MDT's CEO Bill George, best describes MDT's future:
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"Medtronic Vision 2010"
by Bill George, Chairman and Chief Executive Officer
Medtronic Global Strategic Direction Employee Meeting
January 11, 2000
Year 2000 Outlook
I am pleased to report that Medtronic today is in the strongest position in our entire history.
Entering the 21st century and our second 50 years, Medtronic has clearly established itself as the world's leading medical technology company, unique in our focus of restoring patients with chronic disease to full life.
Vision: 2010
Today we are pleased to announce a bold new vision for Medtronic in the year 2010:
"Medtronic is the world?s leading medical technology company, providing lifelong solutions for people with chronic disease."
We believe the realization of this vision over the next ten years will put Medtronic in a unique position in the medical field and place us in a different class from our competitors.
Chronic Disease Management
The foundation for our future vision and strategies is the understanding that Medtronic is in the business of helping our physician customers treat people who suffer from chronic disease. The effective management of chronic disease is a major unmet medical need. Virtually every participant in the health care system is dissatisfied, and there continue to be significant inefficiencies in chronic care delivery.
We believe five major factors point toward the management of chronic disease as Medtronic's overarching strategic imperative:
First,
( worth repeating )
approximately 80% of health care costs are spent on the management of chronic disease,
approximately 80% of health care costs are spent on the management of chronic disease
approximately 80% of health care costs are spent on the management of chronic disease
approximately 80% of health care costs are spent on the management of chronic disease
much of it on unnecessary hospitalizations, inappropriate medical interventions, and poor overall coordination of care. The bulk of these costs are being spent on cardiovascular disease, cancer, diabetes, AIDS, orthopedic and spinal diseases, arthritis and the full range of neurological diseases. Whereas acute disease is relatively well managed in the U.S., more resources need to be focused on the management of chronic disease, including prevention of its recurrence.
Second, as the population ages, the prevalence of chronic disease will increase dramatically, further accentuating the need for better chronic care.
Third, despite the significant promise of innovations in biologic sciences, we believe outright "cures" for chronic disease are at least a decade away.
Fourth, while prolonging human life has been a benefit afforded by innovations in medical technology, we believe the most important opportunity is to improve the quality of life for people with chronic disease.
Finally, our opportunity to improve the management of chronic disease will be greatly facilitated by the integration of information technology with medical technology.
Based on a detailed market assessment, the five most appropriate disease categories for Medtronic to serve will be cardiovascular, neurological, musculoskeletal, ENT and cancer. Today, Medtronic is very well positioned in four of these diseases -- the exception is cancer -- based on our strong market position, differentiated technology and deep customer franchises. While we will always evaluate new disease platforms for acquisition or development, we believe the greatest opportunities exist in the diseases we already serve. Therefore our strategic priority will be to broaden our products and services to physicians, health care organizations and patients in these areas.
Today, Medtronic products treat patients in relatively late-stage disease and are generally used in an acute manner. Rather than treating chronic disease as a series of acute events, we believe the medical community is beginning to recognize the health and economic value in managing chronic disease holistically, from wellness through diagnosis to the treatment of advanced disease. We think Medtronic has a broader role to play along this continuum.
Over the next decade, we aim to provide the medical community comprehensive solutions for managing chronic disease based on advanced medical and information technology. This way, we can help our customers move toward earlier and smarter intervention in treating chronic disease.
Major Findings
Beyond the foundation of Medtronic Vision 2010 that chronic disease is our business and that it remains a major unmet medical need, we identified three major findings that we believe will radically transform health care. These findings will serve as the pillars for our new vision and strategies.
"Patient Power"
The first major finding of Medtronic Vision 2010 is that health care in the new century will be radically transformed by the rising power of the patient and the consumer. Frustrated with access to perceived quality care, and empowered by abundant information via the internet, people are demanding greater influence in managing their own health and the health of loved ones. Core to consumer frustration is the declining trend in physician availability.
We see the old system of managed care giving way to a more patient-centered health care world as it relates to the management of chronic disease.
1. People will become more attuned to their health risk factors and practice greater prevention. Once diagnosed, people will demand more rapid and integrated solutions for their medical needs, including greater understanding of their entire treatment plan.
2. Instead of being lost in the world of compartmentalized medicine, patients will benefit from an "integrated healing model" that will focus on the whole person. People will develop a greater understanding of the benefits of complementary therapies, including diet, physical exercise, mental health and spiritual growth.
3. People will assume greater responsibility in managing their health and will collaborate more closely with their health care provider to make important decisions on treatment options. "Self care" will become a major driver in health care.
