Introduction
Rarely does a day pass without fielding questions about medical device data. The medtech industry has long understood the value data can bring, having used it to track and improve device performance for years. Yet few companies truly integrate data into their broader strategies in a meaningful way.
I witness incredible innovation and remarkable devices being developed daily. I also observe countless missed opportunities, where data is treated merely as a byproduct of connected devices rather than as a core strategic asset. This mindset must evolve.
The challenge lies in recognizing data as a strategic asset—one that can fuel innovation, enhance patient outcomes, and unlock new revenue streams. There are no simple solutions to the complex questions this topic raises. The goal is to outline how shifting our collective perspective on data is essential to truly embed data-driven decision-making into our business strategies.
Why Data Strategies Matter
Big tech companies are omnipresent in today's landscape, and medical technology companies would be negligent not to monitor where these non-medical players are making significant inroads. Unprecedented opportunities exist for new entrants to reshape the market, and many of these emerging players are achieving success by focusing on data within specific disease areas to revolutionize treatment approaches.
These problem-specific startups don't yet pose an existential threat to the established giants of the medical technology industry, but they do underscore the urgent need for robust data strategies and infrastructure if current medical device companies are to remain competitive. Over the past three decades, medical device spending has remained stable at approximately 6% of total U.S. healthcare expenditure. Yet, across industry analyses, one trend becomes clear: truly impactful growth opportunities require companies to look beyond the device itself. Data simply cannot be ignored. Organizations learning to harness data effectively can improve at rates that others, operating without strategic data utilization, simply cannot match.
The most straightforward approach involves using data to enhance products or monitor their performance. A more sophisticated yet more rewarding methodology involves utilizing that data to improve healthcare delivery itself.
To capitalize on this potential, companies must explore all avenues through which data can create value. Beyond improving core products, medical technology firms should seek to advance up the value chain by considering how data can drive strategic value. For instance, rather than immediately expanding into new devices or markets, a neurostimulator company could first deepen its impact in the current market, using data to drive product innovation, generate clinical insights, and improve patient outcomes. This approach can transform devices into diagnostic tools or integrate them into broader service offerings, increasing their value share within specific disease areas. The key lies in creating new value by utilizing data already being generated by medical devices. Once this foundation is established, companies can consider scaling into new markets and therapy areas, supported by clear, data-driven insights into what truly delivers results.
We need not look far to find examples of medical technology companies that have launched impressive data-driven strategies, creating both substantial value and innovative revenue models. Many are familiar with the remarkable success in diabetes care, beginning with basic glucometers and insulin injections, then evolving through continuous glucose monitors, and now advancing to life-changing closed-loop insulin pumps. In this domain, data is utilized at the patient level to deliver treatment precisely tailored to individual needs.
It will be equally compelling to observe developments underway in dialysis and kidney care, where non-hospital care is being provided and comprehensive data is being generated, offering unprecedented insights into patient care and treatment optimization. Another indicator of data's growing criticality is the increasing interest in smart implants that monitor physiological parameters while performing their core functions. These represent just a few examples of how data is already serving as a transformative tool in medical care. However, this is merely the beginning—we have yet to witness the full potential of data in medical technology.
The Data Value Chain: Transforming Business Opportunities
Suppose there existed a proven method to improve patient care, ensure regulatory compliance, and create new monetization models. Wouldn't most medical technology companies invest everything possible in pursuing it? Yet despite data offering precisely these opportunities, many companies remain hesitant to commit fully. They pilot smaller experiments at the device level but often fail to recognize or capitalize on the broader strategic picture.
Whether they embrace it or not, medical device manufacturers no longer operate in isolation. A comprehensive digital health ecosystem now exists that must be considered when developing devices, and companies must understand how data flows between device vendors, healthcare providers, payers, and digital health platforms.
One of the most significant barriers to progress is the persistence of organizational silos. These silos extend far beyond simple communication gaps between departments and include disease area segregation, the separation of device and service data from therapeutic information, and even fragmented patient data systems.
Addressing this challenge is complex, as medical technology companies and healthcare providers are typically structured around therapy areas such as cardiovascular, endocrinology, and oncology. Historically, medical technology firms have focused on gathering data about product performance and usage within these silos. While this approach provides clear value in device refinement, it often leaves patient-relevant data fragmented and underutilized.
To create greater impact, medical technology companies must shift their focus from purely improving devices to exploring how patient-centered data can drive new forms of strategic value. This means asking what can be accomplished with data beyond product enhancement—using it to support clinical decisions at the individual level and, eventually, to unlock broader insights through comprehensive data analysis.
By identifying trends in larger, aggregated datasets, companies can uncover patterns that might otherwise remain hidden, such as symptoms clustered in specific demographics or geographic regions, or risk factors unique to certain populations. While data collected in isolation helps optimize device performance and treatment protocols, anonymized aggregated data offers the potential for deeper understanding of disease prevalence and patient behavior patterns. Building this broader contextual framework can fuel meaningful advances in treatment, prevention, and overall patient care delivery.
Another question increasingly prominent in stakeholder discussions is whether patients should benefit financially from the monetization of their data. The case of Henrietta Lacks, who died in 1951, serves as a landmark example. Her cervical cancer cells—known as HeLa cells—were taken without her consent and have since been cultured indefinitely, playing a crucial role in cancer research and vaccine development. In 2023, her descendants reached a settlement with Thermo Fisher Scientific regarding the commercial use of these cells.
As companies increasingly profit from data collected from patient populations, the ethical questions this raises around informed consent and fair monetization will only become more pressing and require comprehensive industry attention.
Charting the Path Forward: A Strategic Imperative
The transformation from viewing data as a device byproduct to recognizing it as a core strategic asset represents one of the most critical shifts facing the medical technology industry today. This evolution is not merely about technological advancement—it's about fundamentally reimagining how medical device companies create value, compete in the marketplace, and ultimately serve patients.
Success in this data-driven future requires more than sporadic pilot programs or isolated departmental initiatives. It demands a comprehensive, organization-wide commitment to building data capabilities from the ground up. Companies that recognize this imperative early and integrate data strategy into every stage of their development process will not only survive the coming transformation but will lead it.
The medical technology landscape is rapidly evolving, with new entrants leveraging data to disrupt traditional models and established players scrambling to adapt. Those who act decisively now—developing robust data strategies, breaking down organizational silos, and fostering a culture of data-driven decision-making—will define the next era of healthcare innovation. The question is not whether data will transform medical technology, but whether your organization will be among those driving that transformation or struggling to keep pace with it.
Conclusion
The medical technology industry stands at a pivotal moment where data has emerged as the defining competitive advantage of the next decade. Companies that continue to view data as merely a technical requirement or regulatory obligation will find themselves increasingly marginalized in a marketplace where data-driven innovation sets the standard for patient care and business success.
The examples we've explored—from diabetes care's evolutionary journey to the promising developments in dialysis and smart implants—demonstrate that the integration of data strategy into core business operations is not just beneficial but essential for sustainable growth. The organizations thriving in this new paradigm are those that have recognized data as a strategic asset capable of transforming not only their products but their entire value proposition.
Moving forward, the most successful medical technology companies will be those that embrace data as a fundamental component of their identity, weaving it into every aspect of their operations from product conception to patient outcomes. The future belongs to organizations that can harness the power of data to create more personalized, effective, and accessible healthcare solutions. The transformation has begun—the only question remaining is how quickly your organization will adapt to lead in this data-driven future.