To make commensurate comparisons of each practices impact on the likelihood of transformation success, Total Unduplicated Reach and Frequency (TURF) and Shapley value analyses were run. 6. In post-COVID 2021, digitization is arguably set in stone in the pharma industry's future. Healthcare has gone digital. That great digital experience immediately positions us as an innovative company, and has a positive impact on ROI. When it comes to the pharma industry, both these technologies can transform the drug development process by improving clinical trials. Against this backdrop, we believe there are four main areas where digital developments will drive value for pharma companies, building on what we see as the key components of digital successan ability to deliver more personalized patient care, engage more fully with physicians and patients, use data to drive superior insight and decision making, and transform business processes to provide real-time responsiveness. Today, that typically results in a shift of mix toward greater digital engagement, but that is a means to an end, rather than an end unto itself. By 2020, we transitioned from our legacy and highly fragmented ITS (IT Services) organization, with dozens of reporting lines out of the country across different hardware and software systems, to one of the first in China to have a consolidated digital organizationtechnology infrastructure, data, digital, and innovationall under one roof. According to the latest ABI research report, the pharmaceutical industry is forecast to spend $4.5 billion on digital transformation alone by the year 2030. Our iterative agile build cycles go faster and involve users in the development process, resulting in solutions that are much more relevant and impactful. Something went wrong. Please email us at: The online survey was in the field from January 16, 2018, to January 26, 2018, and garnered responses from 1,793 participants representing the full range of regions, industries, company sizes, functional specialties, and tenures. Driving digital transformation in healthcare: An - McKinsey & Company Several. During recruitment, using a wider range of approaches also supports success. An additional 7 percent say that performance improved but that those improvements were not sustained. For example, sites and sponsors can be connected in order to support the data management and analytics required for adaptive trial designs. These solutions help drive the adherence to treatment and outcomes that payors and governments seek, and they generate the data that pharma companies need to demonstrate their drugs' superior efficacy. 1. Medication itself will of course still be important. Digital Transformation for MedTech: The Time is Now - IQVIA 1 (PDF) Digital Transformation: A Literature Review and - ResearchGate 1 We have outlined the four areas in which we believe digital will drive the most value for pharma companies. Held multiple roles with P&L responsibility for Sanofis leading global brands in Europe. Integrators are employees who translate and integrate new digital methods and processes into existing ways of working. For one, organizations tend to look inward when making such changes. 2 Redefine individuals roles and responsibilities so they align with the transformations goals. Two other keys relate to engaging the specific roles of integrators and technology-innovation managers, who bridge potential gaps between the traditional and digital parts of the business. Rethinking pharma productivity | McKinsey Digital is transforming the way the world does business, and healthcare is no exception. 3. Digital Transformation in Healthcare in 2022: 7 Key Trends Since 2019, Dream and Goour annual, mainly online, eventhas enabled us to meet tech companies with the potential to help us co-create and resolve pain points. Hornstein: Chinas healthcare market has an average attrition rate of 25-30 percent; every year, 30 out of 100 employees decide to move on. The Digital Transformation in Pharma will take place 13 & 14 April 2016 at Tivoli Hotel and Congress Center, Arni Magnussons Gade 2, 1577 Kbenhavn V, Denmark, phone:+45 44 87 00 00. If we analyze DQ scores at the industry level, using a 100-point scale, pharmas score of 27 lags behind the average of 33 across sectors. Hornstein: Chinas 1 billion mobile internet users, who are incredibly attuned to convenient mobile digital experiences, and vast healthcare system present a huge opportunity for digital to improve patients lives. Companies do not have to become leaders in all four areas across the enterprisesome will deliver more value than others in relation to any given disease, depending on market dynamics and their portfolio. Advanced analytics, sensors, and the automation of complex decisions are capable of delivering a step change in the efficiency, speed, quality, and responsiveness of business processes in all industries. You really want to have a strong global company strategy that is fully aligned with large markets. digital transformation more likely to succeed, complex execution of transformation initiatives, McKinsey_Website_Accessibility@mckinsey.com, People & Organizational Performance Practice, fundamental action for traditional transformations, AI, automation, and the future of work: Ten things to solve for, Skill shift: Automation and the future of the workforce, Retraining and reskilling workers in the age of automation. We will also have transformed into the most efficient company possibleoperating lean, agile, and with an extremely high innovation index. Email The digital transformation helped raise