Weve Got
Rhythm!
Medtronic Corporation
PRESENTED BY,
DIVYA
&
SUJITH
Medtronic Corporation
Medtronic was founded in 1957 in Minneapolis.
Cardiac Pacemaker major invention
Pacemakers for 2 disorders:
Bradycardia- For not enough pulses
Tachycardia- For too many pulses
WHY they LOST
RHYTHM ??
Key Issues Faced by Medtronic
Lack of coordination within functional units
Every idea generated was put into action even
before completing the previous project.
No project got focus and attention needed to get it
done right
Marketing and Production were out of sync.
Competitors introduced new improvements
Lengthy product development cycle
Key Issues Faced by Medtronic
2 major product recalls related to quality problems
Employee attrition they develop pacemaker
product ideas in new start ups .
Market share dropped from 70% in 1970 to 29% in
1986
Breakthrough for Medtronic
Rate responsive pacemaker Activitrax
How it become success??
Single
chamber design was easy to be implanted
Good response from the users
Serious product recall by a competitor
How they GOT
BACK
RHYTHM ??
Processes Introduced by Stevens
Speed
Platform Strategy
Project Documentation
Phase Definition
Rhythm
Market Inputs
Speed
Formulated well-defined strategy
Assessment of environment and technology
To define the business objectives
To estimate the financial and competitive contributions
of the new product
Platform Strategy
Ideas from disparate parts being funded
independently
Not enhancing any product with derivative lack of
effective product line
For overcoming this product planning team
First Element
1) Initial product Top end model
Derivatives
models with lesser features
Second Element
Perfected the design and implementation in single
chamber platform
The features were enhanced for dual chamber platform
Clearly defined the product line and target market
Simple devices for the low end of the market and
high performance fully featured models at the high
end.
Leadership role in higher end of market via functionality and
features
Strengthened the position in lower end with low priced
products
Third Element
Changed the way platform has been designed
Physical architecture Hybrid circuit
Latest tech could be incorporated in hybrid circuits
MicroRel
Outsource only those parts that are standardized
Decision making by project managers instead of
functional heads.
Project Documentation
Lack of synchronization between marketing and production
dept
How the problem was solved. ??
Two Documents need to be prepared
1. Product Description Marketing
2. Product Specification Engineering
Product Description
Customer Requirements
Product Definition
Performance Expectations of the product
To be signed off by engineering
Product Specification
Technical and Cost specifications
To be signed off by marketing
Phase Definition
Business Analysis Phase
Product description is written and financial benefits is estimated
Demonstration Phase
Technological feasibility of the project is estimated
Rapid prot0typing is emphasized
Commitment Review
Review of technological potential, competitive activity, profits and
ROI
Commitment/Development Phase
Rhythm
Scheduled a date each month for phase review
Prepared a schedule on new product launches
Structured the way new ideas were being handled
Market Inputs
For getting inputs from customers
Physician review board.
Physician Inputs on performance of existing
models
Suggestions on new features
Review boards will meet twice every year
PROCESS OUTCOME
RESULTS
Market share increased from 29% in 1986 to 51% in
1996.
Time required to develop new platform products was
reduced by 75 %
Become Market leaders in every segment of the
market.
FUTURE
CHALLENGES
Challenges in Future
How to satisfy the already satisfied customer?
Figure
out how to add values in different ways
Need to define the product generations
Price of the pacemaker need to be reduced
significantly
Reaching less developed regions
Require advanced technology and enormous
efforts from physician
Increasing the reach of dual chamber platforms from
50% to 70%
Work closely with customers :- patients, surgeons,
hospital management and buying groups
Learnings
How a new management team at Medtronic's
Cardiac Pacemaker business reversed a steep decline
in market share .
By
1) Clarifying current strategy
2) By proper project planning
3) Better Customer understanding