4. People will reluctantly assume greater financial responsibility for their health care. This will initially be evident in the U.S., in part driven by market-driven changes in health care financing, led by employer-initiated cost containment efforts based on defined-contribution models. In time, this trend will be seen in all parts of the world.
5. Aside from major surgical interventions, people will demand care to be delivered more conveniently. Long term care of chronic disease, in particular, will increasingly utilize the home as an important setting. Medtronic has a major opportunity to play a meaningful role directly with the patient as an advocate.
We believe Medtronic and the medical community have many important life-enhancing solutions for chronic diseases, and Medtronic can play a leadership role in creating greater awareness for patients. Medtronic will embark on a broad ongoing campaign of public and patient initiatives. Through the Medtronic web site, public advertising, media publications and foundation activities, Medtronic will emerge as the leading voice of the medical technology field.
Impact of the Information Revolution
The second major finding of Medtronic Vision 2010 is that the use of advanced information and communications technology will be the most rapidly disruptive force health care will face in the next decade. Driven by the stunning impact of the Internet, the information revolution of the 21st century will have as great an impact on the way people communicate, transact and live as the industrial revolution did in the first half of the 20th century.
For Medtronic, the information revolution presents a major opportunity to transform our customer relationships, create product differentiation and create entirely new businesses and revenue streams.
We believe Medtronic can provide the direct connectivity between patients with chronic disease and their specialty physicians. In the past, we have generally used information to supplement our product offerings. However, based on the deep, rich information capability of many of our products (i.e. implantable micro-processor based products) as well as the critical clinical information that surrounds all of our products, we will now be able to derive real economic value for that information and the service we provide around it.
We are all amazed at the rapid onset digital technology is having in transforming almost all aspects of business and life. In 2010 there will be no distinction between "e-business" and regular business. All business interactions will be performed by digital technology and the use of the internet as the primary communications medium.
From internal commerce applications such as business systems, to external connectivity applications such as patient management systems linking physicians and patients, Medtronic will move aggressively to become an "e-business".
Technology Convergence
The third major finding of Medtronic Vision 2010 is the technological convergence of medical technology with information technology. The optimal practice of medicine in the future will combine traditional mechanical, chemical and surgical interventions with new electrically-based therapies, biological treatments and innovative uses of information technology.
Technology convergence is a phenomenon we have faced for years within many of our businesses. We define technology convergence to be the co-mingling of previously distinct technologies. This trend toward technology convergence and earlier diagnosis and therapeutic intervention has high strategic significance for Medtronic.
Disease Continuum
To bring the findings of Medtronic Vision 2010 full circle, let?s revisit the disease progression continuum discussed earlier. We believe advances in medical, biologic and information technology will be the driving force behind Medtronic's ability to offer more comprehensive solutions for people with chronic disease. From providing tools to drive physician and consumer awareness of chronic disease and treatment options in the "wellness" stage, to advanced patient management systems for people with advanced disease, Medtronic will play a meaningful role along the entire disease continuum.
Patient Management Systems
Building on the key findings of the Medtronic Vision 2010 process, we believe the answer to the problems of rapidly escalating cost of health care and marginal quality of life for patients lies in the systematic management of chronic disease.
Therefore, Medtronic will augment its medical technologies with new patient management systems developed in close partnership with specialty physicians and leading information technology partners. These patient management systems will link physicians and their patients coping with chronic disease, offering direct connectivity and a deep reservoir of tools to provide optimal, patient-centered care over the patient's lifetime, wherever the patient is.
Long before 2010, people suffering from chronic disease will have direct connectivity to their specialty care teams via advanced information and communication systems. This trend will be pioneered in the U.S., but quickly adopted in many parts of the world as a means to deliver better care at lower cost. From a time a patient is identified to be "at risk" or is diagnosed, the patient's data would be available anywhere, anytime via a web-based program visible to whomever is treating the patient.
For the tens of millions of patients with implantable medical devices, including an entire new class of implantable physiologic monitors, connectivity from inside the body will add a wholly new dimension to patient care. A broad range of physiologic data will be transmitted from wherever the patient is directly over the internet to the providers responsible for treating the patient. Simple electronic commands from the specialty physician will be sufficient to analyze physiologic indicators, reprogram the device, and even titrate the patient's medications.
All constituents -- including the specialist team, the primary care physician, and the patient -- will have the ability to electronically access the needed medical information. Of course, the human touch will not be forgotten. Instead, patient connectivity will greatly enhance the intimate relationship between the patient and the specialist, making the specialist better informed and more responsive to the patient's changing condition.
To be successful, we must develop a more comprehensive understanding of the diseases we serve, including prevention, diagnosis and treatment. Through partnerships with physician customers, Medtronic will develop treatment algorithms that define the standard of care. The net result of these efforts will be the creation of a totally unique product offering: the Medtronic Patient Management System.