employee satisfaction. For companies with a high DQ, digital is not an island operating independently of business strategy; rather, its embedded within it. Shapley value analysis was then applied to the TURF output to rank the practices by their average expected marginal contribution to the likelihood of a successful transformation. We are the Engineers of Pharma Omnichannel Transformation. It aims to increase the effectiveness of business operations and customer relations. Serves as Board Member of the RDPAC (R&D-based Pharmaceutical Association Committee) of China. Our comprehensive digital assessment of industries demonstrated that pharma is indeed behind, and dramatically so. McKinsey: How did you arrive at your current role in Sanofi China? and many others are creating digital roles at a senior-management level. Ultimately, we want to develop a digital patient journey solution that can be reimbursed by the healthcare system. Transforming Medical Affairs: Tapping the alchemy of storytellers and digital start-ups, A two-speed IT architecture for the digital enterprise. The company launched an initiative for the US Hispanic community after studying how disease perception, therapy management, and information-seeking behavior varies in different cultural groups. Indeed, many industry leaders believe that this analytics gap is what holds them back in realizing their digital strategy. Establish one or more practices related to new ways of working (such as continuous learning, open physical and virtual work environments, and role mobility). To realize it, they will have to build advanced digital marketing and engagement capabilities similar to those deployed by leading retailers, airlines, telecom companies, and consumer-goods companies. Most pharma companies recognize that digital will have a disruptive impact on healthcare. The road to digital transformation: Roles and requirements for So whats going wrong? Only 10 percent, however, base their strategic decisions on a quantified, granular understanding of how digital affects their competitive environment and business model, compared with 22 percent across all industries and 37 percent for digital leaders. Twitter The road to digital transformation: Roles and requirements for organizational success, How does Gen Z see its place in the working world? Better Traceability for a Unified Supply Chain. Leaders in transformation-specific roles ensure collaboration between their units and others across the organization when employees are working on transformation initiatives. Acts as Vice Chair of the European Union Chamber of Commerce in Chinas Shanghai chapter. Less than one-third of all respondents say their organizations To adjust for differences in response rates, the data are weighted by the contribution of each respondents nation to global GDP. COVID-19 Accelerating Digital Transformation: McKinsey | CRN Indeed, adding such a leader is one of the keys to transformation success. Here are some key digital technologies and their use cases to achieve Pharma 4.0: 1. Creating digital tools that appropriately facilitate and improve physician-patient or nurse- patient interactions is a challenge. Where once health providers' paper-based medical records were the main source of patient health data, and drug research and development data were kept within the walls of the pharma companies, today, technology companies such as Apple, IBM, and Qualcomm Technologies are moving into healthcare. A second obstacle to success is us, the leadership, the management team. Among these industries, the success rate does not exceed 26 percent. Transforming pharma commercial models in the age of the digital citizen. The elements with the greatest influence on success are clear targets for organizations key performance indicators and clear communication of the transformations timeline (Exhibit 5). Facebook Hornstein: Saying that Chinas data is unreliable is too often used as an excuse not to look at the data. To ensure a strong link between business and digital, one US pharma company held an offsite workshop to bring senior executives together on digital and data priorities. Senior managers get more involved in digital initiatives than they were in past change efforts. Digital Transformation is a transformation of all the activities, processes and competencies in a way that allows us to harness the advantages of new digital technologies. Within five to seven years, a significant proportion of the pharmaceutical portfolio will create value through more than just drugs. Pharmaceutical sales reps, medical-science liaisons, and patient-service teams can inform and influence patients, physicians, and caregivers in person or via mobile phones, the Internet, apps, or social media. Of those who are diagnosed, more than half do not receive the appropriate therapy, and many of those who receive therapy discontinue prematurely. Payors and governments have an ever sharper focus on managing costs while delivering improved patient outcomes, putting an even greater onus on pharma companies to demonstrate the value of their drugs in the real worldnot just in randomized controlled trialsif they are to retain market access and premium pricing. McKinsey: How do you go about attracting and retaining digital talent? Our research points to a set of factors that might improve the chances of a transformation succeeding (see sidebar, Twenty-one keys to success). Healthcare is no exception. Holds a masters degree in pharmacy and earned his PhD in medical research, graduating magna cum laude from the University of Basel, Switzerland. For their