ZS portfolio management strategy ignites medtech innovation
Impact by the numbers
The challenge
Years of underinvestment in marketing and lack of consistent processes undermined a medtech company’s ability to innovate and launch new products. Fragmented marketing roles and poor alignment with R&D and the supply chain compounded stagnation of a too-tactical approach. ZS evaluated the company’s current capabilities using the ZS proprietary Marketing Excellence framework, which ultimately led to more successful product launches and overall company growth.
The solution
Reality check: ZS evaluated the medtech company’s current capabilities using the ZS proprietary Marketing Excellence framework of best practices and industry benchmarks. The company’s limited marketing budget of 2% of revenue (versus peers’ 5% to 9%) flagged a key gap and opportunity to rethink how it could invest to fund innovation.
- Gains from closing gaps: ZS quantified the magnitude of capability gaps and the positive business impact of closing those gaps to enhance visibility, collaboration, efficiency and effectiveness of marketing and product development.
- Portfolio strategy: ZS built a roadmap to transform the organization from a tactical, product-oriented mindset to a solutions-driven portfolio management strategy that aligns marketing, R&D, supply chain and regional teams.
The impact
Product development prowess: A new product destined to fail in one country was re-examined, modified and launched successfully in 30 other countries, a feat made possible by the newly established portfolio management capability. In one year’s time, that new product generated 40% of the business unit’s total revenue.
- New view on spend: Working closely with company stakeholders, ZS ushered in progressive thinking about investment in marketing excellence and secured funding to drive innovation.
- Growth: The company’s stock price rose and market cap doubled in two years.