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Customer Snapshot

Keeping Pace with Chronical Medical Conditions

Nearly
3 million

people worldwide are kept alive by pacemakers

 

Medtronic strives toward their mission of innovating for life by listening to the people who benefit from their biomedical technologies. Information technology makes it easier for Medtronic to analyze enormous amounts of valuable clinician and patient data, while helping connect customers to the right products and therapies.

 

Company

Medtronic

Headquarters

Minneapolis, Minnesota, USA

Revenue

US$17 billion

Number of Employees

~49,000

Implementation Partners

Cisco

Line of Business

Service, Sales, Finance, Procurement, Information Technology

Industry

Life Sciences, Healthcare

Featured Products

SAP hybris B2B Commerce, SAP HANA, SAP hybris B2C Commerce

History

Pushing the boundaries of medical technology

For more than 60 years, Medtronic has helped to dramatically improve the lives of chronically ill people. By focusing on the needs of patients and clinicians, they’ve developed products that seek to restore freedom and well-being, by minimizing pain and disability.

    

  • 1949Brothers-in-law Earl Bakken and Palmer Hermundslie started Medtronic, an electronic medical equipment repair company, in Minneapolis.
  • 1950 Medtronic began selling medical equipment manufactured by the Boston-based Sanborn Company.
  • 1957Following a power outage, a local heart surgeon asked Earl Bakken to invent a battery-powered pacemaker.
  • 1959Medtronic invented the first permanent pacemaker.
  • 1960Medtronic invented the first implantable pacemaker and began selling them overseas.
  • 1975Annual revenues surpassed US $100 million.
  • 1977The company released the Medtronic Hall mechanical heart valve, which is still one of the most common valve designs in use.
  • 1983Medtronic released the first programmable, implantable neuro stimulator to treat chronic pain.
  • 1991Annual revenues surpassed US $1 billion.
  • 1997Medtronic introduced neuro stimulators to treat movement disorders and incontinence, and a tissue stabilizer that enables surgery on a beating heart.
  • 2002Medtronic released the first remote device that enables doctors to monitor patient telemetry via the internet, and the first protein that allows the body to regrow its own bone for use in spinal fusion.
  • 2006The company introduced the first pump that continuously monitors patient glucose, and automatically administers insulin.
  • 2011Medtronic introduced an electrosurgical instrument that uses radio-frequency energy and saline to simultaneously cut and control bleeding during soft tissue and bone surgery.
  • 2012Annual revenues surpassed $16 billion
  • 2014Annual revenues surpassed $17 billion.

Business Model

Helping a wide range of customers

Medtronic provides medical devices and associated information to both healthcare professionals and individual patients alike. From the comfort of their home, patients can access general educational information about Medtronic devices and answer questions about these devices and therapies. They can also order supplies necessary to monitor diabetes.

 

Healthcare professionals are able to order a wide range of Medtronic products to help identify and cure illnesses and improve lives. These products include pumps that help relieve chronic pain, implantable cardiac devices, and larger-scale technologies such as MRI machines.

 

By using digital solutions, Medtronic is able to connect patients and healthcare professionals to the right product, therapy, and content.

Success Strategy

Expanding growth

Medtronic plans to invest approximately $8.5 billion in research and development over the next five years to drive growth through a pipeline of more than 200 projects.

 

"We are uniquely positioned to deliver long-term value in healthcare by expanding our market-leading franchises through three differentiated strategies - therapy innovation, globalization, and economic value - to create long-term value in healthcare."

- Omar Ishrak, Medtronic Chairman and CEO

The Challenge

Getting a clear view of customer needs

While Medtronic has amazing engineering and manufacturing capabilities that make them an industry leader, challenges existed with rising customer care costs due to manual processes in servicing orders and inquiries via call centers, email, and fax.

 

To combat these issues, Medtronic wanted to update their data warehouse to a single, consolidated platform. They wanted to eliminate any manual processes from data analytics and automate data analysis from multiple sources to compare customer complaints, product registration, and sales data.

 

In addition, Medtronic wanted to standardize the customer experience by streamlining the product ordering process via a digital platform.

Enter SAP

Improving processes by going digital

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Performance, first and foremost…

The SAP Experience

Making the customer's life simpler

Medtronic chose to run the SAP HANA database on the Cisco Unified Communications System (UCS) platform. In addition, Medtronic turned to hybris, an SAP company, to deliver a global innovative and flexible e-commerce solution that supports multiple brands, products, services, and solution scenarios. Now, their customer base can access product information online, making it simpler and more convenient to do business across multiple channels.

 

Running Better

So far, by running SAP HANA, Medtronic has dropped query times from 3 hours to 3 minutes

And by partnering with hybris, Medtronic now has the ability to leverage several new growth avenues. Up to 70% of their patient install base is registered with the hybris solution and customer service efforts were reduced by 85%.

Benefits

Strong customer relationships make for a strong business

With SAP HANA, Medtronic is standardizing their global sales reporting process and expects to get information into the hands of sales reps quickly – so they can spend more time with customers.

 

By using hybris, Medtronic has implemented a global standard for e-commerce on a modern architecture. They’ve ensured ongoing success by managing hosting and support services and by providing customer account management for Medtronic sales representatives.

Today

Faster, richer analysis

Today Medtronic reaches across 140 countries and touches more than 8 million people with their products. The company is also working with SAP to develop an application for text-based analytics to better leverage the wealth of unstructured data. Customers are already seeing the benefits of the standardized ordering platform supplied by hybris:

 

Web shop has made ordering my pump and CGM supplies so much easier. This has improved my Medtronic experience immeasurably and means I will never be without my essential supplies,”

- Medtronic online shopper

 

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How SAP HANA is a game changer

Journey Ahead

Keeping customers happy

Medtronic is expanding business through direct-to-customer product launches, customer loyalty/retention programs, and by increasing conversion by harnessing previously unavailable customer insights via digital analytics.

 

Most sales reports currently take one, two, or up to ten minutes to generate. With SAP HANA, Medtronic hopes to reduce report response times to
15 seconds or less.

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