2021 State of Medical Device Quality Management and Product Development - Benchmark Report (12-8-2020)
2021 State of Medical Device Quality Management and Product Development - Benchmark Report (12-8-2020)
STATE OF MEDICAL
DEVICE QUALITY
MANAGEMENT AND
PRODUCT DEVELOPMENT
CHARTING A PATH FOR HIGH PERFORMANCE IN A POST-COVID ENVIRONMENT
REPORT
2021
CHARTING A Last year we published our first annual Medical Device Product
Development and Quality Management benchmark report
PATH FOR HIGH to help organizations understand the strategies, tactics, and
technologies that differentiate market-leading companies.
PERFORMANCE This year’s report continues in this same direction while
IN A POST-COVID also exploring the growing market demands, operational
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CRITICAL
BENCHMAR
CRITICAL INDUSTRY
BENCHMARKS
What can industry leaders learn about competitors’ achievements in risk
management, quality and efficiency? And how are companies faring in the
face of pandemic pressures?
CRITICAL
5 CRITICAL INDUSTRY BENCHMARKS
REPORT
2021
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2 0 2 1 S TAT E O F M E D I C A L D E V I C E Q UA L I T Y M A N AG E M E N T & P R O D U C T D E V E LO P M E N T | B E N C H M A R K R E P O R T
2021 OUTLOOK
Though the COVID-19 pandemic has buoyed the Overall, survey respondents took a negative view something the pandemic has disrupted. As well,
fortunes of some medical device companies due to about how the pandemic is affecting their company’s many companies are facing significant cash-flow
spikes in demand, the crisis has largely wreaked havoc prospects and financial viability. Some 63% report pressures due to deferred demand and/or shrinking
on supply chains and revenue projections. Earlier in the the pandemic is negatively affecting funding at their orders from existing suppliers/customers.
year, McKinsey was predicting a 40% to 50% decline in companies, a turnabout with critical implications,
third-quarter demand for elective procedures in the US particularly for smaller companies with little excess Yet looking ahead, the picture appears to be more
and Europe, a historic drop in revenue for the industry. 1 capital or high leverage. And 59% say COVID-19 is favorable. About 38% say they expect strong
negatively affecting time to market. revenue growth in 2021, and 41% expect modest
Greenlight Guru surveyed hundreds of professionals revenue growth. Just 5% project revenues will shrink
working in the medical device industry — in both More than one-third of respondents (39%) report next year.
quality management and product development — the crisis is threatening the financial viability of their
to understand their approach to technology, risk organizations — not surprising given the findings
63% 59%
negatively negatively affecting
affecting funding time to market
EFFECTS OF THE GLOBAL PANDEMIC
63% 59% 39% Respondents say the pandemic has had serious
repercussions on their organizations’ financial health.
not a strategic imperative.
negatively negatively affecting threatening financial
affecting funding time to market viability of organization
59 %
39 %
Share (%) that agree the pandemic is affecting funding, time-to-market and financial viability.
39%
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threatening financial
6 CRITICAL INDUSTRY BENCHMARKS
REPORT
2021
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processes (53%) and for quality management We use general purpose tools We use tools designed for product We use tools designed for
(e.g. paper, Excel, Word). development in general. the medical device industry.
processes (49%). Only 23% use design control and
risk management software designed specifically 53%
for the industry and just 20% use a QMS specifically 23%
designed for the medical device industry. One survey
23%
taker explained, “[Our systems] are too manual;
higher-ups do not appreciate the value of automation.” 0% 20% 40% 60%
In practice, this means the majority of those not Q: What solution(s) does your company use to support design controls & risk management processes?
using purpose-built tools still rely heavily on storing
and accessing documents on a shared network (3
in 4 report doing this) or accessing files under some Tools used for quality management systems
? What solution(s) does your company use to support quality management processes.
type of document control (59%). Consider also:
We use general purpose tools (e.g. We use general purpose QMS or document We use QMS software designed
these document-sharing solutions can introduce paper, Excel, Word, Sharepoint). control software tools (e.g. multiple industries). for the medical device industry.
significant risks for organizations that now have
49%
teams working from home; even for those who can
access documents remotely, there are security 31%
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7 CRITICAL INDUSTRY BENCHMARKS
REPORT
2021
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8 CRITICAL INDUSTRY BENCHMARKS
REPORT
2021
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2 0 2 1 S TAT E O F M E D I C A L D E V I C E Q UA L I T Y M A N AG E M E N T & P R O D U C T D E V E LO P M E N T | B E N C H M A R K R E P O R T
? What are your biggest challenges when it comes to improving quality management processes?
Underinvestment in 28%
tools/ solutions
Q: What are your biggest challenges when it comes to improving quality management processes?
