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In a recently published article on pharmaphorum.com—a leading digital publication covering the life sciences industry—Rajesh Kumaran, Vice President and Business Unit Head, Life Sciences and Healthcare, TCS, explores how the MedTech sector is evolving from a model focused solely on innovation and compliance to one that also prioritises operational efficiency, mirroring the transformation seen in the automotive industry.
Taking a leaf out of the automotive’s book
MedTech is learning from automotive manufacturing. The automotive sector has long used lean manufacturing, Kanban systems, automation, and cost discipline to create highly efficient operations. MedTech is now beginning to adopt similar approaches. Margin pressure is forcing change. Historically, MedTech relied on premium pricing, strong innovation pipelines, and M&A-led growth. But as breakthrough innovation slows down and M&A delivers diminishing returns, companies need to generate capital internally by improving operations, enhancing productivity, and eliminating inefficiencies across the value chain.
The crucial shift in MedTech
The industry is shifting from “design at any cost” to “design to cost.” MedTech companies are now examining hidden inefficiencies in inventory, logistics, supply chains, and manufacturing processes — areas where capital is unnecessarily tied up. AI is delivering near-term value in operations, not just clinical innovation. The article highlights complaints management as a strong use case, where agentic AI can streamline intake, classification, documentation, escalation, and audit readiness. Operational efficiency can fund future innovation. Improvements in complaints handling, supply chain visibility, and manufacturing productivity are not just about reducing cost — they free up resources to invest in next-generation MedTech innovation. The operational backbone is becoming a competitive differentiator. Companies that modernise operations will be better positioned to scale, fund R&D, and compete, while those that do not may fall behind.
MedTech’s next wave of growth will depend not only on breakthrough products, but on building leaner, smarter, AI-enabled operations that can sustain innovation at scale.
The article was first published on Pharmaporum.com. You can read the full article here.