Week 1 Journal
Include a cover page and 1-2 pages of reflection regarding what learnings you've taken away from the week's activities, readings, videos, and other information you found noteworthy. Critically consider the challenges you faced in becoming familiar with the simulation, making operating decisions, and analyzing the Strengths, Weaknesses, Opportunities, and Threats faced by HISCO. Lastly consider how to apply lessons from Week 1 to your career field. Every job that you perform for your employer has budgetary and time constraints. Often choices have to be made about the quality of the project. There is only so much money that can be dedicated to your position within the company and the tasks that are assigned to you. Consider how budgeting impacts the work that you perform.
© 2015 Maresova et al. This work is published by Dove Medical Press Limited, and licensed under Creative Commons Attribution – Non Commercial (unported, v3.0) License. The full terms of the License are available at http://creativecommons.org/licenses/by-nc/3.0/. Non-commercial uses of the work are permitted without any further permission from Dove Medical Press Limited, provided the work is properly attributed. Permissions beyond the scope of the License are administered by Dove Medical Press Limited. Information on how to request permission may be found at: http://www.dovepress.com/permissions.php Therapeutics and Clinical Risk Management 2015:11 1505–1514 Therapeutics and Clinical Risk Management Dovepress submit your manuscript | www.dovepress.com Dovepress 1505 R e v i e w open access to scientific and medical research Open Access Full Text Article http://dx.doi.org/10.2147/TCRM.S88574 The potential of medical device industry in technological and economical context Petra Maresova1 Marek Penhaker1,2 Ali Selamat1,3 Kamil Kuca1,4 1Faculty of informatics and Management, University of Hradec Králové, Hradec Králové, Czech Republic; 2Department of Cybernetics and Biomedical engineering, Faculty of electrical engineering and Computer Science, Technical University of Ostrava, Poruba, Czech Republic; 3Faculty of Computing, Universiti Teknologi Malaysia, Johor Bahru, Johor, Malaysia; 4Center for Biomedical Research, University Hospital Hradec Králové, Hradec Králové, Czech Republic Abstract: The high quality of public health improves not only healthy life expectancy, but also the productivity of labor. The most important part of the health care sector is the medical technology industry. The aim of this study is to analyze the current situation in the medical device industry in Europe, its potential strengths and weaknesses in the context of topical economic and demographic development. The contribution specifies an analysis of the economic state of the medical device industry in the context of demographic development of European Union’s macroeconomic indicators and views of experts in the field of medical device development, concerning the opportunities for entities involved in the medical device market. There is fierce competition on the European market. The innovative activity is stable and well regulated by responsible authorities. Worldwide, the medical device market is expected to grow. Keywords: technology context, medical device, Europe, expenditure, review Introduction With respect to the demographic trend in Europe, health care and the development of health devices are hot issues. Several studies evaluate the prospects of medical interventions,1,2 economic effectiveness of innovative technologies in health care,3 or Health technology assessment in chosen European countries. In order to implement innovative technologies in practice, it is becoming extremely important to be cost con- scious and effective as well as to know and follow new guidelines in health care.4 Many studies have proved that there is a relation between health and the economic development of countries.5–9 Improved public health leads to healthy life expectancy, which is then reflected in increased quality and productivity of labor. It is therefore vital to invest in the health of working people in order to prolong their active life and achieve better health. This investment may also decrease future costs of treating patients suffering from preventable diseases. The healthier the individual people are, the more and longer they are able to be at the labor market. Approximately one in four currently employed people (23.5%) suffers from a chronic condition, which limits them in doing their daily activities. It is the more so in latter stages of their lives when their participation in the labor market is markedly lower.10 Moreover, there is an increased incidence of multiple diseases (comorbidity) at higher age. As a result, the pressure on health systems and social care structures in terms of demand for care increases. In the context of this development, the problem of investments in the medical device industry as a part of health care becomes more significant. Medical devices are irreplaceable in diagnostics, prevention, monitoring, and medical treatment of diseases and in increasing the quality of life of persons with a health problem.11 Variability and innovativeness of this industry significantly contribute to an increase in the quality and efficiency of health care. The aim of this contribution is to analyze and specify the Correspondence: Kamil Kuca Center for Biomedical Research, University Hospital Hradec Králové, Sokolská 581, Hradec Králové 50005, Czech Republic Tel +420 603 289 166 Fax +420 495 835 200 email
[email protected] Journal name: Therapeutics and Clinical Risk Management Article Designation: Review Year: 2015 Volume: 11 Running head verso: Maresova et al Running head recto: Potential of medical device industry DOI: http://dx.doi.org/10.2147/TCRM.S88574 http://www.dovepress.com/permissions.php http://creativecommons.org/licenses/by-nc/3.0/ www.dovepress.com www.dovepress.com www.dovepress.com http://dx.doi.org/10.2147/TCRM.S88574 mailto:
