Medical Equipment Industry

Medical Equipment Industry

Industry Defined:

Medical equipment (also known as armamentarium) is designed to aid in the diagnosis, monitoring or treatment of medical conditions (Wikipidia).

There are several basic types for Medical equipment, 

• Diagnostic equipment includes medical imaging machines, used to aid in diagnosis. Examples are ultrasound and MRI machines, PET and CT scanners, and x-ray machines.
• Treatment equipment includes infusion pumps, medical lasers and LASIK surgical machines.
• Life support equipment is used to maintain a patient's bodily function. This includes medical ventilators, anesthetic machines, heart-lung machines, ECMO, and dialysis machines.
• Medical monitors allow medical staff to measure a patient's medical state. Monitors may measure patient vital signs and other parameters including ECG, EEG, and blood pressure.
• Medical laboratory equipment automates or helps analyze blood, urine, genes, and dissolved gases in the blood.
• Diagnostic Medical Equipment may also be used in the home for certain purposes, e.g. for the control of diabetes mellitus
• Therapeutic: physical therapy machines like continuous passive range of motion (CPM) machines

The impact of globalization

The Globalization gives a great impact on the medical equipment industry. Globalization has greatly increased the demand for medical technology. The globalization of design, sourcing, manufacturing, distribution, and sales of medical technology has accelerated the transformation of the Med-Tech industry; the emergence of new economies as key marketplaces for the sale of medical devices has given executives pause as they consider how to serve these markets as well as the developed economies that have long been the principal revenue drivers for their companies. Moreover, these concerns are emerging just as the industry’s business model shifts from “selling products” to “providing integrated solutions” that improve care and enhance health across populations.

Industry Profile:

A need for change:

Increasing design re-use and partner collaboration
Integrated access, analysis, mgmt & reporting of trials data
Standardized, electronically managed policies & procedures
Targeted, coordinated mktg to consumers & physicians

Lean initiatives to reduce cycle time and waste

Tsing hua tian di is a medical equipment company in China, and the company is producing DR and some other medical equipment， the company decided to change its strategy to focus on not only its product but also the customer service and international business since the opportunities and impact of globalization. 

Business model 

source: Source: SYK 10K & Investor Presentation  Williams Balsamo February, 18, 2015

Reference:

Medical Technology Industry Faces a Balancing Act in Globalization, By Manufacturing Geek on November 29, 2012

http://manufacturing-geek.com/medical-devices/2012/11/medical-technology-industry-faces-balancing-act-globalization/