This extract is part one of a five-part series that breaks down the layers of the Data Strategy Framework for Connected Medical Devices, which we introduced in our recent whitepaper. Featuring insights from industry leaders at Cochlear, Dexcom, Medtronic, Omron, Vocxi Health, and S3 Connected Health, the paper offers a practical framework for leveraging data to stay competitive and succeed in a data-driven healthcare landscape.
A long-term data vision is crucial for medical device companies aiming to stay competitive and innovative in the evolving healthcare landscape. This vision focuses on the potential of data integration across the organization, enabling business outcomes that are currently not achievable. The role of a data strategy is to shift the focus from the immediate impact of data on specific projects to how integrated and consistent data use can drive future innovation and value of the company — including physical products, associated services, and new business models.
This long-term perspective is important because while initial returns on data initiatives may appear less favorable than traditional investments, their growth potential is significant. For instance, Omron Healthcare Global aims to generate a third of its revenue from services and digital by 2030, underscoring data's pivotal role in shaping its future. This strategic focus allows them to justify early investments by emphasizing the future value of their digital and data-driven services.
“When I compare the ROI from our new initiatives to what we could have achieved with the same investment in our traditional areas, I realize the stark contrast. It's clear that had we allocated these resources a few years back to what we're traditionally good at, the figures would have been significantly better. However, I've come to understand that adopting a long-term perspective is crucial. I often think about where our business will be in 10 years.”
Paul Stevens, Director of Digital Health, Omron Healthcare Global
The true value of data lies in its ability to evolve continuously, providing new insights as technology advances. Data collected today can be leveraged in the future to diagnose emerging disease states, validate therapies, and develop new treatments. A robust data vision should aim for multi-dimensional insights, integrating data to enhance understanding of device performance, therapy outcomes, and overall patient health. A successful data strategy runs in parallel and supports traditional product development by exploring how data can uncover new value — whether through direct product commercialization or data-driven services.
“A winning data strategy will include a vision of what can be achieved with emerging technologies. To create multi-dimensional data insights, think beyond the physical device to imagine where data can create new insights, either directly from their product commercialization or combined with data from other sources.”
Randy Schiestl, COO, Vocxi Health
Long-term data strategies should also capture broader non-clinical impacts, such as cost-effectiveness, service delivery models, and population health outcomes. These insights are particularly valuable for conditions without precise biomarkers but with significant health impacts. For example, well-designed, evidence-based dossiers will help overcome the challenge of presenting non-standardized data to regulators in a meaningful and actionable way.
“Does every solution need to be a smart device? Understanding when to scale back to simpler, more affordable technologies is essential, particularly in emerging markets where accessibility and cost-effectiveness are critical. It's important to think not only about ramping up product development but also about scaling down features that are not necessary. Globally, there's a need to think differently about scaling and cost management, avoiding over-engineering in favor of streamlined, functional solutions.”
Patti Trautwein, VP of Market Access & Reimbursement, Cochlear
To build a long-term vision for data, it is essential to establish clear objectives that align with the company's overall mission and business goals, ensuring that all data initiatives serve a common purpose.
An essential aspect of building a long-term data culture within an organization is nurturing a data-centric mentality among team members. In addition to their traditional expertise, teams need to recognize how data can enhance device performance, improve physician insights, and elevate patient care. Incorporating a robust data strategy into the technology roadmap is critical from the beginning.
Engaging all stakeholders from the outset is vital for this cultural shift. Traditionally, product development has been driven by R&D and commercial teams, which can overlook valuable contributions from disciplines such as behavioral science, medical affairs, and clinical teams. Involving diverse stakeholders ensures a comprehensive approach.
“It’s essential to bring everyone to the table — R&D, commercial teams, behavioral scientists, data scientists, patient advisory boards, and medical experts. This approach ensures a shared understanding of constraints and objectives, ultimately leading to better, more informed decisions.”
Harsimran Singh, Director of Behavioral & Translational Data Science, Dexcom
This collaboration encourages constructive discussions, aligns departmental objectives, and leads to well-informed decisions that address technical, regulatory, and user-focused challenges. Early involvement of stakeholders facilitates effective change management, ultimately fostering the development of impactful devices and promoting long-term success in a data-driven healthcare environment.
This is in contrast with the traditional approach, in which development teams typically concentrate on hardware, software, and firmware and often neglect the importance of strong data skills. This oversight can hinder the prioritization of data, which is essential for achieving sustained operational and therapeutic advantages.
When medtech companies embark on this journey, they quickly discover skill gaps in multiple areas required to implement a data strategy successfully. A long-term vision of the value of data helps foster a mindset that values data strategies equally alongside engineering initiatives and enables necessary investments.
Executive buy-in is essential to aligning data strategies with company goals but requires a well thought-out and practical plan. Presenting this alignment compellingly to leadership involves more than surface-level ideas or trendy buzzwords like "big data" and "AI." Instead, the strategy must be grounded in realism, with a clear, scalable approach that can be implemented over time. It is important to present a compelling vision with specific steps, as internal challenges can arise if executives aren’t fully convinced of the value and practicality of the data initiative.
Companies can create long-term value that aligns with their business goals by initially focusing on a robust platform that supports multiple operational efficiencies — in R&D, manufacturing, technical support, supply chain, and other areas. If architected correctly, such a platform is a highly scalable and reusable asset that can be expanded to handle therapy and care management aspects.
Therefore, a solid data strategy isn’t just about gathering information for the future — it’s about using it to shape future growth and innovation, ensuring that early investments pave the way for future profitability and market leadership.
“Aligning a data strategy with a company's strategic advantage is essential, but presenting this alignment compellingly to executives requires detailing beyond surface-level ideas. It involves outlining a straightforward story with specific steps for implementation, recognizing that executive buy-in is not automatic, and often faces internal challenges. The vision presented must be realistic — avoiding buzzwords like "big data" and "AI" — with a concrete value proposition. Tailoring initiatives to be scalable and manageable rather than overly ambitious is crucial to avoid becoming another statistic of failed transformative efforts.”
Patti Trautwein, VP of Market Access & Reimbursement, Cochlear
Check out our recent whitepaper for more information on building an effective data strategy framework for connected medical devices. Featuring insights from industry leaders at Cochlear, Dexcom, Medtronic, Omron, Vocxi Health, and S3 Connected Health, the paper offers a practical framework for leveraging data to stay competitive and succeed in a data-driven healthcare landscape.