Across Health Webinar

02/05/2023 1Across Health Webinar

Edwin de Fouw, MD, Across Health Netherlands and NordicsChristian Helsengreen, Senior Consultant, Across Health

View recorded webinar: http://bit.ly/1E4ebGP

Digital Transformation in Pharma:organising for sustained success

Focused “fusion” consulting

• 70+ strong consultancy

• Focus on innovative customer-centric approaches (e-powering traditional channels – “fusion”)

• Holistic approach: From strategy to implementation & success metrics/ KPIs

• Unique offering in the industry

• Global footprint (9 markets)• Projects in emerging markets (LATAM, Russia,

Turkey, China)

• Life sciences focus02/05/2023 2

Extensive experience at regional/global level

AND

local execution power

Across Health Webinar

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Agenda

• Digital maturity and challenges in Pharma• Digital transformation• Sustaining the momentum

EXECUTIVE SUMMARY

KEYSTATISTICS

CURRENTADOPTION

KEYCHALLENGES

FUTUREOF DIGITAL

Defining digital transformation: reassembly of resources to grow

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Source:?

Accenture 2014

EXECUTIVE SUMMARY

KEYSTATISTICS

CURRENTADOPTION

KEYCHALLENGES

FUTUREOF DIGITAL

In the digital revolution, digital is the norm

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EXECUTIVE SUMMARY

KEYSTATISTICS

CURRENTADOPTION

KEYCHALLENGES

FUTUREOF DIGITAL

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EXECUTIVE SUMMARY

KEYSTATISTICS

CURRENTADOPTION

KEYCHALLENGES

FUTUREOF DIGITAL

0 1 2 3 4 5

3%

12%

24%

44%

17%

1%

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Overall, only 18% of pharma staff are satisfied with their current digital activities – and this number has not changed in the last 5 years

ExtremelySatisfied

ExtremelyDissatisfied

18%

copyright © Across Health, 2014

N= 302

The (very) long fuse for digital transformation in healthcare…

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A long fuse/big bang in pharma?

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Now 2016

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DIGITAL TRANSFORMATION IN PHARMA enables all customer facing stakeholders to optimally integrate all channels in the mix to allow for increased and improved customer engagement, thereby creating value, revenue and efficiencies. It builds the fertile ground for digital health or mhealth which may disrupt the pharma business model

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EXECUTIVE SUMMARY

KEYSTATISTICS

CURRENTADOPTION

KEYCHALLENGES

FUTUREOF DIGITAL

Four Types of Digital Maturity

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Source: The Digital Advantage: How digital leaders outperform their peers in every industry (Cap Gemini and MIT Sloan Management 2014)

Digital Beginners• Simple digital capabilities• Unaware of opportunities• Small investments• No effective transformation

management in place

Fashionistas• Many sexy digital applications• No vision of gaining synergies• Motivated by digital change –

But the strategy is not founded on how to maximise business benefits

• Maturity differences between corporate HQ, local subsidiaries and business units

Digirati• Truly understands how to drive

value with digital transformation• Combine a transformative vision,

careful governance and engagement with sufficient investments in new opportunities

• Digital culture is the lever for fast exploitation of new opportunities

• Continuously advantage their digital competitive advantage

Conservatives• Favour prudence over innovation• Acknowledge the need for a strong

unifying vision, governance and engagement

• Sceptical about the value of new digital trends

• Often miss valuable opportunities

EXECUTIVE SUMMARY

KEYSTATISTICS

CURRENTADOPTION

KEYCHALLENGES

FUTUREOF DIGITAL

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The Fashionista

EXECUTIVE SUMMARY

KEYSTATISTICS

CURRENTADOPTION

KEYCHALLENGES

FUTUREOF DIGITAL

The digital advantage – Capgemini 2013

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Digital maturity by industry: In pharma, transformation management intensity is low

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Maturity Breakdown by Industry: a significant % of fashionistas

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Source: The Digital Advantage: How digital leaders outperform their peers in every industry (Cap Gemini and MIT Sloan Management 2014)

Most Pharma senior executives believe digital health will have transformed their business model by 20201

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You need to be here before 2020 – and the journey must start now!

1: In 2013, Arthur D Little interviewed over 50 senior pharma executives from around the world for its report Impact of Digital Health on the Pharmaceutical Industry – Will Business Models be Reshaped by Digital Health?

Top challenges of digital transformation: did we get to the digital campaign stage yet?