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9 CRITICAL INDUSTRY BENCHMARKS
REPORT
2021
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“
Among the specific findings:
1 in 3 respondents work for a company
■ On average, it takes 144 hours to compile a
that values quality as a strategic asset,
design history file.
meaning quality is supported at every
■ Approximately 1 in 4 respondents say that level of the organization and viewed SENIOR LEADERSHIP DOES NOT
documenting closed-loop traceability (CLT)
as a competitive strength. An equal UNDERSTAND THEIR ROLE IN BRINGING
requires “substantial effort.” Just 28% say
share (34%) say their organizations
IN A QMS. THEY DO NOT UNDERSTAND
they can document CLT in real-time.
either value quality purely as a
THAT THEY NEED TO OWN IT. THEY ONLY
31% say it takes 2 days or more to update a WANT TO BE TOLD WHAT TO DO TO BE
■
compliance activity or don’t value
traceability matrix; only 13% can do so in BLACK-AND-WHITE TO A STANDARD.
quality at all. When asked whether
”
less than one hour.
quality data is used to make business – survey respondent
decisions, just 1 in 4 said this is true.
2
“Innovation in a crisis: Why it is more critical than ever.” McKinsey (June 2020)
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10 CRITICAL INDUSTRY BENCHMARKS
REPORT
2021
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Source: Greenlight Guru | 2020 Q: Does senior leadership within your company see quality management as a strategic asset or a necessary area of control/ compliance?
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SIGNALS FR
MARKET LE
SIGNALS FROM
MARKET LEADERS
In what ways do highly competitive companies outperform their peers?
The research uncovers what these best-in-class organizations do differently.
SIGNALS FR
12 SIGNALS FROM MARKET LEADERS
REPORT
2021
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ta
In
da
te
40 %
though that level of out-performance is mostly
gr
le
significantly higher: 81% of people working in high-
a te
ab
re l i
expected. What else sets them apart?
r i sk
performing companies report being “satisfied”
A cc e s s c o n s i s t e n t l y
20 %
t h ro u
or “very satisfied,” versus 42% of those at lower-
g h p ro d u c t l i fe c
Market-leading companies take a holistic approach performing companies. 0%
to documenting design controls and risk. For
example, 40% of high performers begin Finally, high-performing organizations view quality
documenting design controls in a traceability
yc l e
as a strategic asset; it’s not a “checkbox” activity,
matrix during concept and feasibility, compared to
Va
but a key engine of competitive strength. Or, as one
lu eq
just 8% of lower performers, and 36% begin respondent phrased it,
n
ua
io
it y
ct
fa
l
documenting risk during concept and feasibility, as
as tis
sa
“
tra b
compared to just 14% of lower performers. QUALITY MANAGEMENT IS THE GLUE te g h jo
ic as
set Hig
FOR THE COMPANY; IT IS THE BUSINESS
Half of high-performing companies say they MANAGEMENT SYSTEM. WHEN VARIOUS
Highly competitive relative to market peers
PROCESSES ARE NOT IMPLEMENTED
fully integrate risk management into the QMS Highly competiti ve relative to market peers
EFFECTIVELY, DEPARTMENTS WORK Not very competitive relative to market peers
throughout the product life cycle, compared to IN SILOS, AND IT RESULTS IN POOR Not very competiti ve relative to market peers
29% of lower performers. OUTCOMES AND PERFORMANCE.”
Source: Greenlight Guru | 2020
High performing organizations are also 2x more
3
Survey-takers self-evaluated how competitive their organizations are relative to their peer group. They chose from the following answer choices: “highly competitive,”
“moderately competitive,” and “not very competitive. This section compares “highly competitive” to “not very competitive” responses.
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THE TECH
ADVANTAG
THE TECH
ADVANTAGE
While technology is never curative, the right tools do give companies a significant
advantage. The research points out the specific benefits that specialized
technology for the medical device industry offers the companies that deploy it.
THE TECH
14 THE TECH ADVANTAGE
REPORT
2021
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31% of those using general-purpose tools). About device industry are much more likely to say their
60% say the data generated by their quality system is MDQMS had a positive impact on securing funding —
consistently reliable, compared to 36% of those who
use general-purpose tools. And those who use a
a finding that’s particularly interesting given current 60% Have access to consistently
reliable data
conditions in capital markets. Some 69% of those
specialized MDQMS are 1.7x more likely to be able to using an MDQMS say their quality management Q: What solution(s) does your company use to support
quality management processes? [Answer choices: (a)
demonstrate closed-loop traceability and 1.7x more system had a positive impact on securing funding, general purpose tools (e.g. paper, Excel, Word, Sharepoint);
(b) general purpose QMS or document control software
likely to say they are “very confident” the company versus 40% of those using general-purpose tools.
tools (e.g. software that can be used for multiple industries);
(c) QMS software designed for the medical device industry.]
