Medtronic CareLink™ Programmer

CASE STUDY

Presented to

MassMEDIC

Collaboration for Innovation

February 27, 2007

Agenda

• Quick Medtronic Overview

• A Historical Perspective on Programmers

• The CareLink™ 2090 Programmer

• Development Complexity

• A Collaborative Approach

• Key Lessons Learned

• The Future

Medtronic – Company Overview

• Each year, 5 million patients globally benefit from Medtronic's technology.

• 2006 Revenue: $11.6 Billion• Key Businesses:

– Cardiac Rhythm Disease Management– Cardiac Surgery – Vascular– Neurological– Diabetes – Spinal and Navigation

Medtronic Global Reach

• Salesin 120 countries

• Offices in 44 countries

• 36,000 employees worldwide

The “Original” Medtronic Programmer

9700

The First Non-Invasive Programmers

9710

The First Full-Featured Programmer

9760

The First Screen-Based Programmer

9790

The First Truly Portable Programmer

2090

2003 - The New Standard

2090

2090 Strategic Intent

• Drive/Protect Market Share• Improve service efficiency/productivity• Improve field performance (monthly return rate)• Strengthen Our Technological Leadership

– Build on the success of the 9790– Capitalize on the opportunity to further differentiate

Medtronic from the competition.

• Build a Platform for the Future

CareLink™ 2090 Programmer

• Fast and Expandable Architecture • Large, Bright Screen • Flexible I/O• Functional:

– Touch screen/pen– Integrated Keyboard – Integrated Chart Recorder– ECG/Artifact Detection

• Designed for reliability and strength• Supports all Medtronic Telemetry Systems• Industry Leading Pacing Analyzer

A Full Suite of Products

Development Complexity

• Millions of lines of code to port/write:– 3 different system software architectures, 5 different

telemetry schemes, multiple operating systems– 5 local languages

• Needed to support >250 devices at launch• Needed to launch across the globe• New technologies to Medtronic…

– Materials and Packaging (Magnesium chassis, advanced Flex-circuit, touch screen technology)

– New Telemetry Systems (B, C, N)– Connectivity (remote software updates, Remote View,

Ethernet)

Development Complexity (cont.)

• Needed to update RF Telemetry Head and Pacing Analyzer

• Transferred manufacturing from Medtronic facility to outsourced supplier

• Ultimately:– The expanded team touched >700 people.– The design encompassed >100 assembly drawings

and >600 component drawings

Bottom-line:Medtronic needed a new approach to

Development and Outsourcing

Collaborative Approach with Suppliers

• Suppliers included four (4) primary vendors and dozens of secondary suppliers

• Medtronic owned the overall system design• IBM:

– Designed the main processor board– Designed the display subsystem, along with

touchscreen interface– Managed the power supply design partner– Managed the chassis design, including magnesium,

plastics and sheet metal suppliers

• Both Medtronic and IBM interfaced directly with the outsourced manufacturing partner

Essential IBM Technology and Talent

• Leveraged laptop expertise as basis of main computer system

• PCI design guidance to Medtronic team• Management for multiple sub-tier suppliers• Touch screen technology• Robust operating system design and

implementation• Advanced flex-circuit technologies• “Knowing who to go to” for new technologies

The 2090 Today

• Continue to expand capabilities and extend product life

• Achieving world-class manufacturing yields• Running well under the aggressive reliability

targets for field returns (<1/2 prior products)• Active roadmap for product enhancements• “Home run” on meeting customer needs; the

competition has followed!• Still the preferred programming platform with

customers

Key Lessons Learned - Suppliers

• Primary suppliers must be able to standalone as development organizations; avoid imposing your internal policies and procedures on suppliers or you’ll end up ‘policing’ rather than managing.

• Do not distribute responsibility among suppliers; pick your primary suppliers, develop a clear responsibility structure and audit effectiveness.

• Pick your suppliers early; complete contractual agreements and risk strategy ASAP.

• Suppliers have different expectations and processes than you; perform the due-diligence required to understand and preempt issues that arise from these differences.

• Be prepared to place on-site representatives at key suppliers, especially manufacturing partners.

Key Lessons Learned - Contracts

• Understand the suppliers proposals; you don’t get what you expect, you get what’s in the proposal!

• Create role of contract administrator; all primary suppliers should be handled via contracts with incentives for delivery.

• Establish clear communication channels to all levels within your suppliers; ensure that all are on the same journey throughout the project and all activities add value.

• Exercise the communication channels often; make sure you are making “thank you” calls to balance the normal ‘bad news’ calls.

Key Lessons Learned - Development

• “Road Show” the project to all development partners to build awareness of customer needs.

• Make sure that all suppliers know how you’ll be measuring success (functionality, schedule, cost, etc.).

• Do not underestimate the importance of a complete integration plan and detail in the system interfaces.

• Review designs often, in detail, and across suppliers; you need to insure that these reviews are rigorous and effective!

• Design for reliability and integrate HALT in the development cycle.

• Look for opportunities to co-locate development teams.

The Future… Medtronic’s Needs

• Need to continue to update and enhance the current products to extend their life and lower costs

• Need to understand the impact that the Internet and advances in communication technology will have on our products

• Need to explore new markets that have totally different expectations and use models

• Need to determine which technologies truly create differentiating products

The Future… How IBM Will Help

• Help Medtronic transition from instrument-centric to a broader system view.

• Help determine which technologies most impact our future products.

• Deep dives into technology areas with a broad base of experts.

• Strategies on implementing IBM technology into products to accelerate development.

Brainstorming Session #1 – Feb 2007

Three day meeting between 25 Senior Technologists from IBM and Medtronic.

• Day One – understanding Medtronic: current and future products, current technology, current and future strategic roadmap

• Day Two – Open forum Brainstorming Session to collaboratively identifying issues and potential solutions

• Day Three – specific areas of collaboration: technology investigations, future “deep dives”, systems architecture work

Brainstorming Session #1 – Feb 2007

Medtronic

• Senior System Engineer

• Senior Principal Software Engineer (4)

• Director Medical Instruments

• Senior IT Manager

• Senior Software Engineering Manager

• Senior Principal Software Engineer

• Information Protection Officer

• Senior Principal IT Technologist

• Senior Principal Firmware Engineer (2)

• Program Director (Neuro)

• Manager Software Migration

IBM

• RF Analog IC Design (Research Scientist)

• IBM Fellow (2)

• Advisory Software Engineer

• Senior Technical Staff Member (Packaging) (2)

• Project Manager, Mechanical Engineering

• Senior Engineering Architect

• Manager Global Security Analysis Lab

• Business Development Executive/Director

Thank you!

• Questions?