Service logic in my industry

I’m having an interim assignment within MedTech and I think there is a mix of Goods and Service Dominant Logic in this industry (GDL/SDL). Of course there are both pure SDL and GDL players. However, the standard goods shows decreasing margins due to hard competition and to keep the margins, GDL companies are focusing on goods innovations, more sofisticated integrations of goods to solutions (Foundational Premise 9) and/or services that increases the value of the goods. Small companies are good at offering e.g. goods customizations and larger companies offer complex services that really interacts with the customers processes (FP6) and offer ”guaranteed measurable results”. #MSSL141


Service logic in my industry — 5 kommentarer

  1. Hi Anders!
    Seems like MedTech shows the same challenges as other industries with shrinking margins and increased competition. Do you think that a service perspective on the business can be helpful in this situation?

  2. Yes, definately. In mature markets the service offerings can be more complex and be separately charged.

    I think this is more difficult in emerging markets where the ”high-end” market is not so big. For companies that are used to high goods margins it is a challenge start look at business models that include both equipment and service. In this case a lower equipment margin could be accepted when including the service generated revenue over the total lifetime.

  3. Interesting to realize MedTech seems to be like most traditional product business-areas. Because SL is a strategic choice, it stand to reason that the apllication of it depends on the enlightenment and competence of the company leadership. Any thoughts on this and other antecedents to SL in MedTech?

  4. Pingback: Service innovation in the MedTech industry | Admiritus | Interimschef

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