From Cost Center to Profit Center

Andrea Traverso and Bhargav Mantha

How investing in commercial operations drives growth for medtech, and three strategies for getting started

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In a commercial environment that becomes more complex by the day—due to factors such as increasing margin pressures, evolving customer-buying processes and the industry’s increasing focus on outcomes—new technology holds promise for medtech companies to overcome these challenges and turn them into opportunities. However, many firms consistently fail to capture that promise. According to ZS’s recent Medical Products and Services Commercial Operations Study, more than 80% of companies find it challenging to justify an ROI from their commercial operations investments.

The study assessed the commercial operations practices and performance of medtech companies in order to understand current and future trends, opportunities and pain points within medtech, and how different companies are planning on addressing these issues. The study included 60 medtech executives from companies with annual sales ranging from $50 million to $2 billion, including a majority of the top 25 companies in the industry across a range of medtech categories.

The study identifies gaps that medtech companies have across commercial operations. But, the study also shed light on the fact that medtech companies seek to improve. Over 60% of respondents indicated that they want to advance their commercial operations capabilities to be above industry standards.

When companies do invest to make improvements, many struggle to see a return on that investment. The study shows that almost one-third of respondents did not see an ROI on new technology investments. However, there is a silver lining, evidenced by the fact that 33% of medtech companies are, in fact, able to achieve significant ROI on their investments in commercial operations. Download this article to learn what these high-ROI companies doing differently to enable their commercial operations organization to drive revenue and add real value.

About the Experts

Andrea Traverso is a Principal at global sales and marketing firm ZS and has helped clients improve their sales, operations and marketing efforts for close to 20 years. Her consulting experience in the medtech industry spans across multiple areas including go-to-market strategy, opportunity assessment, segmentation and targeting, sales effectiveness, incentive compensation and overall commercial operations.

Bhargav Mantha is a principal and a leader of ZS's global operations and technology practice. He works with medtech companies to enable and implement effective business strategies through data and analytics. He has led several large-scale engagements involving information management strategy development and execution in areas such as Big Data, Analytics as a Service, Data Visualization and Mobility Solutions.