Interview with Terry Ross Director, Madsen Electronics North American Operations
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AO/Beck: Hi Terry. It's a pleasure to speak with you. I'd like to start by learning about your background and then let's spend some time learning about Madsen.
Ross: Sure Doug, sounds like a plan.
AO/Beck: How long have you been with Madsen?
Ross: I've been in the industry for over 22 years and I've been with Madsen for just over six years. Prior to my position at Madsen I was in executive management with start-up company here in Minneapolis called AudioScience. Basically, AudioScience was developing a programmable hearing instrument which was intended to compete in the same arena as ReSound's technology. Unfortunately, AudioScience didn't make it. The company ceased operations after three years of development and they no longer exist. I was also a Director with Gould Electronics after they developed zinc-air technology in the late '70's. I helped to launch that technology and I was with them until 1984. Duracell bought the technology and the rest is history. So basically, most of my experience has been in sales and marketing management in the hearing health care industry.
AO/Beck: What is the relationship between ReSound and Madsen?
Ross: Before the merger of ReSound and Danavox in 1999, Madsen was owned by Great Nordic, the parent company of GN Danavox. Because Madsen had many of the same customers and vendors as the hearing aid company, and because much of the sales, marketing and research efforts were duplicative, consolidation offered a lot of benefits and helped to streamline the corporate structure and expenses while increasing the resources of the group. As you know, we sell our products through a network of distributors across North America - we sell through 19 companies, which have 39 offices in the USA and Canada. However, our products are also available in some 70 countries worldwide. We have also added a new company to the Madsen organization as of December, 2000 - the recent acquisition of ICS Medical in Chicago. ICS is in the balance and vestibular testing business. This acquisition will significantly increase our overall clinical technology offerings. We also anticipate that we'll have an impact in commercial ABR systems fairly soon as we bring together the ICS and Madsen strengths. ABR and OAE are growth areas for us, essentially due to the national movement towards newborn hearing screenings. We expect our new relationship with ICS to be advantageous in that area. In fact, we have literally doubled our size in the U.S. by acquiring ICS making us the largest manufacturer of diagnostic equipment for hearing healthcare in the world.
AO/Beck: What is the primary focus of Madsen in January 2001?
Ross: The focus at this time remains on computerized audiometry and with the acquisition of ICS Medical, expanding our reach into to balance and vestibular testing technologies. We realized almost a decade ago that computers were going to become the 'engines' of our industry. So at that time, a decision was made to move away from the mechanical, stand alone audiometers which had become the standard, and to start creating computer-based products. So that's our focus - continued transition from mechanical stand-alone systems to integrated computer technologies and to increase the clinical efficiency of equipment such as the impedance audiometer, the clinical audiometer, OAE systems and related vestibular technologies.
AO/Beck: With the tremendous changes and advances in digital and digitally programmable hearing aid technologies over the last five years, there is surprisingly little in the way of standardized verification available. Do you see any integration of the hearing aid technologies with clinical equipment regarding verification protocols?
Ross: Yes. We are beginning to develop advanced verification protocols for digital and digitally programmable hearing aid technologies. For example, we are investigating better ways of measuring directionality, more sophisticated ways of measuring noise management systems, better ways of measuring feedback suppression systems and other areas as well. All of these things obviously require tremendous R&D resources, but they are definitely capabilities that our industry will need to effectively measure how well we are fitting these new advanced hearing aids.
AO/Beck: So in essence, a lot of your current R and D is focused on putting together systems which are multi-functional?
Ross: Yes that's true. The Aurical System is an example of one package that incorporates clinical audiometry, real ear testing and hearing aid testing and fitting. However, it can also be used as modular, separate and distinct systems as required by the clinician.
AO/Beck: The Auricle has been out there for five or six years hasn't it?
Ross: Yes. In fact, Aurical has done remarkably well. That system was originally designed as a portable system, but soon after its market entry it became apparent that a modular, stationary system was also attractive. We believe that over 25% of the available market is using this technology, and that by the end of 2001, more than one in three retail locations will be using this type of computer-based technology.
AO/Beck: Terry, give me some idea of what the price points are for new equipment these days. I hate to admit it, but I love the old Madsen OB822 and my group owns a couple of them. They are indeed workhorses, but I suppose they will actually have to be replaced one day.
