Analytics capability maturity is low in medtech, which means that there’s a huge opportunity to gain competitive advantage in an increasingly competitive marketplace.
ZS and the Economist Intelligence Unit recently looked at the impact of analytics investments across industries, and found that companies’ results thus far have been underwhelming. Nearly three-fourths of survey respondents said that sales and marketing analytics are either “very” or “extremely” important to their companies’ competitive advantage, yet just 2% have managed to generate a “broad, positive impact.”
The U.S. healthcare industry has changed dramatically in the last 10 years. The share of government spending on healthcare now is close to 50%, according to the World Bank and CDC; reimbursements tied to quality or outcomes now represent 80% of all Medicare-based payments, according to data from the U.S. Department of Health and Human Services; and more physicians now are employed by institutions rather than independently, representing nearly 50% of the workforce, according to The Physicians Foundation. These trends and many others have created a sense of urgency among medtech manufacturers to evolve their business and commercial models.