Medical Device as a Service: Systems Thinking, Servitization, and Management Models for Emerging Medical Technologies

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Systems Thinking
Strategic Framework
Medical Device
Med Tech
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This paper aims to explore the organizational implications where market trends drive the adoption of service-based business models within the medical device industry and, secondarily, to establish frameworks for the execution of new management models. This paper represents an attempt to explore the emerging changes in value-driven deliverables for medical device manufacturers as new medical technologies fundamentally change the way providers and businesses deliver patient care. The research was conducted through interviews with leaders in the medical device industry, combined with examining academic literature related to organizational strategy and structure, to explore the implicit perspectives on the challenges and opportunities related to the shift from product-focused to service-oriented organizations. This is the first research project that specifically explores the impact of medical technology on device manufacturers’ business strategy shifting from selling products to selling services. The premise for this analysis is the thesis that large medical device manufacturers will be forced to shift business models from product-driven manufacturing and sales to service-oriented business. The strategic focus behind this fundamental shift is based on how existing implantable devices are becoming more commoditized and less able to differentiate through product innovation. Fundamentally, product- and service-based businesses operate in different capacities. This paper attempts to understand how the medical device business can successfully adjust, from an operational and cultural perspective, so as to compete in the changing healthcare environment.

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Submitted to the Program of Organizational Dynamics, College of Liberal and Professional Studies in the School of Arts and Sciences in partial fulfillment of the requirements of the Degree of Master of Science in Organizational Dynamics at the University of Pennsylvania Advisor: Robert Keidel
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