MM5026 - Management of Innovation, Technology and

Entrepreneurship for Executive

Lessons Learned of Syntellix - Disrupting The Medical

Implant Titans With A Screw That Disappears

by:
SYNDICATE GROUP 2
1. Ely Rahmawati (29320072)
2. Akhmad Kurnia (29320050)
3. Taufiqurrohman (29320196)
4. Fadhila Nurfida Hanif (29320149)
5. Edi Priyo Yunianto (29320219)

Master of Business Administration

School of Business and Management
Institut Teknologi Bandung
2021
I. INTRODUCTION
Broken bones often have to be temporarily fixed in place with screws, nails or plates
to enable them to heal and grow back together again. In the past, these implants, made of
stainless steel or titanium, usually had to be removed again in a second operation because
this foreign material would otherwise have remained in the body where it could lead to
problems (infections, bone shrinkage). Medical research has therefore been searching for
many years for material capable of being naturally absorbed. Thanks to close co-operation
and its major commitment to basic research, Syntellix succeeded in achieving the pioneering
breakthrough with a major innovation. Previously only dreamed of by patients and doctors,
this innovation has now turned these dreams into reality, and has already been used
thousands of times: a bio transformable and metallic (stable) material for implants.
Syntellix AG was established in 2008 by innovation-friendly and forward-looking
investors in Niedersachsen (Lower-Saxony) in Germany, under the overall management of
Prof. Dr. Utz Claassen. Established in Hannover, the start-up succeeded in making the
breakthrough after a great deal of highly committed work: by setting up an interdisciplinary
network of outstanding scientists at various research locations, Syntellix succeeded in
developing MAGNEZIX® within five years and launching it on the market - a truly
revolutionary material which, despite its metallic properties and high stability, can be
completely absorbed within the body - and even replaced at the same time by the body's
own bone tissue.
After countless biomechanical studies, in-vitro and in-vivo tests, MAGNEZIX® was
the first bioabsorbable metallic implant world-wide to receive approval in 2013 (CE label). In
March 2013, Syntellix AG won the prestigious and internationally renowned German Industry
Innovation Prize - first innovation prize in the world® for its unique innovation MAGNEZIX®.
Only two years later, the company also won the Top Innovator of German Medium-sized
Enterprises award in 2015. It won the prize again as the Top Innovator in 2016, in the same
year that Syntellix also won the Future Prize of the Health Industry Club. Another milestone
of the year was the state approval of MAGNEZIX® by the renowned Health Science
Authority (HSA) in Singapore. In 2017 Syntellix AG won the STEP Award for the most
innovative technology and the German Medical Award for the best product innovation. Also,
in 2017 Syntellix was awarded as Innovator of the Year by the Top 100 jury. In the following
year 2018, MAGNEZIX® was named Sustainable Product of the Year at the Sustainability
Awards; the German Innovation Award in gold followed in 2019. And the prizes continued in
2020: This year Syntellix was able to win the Edison Award in silver and the IMA Award of
Excellence.
These numerous awards confirm the innovative strength and technological
leadership of Syntellix AG. Syntellix is now the world's number 1 in the bioabsorbable metal
 implant sector, and currently active in more than 60 countries. Patients have already been
successfully operated on ten thousands of times with Syntellix products.
II. LESSON LEARNED
Based on Case : Syntellix - Disrupting The Medical Implant Titans With A Screw That
Disappears, our syndicate group have discussed several lessons learned as follow:
1. High Commitment Leadership
Creating Magnezix is like dream, really a dream, which seems impossible to
achieve, but Syntellix has the confidence, believe that this research will succeed. To
achieve those success, this case tells us that process were a long process and hard
work.
To prove that this innovation can provide benefits to patients, users, hospitals,
the health system, the environment and society, the challenges faced were also hard
and difficult, numerous pre-clinical studies and tests were conducted, which led to
clinical testing on human patients. During the clinical study, they also dealt with pursuant
to the ISO 10993 standard was, and those were already confirmed and verified by
numerous tests analysing aspects such as cytotoxicity, genotoxicity, oncogenicity,
systemic toxicity, and many other sensitivity tests.
After obtaining convincing data that this innovation can provide benefits to
patients, users, hospitals, the health system, the environment and society in general, the
company continues the strategic challenge, that was to transform successful innovation
into value-generating entrepreneurial success.
To be accepted in the markets of some countries, companies must follow the
requirements set by the country, some are quick and easy, but some are longer, all of
which requires persistence. It needs good leadership to direct the team keep on focus.
The role of the leader has a significant effect on the organization's success. Especially
the innovation framework requires high commitment from the top management because
the realm of innovation is not in a comfort zone.

