Open Business Model Of The Medical Device Industry

The medical devices industry is acknowledged as one of the most attractive industries worldwide. Continues increased market growth, high level average industry profitability and demand for technological advancements are some of the key ingredients defining the attractiveness of this industry. The existence of the demand for continued technological advancement and the growing emphasis on heightened global regulations and standardizations have strengthened the characteristics of this capital intensive and technology intensive market. As a result, many traditional business models companies have been presented with difficult challenges in an effort to survive and development, in particular small and medium companies. The big deviation between promising industry prospects and enterprises' development difficulties has reflected the fact that the traditional business models aren't able to adapt to industry demands gradually. Thus, to create the new business models that are suitable for the dynamic characteristics of the medical devices industry is an important subject to ensure continued development of the industry and realize both the existing and future core competitive advantages of the enterprise.This document intends to provide a discussion and analysis based on the introduction of Open Innovation and Open Business Models theories, the current medical devices industry status and characteristics, and the Ctrl+H challenges and opportunities. The Medical Devices Open Business Model and Framework have been constructed to comply with the industries demands. The related ecology theory and methodology have been utilized to provide the multidimensional Niche expansion analysis and competitive analysis for new business model. This analysis attempts to validate the scientific, advanced and feasibility of new business model through cross-scientific points. Finally, a case study analysis of three companies which have conducted business following the rudimentary open business model will be discussed in correlation with the ON company's scenario study on realizing new business model. Through linking theories to practice, the new business model's competitive advantage and encouraging prospects have been validated. The results of this study also can be used to pilot future enterprise innovation and the creation of new business models.This document has been divided into seven chapters. The first and second chapter introduce the core theories and related study method techniques; Chapter 3 analyzes the status and development of medical devices industry, and creates a new analysis method on enterprises multidimensional niche breadth; Chapter 4 constructs the framework of Medical Devices Open Business Model, summarizing the new concept of Ctrl+H challenges and analyzes corresponding solution schemes derived from the new business model. In addition, a discussion regarding an analysis involving the unique study on competitive advantage of new business model based on ecology theories will be presented; Chapter 5 integrates the function of the new business model theories with practice. In this chapter, there is an introduction and analysis of three real company case studies and how they relate to the open business models. Following this discussion, a scenario study on how ON company can incorporate this innovated business model in compliance with the Medical Devices Open Business Model will be deducted; Chapter six presents the summary and conclusion, in addition, open issues and additional topics for discussion, which have not been addressed but hold relevancy, will be identified and should allow for future topic discussions. The main reference documents list can be found in Chapter seven. All relevant reference materials and special comments in this paper have been identified as endnotes at the end of this document.