Planmeca was founded by Heikki Kyöstilä in Helsinki, Finland, in 1971. From developing dental stools and cabinets to becoming the owner of the largest private dental manufacturing company in the world, his journey – Planmeca’s journey − is definitely worth sharing and celebrating. This is the story of the CEO and founder of our company.
Article Apr 13, 2021
Heikki Kyöstilä began his career as a sales representative for a Finnish dental supply company in 1965, right after graduating from business college, and in this way became familiar with dental clinics and their equipment early on. However, it did not take long for the business-minded future entrepreneur to realise that the products he was selling could be improved in many ways.
“I noticed that especially the patient chairs – their design and ergonomics – could easily be improved. At the time, almost all dental products sold in Finland were imported from Germany, so I thought why not do something about it and start making products of our own. That is how I decided to set up my own business.”
The first five years were pure survival. At the time, Finnish banks did not easily grant loans to startup companies, so Kyöstilä was financially on his own – with an initial capital of 5,000 Finnish marks (roughly the equivalent of €7,000 today*) which he earned by selling his sailing boat.
The beginning was modest – manufacturing dental stools and instrument cabinets in a garage in eastern Helsinki. However, Kyöstilä was able to see the bigger picture and immediately headed for the international market, understanding from the get-go that the Finnish dental market simply wasn’t big enough to build upon. Such foresight was quite exceptional at the time and formed the backbone of the company’s future success.
Already in 1971, the year that Planmeca was founded, Kyöstilä got the opportunity to exhibit his first ergonomic dental stool and an instrument cabinet at the IDS dental trade fair in München, Germany. The demand was immediate, and orders came in from around the world.
"Finland was quite unknown globally, and many customers had no idea where we were located. So it took some time for us to establish ourselves on the market. We had to work really hard to put Finland on the map. I often say that the beginning was like skydiving without a parachute, but the jump really paid off.”
The company started immediately building its global distribution network, which today consists of over 500 distributors in 120 countries.
“We’ve had a global approach from day one. Planmeca has never believed in geographical limits − we have been ready to travel anywhere in the world where there are potential customers. Building an active sales network, founding local companies to support the sales staff and staying close to our customers have been crucial elements of our success.”
In 1975, Kyöstilä finally had the means to hire his first engineer, which meant that the company could move on to developing more demanding products and more sophisticated technology. From then on, it was one technological breakthrough after another: the world’s first microprocessor controlled patient chair and dental unit in 1983 and 1986 respectively, followed by the world’s first microprocessor controlled panoramic X-ray unit.
The 1980s was also the decade when Planmeca’s university collaboration began with an extensive equipment delivery to the dental faculty of the University of Helsinki. Today, Planmeca is the choice of over 300 dental schools worldwide, and the company works in close collaboration with university staff and researchers.
In 1983, Planmeca entered the U.S. market with the sales of 10,000 patient chairs. This, together with the company’s record-breaking delivery agreement of over 1,000 dental units to Saudi Arabian dental institutions in 2012, continue to be the largest individual sales deals in the history of dentistry.
In the 1990s, Planmeca continued to challenge traditional dentistry with new innovations. The next logical step for the company would be a digital one, leading to the world’s first direct digital panoramic imaging unit and a pioneering all-in-one software concept that allowed dental professionals to access all important information from one user interface.
“The Planmeca Dimaxis all-in-one software concept was really a groundbreaking and bold innovation of its time and was launched long before the term ‘software ecosystem’ became a buzzword. It paved the way for many new ideas that would further improve the daily dental workflow.”
Today, all Planmeca’s dental equipment offer network connectivity – in fact, they have done so for more than a decade already.
The year 2022 will mark another milestone in Planmeca’s history – the 50th anniversary of Plandent, a one-stop dental supply company that Kyöstilä founded in 1972 to provide dental professionals with all the services, equipment and materials they need. Today, Plandent Division operates in a dozen countries and is one of the leading dental suppliers in Europe.
The company group’s expansion didn’t stop there. In 1987, Kyöstilä branched out into medical technology by founding Planmed, a company dedicated to mammography and orthopedic imaging equipment.
Today, Planmeca Group is an industry leader consisting of several successful healthcare technology brands. What started as a small-scale business now has a turnover of EUR 764 million, nearly 2,900 employees − and six hectares of company premises in Helsinki, where dental professionals from all around the world are always welcome to share their insights and ideas.
