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Running head: VALUE ADDING IMPLEMENTATION STRATEGIES
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Value Adding Implementation Strategies Module 6: Working Exercise
Bianca Huntsman
HA616: Healthcare Strategic Management and Marketing
Dr. Lee Bewley
February 24, 2019
VALUE ADDING IMPLEMENTATION STRATEGIES
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Value Adding Implementation Strategies
Value-adding service activities are critical to the success of the organization because they
are the principal methods for creating value; Additionally, it is the role of strategic managers responsible for developing and managing the strategic plan to ensure the compatibility of pre-
service, point-of-service, and after-service strategies (Ginter, Duncan, & Swayne, 2013). Medtronic must have a culture that promotes unity and communication to achieve their mission and values. A change in the culture of the organization – human competencies – is reflected in service delivery (Ginter, Duncan, & Swayne, 2013). Medtronic value-adding service activities for a successful organization is listed below.
Pre-service Pre-service entails the planning and activities that enable the organization to determine its
customers and the services that will be offered to them as they enter the system (Ginter, Duncan, & Swayne, 2013). In the Diabetes Group market and marketing research is of importance of Medtronic to develop and meet the needs of the Diabetes community. The marketing team focuses on understanding our customers, their perspective on current products, and what they need to better manage diabetes (Medtronic, 2019). The community’s involvement is critical in the product development cycle. When Medtronic marketing completes their research, they begin a series of discussions with Research & Development to educate them on the customer’s needs, and then map their latest technology to those needs to create new features (Medtronic, 2019). The departments of Research & Development and Marketing work together to develop tools that meet the customers wants and needs. Lastly, once these tools are created they must get from point A to B, that is were the Medtronic distribution center comes in. With a focus on quality, Medtronic and UPS Healthcare form a unique team ensuring medical devices get to patients all
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over the world (Medtronic, 2019). Medtronic distribution center ensures quality service by personalizing their packages as referring to each as, a patient not a package. With such high demand in diabetes tools partnering with other organizations to increase their distribution needs would benefit Medtronic. However, every product goes through a strict 3-check quality process and must meet rigorous regulatory demand including technology on each package allowing it to be closely monitored all the way through the process (Medtronic, 2019). Therefore, introducing a
new distribution organization to assist in this process would come with training and continues quality checks. Outsourcing if done wisely could benefit Medtronic by delivering tools to those in need in a timely and efficient manner. Point-of-service
Point-of-service is a transformational process that incorporates an organization's resources, competencies, and capabilities – its assets – into value-adding service delivery (Ginter, Duncan, & Swayne, 2013). Clinical Operations are extensive in the Medtronic development of diabetes tools. Medtronic utilizes a five-phase developing phase, that are: study design, event, sensor use and conclusion. For this example, we look at the developing phases of the sensor augmented insulin pump that Medtronic (2018) conducted below:
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VALUE ADDING IMPLEMENTATION STRATEGIES
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VALUE ADDING IMPLEMENTATION STRATEGIES
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As you can see the clinical operation is extensive and involves patients to achieve optimal quality and service to the diabetes community. As the study is conducted Medtronic aims for innovative development. This continued dedication to develop state of the art devices for the betterment of the diabetic community has reflected greatly in the market as Medtronic is one of the leading companies in health management tools. After-Service
After-service includes follow-up (both clinical and marketing), billing, and follow-on activities (Ginter, Duncan, & Swayne, 2013). Medtronic has built a great foundation to have feedback from their customers in order to continually meet their needs. Marketing goes hand-in-
hand with effective value-based pricing (Kokemuller, 2017). Again, marketing and R&D are vital and work closely to achieve the Medtronic goals. The marketing department utilizes, social media, surveys, phone calls, and emails, and observing and interviewing customers to better identify customer’s daily diabetes management requirements (Medtronic, 2019). Medtronic has introduced a new medical plan that assist in the billing requirements. These strategies are vital to the foundation of Medtronic and without communicating between department would mean inadequate service to their customers and inability to strive in the market. The introduction of a new type of on demand medical plan has greatly assisted customers in cost pressure. Bind
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provides a value-based health care that applies not only to the industry but the patients. Value-
based healthcare is an approach that ties provider’s payments to cost, quality, and patient experience measures (Medtronic, 2019). The advantage to this value-based pricing approach creates a formula where customer demand relative to price optimizes revenue; Value-based pricing also sets you up for long-term success and customer loyalty if you continue to deliver the
same quality of experience for customers (Kokemuller, 2017). Additionally, Bind is not the only plan that is offered there is Consumer Health Plan (CHP) with Health Savings Account (HAS), and PPO. These additional plans optimize the affordability of Medtronic tools to a variety of customers to achieve quality and life changing intervention. As Medtronic has found innovative ways to connect with their customers they have continued to create products that are reliable. Because of this reliable service they have created a brand that many are familiar with, therefore, Medtronic marketing, R&D, clinical operations, and distribution centers have continued to achieve the goals and vision of the company. Continued operations and expansion would mean a company that will continue to strive in the market of health management tools.
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Resource
Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2013). Strategic management of health care organizations
. San Francisco, CA: John Wiley et Sons/Jossey-Bass
Kokemuller, N. (2017, November 21). What Is Value-Based Pricing & Marketing? Retrieved from https://yourbusiness.azcentral.com/valuebased-pricing-marketing-12347.html Medtronic. (2018, June 26). Sensor Augmented Insulin Therapy. Retrieved from https://professional.medtronicdiabetes.com/sensor-augmented-insulin-therapy Medtronic, (2019). Transform helathcare through collaboration. Retrived from https://www.medtronicdiabetes.com/loop-blog/cary-talbot-talks-future-product-
development-and-customer-feedback/ University of Birmingham. (2019). Cooperative Strategy. Retrieved from
Medtronic. (2019). Introducing Bind. Retrieved from http://benefits.medtronic.com/SitePages/ChannelContentR2.aspx?
ChnIDval=2&GrpIDval=55&IDval=82 Medtronic. (2019). Quality Cultures Converge in New Jersey Distribution Center | Medtronic News. Retrieved from https://www.medtronic.com/us-en/about/news/news-UPS-
Medtronic-quality-partnership.html