I found an interesting article about medical device product development that talks about the lack of success that many companies seem to have in taking their product from start to finish.
Although introducing a successful new medical device has never been easy, it seems like it’s been especially difficult in the last few years. According to a 2010 survey from McKinsey Global, only 39% of 2240 executives feel confident in their companies’ ability to do so. And the cost of failure isn’t exactly cheap—a launch delay or failure can cost millions of dollars. It’s no surprise then that many firms would like to improve in this regard.
Mr. Buntz suggests that while companies spend a lot of time developing product prototypes, perhaps they should also spend time developing sales model prototypes.
To deal with this problem, companies can adopt a custom, highly focused, modular sales model prototype prior to full-scale launch that is designed to rapidly validate the market and business opportunity. Similar to product prototyping, this technique enables a company to identify the viability of a product at minimal cost. A sales prototype enables a company to answer three fundamental questions: Will the product quickly fail after it is introduced? Will the profit margins be sufficient to justify placing the product into a core sales channel? And is the product worth taking to full scale?
Another recommendation to improve the chances of success when launching a new product is to employ outsourcing, when it is useful. Schimelfenig advises companies to look for a partner with a business model that shares risk and shared reward. This ensures that interests are aligned. An experienced sales partner can help deploy customized strategies to accelerate revenue by developing a sales channel for the specific needs of company and product. Things to look for when sourcing a business partner include solid sales support, tight operational infrastructure, and a successful track record building custom sales models.
I believe that if you combine these suggestions, along with our ideas from Building The Business Case and Creo Quality’s medical device product development expertise, you will greatly increase your chances of success in launching a new product.






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