Ross: Yes I agree, the OB822 was and still is a great machine. When you go shopping you'll find some of the same issues you've faced before...screeners versus diagnostic equipment, and stand-alone versus integrated systems. However, the upper end equipment is really amazing, and even with the screening equipment, you get a lot of technology for the dollar. Nonetheless, a good quality, two channel, clinical audiometer will run about $6000 to $8000 with a few digital features on it. A basic screening audiometer will run about $2500.00 - $3000.00 Along those same lines, for OAE equipment, the screeners are about $4000.00 and the sophisticated diagnostic OAE equipment might run anywhere from $7000.00 to $13,000.00. Of course the variables are tremendous and the prices vary based on multiple factors, which are essentially chosen by the user. For instance, if you wanted a PC-based, sophisticated OAE system, which can run either DPOAE and TEOAE test protocols, and is NOAH compatible, Madsen offers a product called the CAPELLA. Also due to the demand for a simple hand-held OAE screening device to be utilized in newborn screening programs at hospitals, Madsen also offers Echo-Screen, a fast and reliable PASS-REFER technology. So again, the range in products is vast and varied depending on the need.
AO/Beck: Terry, looking into your crystal ball, what is the next big change in audiologic equipment over the next five years?
Ross: I think we'll very quickly see software available over the internet to help drive the efficiency of the clinical audiometer, impedance systems and OAE systems, That is, I can imagine that very soon, software upgrades will be available to simply download from the internet directly into the audiologist's diagnostic equipment. Additionally, 'blue tooth' technology is entering our industry very soon. You're probably familiar with the term, essentially it refers to high speed wireless transmission of data. I could envision a day when there could even be wireless connections between the headphone and the audiometer, or wireless technology from the electrodes to the ABR equipment to the computer, to wireless connections between the hearing aid and the HI-PRO box and the computer. Another exciting possibility will be 'smart transducers' which will allow chips to diagnose and troubleshoot instrumentation over the Internet. So I think you'll see lots of new growth areas and lots of continued evolution for established technologies.
AO/Beck: What about the development of more 'user friendly' software?
Ross: That is a critical area. We constantly strive to make instrumentation and software user friendly. The 'usability' of software is critical. In fact, finding software developers is getting more and more difficult because the developers are being hired into other, larger industries, such as consumer electronics. Nonetheless, usability is a critical focus for us and we place a lot of emphasis on it. Since the North American market is so important to our global business, we are fortunate to have great influence over the design and development of software and technology at our worldwide headquarters in Denmark.
AO/Beck: Terry, what can you tell me about clinical training for the audiologist who purchases new equipment and needs to be brought up to speed?
Ross: Clinical training is an area we are continuing to put greater emphasis on. Typically, our local distributors have provided the hands-on local training but we have found that more dedicated efforts are needed from the factory to ensure our customers can take full advantage of our advanced technologies.
One new area we are excited about is the development of dedicated in-house training resources to provide supplemental regional training seminars across North America for the new computer-based technologies. You'll see those seminars being offered by the middle of 2001 and we hope to provide CEUs for the participants too. Basically, with the acquisition of ICS, we think we can play a larger role offering more advanced technologies and products and in providing more comprehensive training to professionals for our equipment.
AO/Beck: Terry, what can you tell me about GN Otometrics? I've heard the name and I know nothing about it.
Ross: GN Otometrics will be an 'umbrella' company for the many global brands of instrumentation that we manufacture. The function of this corporate 'umbrella' is to offer our different brands in different locations through a common venue. For instance, the name Madsen is fairly well known in the USA, so that name will remain a strong brand focus in the USA, but in nations where Madsen may not be as well known or where the ICS product line may not have a strong presence, the products may be offered under the single corporate name 'GN Otometrics', while still preserving the brand equity.
AO/Beck: Please tell me the website address and the toll free phone number for Madsen.
Ross: The website is very simple to find... www.madsen.com and the toll free number for the North American headquarters is 1-800-362-3736.
AO/Beck: Very good Terry. Thanks for your time. It's always exciting to speak with visionaries! It seems like Madsen has a lot to offer the industry and we'll I'll look forward to speaking with you in a few months for an update.
Ross: Thank you too Doug. I'll be happy to provide the update whenever you and Audiology Online are ready.
