Years ago I predicted that software would create new business models in orthopedics and eventually "eat" orthopedics. This change would yield new growth and opportunities for the device manufacturers.
Today it is happening slowly. A few clever startups are innovating in the new software space. [Read the List of Software Startups]. However, most orthopedic companies continue to focus on hardware products - implants, instruments and disposables. Therefore, are clinging to the "hardware" mindset that they know.
For the hardware product "holdouts", I want to provide a six compelling reasons why software will win-the-day in the long run.
1 - Orthopedic software products can easily scale as your business grows
Business leverage comes from products with no marginal cost of replication. Software has no marginal. Implants have significant marginal cost. The cost of doubling your orthopedic implant inventory can be millions or tens of millions of dollars.
Most orthopedic companies do not have the cash flow to grow their inventory or product offerings exponentially. They have to make hard choices. Should we add a new sales person, invest in a new R&D proj...