Medtronic Customers
Medtronic will also serve a broader range of customers. The specialty physician will remain the primary decision maker in the purchase of most Medtronic products and services. As the management of chronic disease becomes more complex, we will favor the specialty physician as the leader in caring for our chronic patients. However, we will develop meaningful business relationships with other constituents, including economic buyers, primary care physicians, and nurse practitioners. By building bridges between these constituents, Medtronic can make a powerful impact on getting people the right care earlier.
You can now see why I said that we stand at a major inflection point in Medtronic's history.
Over the next decade, Medtronic will reinvent itself once again by providing a more complete range of products and services to a broader set of customers: physicians, health care institutions and patients. Our patient management systems will result in better quality of life for those suffering from chronic disease, lead to a reduction of overall health care costs, and provide Medtronic with new, ongoing revenue streams.
Partnering
Realizing the vision will require us to partner with the leaders in related fields. The rapidly increasing complexity of our business environment will demand new capabilities that do not reside within Medtronic.
For example, it is impossible for Medtronic to control all aspects of integrated patient management systems, and therefore it is incumbent upon us to leverage capabilities outside of Medtronic's prime strengths. Creating business partnerships will expand our capability and leverage what Medtronic does uniquely well.
Medtronic Vision: 2010
Let?s return to Medtronic Vision 2010:
Medtronic is the world's leading medical technology company, providing lifelong solutions for people with chronic disease.
The first thing to recognize is what hasn't changed: our commitment to be the world's leading medical technology company.
What is new, however, are five things:
1. More comprehensive involvement in managing disease - lifelong
2. Providing more than just products and therapies - providing lifelong solutions
3. Putting patients and their interests first - providing lifelong solutions for people
4. Our focus - on chronic disease
5. Our business promise - providing lifelong solutions for people with chronic disease
Medtronic Vision 2010 is built on the Medtronic Mission. Medtronic's new focus on the totality of chronic disease and our new efforts to create connectivity between the patient and the physician will better position us to fulfill our mission of restoring people to full lives.
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Medtronic Therapies & Products
9790 Programmer (pacing)ablation,
heartablate and pace for atrial fibrillation
Activa© Tremor Control Therapy
Advanced Pain Therapies (APT)
antitachycardia pacingAPT
IntrathecalAPT Neurostimulation
atrial tachyarrhythmia augmented venous returnback painbaclofen pump battery,
pacemaker beating heart surgery
bioprosthesis
bradycardia
cancer pain cannulae
cardioversionCapSure© Family of Pacing Leads
Carpentier Bi-Caval Femoral Venous CannulaClearView? Blower/Mister
congestive heart failure
continence control therapy
deep brain stimulation (DBS)
defibrillators Digitrapper?
MDDigitrapper?
Mk III Disposable
EMG Needle Electrodes
Duran Flexible Annuloplasty
RingEndoOctopus?
Tissue Stabilization System
essential tremor
fainting (syncope)
Freestyle© Aortic Root Bioprosthesis
Gem II DR/Gem/Gem DRHancock©
M.O. II Aortic BioprosthesisHancock©
Standard Mitral Bioprosthesis
heart valvesimplantable cardiac monitorimplantable cardioverter defibrillator (ICD)
Intrathecal Baclofen (ITB?) Therapy
InterStim©Itrel 3© neurostimulation system
Jewel/Jewel Plus/Micro Jewelleads,
DBSleads,
defibrillatorleads,
pacemakerleg painMattrix© Neurostimulation
Systemmechanical heart valve
Medtronic Hall ValveMedtronic.
Kappa? Generation Pacemakers
MicroDigitrapper?
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Tissue Stabilization SystemOval VC2© and Oval MC2? Skosh? venous cannulae
pacemakerspainParkinson's tremor control therapypacingPCDPC PolygrafPerfused Manometry Cathetersperipheral nerve stimulation
pH Testing CathetersPW
Anorectal Manometry Analysis
PW Base ModulePW EsopHogram Reflux AnalysisPW
Esophageal Manometry Analysisrate drop response for neurocardiogenic syncope
Remote Assistant?
Cardiac MonitorReveal© Insertable Loop Recordersacral nerve stimulation
seizuresspasticityspinal cord stimulation (SCS)Sprint© leadSolid State Manometry Cathetersstentless
tissue valvesuction stabilization
SynchroMed Infusion System (pump)syncope (unexplained fainting)tachyarrhythmiatemporary (external) pacemakersThera© (i-series)?
Pacemakerstissue valveToday's Kappatravelingtremor control therapy
ventricular fibrillationventricular tachyarrhythmia/tachycardia
Zeus Robotic Microsurgical System
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