For more information on Madsen click here.
Click here to visit the Madsen website.
Ross: Sure Doug, sounds like a plan.
AO/Beck: How long have you been with Madsen?
Ross: I've been in the industry for over 22 years and I've been with Madsen for just over six years. Prior to my position at Madsen I was in executive management with start-up company here in Minneapolis called AudioScience. Basically, AudioScience was developing a programmable hearing instrument which was intended to compete in the same arena as ReSound's technology. Unfortunately, AudioScience didn't make it. The company ceased operations after three years of development and they no longer exist. I was also a Director with Gould Electronics after they developed zinc-air technology in the late '70's. I helped to launch that technology and I was with them until 1984. Duracell bought the technology and the rest is history. So basically, most of my experience has been in sales and marketing management in the hearing health care industry.
AO/Beck: What is the relationship between ReSound and Madsen?
Ross: Before the merger of ReSound and Danavox in 1999, Madsen was owned by Great Nordic, the parent company of GN Danavox. Because Madsen had many of the same customers and vendors as the hearing aid company, and because much of the sales, marketing and research efforts were duplicative, consolidation offered a lot of benefits and helped to streamline the corporate structure and expenses while increasing the resources of the group. As you know, we sell our products through a network of distributors across North America - we sell through 19 companies, which have 39 offices in the USA and Canada. However, our products are also available in some 70 countries worldwide. We have also added a new company to the Madsen organization as of December, 2000 - the recent acquisition of ICS Medical in Chicago. ICS is in the balance and vestibular testing business. This acquisition will significantly increase our overall clinical technology offerings. We also anticipate that we'll have an impact in commercial ABR systems fairly soon as we bring together the ICS and Madsen strengths. ABR and OAE are growth areas for us, essentially due to the national movement towards newborn hearing screenings. We expect our new relationship with ICS to be advantageous in that area. In fact, we have literally doubled our size in the U.S. by acquiring ICS making us the largest manufacturer of diagnostic equipment for hearing healthcare in the world.
AO/Beck: What is the primary focus of Madsen in January 2001?
Ross: The focus at this time remains on computerized audiometry and with the acquisition of ICS Medical, expanding our reach into to balance and vestibular testing technologies. We realized almost a decade ago that computers were going to become the 'engines' of our industry. So at that time, a decision was made to move away from the mechanical, stand alone audiometers which had become the standard, and to start creating computer-based products. So that's our focus - continued transition from mechanical stand-alone systems to integrated computer technologies and to increase the clinical efficiency of equipment such as the impedance audiometer, the clinical audiometer, OAE systems and related vestibular technologies.
AO/Beck: With the tremendous changes and advances in digital and digitally programmable hearing aid technologies over the last five years, there is surprisingly little in the way of standardized verification available. Do you see any integration of the hearing aid technologies with clinical equipment regarding verification protocols?
Ross: Yes. We are beginning to develop advanced verification protocols for digital and digitally programmable hearing aid technologies. For example, we are investigating better ways of measuring directionality, more sophisticated ways of measuring noise management systems, better ways of measuring feedback suppression systems and other areas as well. All of these things obviously require tremendous R&D resources, but they are definitely capabilities that our industry will need to effectively measure how well we are fitting these new advanced hearing aids.
AO/Beck: So in essence, a lot of your current R and D is focused on putting together systems which are multi-functional?
Ross: Yes that's true. The Aurical System is an example of one package that incorporates clinical audiometry, real ear testing and hearing aid testing and fitting. However, it can also be used as modular, separate and distinct systems as required by the clinician.
AO/Beck: The Auricle has been out there for five or six years hasn't it?
Ross: Yes. In fact, Aurical has done remarkably well. That system was originally designed as a portable system, but soon after its market entry it became apparent that a modular, stationary system was also attractive. We believe that over 25% of the available market is using this technology, and that by the end of 2001, more than one in three retail locations will be using this type of computer-based technology.
AO/Beck: Terry, give me some idea of what the price points are for new equipment these days. I hate to admit it, but I love the old Madsen OB822 and my group owns a couple of them. They are indeed workhorses, but I suppose they will actually have to be replaced one day.
