Ernst & Young’s new Pulse of the Industry study stresses that medical device companies need to begin investing more in digital capabilities or long-term growth could be at risk.
Nearly a year ago, MD+DI asked the question, is digital health making an impact on healthcare? Now, a report from Ernst & Young titled Pulse of the Industry is answering that question and points out that if medtech companies don’t make significant investments in digital health capabilities then long-term growth could be at risk.
“Incremental innovation and products are just not going to be able to sustain [long-term] growth,” Jim Welch, Life Sciences Advisory Partner, Ernst & Young, told MD+DI. “I think the real opportunity for med-tech companies that are in a position to do this is to capitalize on digital transformation.”
Welch described digital transformation as devices that are increasingly connected. He noted that the consumers and stakeholders these digital devices serve are more connected and demand more visibility and outcomes.
“While the products have historically been the value driver for medtech … and we’re not saying they will go away by any means, but additionally the data and the digital connectivity of those products in and of itself is going to become a value driver,” Welch said.
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