Task Overview

With a successful product launch behind you and significant sales, it’s time to consider whether the business should move forward, and, if so, how. In conventional business models success means revenue growth, hopefully above 10 per cent per annum, with a target for sales revenue to exceed total development costs within a specific period (e.g. five years).

What you need to do:

• Can efficiency be improved? Or can prices be increased?
  • If efficiency can be improved or prices increased, then the associated growth in profitability will provide investment for new product development:
    • Consider incentivising staff through performance bonuses
    • Reward investors through shareholder dividends.
• You may want to plan for an Initial Public Offering (sale of shares on a stock market) or an exit strategy (e.g. sale of the product, or merger or acquisition of the business).
• Consider expanding your portfolio of healthcare products, and developing commercial strategies based on forecasting healthcare system trends and horizon-scanning for new technology applications.
• Decide whether you are going to invest in the products of the future to fill a strategic product development pipeline. Tools, such as technology roadmapping, are available that link new technologies with products and emerging market opportunities.
• Be prepared for after sales support.
  • Medical devices have a legacy whereby the producer incurs responsibilities well beyond the point of sale. Subsequent business development must take account of the need to provide continuing after-sales support.