The Entire Industry is Working towards Driving Better Outcomes at Lower Costs
Date: Sunday , October 05, 2014
Based in Peabody, MA, Analogic Corporation (Nasdaq :ALOG) is a provider of leading-edge healthcare and security technology solutions aimed at advancing healthcare practices. Analogic has a market cap of $893.47 million.
The industry should place an emphasis on creating a learning environment where ideas from different levels, functions and geographies in an enterprise are captured, evaluated and acted upon. Many times, the best ideas for a business stay hidden in the minds of employees and are never acted upon. A closer look at the industry would tell you that smaller companies are going global at a faster rate than before, and it is not easy for teams spread across the globe to work and innovate together. The current technologies have fallen behind in enabling a seamless integration among the widespread workforce.
In spite of these roadblocks, it is a hyper-active time in the sector. As an example, the simplification of technology has enabled a transit from high acuity procedures to low acuity methodologies and cost settings at locations closer to the patient. Analogic is enabling this trend with devices such as the Sonic Window, an easy-to-use device that enables general nurses to use ultrasound technology to place IVs. Another imperative trend is the increasing use of real-time imaging to drive better decisions and outcomes during procedures and diagnoses both in point-of-care and surgical settings.
There has also been an increasing focus on managing patient health and quality of life along the entire continuum of care rather than just point of treatment, so as to control systemic treatment costs for a given healthcare episode. The move towards digitalization, mobility and miniaturization has been significant in the recent years. The most obvious thing is that most of the present and future technologies revolve around driving better outcomes at lower costs. And, developed and emerging markets are witnessing a convergence of consumer needs.
Finding a Way Out of Challenges
All entrepreneurs have to confront an ever-changing market, apart from a competitive landscape. Often, it turns out to be challenging to adopt a proper strategy in these circumstances. At Analogic, we have been able to successfully overcome this concern by incorporating strategic options into our plans. As external environments or internal circumstances change, we mitigate the situation and select between the strategic options. Moreover, it remains a constant concern to maintain organizational focus on aspects which impact strategic and financial outcomes. I have adopted a \'higher priority agenda\' and follow them.
Speaking exclusively on business leaders, I would say the ability to find new growth opportunities in a highly competitive and low growth environment is essential. Further, it is highly critical to adapt to a highly-fluctuating market. Additionally, entrepreneurs should always value competition from emerging market players as well as players in developed markets.
As digital technologies continue to disrupt more and more existing industries, entrepreneurs should spend time in finding ways to embrace these technologies and reinvent business models. For instance, let\'s consider the healthcare space, where reduction of cost inflation through technologies surfaces as the toughest roadblock.
A Different Take on Innovation
Our approach to innovation is reliant mainly on three aspects, Linking Innovation to Market Needs, Incubating disruptive innovation and Open innovation.
Talking about market-oriented innovation, the concept behind the initiative is to help engineering teams understand market and consumer needs. Through this approach, leveraging technology in the attempts to solve customer needs has become easier. A constant review on existing technology portfolios and finding suitable markets are also key features of the strategy.
We have always been attentive to create highly empowered small teams, backed by high-level executive sponsorship, to bring new technologies to new markets. The main criteria here is to shift the technology investment portfolio from low risk and low return incremental innovation to higher risk, higher return disruptive innovation.
Lastly, with respect to the Open Innovation concept, I would highlight the need to complement internal R&D investments with investments in technology start-ups, universities and academic medical institutions. (As told to Anitha TS)