Kurt Salmon Etude Digital Pharma - WEB-Version
Kurt Salmon Etude Digital Pharma - WEB-Version
Kurt Salmon Etude Digital Pharma - WEB-Version
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
Table of Contents
Abstract 4
Survey methodology 5
Executive summary 6
Assess new opportunities for innovative services aimed at health care partners and patients 26
Abstract
This document presents the results of our value chain, from drug discovery to sales.
survey Digital Pharma: What Impact on the We then delve into the findings of the Digital
Business Organization? The survey involved Pharma survey itself:
more than 40 pharmaceutical companies
and 500 senior pharma executives in the Digitals increasing impact on
European G5 countries. pharma communications details
Kurt Salmon believes that digital capabilities the expectations of pharmaceutical
are not only critical to pharmaceutical executives on the evolving trends in
companies ability to improve the way they digital communication as they relate to
roll out new products, but to increasing all health care stakeholders.
the pharmaceutical industrys contribution
to health care by enabling it to provide A lack of organizational structure to
innovative services to improve patients support a digital strategy and Digital
outcomes. roadblocks: traditional communication
In order to increase the perceived value of strategies and restrictive regulations
pharma within the health care system, the look at the implementation of digital
industry is striving to respond to the needs strategies in pharmaceutical companies
of all stakeholders: health care professionals, and the main obstacles to implementation
patients and payors. In the meantime, the that currently exist, respectively.
culture of pharmaceutical companies is
shifting from one of separate departments The end of marketing exclusivity
working vertically to one that is cross- presents the digital trends that are not
functional. As they seek to boost their only impacting marketing and sales, but
performance even further, companies have also the medical, regulatory and market
been applying digital capabilities to some access functions.
of the industrys more traditional projects in
order to create synergies across departments. Digital CRM: room for improvement
offers up survey participants views on
The aim of this survey was to assess the impact of the customer relationship management
digital technology on pharmaceutical companies systems being used in their organizations.
and, in particular, to highlight the potential synergies
such capabilities can create within individual In the final section, we provide a roadmap for
organizations a successful pharmaceutical digital strategy.
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
Survey methodology
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
Executive summary
M e d i c a l scientific liaison
e-communication using digital tablets
appears to be the digital investment
that will increase the most within the
medical department (82%)
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
6.3 12 billion
Data volume grows
1
world in 2012
To what degree must digital and Is it better to hire people with those skills
traditional business divisions be separate or to outsource?
or integrated?
Whats the best way to implement the Whats the mindset required to succeed
expertise required to run a digitally in a digitally enabled business? Whats
enabled business (for example, centralize the best way to get people to be not
it or spread it across locations and only proficient with digital capabilities,
divisions)? but comfortable with them?
ADSL, Fiber
3G, 3.5G, 4G, Wi-Fi, WiMAX
NFC, RFID
Networks
Cloud computing
Semantic web
PCs
Geolocation
Mobile scan Technical Mobile
Devices Smartphones
3D Capabilities Tablets
Augmented reality
E-books
Communicating objects
Voice recognition
Image recognition
Platforms &
Services
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
93%
85%
76%
Health care professionals are increasingly And as the use of smartphones becomes more
using digital capabilities to get access to widespread, both health care professionals
medical information, as well as to interact and patients are increasingly demanding
with their peers and with their patients. access to information that they can share on
Furthermore, some health care professionals social media platforms.
have started to recommend smartphone
applications to patients.
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
The pharmaceutical industry has been striving to transform its model from
that of drug manufacturer to health care service provider
Patients are asking for high-quality Health care authorities are asking for
information and are actively sharing evidence that a medicine not only
information and expressing their needs provides therapeutic value, but that
through community platforms it has a positive social and economic
impact and that it adds to the quality of
Health care professionals are increasingly health care overall
taking a personalized treatment
approach. They are also monitoring their
patients conditions remotely through
technologies such as telemedicine and
are demanding more services to ensure
the quality of patient care
Patients
Diversification
Blockbuster Model : Health care Health care
Pharma System
Model Product / Market
Professionals
Payors
Pharmaceutical Industry Transformation: From Blockbuster model to health care System contributor
A scarcity of drug innovations means the striving to position itself as a health care
blockbuster era is over. In its place, the provider, not just a drug manufacturer. In
pharma industry has become focused on particular, its aiming to strengthen an image
niche product development and customized of transparency and of caring for patients,
treatments. In the meantime, with health care especially in the wake of recent drug scandals
stakeholders setting their sights on patient such as Mediator.
outcomes, the pharmaceutical industry is
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
Implement
e-training
There are now more health care players unnecessary costs. The transformation to
involved in patient pathways than ever before. digital enables the pharmaceutical industry
In addition to medical doctors, pharmacists to better manage relationships with its
and nurses increasingly play a role in patients customers by providing new, innovative
care and therapeutic education. On the other services to facilitate the coordination among
hand, health care authorities are increasingly all health care stakeholders to improve
focusing on disease management and cutting patient outcomes.
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
Health Care
Patients Payors
Professionals
Many innovative health care services would medical coverage differs from one country
not exist without digital technology. Among to another. For instance, in the United
them are telemedicine, quantified self, remote States, medical coverage is almost entirely
medical education and community platforms provided by private insurance companies,
for health care professionals and patients. whereas in France its subsidized by the
The pharmaceutical industry, as part of an national government, so it is practically free
effort to contribute to improving disease to patients. Thus, the approach of the various
management and the overall patient pathway, stakeholders toward e-health services is
can invest in these innovations. However, it different depending on the countrys health
still needs to define the right business model care system.
for such investments in each market, as
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
Address
patient, Screen the market to highlight health care opportunities
2 HCP and Develop business cases to assess financial aspects and profitability
payor of each qualified opportunity
needs
Increase
Adopt an omnichannel strategy to improve customer interaction
3 performance
across the
effectiveness
Facilitate cross-functional collaboration within marketing, market
organization access, sales, medical and regulatory departments
Be creative
4 despite
Understand the regulations for each market
Ensure compliance
regulations
For pharmaceutical companies making the How can digital be used to improve
transformation to digital, there are numerous performance across the organization?
issues to consider: What are the regulations that need to be
What business model should be put into adhered to?
place when leveraging innovative digital To what extent can the pharmaceutical
services? Should a separate entity be industry be innovative?
created?
