Introduction
With medical technology advancements happening every other day across the globe, innovation is the key to keeping up with the progress. And it’s not just about newer and better techniques but equally about how accessible they are to mankind in terms of finance. To bring these innovations from paper to working models, as a CFO, I John Bostjancic, highly believe that having financial clarity is of great importance.
Why choose a CFO?
In modern days, the role of a CFO has greatly expanded from just financial data and reports. A CFO now effectively shapes a company’s projects, from making innovations to aligning them with budgets, and to being partners in strategic funding. The catch is that financial leadership plays a pivotal role here, since to get the best output every step counts, be it making and setting a plan of action, resource distribution, or risk management. Thereby, providing and promoting effective strategic investment goals that go hand in hand with the company’s long-term goals.
As a CFO, I firmly believe and work towards this goal to bring about financially sustainable yet innovative and progressive outputs in the MedTech field.
Financial clarity is the deal
Imagine wanting to bake a cake, but having no idea about the availability of the ingredients. Sounds blurry, right? The same importance is for having financial clarity. It is knowing what you have, what you earn, your credits, your debts, your debts, and your savings. Every step of your action plan is affected by your respective finances and investments. Thus, Financial clarity is a must-have thing to play and Financial Leadership becomes a useful tool here. And there comes the role of a CFO. The CFO by providing necessary inputs gives the cost-effective touch to the budding
innovation. As a CFO with over 30 years of experience in the field, I have observed how handy and smooth things work when a project is deeply refined in all its financial aspects by the insights provided by us.
Innovation and strategic finance running parallel
To make an innovation thrive on its ground and to promote growth, it needs strong building support throughout the process. And to make it happen, a viable, realistic financial strategy plays a tremendous part. Fostering the innovation to run to its full
potential, a whole lot is required. From setting priorities to assessing risks, calculating returns and securing funds, it all needs a strategy, it cannot be just put out blindly.
At a consultancy that I founded, running by the name of Invyze, I work on projects with various companies to draw strategic financial ways that fulfil their innovative needs in the best possible ways.
Risk management
Allow me to take you on a virtual tour of the process of bringing an innovation to reality while we try to have a look at the various risks involved, and how we, as CFOs deal with and manage them with calculated and precise decision-making. While launching a product, let’s say a diagnostic device, many possible questions can come to one’s mind.
● What if I run out of funds in the middle of the project? – Financial risk ● What if it does get approval from the FDA? – Regulatory risk
● What if the sales don’t go as expected? – Market risk
And many more. All these risks are anticipated and managed by the CFO. The CFO ensures that in any such emergency, we have measures ready to resolve or at least minimize the effect of the problem. Effective risk management strategies not only benefit the company directly with its finances but also help in building confidence in targeted investors.
Decision making
As opposed to many industries, MedTech industries are strictly scrutinized across various phases by different firms like the FDA, HIPAA and EU MDR and it needs approval at all these levels to eventually bring the product to target consumers. Besides, the resources available are limited. Thus, every choice made and not made has a direct financial consequence.
Every step of the hierarchy is influenced by the availability of funds and a CFO’s ability to decide in favour of proper capital and resource allocation at each step in a disciplined manner determines whether the innovation will be a breakthrough or a breakdown.
At Sonendo, we are committed to improving our dental care systems. As CFO, I have added value to all our projects with my experiences, insights, risk management and decision-making qualities. It directly affects the possibility of the innovation to thrive and sustain in the market.
How a CFO Shapes the Innovation
A CFO may not be the first-hand employee playing his part in introducing new ideas, concepts, methods or products but they sure do play an integral role in guiding the company throughout the same, whilst providing financially effective and efficient advice and ways to make those innovations work. Thereby also ensuring a maintained financial health of the company at the same time.
Productive outputs in any technological leap demand effective inputs and we as CFOs being one of the core strategic partners, drive innovation through ● budget alignment with R&D goals facilitating growth alongside the progress ● Risk management and Resource allocation promoting cost-effectiveness of the project
● Long-term financial planning and fundraising.
● Our involvement makes sure that innovations are both exciting and executable.
Conclusion
Innovations not backed up by financial clarity and strategies are hard to sustain in the market in the long term. And I, John Bostjancic, as a CFO, greatly believe in lasting results. As CFOs, we provide effective financial leadership ways to work towards the outcomes that can benefit the healthcare system and not just mere ideas in our heads. To do so, every risk management strategy, every revised and reviewed decision, and inspection of every potential breakpoint are taken into account as core factors and not mere checkboxes. This also protects the company from any financial surprises.
Thus, we aim to ensure that MedTech companies bring those ideas to reality in effective, productive yet innovative ways.