part, technology-innovation managers possess specialized technical skills and lead work on a companys digital innovations. Also, Sanofi is the only pharma company ever to rank as Chinas leading employer, an accolade we achieved two years running in 2020 and 2021. Amulet Health Technology, a virtual approach to managing patients with chronic disease that integrates software tools and professional care, is part of a possible response. All of these interactions offer pharma companies the opportunity to derive value. How COVID-19 has Accelerated Digital Transformation and What the - US Pius Hornstein: This journey started in Brazil in 2015, where I first experienced a digital ecosystem that was in some aspects more advanced than the U.S. or Europe in areas such as banking and healthcare. We strive to provide individuals with disabilities equal access to our website. For pharma and healthcare incumbents, the digital age raises new uncertainties about their position in the industry. Digital Transformation in Pharma: Technologies & Trends - AIMultiple Shapley value analysis was then applied to the TURF output to rank the practices by their average expected marginal contribution to the likelihood of a successful transformation. These categories suggest where and how companies can start to improve their chances of successfully making digital changes to their business. This new global institute integrates Sanofis early research capabilities with Chinas drug discovery ecosystem, aiming to accelerate the development of best-in-class and first-in-class medicines. Hornstein: In the near future, healthcare will likely move to a fully digitalized offline-to-online patient journey, opening a new frontier in drug development, healthcare services, follow ups, resolving barriers to treatment, and improving patient outcomes. Meanwhile, we want to have a real understanding of patient needs, use their feedback to upgrade, and help them to improve their treatment outcomes. 2 when the pandemic began, however, biopharma companies quickly turned to innovative McKinsey & Company 4 Thought leaders in digital health agree that the fundamental ecosystem of healthcare is changing SOURCE: McKinsey interviews with leaders in digital health across pharma, data analytics, startups, venture, academics, and medical futurists Physicians "Wearable devices that today are still in the more recreational-grade state are changing incredibly rapidly into research-grade We also encourage our talent, who have an average age of 28, to pursue the ambitions they have in their private lives. Hornstein: We started with a three-year high level vision and roadmap that was fully aligned with our global ambition. In China, Sanofis second-largest market, those goals are being realized in the form of new institutions dedicated to driving digital innovation in healthcare: In early 2019, Sanofi established an Innovation Hub in Shanghai to deepen and expand its relationships with Chinas dynamic digital players, before opening the Sanofi Institute for Biomedical Research in Suzhou last year. Exhibit 1 McKinsey_Website_Accessibility@mckinsey.com The aim of this paper is to provide insights regarding the state of the art of Digital Transformation, and to propose avenues for future research. Hornstein: Being very clear about what you want to achieve. moderated by olivier leclerc, senior partner at mckinsey, who in recent years led the firm's digital analytics group in pharma and biotech, the roundtable drew on expert insights from a panel composed of pharma chief digital officers (cdo), chief information officers, and other leaders in the digital space to explore three broad themes: how to In our 2016 survey, the rate of success was 20 percent; in 2014, 26 percent; and in 2012, 20 percent. Digital transformations require cultural and behavioral changes such as calculated risk taking, increased collaboration, and customer centricity, as our previous research has shown. Exhibit 3 McKinsey_Website_Accessibility@mckinsey.com How pharma can win in a digital world Read the article 1. Digital transformation is about people, process and is a most important, but also most difficult change. Please try again later. Some set up a center of excellence for digital or appoint a chief digital officer to drive accountability and accelerate their digital transformation. Deloitte sets out 4 key pillars that drive businesses to successful digital transformation and the benefits that come with it. This lack of senior knowledge and ownership hinders companies in advancing their digital initiatives. Two years back, China only had a few hundred internet hospitals. On the recruitment front for example, we transformed an almost entirely offline recruitment process for the roughly 3,500 people we hire each year into one where onboarding is more than 90 percent digital. Combining these with other data about patients as they go about their daily livesnutritional information collected by a smart refrigerator, for instance, or exercise information from smart gym weightswill allow real-time alerts to be issued to caregivers and physicians when there is a need for intervention. At the same time, the results from successful transformations show that these organizations deploy more technologies than others do (Exhibit 1). However, we dont intend to work agile everywhere; there are still areas where it is better to work in the classic waterfall method. Eventually, we want to connect interactionsphysical and digitaland medication delivery together for the best patient experience. Today, the commercial impact of a product or therapy can depend as much