Thoughts on the Digital Transformation of the Remote Monitoring Medical Device Industry
Today, many medical devices can be remotely
monitored, thanks to embedded technologies like
the Internet of Things (IoT). Some medical device
manufacturers are leveraging such capabilities to
enhance the efficiency of service operations. But
truly forward-thinking companies are using the
technology to digitally transform their entire
business operations. They use the data to provide
new services, incorporate information gained into
the product lifecycle, and more.
To get a better understanding of digital transformation
in the medical device industry, common
challenges and obstacles to transforming, and
potential benefits, we recently sat down with
Anthony Moffa, Sr. Director, ThingWorx IIoT
Platform at PTC. Here is a summary of our
conversation.
RTInsights: We've seen how digital transformation
is key to many industries. What role can it play in
the medical device industry?
Moffa: It's a continuation of something that was
started about 20 years ago. The medical device
industry was one of the first industries to really
start embracing connected services. It started out
as machine-to-machine or remote device management
and eventually evolved into the Internet of
Things. And the beauty of all that was, the industry
had the opportunity to do the diagnostics of the
equipment from a centralized location, and that
obviously helps improve your service experience,
customer satisfaction, all of those things. Even with
all that, there's still pressure. When I was in service,
we were always asked to do more with less, for
less. So, if you think about servicing organizations,
they’d release a new product and sell the product.
If successful, the installed base gradually grows,
and grows, and grows. Yet, you don't want to grow
your service organization at the same rate, right?
And that's one of the reasons why so many people
are adopting digital. Because if you do the math, if
you double your installed base, you will have to
double the number of people to service that base.
If your service organization says, “We want to
double our service income,“ you have to double
the number of people because there is a direct
relationship: I need so many technicians to create
so much revenue. But as you become capable of
integrating a digital format into your workflow, you
can really start to streamline operations. Certainly,
remote service helped. It made it easy to diagnose
device problems. But you still had to dispatch
somebody to fix things, on occasion. So now
device manufacturers are starting to look at things
like self-service—asking, “Could my customer fix
certain things?”
That thinking spawned the role of a medical device
technician, so-called med techs. And a lot of the
hospitals started looking at that because they
could speed up the process of medical device
maintenance, and maybe do preventive maintenance
and all that sort of thing. But the problem
with that is, you have to train everybody on every
piece of equipment. That is challenging enough,
but there is also liability associated with this
approach. So, this self-service model where hospital
med techs do the work really hasn't taken off as
quickly as everybody would think. One thing that
could help is to start doing things like augmented
reality or assisted support. For example, PTC’s
Vuforia Chalk enables you to do telestration—
drawing a freehand sketch over a moving or still
video image—with customers on-site. It is a nice
addition to the digitization of service because if I'm