Revolutionizing the Medical Device Industry with SAP BRIM Solutions
The medical device industry is undergoing a significant shift away from traditional capital equipment acquisition models. This shift is due to increasing cost pressures, longer equipment approval cycles, tighter service margins, and the move toward outcome-based medical insurance reimbursements.
To adapt to this new environment, medical device makers are turning to digital solutions like SAP Billing and Revenue Innovation Management (BRIM) and SAP Entitlement Management (EMS) to enable a smooth transition from equipment sales models to new subscription-based offerings. SAP BRIM allows medical device companies to monetize subscription and usage-based business models with agility with the solutions' revenue management and recurring billing capabilities. SAP EMS allows medical device companies to manage their customers rights to use these new subscription offerings and services, to ensure over-use is not happening. The solution also automates downstream processes such as provisioning, and revenue recognition to ensure the operational aspects of these new business models are supported in a cost-efficient manner.
Other related solutions in the SAP ecosystem, like SAP Revenue Accounting & Reporting (RAR) and SAP Contract & Lease Management (CLM), streamline and simplify accounting and reporting of complex revenue streams. These solutions are key to helping medical device companies make the transition to new business models as accounting requirements are substantially different for recurring revenues versus a one-time product purchase.
One example of a successful subscription-based model in the medical device industry is Hillrom's SmartCare service. This service provides hospitals and clinics with turnkey management of their patient care equipment using a subscription-based model.
By embracing advanced digital solution economy capabilities like SAP BRIM, medical device manufacturers can enhance their competitive standing by giving providers more flexibility, improving their revenue predictability, increasing loyalty, create new revenue streams, and deepen ongoing partnering relationships. As the medical device industry continues to evolve, companies that are quick to embrace these digital solutions will be better positioned to succeed in this dynamic market and improve their business results.
To learn more, read original article here:
How the Digital Solutions Economy is Impacting the Medical Devices Industry (bramasol.com).