[email protected] Therapeutics and Clinical Risk Management 2015:11submit your manuscript | www.dovepress.com Dovepress Dovepress 1506 Maresova et al current situation in the medical device industry, its potential strengths and weaknesses in the context of topical economic and demographic development. Research methods The following methods are used in the issue: retrospective analysis (of demographic data, data related to the growth of medical device market), structured interviews with experts, and analysis of external environment. External analysis focuses on the surrounding environment, aims at the oppor- tunities, threats, as well as other factors that will influence the future strategy of this industry. This analysis specifies politi- cal, economic, social, and technological factors (therefore, it is also called PEST analysis). The individual factors are arranged according to their importance as for the expected future state of the industry. The analysis of political factors monitors laws, restrictions, and conditions significant for the future development of the industry, including legisla- tion, political stability, tax policy, and integration policy. Among the most important economic factors are gross domestic product (GDP), interest rate, or inflation. These factors specify the performance of the industry. Social fac- tors are important, in particular, for companies involved in selling products to the end consumer. In this area, it is vital to understand demographic stratification, lifestyle, income, and religious issues. Technological changes may suddenly and dramatically influence the whole industry. Among the monitored factors are government support to research and development (R&D), general technological level, new discoveries, and inventions. The analyses of the external environment served as the basis for forming the so-called SWOT matrix (strengths, weaknesses, opportunities, and threats). The SWOT analysis was devised by Albert Humpley in the 1960s. The SWOT analysis process is usually divided into three basic stages: • Identification and assessment of strengths and weak- nesses, which are internal to the organization. • Identification and assessment of opportunities and threats, which are external to the organization. • Creating the SWOT matrix. Strengths are internal resources of the company, its positive attributes, or assets. Weaknesses are aspects of the organization that need improvement and cause competitive disadvantage. Opportunities are external attractive factors that the organization can benefit from as they increase demand or can better satisfy the customer. Threats include external factors and trends beyond control that could decrease demand or cause future losses.12,13 In the table are summarized SWOT of the given segment. The aim was to achieve the greatest possible objectification of the assessment, the SWOT analysis was created by a multi-disciplinary and international team consisting of a specialist in the develop- ment of medical devices (two specialists), development of pharmaceuticals (one specialist), economy (one specialist), and modern technology (three specialists). The role of each team member was to describe partial strengths, weaknesses, the potential opportunities, and threats in their area of work, which corresponded to the individual parts of the analysis of external environment. The team members then carried out quantified evaluation of each item of the European Union (EU) Medical Device Industry according to their significance. Factors were assessed on the scale from 1 to 5, where 5 stood for the highest significance in relation to the EU countries. Each factor was then assigned with significance, that is, the numeric representation of the significance of its impact on the development in the medical device industry. The sum of significance in each category must be equal to 1. The analysis of external environment in the medical device industry The economic situation of the medical device industry In economic terms, the current world witnesses a slow growth and in the near future the situation probably will not change much. A little increase in economic activities is expected and the number of unemployed people will decrease only little, if at all. There are still short-term risks represented by problems in the Eurozone, the USA have not overcome fiscal adjustments, and developing countries’ economies are slowing down, even though the situation is getting better. Concerning medium-term risks, several developed econo- mies adopted unconventional and risky monetary measures aimed at improving global financial stability.14 In relation to the medical device industry, it may be observed that there are unprecedented opportunities loom- ing for the medical device industry in countries such as the People’s Republic of China, India, Latin America, the Middle East, and other emerging markets with rising GDP and expand- ing middle class. The rise in both population and disposable income should lead to a much higher demand for medical devices and medical services. The expansion of medical device companies into developing countries will increase their manu- facturing efficiency and decrease the price of their products. They will also be able to better serve local markets. The medical technology industry, with its established centers in the USA and Western Europe, is becoming a www.dovepress.com www.dovepress.com www.dovepress.com Therapeutics and Clinical Risk Management 2015:11 submit your manuscript | www.dovepress.com Dovepress Dovepress 1507 Potential of medical device industry flagship of the whole health care sector. Among other things, it manufactures devices facilitating not only pre- vention, but also diagnosis and the follow-up treatment. Nevertheless, the focus of the medical technology industry is becoming to move eastward to Asia, particularly to the People’s Republic of China, which will probably become prominent in the near future.15 The medical device indus- try comprises thousands of firms, predominantly small enterprises with up to 50 employees. The main drivers of innovation in this area are start-ups that are usually financed by venture capital.4