Solving the Prisoner’s Dilemma: Product Innovation, Solutions-Focused Business Models Can Help Counter Declining Medtech ROC

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ARTICLE SUMMARY:

Return on Capital performance for healthcare product manufacturers has been steadily declining. While medtech companies typically attempt to counter ROC declines with cost-savings initiatives, they may achieve more substantial, long-term value by boosting innovation and shifting toward a business model focused on transformational products and solutions that create step-change customer value. By Yakir Siegal, Glenn Snyder, Myriam Lopez, and Lauren Morton, Deloitte Consulting

Deloitte research shows that Return on Capital performance (a ratio used to measure profitability and to determine a company’s potential to create value) has been steadily declining for healthcare product manufacturers.

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