on the patient or provider experience it offers as on its clinical effectiveness. Years of research on transformations has shown that the success rate for these efforts is consistently low: less than 30 percent succeed. Hornstein: At the start of the journey, we discovered we had more than 150 projects, not all of which were well defined or had clear success metrics. Moderated by Olivier Leclerc, senior partner at McKinsey, who in recent years led the firms digital analytics group in pharma and biotech, the roundtable drew on expert insights from a panel composed of pharma chief digital officers (CDO), chief information officers, and other leaders in the digital space to explore three broad themes: how to scale an organizations digital transformation, the capability and talent required to support that digital transformation, and defining and optimizing the role of the CDO. If you would like information about this content we will be happy to work with you. Our response was to move from a focus on retention to being permanently attractive for existing and prospective staff. High performers align their organizational structure with their digital priorities. Yet success in these transformations is proving to be elusive. McKinsey: How will digital transformation affect the way Sanofi China operates five years from now? Digital Therapeutics (DTx) products are already making inroads in the U.S., and German authorities have taken a bold step to reimburse some services. Today, we invest less in aggregate than we did three years ago, yet for the chosen priority projects, we devote more resources. COVID accelerates digital transformation of pharma They feel empowered by the vast amount of health information available online and on apps, and by the array of health and fitness wearables such as FitBit and Apple Watch. Leads over 8,000 associates as Sanofi China General Manager and Country Lead, driving the introduction of innovative medicines, the adoption of best-in-class digital transformation, and the nurturing of leading talent in Sanofis second-largest market. It was a big move that united people around a common ambition, and helped us gain significant velocity and traction. We take the concepts, theory and good practices and transform them into a practical and efficient omnichannel implementation machine,. Is a recipient of the Magnolia Silver Award from the City of Shanghai for his contribution to innovation and the advancement of healthcare. Clinical-trial management, from recruitment to submission, is another area that will see dramatic change with advanced automation. Hornstein: The first step is to ensure your technology and data foundation is fit for purpose. I considered how we might integrate a digital, patient-focused experience into the healthcare system, and went on to study what digital disruption means for business at the Singularity University in California. 6. That is a classic mistake, but one that led us to understand that we need to ruthlessly prioritize and be laser-focused on creating value for patients and the company. Digitizing CX Means Better Analytics and More Data 2. Importance of Digital Transformation In Pharma Industry: 2022 - IIDE Future of pharma operations | Life Sciences | McKinsey & Company Video McKinsey: Last year, you launched Amulet Health Technology. Pharmas DQ scores for strategy revealed a consistent lack of a customer orientation. Only 16 percent of respondents say their organizations digital transformations have successfully improved performance and also equipped them to sustain changes in the long term. Building on this understanding, it assessed content gaps and engagement opportunities to shape its marketing campaign. A second key is senior leaders fostering a sense of urgency for making the transformations changes within their units, a practice where good communication is central. What was the idea behind that, and how does it resonate with plans for digital health to drive new revenue streams? Success depends on both senior leaders and those engaged during the transformation. According to a new McKinsey Global Survey of executives, companies have accelerated the digitization of their customer and supply-chain interactions and of their internal operations by three to four years. Regardless of the industry, digital transformation comes with a number of benefits including: Optimisation of business operations Access of the global markets Look at your data, whatever the quality, as it helps you benchmark customer behavior and derive insights. Healthcare digital transformation strategy and planning recommendations Nearly 70 percent of US consumers use an online channel to manage health and wellness, and more than 50 percent of US healthcare providers are digital omnivores, using three or more connected devices professionally.1 1. McKinsey Digital in Moses Lake, WA Expand search. Deciding which emerging technologies are worth investing in and getting your team on board with change is often the hardest part.. Look, adapting to the digital era requires a shift towards a flexible and risk-taking mindset. Part of the reason for this gap lies in digital immaturity; many pharma companies have only recently established digital-specific roles, and the governance structure is still in transition. David Champagne is an associate principal in the London office, Amy Hung is a specialist in the New Jersey office, and Olivier Leclerc is a director in the Southern California office. Banks have shown that the processing time and costs associated with opening an account or mortgage origination can be reduced by up to 99 