Originally Published MX May/June 2001

Business Planning & Technology Development

Good executive strategy involves putting the right people in charge of each phase of the project—and then trusting their judgment along the way.

Richard S. Schifreen

Successful new product development is a key to profitability in the rapidly changing medical technology market. In most other markets, consumers are free to purchase goods and services that provide value for the price. But government and third-party payers determine
the value of medtech products
and services on the basis of standards that may not be shared by their consumers—that is, patients and physicians. Payers, for example, place a high priority on reducing costs. This leads to a reduction in reimbursements. Medical device and diagnostics companies depend on developing new products both to keep offering the market items that command high value and to reduce costs to payers.