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Source: ALTIMETER, 2014: State of Digital Transformation

customers

The challenge: Pharma is suffering from change fatigue

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Agenda

Across Health Webinar

• Digital maturity and challenges in Pharma• Digital transformation• Sustaining the momentum

Change needs to happen at 4 levels…

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I. People, organization and culture

II. Business and technology processes

III. Channel integration

IV. Measurement and metrics

EXECUTIVE SUMMARY

KEYSTATISTICS

CURRENTADOPTION

KEYCHALLENGES

FUTUREOF DIGITALhttp://mindset.com.au/services/lead-manage-change/change-management/

Transformational change has an organizational focus: ROI of change is really created if we focus on the mindset

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Successful change requires 4 key conditions to be met…

EXECUTIVE SUMMARY

KEYSTATISTICS

CURRENTADOPTION

KEYCHALLENGES

FUTUREOF DIGITAL

Gathering and Sharing Insights: Set the agenda for change• Communicate a compelling need for change• Build experiential awareness

• Silicon Valley trips, Peter Hinssen, “Rep MC case”, etc.

• Align senior management• CEO ownership/endorsement

• Know your starting point:• Know your CUSTOMER: Cross-channel Navigator• Know your EMPLOYEES: Multichannel

Barometer (n= 300)• Compare yourself with your industry peers

• Technology audit

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Create experiential awareness:Take a fictitious brand...Develop a multichannel offering

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And segment your target audience (3 groups of 154 reps)

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Week 1 Week 3Week 2

Group 3

Group 2

Group 1

And show the results during a company-wide meeting

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Group 2Repetition

Group 3Multi-channel

Group 1Mono-channel

N = 24

N= 34

N= 49

15%* 22%* 32%*

* Conversion rate

Innovation: Clear Vision and GoalsCraft a MEASURABLE vision with a clear business intent

“By 2018, one-third of our customer contacts (measured as MC equivalents) will come from digital contacts, resulting in a superior

customer engagement vs our competitors”

• Involve the entire organization: • The days of the PILOT for 1 TA or brand are over

III. Channel integration

IV. Measurement and metrics

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EXECUTIVE SUMMARY

KEYSTATISTICS

CURRENTADOPTION

KEYCHALLENGES

FUTUREOF DIGITAL

All values shown are illustrative only

Impact is rescaled to allow direct comparison Multichannel EQuivalent

The graphs and tables are similar to performance maps, but the Rep is ALWAYS set at 1.00the Rep is ALWAYS set at 1.00

MULTICHANNEL Equivalence metrics allow for comparison of the impact of all channels in the mix…and setting of a clear intent

MC equivalent impact

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EXECUTIVE SUMMARY

KEYSTATISTICS

CURRENTADOPTION

KEYCHALLENGES

FUTUREOF DIGITAL

(III) Channel integration & (IV) Metrics: The rise of 360° New Normal strategy

• Simple digital initiatives• Brand driven• No integration with the

business model

• Lack of synergy with the rest of the mix

• Little long term vision• Focus on sexy initiatives:

social/app• Pilot thinking• Agency driven

• Optimize digital presence to get a higher engagement

• MC as the solution to reach or frequency challenges optimizing marketing spend

• Local or fragmented solutions often without involvement of the Rep

• Limited personalisation• Basic automation

• One shared view of the customer bridging online-offline worlds.

• Building customer profiles with relevant data from online and offline

• Rep/MSL leverages digital opps. as part of daily work.

• Marketing automation allows for near 1-on-1 communication

Isolated DIGITAL tactics

FashionistaInitiatives

MC (Pilot) campaigns

Beyond the campaign:360° New Normal strategyEmergent

Optimized

Integrated

What is the transformation needed?

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EXECUTIVE SUMMARY

KEYSTATISTICS

CURRENTADOPTION

KEYCHALLENGES

FUTUREOF DIGITAL

(I) People, Organisation and Culture & (II) Bizz/Tech process The rise of 360° New Normal strategy

• Agency driven –outsourced

• Innovation focused team

• Driven by the (few) visionary elements

• Dedicated resources – “the digital team”, CoE - often supported by external expertise

• Cross functional and cross company buy-in with significant investments.

• Cross affiliate plans, KPIs & targets in place

• Full orchestration and control by in-house people

• The ‘new normal’ skills, capabilities & mindset are in place among all customer facing stakeholder

• Full alignment with IT, Legal, Regulatory etc.

