Medtronic CareLink Programmer

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• Medtronic CareLink Programmer
• CASE STUDY
• Presented to
• MassMEDIC
• Collaboration for Innovation
• February 27, 2007

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Agenda

• Quick Medtronic Overview
• A Historical Perspective on Programmers
• The CareLink 2090 Programmer
• Development Complexity
• A Collaborative Approach
• Key Lessons Learned
• The Future

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(No Transcript)
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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

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Medtronic Global Reach

• Salesin 120 countries
• Offices in 44 countries
• 36,000 employees worldwide

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The Original Medtronic Programmer
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The First Non-Invasive Programmers
9700
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The First Full-Featured Programmer
9710
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The First Screen-Based Programmer
9760
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The First Truly Portable Programmer
9790
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2003 - The New Standard
2090
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2090
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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

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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

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A Full Suite of Products
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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 gt250 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)

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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 gt700 people.
• The design encompassed gt100 assembly drawings and
  gt600 component drawings
• Bottom-line
• Medtronic needed a new approach to
• Development and Outsourcing

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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

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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

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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 (lt1/2 prior products)
• Active roadmap for product enhancements
• Home run on meeting customer needs the
  competition has followed!
• Still the preferred programming platform with
  customers

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Key Lessons Learned - Suppliers

• Primary suppliers must be able to standalone as
  development organizations avoid imposing your
  internal policies and procedures on suppliers or
  youll 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.

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Key Lessons Learned - Contracts

• Understand the suppliers proposals you dont get
  what you expect, you get whats 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.

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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 youll 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.

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The Future Medtronics 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

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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.

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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

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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

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Thank you!

• Questions?