SG&A Pressure: The Impact on Sales Compensation

In the first post in this series, we looked at how the creation of integrated delivery networks is guiding medtech companies to restructure their sales compensation plans. ZS’s annual medtech survey, released Sept. 1, revealed the impact of another upstream change to the go-to-market model: how pressure to reduce SG&A spending is beginning to affect medtech companies’ sales compensation plans.


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Are Internal Challenges Preventing Your Organization From Demonstrating Value?

Large-scale mergers and acquisitions continue to be a trend shaping the medtech industry. This year alone, two multi-billion dollar acquisitions (Abbott/St. Jude Medical is complete and Becton Dickinson/C.R. Bard is pending) aimed to create large medtech organizations with broad portfolios and businesses spanning many therapy areas and hospital departments. Several other billion-dollar deals have also made headlines in recent months. These combined entities should be in a strong position to articulate a portfolio value proposition that can help providers improve the quality and outcomes of patient care.


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From Collision to Collaboration: How Pharma, Diagnostics and Patients Can Succeed Together

Pavan Anne co-wrote this blog post with Jim Adelizzi.

In this new era of personalized medicine, matching the right patient with the right targeted therapy requires pharmaceutical and diagnostic companies to reach across industry lines and collaborate long before launch. Together, they need to create a strategy that enables the companion diagnostic to differentiate and accelerate the therapy rather than impede its growth. I’ve witnessed a few ways that these entities can create a go-to-market strategy in unison and carry that tight-knit collaboration all the way to market. To illustrate the inherent challenges, let’s consider the case of two fictional oncology companies that have entered into a research and commercialization agreement: Pharma Depot Co. and Diagnostics “R” Us Inc. 


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IDN-Centric Selling Models: The Impact on Sales Compensation

ZS conducts an annual survey of medtech companies to understand how their sales incentive plans are changing. This year’s version, which we conducted in the summer of 2017 and will be released in late August, begins to show how upstream changes to the go-to-market models—such as the impact of integrated delivery networks—are beginning to affect sales compensation plans downstream.


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How to Navigate KAM Incentives: The Square Peg of Sales Compensation

You can’t fit a square peg into a round hole. The popular saying has been around for millennia. Chinese literature from 221 B.C. speaks of “square tenon and round mortise”: square peg, round hole. 


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Musings From the ADA: Medtech Needs to Balance Health and Happiness in Diabetes

I just came back from my first American Diabetes Association Scientific Sessions event, held June 9-13 in San Diego, and there were a number of surprising revelations about the medical device industry’s role in diabetes treatment. 


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Roll Up Your Sleeves: How to Achieve Better Outcomes Through Behavior Change

I often pause in restaurant bathrooms, amused by the familiar signage above the sink: “Employees must wash hands before returning to work.” Surely everyone washes their hands. While these well-meaning but rather amusing signs are found all over the U.S., do they actually have any impact on improving hygiene practices? Probably not. But what does that have to do with medtech, anyway?


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The End of the ‘Features War’: The Changing Definition of Value in Medtech

This blog post also appears on The Advanced Medical Technology Association's Medtech Conference blog.

Flipping through the duty-free catalog on a recent flight, I was amazed that the luxury watches section spanned 38 pages and touted features like triple-polished sapphire crystals, 300-meter water resistance, rotating bezels and dual faces with multiple time zones. I nervously glanced at my own Garmin GPS running watch and its blocky digital time display.


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Medtech Industry Experts Weigh in on the Future of Commercial Operations

I recently helped organize and presented at ZS’s Medtech Connect event, an annual one-day gathering of medical technology experts, commercial operations leaders and ZS medtech leaders. Many of the conversations among industry peers centered on sales planning, sales compensation and analytics—common commercial operations concerns for the dozens of medtech companies that I’ve encountered in my work. Of all of the tips and trends discussed in California that day, these three stood out:


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Three Barriers to Optimizing Your Pricing and Contracting Practices

The power of optimized pricing and contracting practices can be distilled down into a simple formula: Selling more at a higher net price while reducing the cost of operations will result in sustainable profit growth. Yet many medtech companies struggle to find effective ways to aggregate, assess and analyze pricing and contracting data, and to generate relevant insights to maximize sales for existing contracts, optimize price offers for new contracts, and streamline all supporting processes. Put simply, they’re leaving money on the table.


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