Latest study by Simon-Kucher & Partners explores key commercial trends in the IVD (in vitro diagnostic) and imaging sector and provides insights on companies’ commercial performance.
Cologne/Berlin/Luxembourg, October 13, 2021 – A new survey with 40 international executives in IVD and imaging tells that economic aspects of diagnosing patients & providing care are on top of the executives' agenda. The study*, conducted by global strategy and marketing consulting firm Simon-Kucher & Partners, also unveils significant commercial potential in many areas, such as monetizing innovation.
Improvement potential in monetizing innovation, pricing, and new business models
According to the respondents, both IVD and imaging face similar challenges regarding their pricing and monetization initiatives. However, their approaches to improve the situation differ in success.
While the IVD industry expanded its portfolio significantly in the past by adding new tests, platforms, digital solutions, or value-added services, it is struggling with monetizing its innovations appropriately, capturing the value they provide. Developing integrated value propositions across the entire portfolio, and leveraging new business models are their main challenges.
The imaging industry has a lower commercial maturity score compared to IVD, and struggles with holistically understanding and addressing customer needs across modalities. The lack of customer centricity results in challenges to develop, and, consequently, marketing innovations.
The maturity assessment reveals clearly that Dx companies see significant commercial potential in many areas. At the same time, we see that resource allocation and priorities do not line up. “By re-assessing their current resource allocation, companies can concentrate on commercial areas with lowest maturity”, says Dr. Michael Keller, partner elect and industry expert at Simon-Kucher & Partners. “To be specific, the IVD industry need to prioritize pricing and monetization initiatives while the imaging industry should increase efforts on customer segmentation, product innovation, as well as pricing.”
According to the executives, almost 80 percent of barriers that hinder commercial excellence are related to organizational structure, insufficient resources and lack of capabilities. “In order to make commercial initiatives a success diagnostic companies have to deploy agile teams with different functional backgrounds that are true experts in their respective fields. Short sprints with quick and tangible results are key to create buy-in and drive change across the organization”, comments Mark Engelhardt, Director at Simon-Kucher & Partners.
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*About the study: The "Diagnostic trends study 2021" was conducted by Simon-Kucher & Partners in Spring 2021. A total of 40 industry experts from IVD companies active in e.g. Molecular Diagnostics, Immunology, and Genomics and imaging companies active in e.g. MRT, CT, X-Ray or Ultrasound were surveyed to investigate key commercial trends in the IVD and Imaging sector and understand commercial performance and initiative prioritization.
