Situation

Sub $100M business unit of $3B public medical device company under pressure from rapid market transition away from analog to digital technologies. Business highly respected in the industry for customer support and clinical knowledge caught behind the curve in the analog to digital transition. Business also highly profitable (an out sized contributor to the parent corporation’s overall profitability) but with rapidly shrinking sales due to market transition. Business needed to slow the decline of the analog business and accelerate it’s digital product development to offset the sales decline while increasing margins in the process.

Action

Implemented a full rapid assessment of the digital marketplace, technical trends, anticipated challenges solvable through development of business unit technology. Identified multiple product platforms which would be natural extensions of the company’s existing analog business and build on their reputation for clinical and technical excellence. Developed a multiyear road map for development and regular and rapid product introductions to demonstrate the company’s ability in the space. Developed and released products according to the road map.

Result

Stabilized top line from double digit decline to single digit growth while adding 500bps of operating margin to an already highly profitable business.