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Why innovation is not happening in small scale medical equipments Industry?. Subject: Innovation Management Date: 28 Feb 2010 Submitted to: Shekhar Badve Submitted by: Kranti V, Sayli M, Sneha J. Table of Contents. Medical Equipments Industry Overview Equipments economy - PowerPoint PPT Presentation
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Why innovation is not happening in small scale medical equipments Industry?
Subject: Innovation Management Date: 28 Feb 2010Submitted to: Shekhar BadveSubmitted by: Kranti V, Sayli M, Sneha J
Table of Contents
Medical Equipments Industry Overview
Equipments economy
MSME in India
Hypothetical case
Issues hindering Innovation
Possible methods to manage Innovation
Medical Equipments Industry Overview
Equipments economy : M Kikuchi, PhD, Department of Engineering, National Defense Medical College, Japan
MSME in India
The MSME sector is a nursery ofentrepreneurship, often driven byindividual creativity and innovation.This contributes 8 per cent of thecountry’s GDP, 45 per cent of themanufactured output and 40 percent of its exports. While one end ofthe MSME spectrum contains highlyinnovative and high growthenterprises, more than 94 per cent ofMSMEs are unregistered, with alarge number established in theinformal or unorganized sector.
GDP 8% Manufactured Output 45%
Exports 40%
Hyderabad based Portable Gas analyzer company.
Company name: Smart Embedded Technology
Company profile: 20 years old in the industry
Company Owner's profile: ME in Mechanical Engineering
Hypothetical case
Product comparison with US company:
Medical Equipment
MSME
Improper Infrastructure facilities:Improper fundingDelay in fundingInadequate or confused regulations Legal
Limited access to equity capital:Poor marketing.Unavailable Skilled laborLack of structured organizationsMindset of Investors to underestimate R&D,
Marketing
Inadequate and delayed credits: Improper banking servicesLack of initial investmentNo high profitsLack of Financial management knowledge
Finance
Lack of access to modern technology:Patenting issuesNo centralized body providing updates on invention No laws to access technology.
Government
Weak Entrepreneurship:Low risk taking LeadershipLack of Management knowledgeLack of SMART vision
People
Low Volume:Low demandLow market sizePeople exposureSocio Cultural issues
Product
30%
30%
10%
10% 10%
10%
Issues, Causes & % Distribution to Manage Innovation
Possible methods to Manage Innovation
Finance, R&D, Marketing, Legal, Government
Government can play an important role in regulating transparent and closed loop laws in order to promote the industry gaining max. profits.
Recruitment of skilled laborers at all levels.
Establishment of a governing body which weekly provides updates on new technologies across the globe.
Networking of all small and medium manufacturers in form of forums or festivals to exchange ideas and views from different departments.
Medical Equipments Industry Overview
The medical devices industry in India was valued at $2.7 billion in 2008, the market is forecast to grow by 12% annually for the next seven years to reach $6 billion in 2015.
India 2% of the World market.
Medical equipment is inherently low volume, highly intellectual and manual effort requirement business.
The upper age group spends more on his health for the last 5 years of his life than he did before, thus increase in demand for this industry.
Medical Equipments Industry Overview
Medical Equipments Industry Overview
Medical Equipments Industry Overview
Certain Features of US Market:The US medical equipment and supplies distribution industry includes
about 6,000 companies with combined annual revenue of about $53 billion.
The profitability of individual companies depends on merchandising and efficient delivery systems.
Large companies have economies of scale in purchasing, and highly developed infrastructure that allow for efficient distribution.
Small companies can compete effectively by specializing in a product line or servicing a local customer base.
Medical Equipments Industry Overview
Equipments economy: M Kikuchi, PhD, Department of Engineering, National Defense Medical College, Japan
MSME in India
The MSME sector is a nursery of entrepreneurship, often driven by individual creativity and innovation. This contributes 8 per cent of the country’s GDP, 45 per cent of the manufactured output and 40 per cent of its exports. While one end of the MSME spectrum contains highly innovative and high growth enterprises, more than 94 per cent of MSMEs are unregistered, with a large number established in the informal or unorganized sector.
GDP 8% Manufactured Output 45%
Exports 40%
Hyderabad based Portable Gas analyzer company.
Company name: Smart Embedded Technology
Company profile: 20 years old in the industry
Company Owner's profile: ME in Mechanical Engineering
Hypothetical case
Product comparison with US company:
Issues hindering InnovationFollowing are the issues which has direct/indirect impact on Innovation:
Inadequate and delayed creditsHigh cost of creditLimited access to equity capitalProcurement of raw materials at competitive costStorage, design, packaging & product display problemsLack of access to Global marketsImproper infrastructure facilitiesLow technology levelsLack of access to modern technologyLack of skilled power for manufacturing, services, marketing etc.Complicated labor lawsIssues relating to taxation
Medical Equipment
MSME
Improper Infrastructure facilities: Improper funding Delay in funding Inadequate or confused
regulations Legal
Limited access to equity capital: Poor marketing. Unavailable Skilled labor Lack of structured
organizations Mindset of Investors to
underestimate R&D, Marketing
Inadequate and delayed credits: Improper banking services Lack of initial investment No high profits Lack of Financial
management knowledgeFinance
Lack of access to modern technology: Patenting issues No centralized body
providing updates on invention
No laws to access technology.
Government
Weak Entrepreneurship: Low risk taking Leadership Lack of Management
knowledge Lack of SMART vision
People
Low Volume: Low demand Low market size People exposure Socio Cultural issues
Product
30%
30%
10%
10% 10%
10%
Issues, Causes & % Distribution to Manage Innovation
Possible methods to Manage Innovation
Finance, R&D, Marketing, Legal, Government
Government can play an important role in regulating transparent and closed loop laws in order to promote the industry gaining max. profits.
Recruitment of skilled laborers at all levels.
Establishment of a governing body which weekly provides updates on new technologies across the globe.
Networking of all small and medium manufacturers in form of forums or festivals to exchange ideas and views from different departments.
Thank You