percent and 70 percent respectively, with a clean-slate redesign of these cross-functional processes and state-of-the-art digital technology enablement. To compete in todays digital age, every pharma companyregardless of its aspirations or positioningneeds to reassess how patients and physicians prefer to learn and interact. Brian Fox is a senior partner in McKinseys New Jersey office, where Nisha Subramanian is an associate partner; Amit Paley is an associate partner in the New York office; and Michelle Prevost is an analyst in the North American Knowledge Center. The survey results confirm that developing talent and skills throughout the organizationa fundamental action for traditional transformationsis one of the most important factors for success in a digital change effort. The 21 keys to transformation success are the practices with the highest Shapley values. But to decide where to concentrate their efforts, they do need to develop a point of view on each area's potential to transform their commercial and innovation models. Within pharma, this strategic linkage turned out to be a hallmark of top performers. When respondents say their senior leaders and those in transformation-related roles have done so, they are 1.6 and 1.8 times, respectively, more likely than others to report success. But those that do are 1.6 times more likely than others to report a successful digital transformation. Having a clear governance structure also helps companies exert proper oversight over digital spending. That meant recruiting more agile coaches, driving agile awareness, rolling out training, and adapting our office space to support agile pod work. McKinsey review of top 25 global pharmaceutical companies, based on LinkedIn data. Engage the leader of a program-management office or transformation office (full-time leader of the team or office dedicated to transformation-related activities) to support the transformation. In response, pharma companies will have to build the capabilities to anticipate or react rapidly to these new sources of evidence, and remain the main source of authority on the performance of their products. Headed Sanofis Turkey and Middle East operations with P&L responsibility for PharmaOps. The most commonly cited objective for digital transformations is digitizing the organizations operating model, cited by 68 percent of respondents. To reiterate, McKinsey has identified five compelling reasons why pharmaceutical organisations must introduce (or reinvent) their digital strategies before it is too late: Patient behaviour is changing Government agencies are moving surprisingly quickly Trial data is necessary but no longer sufficient Care is evolving Information and insights into patients' histories and clinical pathways are no longer the preserve of the traditional healthcare establishment. The survey tested for best practices in a digital transformation by using different types and structures of questions. Then install a proper data governance process with accountable data owners, and give them digital monitoring tools to keep incoming data high quality. McKinsey review of top 25 global pharmaceutical companies, based on LinkedIn data. Medical affairs and pharma digital strategy | McKinsey With trepidation, The overlooked contributions and hidden challenges of Asian Americans. The 21 keys to transformation success are the practices with the highest Shapley values. Chinas vibrant technology ecosystem is another point of difference; we leverage Tencents WeChat mini-programs to improve patient interactions, and WeCom, the enterprise version of WeChat, to liaise directly with advanced clinical practitioners (ACPs). Digital Transformation in the Pharmaceutical Industry From - Avenga Successful companies will have structures, processes, and mind-sets in place that make them agile and forward looking. Mckinsey healthcare conference 2021 - flvvas.diamondlaces.shop Please try again later. In fact, pharma scores were closer to those of sectors that historically have been digital laggards, including the public and social sectors (Exhibit 2). To maximize its benefits, biopharma companies can follow six principles. Hornstein: All the great medicines in the world are meaningless if patients are not diagnosed. Mckinsey articles 2022 - sunjz.flexclub.pl We quickly established our WeCom platform for HCP interaction, as well as our data lake and application hosting environment on Tencent Cloud. The areas leverage digital innovation to make products and services more personalized, physicians and patients more engaged, decisions and product evidence more data driven, and business processes more immediate. We also invite venture capital and other investment firms, who introduce us to entrepreneurs with whom we can cooperate or invest. No longer are major pharmaceutical companies the sole provider of information surrounding how their products work in the long-term. On average, respondents say their organizations are using four of 11 technologies we asked about, with traditional web tools cited most often and used in the vast majority of these efforts. From the business perspective, scalable operational efficiencies are allowing us to truly understand the 40-50,000 healthcare practitioner (HCP) interactions we handle each day. We have now tested the DQ with more than 100 thought leaders and 200 companies worldwide. Mobile communications, the cloud, advanced analytics, and the Internet of Things are among the innovations that are starting to transform the healthcare industry in the ways they have already transformed the media, retail, and banking industries.