Isolated DIGITAL tactics

FashionistaInitiatives

MC (Pilot) campaigns

Beyond the campaign:360° New Normal strategy

In the meantime…..digital health incubation is ongoing

EmergentOptimized

Integrated

• Isolated structures• No organizational

integration or sharing processes

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EXECUTIVE SUMMARY

KEYSTATISTICS

CURRENTADOPTION

KEYCHALLENGES

FUTUREOF DIGITAL

The organizational roadmap

• Build a 3-year organizational roadmap

Customer facing

Organisational Foundation

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OrganizationCurrently: Digital is a separate service unit – the Digital team, Centre of Excellence, etc.

• Digital roles and capability are centralized• Reporting structure through one head of digital

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DH

OrganizationSooner rather than later…• Full integration of digital in the organization• Find and empower Digital Ambassadors• The honeycomb is the real transformation

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Commercial effectiveness / Organizational effectiveness

as theleader of the governance model

The level of internal expertise is dropping again – and arguably has not moved ahead since 2009

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Do you feel that you have sufficient knowledge of all opportunities offered by the internet for your business activities?

KEYCHALLENGES

2009

2010

2011

2012

2013

2014

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

4%

4%

2%

1%

2%

4%

24%

20%

24%

18%

16%

21%

27%

31%

42%

44%

36%

38%

31%

34%

21%

30%

34%

25%

14%

10%

10%

8%

12%

12%

Totally insufficientInsufficientBetween sufficient and insufficientSufficientMore than sufficient (expert)

copyright © Across Health, 2014

46%

37% N= 302

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Integrated Execution: mobilising the organization

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Build the capability to change: • Training & hiring

• Consider the role of HR• The emergence of the new marketer• Ensure proper foundational investment:

• Get the technological capability in place• Align IT & Business

Business & Marketing

Technology

DATA

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Skills training in digital is ‘learning by doing’

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….hence the urgency!True transformational MC programs should enhance skills & processes; not just bring results

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Case 1: Regional Digital Education partnership

• GM’s endorsed• Awareness/buy-in sessions• Skills: Best practice sharing, MC planning and business

integration• Annual business planning optimization• Assessment of business plans and coaching sessions • Toolkits help to get (re-)started • Ongoing sharing and coaching to drive business results

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Case 2: European Digital Transformation

• Senior Management endorsed - company-led• Platform selection & implementation• Toolkits to get started and follow best practices

Across Health:• Building skills and capabilities:

• Best practice sharing, MC planning processes, business integration, metrics and reporting

• Execution and deployment: • Ensure organizational learning and adoption of skills &

capabilities• Stakeholder alignment & sharing

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Real transformation is…..

“Digital, e-, interactive, online” job titles no longer exist

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Agenda

Across Health Webinar

• Digital maturity and challenges in Pharma• Digital transformation• Sustaining the momentum

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Successful change requires 4 key conditions to be met…

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But… sustain the momentum of change• Measure, monitor and iterate

• Multichannel EQ and customer engagement as key measures of success

• Set internal adoption KPIs• Cross company engagement…involve training and internal

communication• Incentives and rewards…from the top down

• Incentivise the rep to make full use of all the channels at his disposal• Incentivise medical and marketing to do the same

• Facilitate and maintain change by means of gamification• Measure progress and reward• The Across Health Multichannel simulator is available

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Organizations don’t changeIndividuals change – one person at a time

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Digital Transformation: Conclusion

• It takes time! 2020 is closer than we think• Build and share the agenda for change• Set a clear measurable business intent • Change mindset• Build the capability for change• Hire the right people• Choose partners that bring both business results and

change• Sustain the transformation: measure, monitor, iterate

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• If you were to apply channel preferences rigorously, you would get:

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So what is the effect?

• And a highly motivated workforce

26% reduction/reallocation in FF cost*(even higher for medical)

Increased satisfaction

*) Assumptions:Costs: 100€/F2F call across Europe and 25€/MC contact1000 target HCPs and an optimum of 8 calls/year(8 F2F calls for offline, 4 calls & 4 MC for mix and 2 calls + 6 MC for digital segment)

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“The end (of the beginning)”

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Thank You!View recorded webinar: http://bit.ly/1E4ebGP

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DISCLAIMER:Current presentation is confidential. All proposed concepts and ideas presented here are intellectual property of Across Health, and are to be used in collaboration with Across Health.