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GenAI in Switzerland in 2024 white paper - IMD Business School

Report

Charting the Future

Switzerland's Path to Generative AI Leadership in 2024 and beyond

By Amit M. Joshi, Sarah E. Toms, Karine Avagyan and Anthony Corbaz, Martin Rajman, Danièle Castle

January 2024

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This report by IMD in collaboration with digitalswitzerland and EPFL sets out the ﬁndings of a proprietary survey on exposure, adoption, and attitudes towards usage and regulation of Artiﬁcial Intelligence (AI) and generative AI (GenAI) in Switzerland in 2024. It also shares the expert insights of our co-authors and leaders from business, academia, and the public sector captured at two dedicated workshops on disruptive technologies, including GenAI, in October and November 2023.

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MedTech Diagnostics' transformation crossroads

By Michael D. Watkins
Case reference: IMD-2726 ©2025

Summary

The case study examines the organizational transformation challenges faced by MedTech Diagnostics, an 850 million medical diagnostics company attempting to balance innovation speed with regulatory compliance and quality standards. CEO Patricia Chen must navigate the tension between traditional, reliability-focused operations and agile innovation pods, while facing a critical contract renewal worth 187 million that represents 22 of the company's revenue. The case illustrates the complexities of dual operating models in regulated industries. MedTech's traditional divisions generate 120M in EBITDA and are FDA-compliant but are declining at 8 annually. Innovation pods achieve 120 growth and high customer satisfaction but face higher post-market issues and lower FDA approval rates. Hybrid teams intended as a compromise satisfy neither approach, demonstrating the difficulties of organizational ambidexterity. Chen faces three strategic options: controlled evolution over 24 months, creating a separate subsidiary for innovation, or transforming into a platform company. Each option carries significant costs, risks, and uncertain outcomes. The case explores critical organizational design questions, including culture change, stakeholder management, resource allocation, regulatory navigation, and leadership alignment in transformation contexts. Key themes include managing organizational culture during transformation, balancing innovation with quality in regulated environments, addressing internal resistance and political dynamics, developing effective dual operating systems, and making high-stakes strategic decisions under uncertainty. The case is designed for classroom discussion on organizational change, innovation management, and strategic decision-making in complex operating environments.

Reference IMD-2726

Organization MedTech Diagnostics (Fictionalized)

Available Languages English

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