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How Medtronic is redefining customer-centric innovation

Strategyzer
January 14, 2025
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 min read

A medical technology leader transformed their product development approach from assumptions about what they should build to putting their customer needs at the centre of the process. Through structured learning and workshops with actual surgeons, Medtronic's team gained the tools to validate customer needs before building products. The success led to company-wide expansion of this innovation methodology.

Companies that are prepared for disruption are constantly reinventing themselves. They don’t believe they are invincible. The main task of leadership today is to constantly reinvent your organisation.”

Despite being a global medical technology leader, Medtronic's Spines & Biologicals division was building products based on what they could build versus what their customers truly wanted. They needed to transform their product development approach to ensure they were creating real value for customers.

Medtronic combined structured online learning with hands-on customer workshops. Their cross-functional team learned to use the Value Proposition Canvas, bringing surgeons directly into the innovation process to understand needs before building products.

The team developed a systematic approach to validate customer needs, leading to more efficient product development and market understanding. The success prompted Medtronic to expand this innovation methodology to their Tumour & Trauma divisions.

"We have a lot of smart people out there making all kinds of products and saying, 'look what I made, go sell it'. There wasn't enough of 'is this what the customer wants?'”
Grady Davis,
Senior Global Marketing Director at Medtronic's Spines & Biologicals division.

This challenge might sound familiar to many innovation leaders. Despite being the world's largest standalone medical technology company, Medtronic faced a common struggle: building products without first validating customer needs.

The challenge

The Spines & Biologicals division needed to transform how they approached product development. Like many established R&D driven companies, they had fallen into the trap of building products first and assuming customer value later. In an industry centered on delivering quantifiable value to the healthcare system, this approach was no longer sustainable.

"If we keep doing the exact same things, you're ignoring the reality of the business. We have to do something different, take the chance, and something's got to change," Davis explains.

The journey

Davis and his team embarked on a transformation journey to reshape how they thought about customer value. The approach combined self-paced learning with practical application:

  1. A four-week online course where cross-functional team members from sales, marketing, and engineering completed focused 30-minute modules on their own schedule
  2. A series of collaborative workshops that brought actual surgeons—their customers—into the innovation process

The structured approach to customer collaboration proved transformative. "We collaborate all the time, but the structure we did this time made it very different," Davis reflects. "A lot of it was 'We're going to build something', instead of going all the way back and asking 'Why are you doing that job in the first place? What problem are we trying to solve for our customers?'"

The breakthrough

The team discovered they could learn valuable insights about customer needs without even building a product. Through structured workshops using the Value Proposition Canvas, they developed:

  • A systematic approach to understanding customer jobs, pains, and gains before product development
  • A workshop structure that delivered actionable outcomes from customer collaboration
  • A clear method for prioritizing projects based on what created the most customer value
  • The ability to uncover new business opportunities beyond their existing model

The Value Proposition provides a clear method for prioritizing work based on what created the most customer value.

"These exercises taught us valuable lessons without even needing a product," Davis notes. The impact extended beyond just product development—it helped the team better understand market dynamics in ways their traditional indicators couldn't capture.

The impact

The transformation has been so successful that Medtronic has expanded this systematic, customer-centric approach to innovation across two more global business units. The Tumour & Trauma divisions are now undertaking similar programs to enhance their innovation capabilities.

"We've found efficiencies in the way we do business," says Davis. "What does it mean to the business? It helps to understand what's happening in the market better than all of the other indicators."

The team is now tackling an even bigger challenge: reshaping existing business models in their mature, rigid industry. With their new capabilities, they're well-equipped to design, test, and validate new business streams that look beyond their traditional structure.

Your next step

Are you facing similar challenges in your organization? Whether you're building products without customer validation or struggling to transform your team's approach to innovation, we can help. Get in touch with our team today to learn how Strategyzer can help you build the capabilities your organization needs.

by 
Strategyzer
January 14, 2025
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Henning Till
Head of Corporate Innovation, Bayer
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