Medical Device Service Businesses —Is Cash King Today or Is Survival?

Spoken by the late and well-respected business leader Jack Welch, “Cash is King” is a mantra many business leaders live by, but what does that mean today in the midst of COVID-19? Think of the thousands of service businesses that had their business strategies laid out and their 2020 plans unveiled to associates and leaders. Then, only a month and a half into the year, they had to suddenly pivot from executing their strategy to placing it on hold and moving into a reactionary tactical mode. Though service businesses across many industries have been impacted by COVID-19, the medical device service industry has certainly felt a significant shift in focus. Based on conversations I’ve had with medical CSOs, I see that: Approved 2020 budgets are frozen. Non-essential travel has been eliminated. Hiring has slowed down or has frozen. Overall spend is scrutinized. Reallocation of resources is happening. Project deferment and/or limiting project activity are occurring. This is being done to preserve cash as customers stretch payment terms and demand improved flexibility. So, what are companies spending money on then? Is the new strategy to operate with the sole purpose of keeping the lights on, or does the pivot that many companies are making gear them up to support specific actions? The answer is somewhere in the middle. Digital Tools Take Priority The COVID-19 situation has certainly influenced companies in some similar ways given...
Source: MDDI - Category: Medical Devices Authors: Tags: Business Source Type: news