Medtron announces the latest global architecture to accelerate its business orientation strategy

, Geoff Martha, Medtron's global chief executive, announced the company's new architectural changes.Medtron is currently the world's largest medical equipment company, headquartered in Minnesota, the United States, China is headquartered in Shanghai. China has two research and development centers, five production sites and more than 5,000 employees.In the increasingly fierce competition in the global medical market, in the face of more and more new "competitors", as the world's largest medical enterprises with a long history, change and transformation is an inevitable trend.In order to "react" more quickly and serve clinically more accurately, Medtron used its scale advantage to develop the "Play Small" and "Play Big" adjustment strategies.

"play small" and "play big"The "play small"will begin with the creation of a centralized, responsible and highly authorized operations unit, Operating Units. This operation will be fully responsible for the end market, customers and therapeutic areas.Operational decisions previously made at the Group level will now be enabled to be made by the operating unit Operating Units. Operating Units will be at the heart of Medtron's new operating model as it receives the full support of all sectors required by the Group.Sean Salmon, the current global head of diabetes, will also serve as President of the Operating Unit. In addition to better improving the diabetes business, as President of Operations, he will have the right to create value across the Group through strategic capital allocation, including talent management and investment decisions to optimize Medtron's performance across all operations.Operating Units, the operating unit, will be divided into three sub-divisions (Three Portfolios), with Mike Coyle (now global head of cardiovascular medicine), Brett Wall (now global head of restorative therapy) and Bob White (now global head of minimally invasive surgery) as Portfolio Executive Vice President.In addition to their previous status, their focus will be on helping Medtron's performance through capital allocation, talent management and collaboration among all operating units.

"play big"Medtron will move from five independent operating organizations to a unified, centralized group-level operations organization that leverages scale to drive cost synergies and ensure quality commitments are met.Operations will work with operations through a set of manufacturing clusters that work between sites that share common manufacturing technologies to enhance capacity, coordinate strategies, establish a unified quality system within the cluster, and improve efficiency.In this operating model, the person in charge of each operation, collaborating with the manufacturing cluster on the use of plant assets and personnel, will gain broad decision-making power.While research and development will also be embedded within the operating unit, the Group will establish a Technology Development Center (TDC) in a specific area with deep core technical capabilities and support for use by operating units.The mission of these centers is to continuously develop and effectively share advanced technologies and capabilities across operations to promote innovation and complement their product development efforts.   These technology development centers will set ambitious goals for technology development that will be visible at the highest levels of Medtron and across all operations.   Each TDC will report to the head of operations who will be responsible for specific technology development objectives on behalf of the operating unit that may benefit.   The four business units will continue to exist, but the roles of each business unit will change. Our business unit is Medtron's customer-facing portal and will seek a broader and more strategic relationship with Medtron Group.   These business units will also lead global emerging market sales.   Operating Units will lead sales in developed regions and mature markets.   With the transition to business orientation, Medtron is "eliminating" many of the complex responsibilities at the Group level. Business decisions previously made at the Group level are now assigned to business units.

the "courage" of the new official to take   On April 27, Geoff Martha, a former president and board member of Medtron Global, officially took over as Medtron's CEO. Omar Ishrak, former Chairman and CEO of Medtron, stepped down as CEO to serve as Medtron's Global Executive Chairman and continues to serve as Chairman.   Omar Ishrak's time is over, and less than half a year into his new job, Geoff Martha has made a "make-up" for Medtron. Perhaps in addition to the trend of change, the outbreak in the first half of this year was the catalyst.   On May 21, Medtron released its FY2020 Q4 results (Medtron FY2020 Q4 is from January 26, 2020 to April 27, 2020).   Severely affected by the outbreak, revenue of $5,998 million, up -26.4% YoY, of which: three regions all declined, the United States fell the most significant -41.7%; All four business units reported year-on-year declines, with the most significant decline in cardiovascular business, at -34.3 per cent year-on-year, while reported a 44 per cent year-on-year decline in revenue in its Q1 2021 results, which were released at the end of August.   Medtron urgently needs to turn a profit and accelerate growth.   Martha says the global medical market is becoming increasingly competitive. New competitors in many segments, their level of innovation and pace of development are surprising. In order to grow effectively in this environment, Medtron needs to focus on - customer-centric and flexible market share with our customers. At the same time, Medtron's scale advantage is unmatched by other new enterprises, making good use of scale advantage in flexible decision-making, creating unique value and competitive advantage for enterprises.   Clarify decision-making power and streamline procedures. Adjust incentives to reward innovation, revenue, and market share leadership. All of this will be supported by a culture of revitalization that focuses on speed, accountability and decisiveness.   Above, the new functional leaders will take effect on November 1, 2020, and the new structure will be fully implemented on February 1, 2021 (the fourth quarter of Medtron's fiscal year 2021).   According to medical personnel, Medtron China will also follow the headquarters to make some architectural adjustments.   A business-oriented architecture that responds to the upcoming collection of medical countries, as well as a strong domestic alternative, may be a better strategy.   As the future approaches, the best way for companies to face change is to evolve. We will continue to follow the progress that follows. (MedTalent Medical
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