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BUILDING A
A QUALITY
BUILDING A QUALITY
CULTURE
For organizations that aim to be top competitors in their niche, quality is seen
as much more than a tactical advantage; quality is a mindset that influences
best-in-class product development and product improvement.
BUILDING A
16 BUILDING A QUALITY CULTURE
REPORT
2021
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“
less time achieving traceability. Half management system is consistently reliable and
of the companies that view quality as twice as likely to report they often use quality system
an asset can update their traceability data to make business decisions. One survey taker
[MY COMPANY] DOESN’T UNDERSTAND matrix in four hours or less. explained that their company doesn’t see the strategic
THE CONCEPT OF CONTINUAL value of quality, saying, “[My company] doesn’t
IMPROVEMENT APPLIED TO QMS
Risk management: Companies that understand that quality is not about documentation
PROCESSES. COMPLIANCE IS NOT THE
treat quality as an asset are much more for compliance, but how it contributes to the overall
END GOAL, IT SHOULD BE A MINIMUM
likely to integrate risk management benefit for the company.” Another complained,
EXPECTATION.
throughout the product life cycle; 57% “Company leaders do not fully grasp the strength of
– survey respondent say they integrate risk throughout the a good interwoven quality system that feeds/covers
life cycle, versus 34% of those that every aspect of the firm.”
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17 BUILDING A QUALITY CULTURE
REPORT
2021
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18 BUILDING A QUALITY CULTURE
REPORT
2021
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Q: Does senior leadership within your company see quality management as a strategic asset or a necessary area of control/
Source: Greenlight Guru | 2020 compliance?
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LEADERSHI
MISALIGNM
LEADERSHIP
MISALIGNMENT
Company leadership often has different focus and expectations vs. managers and
individual contributors — and these differences can lead to additional risk, as well
as affect job satisfaction.
LEADERSHI
20 LEADERSHIP MISALIGNMENT
REPORT
2021
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EXECUTIVES
Ensuring traceability throughout
EXECUTIVES
PRIMARY BARRIERS INproduct
PRODUCT DEVELOPMENT
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or those on the ground completing the tactical work. One survey taker described the way risk is treated at his/
This misalignment can not only lead to problems her company, and how little the function is appreciated:
MANAGERS
understanding and working toward shared goals; it Documenting work throughout
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21 LEADERSHIP MISALIGNMENT
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2021
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A PRESCRIP
FOR 2021
A PRESCRIPTION
FOR 2021
What can organizations do to join the ranks of high-performing companies in the
medical device industry?
A PRESCRIP
23 A PRESCRIPTION FOR 2021
REPORT
2021
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4
“Capturing the value of good quality in medical devices.” McKinsey (February 2017)
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24 A PRESCRIPTION FOR 2021
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2021
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MEASURE BASELINE PERFORMANCE WITH AN In the COVID era, agility and speed are of particular
EYE TOWARD INCREMENTAL IMPROVEMENTS concern. A McKinsey study analyzed changing
The pandemic has forced many businesses to priorities among business executives during the
rethink the pace of development, as well as the cost pandemic and “speed” was the top priority. The report
of pushing ahead with existing plans in the face of a explains, “Leaders at faster organizations — that is,
radically different market environment. A report from those who say their organizations are significantly
RBC Capital Markets explains, faster than their competitors — report significant
outperformance compared with leaders in slower
5
“The impact of COVID-19: a catalyst for change, innovation and investment.” RBC Capital Markets
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METHODOL
METHODOL
METHODOL
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2021
REPORT
METHODOLOGY
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26 METHODOLOGY
REPORT
2021
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T he results in this report are from an online survey that was fielded
between October 6 and 20, 2020. It had 311 respondents, all of whom
completed the survey. Key demographic variables are included below.
10%%
30%%
16 %%than 1 year
Less 25%%
1-2 years 50%%
18 %
%
53%% 3-5 years Number ofNumber of Employees
Employees
10
%
%
Less than 1 year 6-10 years Fewer
Fewer than 10 than 10 250 to 999
250 to 999 Senior Executive Individual
Contributor
16 %
%
1-2 years More than 10 to 49 10 to 49 1,000 or 1,000 or Management
18 %
% 10 years more more
3-5 years 50 to 24950 to 249
6-10 years
16 %
% Source: Greenlight Guru | 2020
More than Source: Greenlight Guru | 2020 Source: Greenlight Guru | 2020
10 years
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