2. Humanity Problem Solving Mindset

In developing magnesium-based implant products, the founder of Syntellix has a
noble goal, to provide product that has greater benefits (more effective, safer, and
cheaper treatment) than titanium implant products. These values are carried as a form
of contribution in human life, not just thinking about the benefits that are gained from
many accidents. This humanity problem solving mindset is very important as the basic
foundation of the company.

3. Maintain Idealism
 Utz Classen was able to maintain Syntellix idealism, aspiration to be more useful
is far more valuable than just material things. There is an idealism here which is the
value of the Syntellix company. They didn’t think only gain and loss pragmatically, quite
different with many company which think only gain and loss.

4. Selective Collaboration in Product Development and Business Development

Uutz Classen is not an expert in the field of medicine, but he was made a
collaboration with several scientists in different scientific backgrounds to work together
and fill in the empty spaces in the team.
Utz Claassen managed Syntellix’s research and development with both open
and close innovation type. It is closed to competitors but open to noncompetitors. Utz
Claassen refused offering from several large competitors about research and
development collaboration, licensing, and even acquisition. However, Syntellix made
collaboration with several parties in incubating and accelerating its business, they are :
 Collaboration with the University of Hanover (“Leibniz Universität Hannover”), the
Clausthal University of Technology and Hanover Medical School in Magnezix
product development.
 Collaboration with Tan Tock Seng Hospital in Singapore (Syntellix as Magnezix
implant provider) and Partnering with Wintop Capital about financing, knowledge
and relational resources in expanding its business in Asia.
In managing our business and innovation, it is important to identify risk and
benefit of the parties we are collaborating with. Which parties can accelerate our
business and innovation and which parties can hinder our business and innovation.

5. Competitive awareness
Sustained Innovation
Syntellix has developed into a calculated innovation company in the world. Its
products bring a breakthrough in the world of orthopedics. The prospects are bright but
that doesn't make Syntellix complacent in pioneering. Syntellix understand that
eventhough Syntellix is currently accepted in many countries and become the only
player with absorbable metallic implants on the market with CE and HSA approval, that
is no guarantee of long-term success.
Syntellix remains vigilant and develops itself to be able to keep up with the giants
around it. This is indeed uncomfortable. But with this conditioned inconvenience, it will
make Syntellix steadily stronger and tougher in future competitions. It is important to
make sure that Syntellix’s research sustained to become major player in the industry.
Innovation Protection
 Syntellix is a technology pioneer in the newly recognized metallic bio-absorbable
implants sector. To protect its innovation, Syntellix has patented and trademarked its
product and technology’s intellectual property. It is important to protect our innovation’s
intellectual property to anticipate the infringement conducted by our competitor.

6. Disruptive Innovation
Magnezix from Syntellix is absorbable by human body, so there is no need to
conduct second operation (surgery) to take the metal implant. Meanwhile the use of
Titanium as implant need second operation to remove the metal implant (Titanium). So,
it need lower cost if using Magnezix than Titanium. This radical innovation of absorable
metal implant may caused disruptive situation to current metal implant sector.
The current market of metal implant sectori is still been dominated by several big
companies which apply unabsorbable metal implant as like Titanium. The robust
innovation of Syntellix may get attention from the big companies. The respond from the
big companies may be vary :
 Syntellix is not considered and they will do nothing and keep with their business in
current metal implant;
 Syntellix is considered then they will try to collaborate with, acquire, compete by
conduct innovation in absorbable metal implant, or even try to stop Syntellix.
It is very challenging if our business is in disruptive innovation situation. It is
important to protect our innovation and anticipate the market leader’s action in
sustaining our business and innovation.

III. CONCLUSION
This highly intelligent innovation was not achieved easily, therefore it requires
persistence leadership, good mindset, idealism, collaboration, and competitive awareness to
sustain the business, furthermore to become major player in the industry.