Medtronic’s value chain mainly focuses on firm infrastructure, operations, and technology development. The majority of the value chain that I discussed focused after the “turnaround”, when Steve became president of Brady Pacing. From a firm infrastructure viewpoint people were now given responsibility, along with accountability. Throughout the company urgency was put forward regarding any new product, but this urgency was contrasted with excitement. The idea was to create excitement that involved brining a new therapy to customers, rather than focusing on the consequences of competitors beating them out. Steve also wanted management to mean responsibility, rather than status.
Speed was also addressed regarding firm infrastructure. A clear strategy was put forth to follow, regarding new products and decision making. With speed being addressed, many decisions were now made quicker, which eliminated many other problems. Secondly, a platform strategy was created. The idea was to create an initial product, which could then accommodate a full range of derivatives. This would allow for this one product to be used in all tiers of the market. Thirdly, product documentation was established. Verbal contracts were no longer permitted. More often than not, this led for too much room for error. Product descriptions were now to be written by marketing and engineering, which both were signed off on in order to eliminate confusion. Fourthly, phase definition was established. All projects were subject to a system phase and project review. There were four phases that were to take place. A business analysis phase, demonstration phase, committee review, and finally a developmental phase. Fifthly, a sense of rhythm was structured. The organization put forth practices that allowed for phase reviews of products to take place, that were set in a year advanced. This allowed for project teams to always know when progress could be reviewed. The steps that were put...
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