In fact, prior to the pandemic, thousands of dental professionals have visited Planmeca’s headquarters every year.
”It’s a great way to receive customer feedback in addition to trade fairs and congresses. I have always loved meeting our customers in person − it has really been the spice of my working career.”
The digitalisation of dentistry started in the late 1990s and continued to evolve rapidly in the early 2000s, resulting in that Planmeca’s early investment in imaging and software development began to pay off.
“Both 2D and 3D imaging systems became major growth engines for the company. Focusing on developing pioneering imaging technology also allowed us to expand our playing field outside the dental clinic.”
For example, Planmeca’s unique CBCT technology has been incorporated into Planmed’s extremity scanner, a solution also used for veterinary 3D imaging. With the same groundbreaking imaging technology used throughout different product lines, Planmeca Group’s mission is to bring the best image quality to all healthcare professionals − from dental clinics and hospitals to veterinary clinics.
Alongside its dental innovations, Planmeca keeps expanding the medical product portfolio − a new full-body CBCT scanner and a ventilator are currently under development in the company’s R&D department.
The key ingredients to becoming a leader in CBCT imaging include software knowhow, constant algorithm development, top-notch mechanical design, advanced image processing, and a deep understanding of usability − and Planmeca has all these aspects covered.
“I am extremely proud of our algorithm expertise. We have already managed to lower patient doses considerably and cancel the effects of patient movement. We continue to work tirelessly to keep introducing new innovative algorithms that will further improve image quality and help provide the best basis for diagnosis.”
Nearly half a century of steady and continuous growth has required determination, perseverance and a strong work ethic − not to mention constant innovation.
“Of course, not every day has been smooth sailing. In times of recession and in otherwise difficult times, we have worked harder than ever, trying to sell our solutions to customers in every corner of the world – and continuing to bring the latest technology into dental products. Low technology has never been of any interest to us.”
Kyöstilä has wanted to keep the company’s production in Finland and preserve the agility, efficiency, low hierarchy and entrepreneurial spirit of the company’s early days − despite its global success. Hiring the right people has been key, and so has allowing them to work beyond their job descriptions.
“I have always believed in Finnish knowhow and education. I also believe that it is better to listen than to be heard. Valuing the expertise of my staff and hiring the best specialists in each field is the secret to building a successful company.”
Finnish design has always been close to Heikki Kyöstilä’s heart, which can be seen throughout the company’s product lines. “Timeless and recognisable design is one of our key competitive advantages. Design is so much more than just product surfaces – it is the outcome of really understanding clinical workflows and needs. Unlike in many other companies, we have an entire team of inhouse industrial designers who are involved in each stage of the product development process.”
With 50 years of experience, Kyöstilä definitely knows a thing or two about entrepreneurship. “You need to see further ahead than your competition and really listen to what your customers are saying. You have to stay alert to even the tiniest of signals and be prepared to change your course accordingly.”
He is happy that today, unlike in his youth, entrepreneurship is seen in a positive light and young people are encouraged to start their own business.
There are, however, no shortcuts to success, he says. “Quality is everything, and you should never head to the market with an unfinished product. One successful product will often help you come up with new ones.”
Instead of sentimentalising the past, Kyöstilä prefers to focus on the future. This means fearlessly expanding into new territories and staying ahead of technology trends.
For example, providing orthodontic treatment solutions through a new company called PlanSmile is in the future plans. “We continue to deepen our knowledge, expertise and involvement in different specialty areas, such as orthodontics, medical imaging and new 3D applications. This will allow us to explore new technological possibilities and business opportunities.”
Despite the constant advances in imaging technology and the major medical projects currently underway in the company, Planmeca is not forgetting about the product that started its success − a dentist’s most important working tool – the dental unit. The company’s R&D team is working hard to come up with new ways to introduce the latest technologies and upgrades into dental units in order to make the daily dental workflow the smoothest it can be.
For Heikki Kyöstilä, Planmeca is a way of life, and meeting satisfied customers means that the company has succeeded in its primary goal – in providing better care through innovation.
“I am grateful to have been able to work with a highly professional staff and to have been surrounded by dental professionals that I value so greatly. I want to continue to stay close to my customers and staff. I want to hear both the negative and the positive. That is the only way to stay in the game.”
Copy: Hanna Korlin
Images: Planmeca image archives and Dino Azinur
*https://www.stat.fi/tup/laskurit/rahanarvonmuunnin_en.html