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Knowledge Is Value
March 1, 2002
1 Min Read
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Originally Published MX March/April 2002
FINANCE
Knowledge Is Value
Knowing the value contribution of each business line can help medical technology companies to give priority to those activities that generate the most value. Following are the key questions that medtech companies should ask when evaluating business-line performance.
1. What is the value-creation performance of each region, product line, and customer segment?
2. For those that are underperforming, what value drivers are causing such underperformance (e.g., price, costs, overhead, capital employed)?
3. Why are the identified value drivers below par? What is causing them to be below other business lines?
4. Are differences in performance likely to change? Why?
5. What would be the effect on the rest of the business of discontinuing one or more business lines?
6. What opportunities exist to increase investment and grow the higher-performing business lines faster?
Copyright ©2002 MX
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