only.


Data

0% 10% 20% 30% 40% 50% 60%

Lack of robust technology, reliance on spreadsheets

Lack of ownership for reporting and analytics

Lack of consistency on metrics definition

Information is in silos, not centralized

35%

37%

40%

55%

Why is data inaccessible or inaccurate to make product decisions? (Select all that apply)

N=75


FUTURE STATEPart IV


Future State: Innovation Management Maturity

0% 5% 10% 15% 20% 25% 30%

No desire to advance

Level 2

Level 3

Level 4

Level 5

Don't know

8%

8%

14%

29%

24%

18%

Medical Device Manufacturers: Which of the following best describes your company’s end goal in terms of desired innovation maturity level?

N=91


THE FOUR MISSING ELEMENTSPart V


The Four Missing Elements

1. A Defined Pathway

2. Strategic Alignment

3. Data

4. Culture


RECOMMENDATIONS & NEXT STEPSPart VI


Recommendation #1:THE TRUTH WILL SET YOU FREE


Recommendation #2:STRATEGICALLY DEFINE THE DESTINATION


Recommendation #3:THREE REALLY IS THE MAGIC NUMBER


Recommendation #4:CULTURALLY ENCOURAGE INNOVATION


Recommendation #5:A CALL TO ACTION FROM THE TOP


Assess Your Company Using theInnovation Management Maturity Model™

PEOPLE PROCESS TOOLS

Level 1

Level 2

Level 3

Level 4

Level 5 Desired End Game


Next Steps & Additional Resources• Questions? [email protected]

• Download: Planview.com/4thReport

• Assess: www.planview.com/InnovationModel

• Subscribe: www.TheProductPulse.com

• Connect: Strategic Portfolio Management Group

Product Portfolio Management Group

• Contact : [email protected] @PDPMprincess

[email protected] @mocarlson


… And Finally

Roadmap to sustainable innovation for medical device manufacturers

Technology

Transcript of Roadmap to sustainable innovation for medical device manufacturers