Ross: Yes I agree, the OB822 was and still is a great machine. When you go shopping you'll find some of the same issues you've faced before...screeners versus diagnostic equipment, and stand-alone versus integrated systems. However, the upper end equipment is really amazing, and even with the screening equipment, you get a lot of technology for the dollar. Nonetheless, a good quality, two channel, clinical audiometer will run about $6000 to $8000 with a few digital features on it. A basic screening audiometer will run about $2500.00 - $3000.00 Along those same lines, for OAE equipment, the screeners are about $4000.00 and the sophisticated diagnostic OAE equipment might run anywhere from $7000.00 to $13,000.00. Of course the variables are tremendous and the prices vary based on multiple factors, which are essentially chosen by the user. For instance, if you wanted a PC-based, sophisticated OAE system, which can run either DPOAE and TEOAE test protocols, and is NOAH compatible, Madsen offers a product called the CAPELLA. Also due to the demand for a simple hand-held OAE screening device to be utilized in newborn screening programs at hospitals, Madsen also offers Echo-Screen, a fast and reliable PASS-REFER technology. So again, the range in products is vast and varied depending on the need.
AO/Beck: Terry, looking into your crystal ball, what is the next big change in audiologic equipment over the next five years?
Ross: I think we'll very quickly see software available over the internet to help drive the efficiency of the clinical audiometer, impedance systems and OAE systems, That is, I can imagine that very soon, software upgrades will be available to simply download from the internet directly into the audiologist's diagnostic equipment. Additionally, 'blue tooth' technology is entering our industry very soon. You're probably familiar with the term, essentially it refers to high speed wireless transmission of data. I could envision a day when there could even be wireless connections between the headphone and the audiometer, or wireless technology from the electrodes to the ABR equipment to the computer, to wireless connections between the hearing aid and the HI-PRO box and the computer. Another exciting possibility will be 'smart transducers' which will allow chips to diagnose and troubleshoot instrumentation over the Internet. So I think you'll see lots of new growth areas and lots of continued evolution for established technologies.
AO/Beck: What about the development of more 'user friendly' software?
Ross: That is a critical area. We constantly strive to make instrumentation and software user friendly. The 'usability' of software is critical. In fact, finding software developers is getting more and more difficult because the developers are being hired into other, larger industries, such as consumer electronics. Nonetheless, usability is a critical focus for us and we place a lot of emphasis on it. Since the North American market is so important to our global business, we are fortunate to have great influence over the design and development of software and technology at our worldwide headquarters in Denmark.
AO/Beck: Terry, what can you tell me about clinical training for the audiologist who purchases new equipment and needs to be brought up to speed?
Ross: Clinical training is an area we are continuing to put greater emphasis on. Typically, our local distributors have provided the hands-on local training but we have found that more dedicated efforts are needed from the factory to ensure our customers can take full advantage of our advanced technologies.
One new area we are excited about is the development of dedicated in-house training resources to provide supplemental regional training seminars across North America for the new computer-based technologies. You'll see those seminars being offered by the middle of 2001 and we hope to provide CEUs for the participants too. Basically, with the acquisition of ICS, we think we can play a larger role offering more advanced technologies and products and in providing more comprehensive training to professionals for our equipment.
AO/Beck: Terry, what can you tell me about GN Otometrics? I've heard the name and I know nothing about it.
Ross: GN Otometrics will be an 'umbrella' company for the many global brands of instrumentation that we manufacture. The function of this corporate 'umbrella' is to offer our different brands in different locations through a common venue. For instance, the name Madsen is fairly well known in the USA, so that name will remain a strong brand focus in the USA, but in nations where Madsen may not be as well known or where the ICS product line may not have a strong presence, the products may be offered under the single corporate name 'GN Otometrics', while still preserving the brand equity.
AO/Beck: Please tell me the website address and the toll free phone number for Madsen.
Ross: The website is very simple to find... www.madsen.com and the toll free number for the North American headquarters is 1-800-362-3736.
AO/Beck: Very good Terry. Thanks for your time. It's always exciting to speak with visionaries! It seems like Madsen has a lot to offer the industry and we'll I'll look forward to speaking with you in a few months for an update.
Ross: Thank you too Doug. I'll be happy to provide the update whenever you and Audiology Online are ready.
For more information on Madsen click here.
Click here to visit the Madsen website.
