According to ZS’s recent “Medical Products and Services Commercial Operations” study, more than 80% of companies find it challenging to justify an ROI from their commercial operations investments.
Editor’s Note: This article has been originally published on ZS Associates, and the authors of the discussed study are Andrea Traverso and Bhargav Mantha. The full study can be downloaded here.
In a commercial environment that becomes more complex by the day—due to factors such as increasing margin pressures, evolving customer-buying processes and the industry’s increasing focus on outcomes—new technology holds promise for medtech companies to overcome these challenges and turn them into opportunities. However, many firms consistently fail to capture that promise. According to ZS’s recent “Medical Products and Services Commercial Operations” study, more than 80% of companies find it challenging to justify an ROI from their commercial operations investments.
The study assessed the commercial operations practices and performance of medtech companies in order to understand current and future trends, opportunities and pain points within medtech, and how different companies are planning on addressing these issues. The study included 60 medtech executives from companies with annual sales ranging from $50 million to $2 billion, including a majority of the top 25 companies in the industry across a range of medtech categories.
The study identifies gaps that medtech companies have across commercial operations. But, the study also shed light on the fact that medtech companies seek to improve. Over 60% of respondents indicated that they want to advance their commercial operations capabilities to be above industry standards.
When companies do invest to make improvements, many struggle to see a return on that investment. The study shows that almost one-third of respondents did not see an ROI on new technology investments. However, there is a silver lining, evidenced by the fact that 33% of medtech companies are able to achieve significant ROI on their investments in commercial operations.
ZS Associates
www.zsassociates.com