What are the different health care
professionals and patients needs? What
are the real opportunities? What is the
ROI?
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
In silico research Electronic Data MES & e-BR E-services for health
care professionals
capture RFID
and patients
Smart pills P e r fo r m a n ce E-detailing (including
Big data management remote)
Pharmacoeconomic
digital applications
Salesforce automation
CRM automation
Drugs digital files
Digital submissions to health
Impact authorities
Internal validation
of promotional
materials
E-pharmacovigilance
Level of
impact
Medium High Medium High
The impact of digital is different across the impact is high, largely due to smart pills and
value chain. the use of big data. The digital impact on the
Digital is seen as having a moderate impact commercialization phase is also perceived to
on the drug discovery process, as well as on be high.
production and distribution. However, when
it comes to research and development, the
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
88%
83%
78%
75%
73% 73%
68%
65%
60%
Not pertinent
No Change
Decrease
35% Increase
30%
27%
25%
22%
20%
18% 18%
13%
7% 8% 8%
5% 5%
3% 2% 3% 3%
0% 0% 0% 0% 0% 0% 0% 0% 0%
Community MDs Specialists Key account Pharmacists Hospital Nurses Heath institutions Distributors Suppliers
managers pharmacists
Health care professionals are becoming more In France the 2013 Vidal Barometer Study
and more connected and more receptive to showed that:
using digital communication 60% of doctors have tablets
56% of them use medical applications
20% use social media in a professional
way
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
63% believe that having a well-defined digital strategy within their organization is important,
but just 29% think that they have the right team in place to execute it
29%
34%
Well-defined structure and
strategy
Defined strategy, but no
dedicated department
Still not well developed so far
37%
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
The pharmaceutical industry has only recently An effective digital strategy is by definition
started to adopt a digital strategy, in response global and cross-functional, but both cultures
to health care professionals and patients and regulations differ by location, which
increasingly utilizing Web 2.0 capabilities can cause confusion. For example, in the
United States, it is possible to communicate
In a highly regulated environment, directly to patients about drugs, whereas in
pharmaceutical initiatives are not only Europe, communication is limited to factual
facing cultural and creativity challenges, information about prescription drugs and
but compliance challenges as well, namely information relevant to proper use of the
as they relate to the information provided medicinal product in question
to patients and health care professionals
through websites, social media, smartphone
applications and other digital platforms;
compliance issues with regard to
e-pharmacovigilance must also be taken into
account
5%
27%
Regulations
Traditional communication methods/culture
Lack of visibility into the ''risk of not doing"
68%
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
51% 51%
48%
39%
37%
35% 34%
32% 32% No Adoption
29% Low
Medium
22% High
20%
15% 15%
14%
10% 10%
8%
0% 0%
In-house digital expertise, tools and behaviors are starting to spread throughout
pharmaceutical companies, but need to spread faster and be focused on best
practices in order to meet the challenges associated with implementing a digital
strategy
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
Marketing and sales: New digital capabilities are expected to attract the biggest marketing
and sales investments, among them smartphone applications, social media, health care
professionals community platforms, as well as more traditional e-promotional materials
94%
88%
84% 85%
82%
73%
70% 70% 70%
59%
Not adopted
No change
31% Decrease
30%
Increase
CRM/SFA Patients E-events E-detailing E-training Health care Social media Health care Smartphone Digital
websites (webinars, professionals' communication professionals' applications promotional
webcasts) community websites material
platforms
Until recently, digital investments have been Another investment area is likely to be social
limited to e-detailing (including remote) media as it provides valuable insight into
and to health care professionals or patients what is being said regarding the industry
websites. Marketing departments are willing and its products. However, the lack of a social
to invest more in smartphone applications as media communication charter, and the need
they present new, innovative opportunities to adhere to pharmacovigilance measures,
Smartphone applications are currently focused remain obstacles
on treatment information, the quantified self,
and follow-up services between patients and
health care professionals. Going forward,
they are expected to provide additional
capabilities, especially for telemedicine
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
Market access: Digital investments focused on key account management solutions are
expected to increase the most
61%
54%
50% 50%
46%
43%
39% 39% 39%
29%
Not adopted
No change
11% 11%
7% 7% 7%
4% 4% Decrease
0% 0% 0%
Increase
Payors oriented Digital responses on Digital files on drugs' Digital solutions to CRM (for Customer
digital tools to hospital tenders prices and monitor the Service and Key
communicate on reimbursements competitive Account
drug costs and environment Management )
consumptions
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
Regulatory affairs: Half of the survey respondents expect digital investments to increase,
while the other half do not
55% 55%
52%
48%
0% 0% 0% 0%
Digital drug files for submissions Digital internal promotional Digital monitoring for Digital Medical information
to Healthcare authorities material validation Pharmacovigilance
Regarding Regulatory function in your organization, what is the Digital evolution trend in
the 5 upcoming years ?
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
Medical department: Investments in digital tablets for use by the medical scientific liaison
are expected to increase the most
82%
67%
63%
E-medical advisory E-events (webinars, Digital medical scientific CRM (KOL management
boards webcasts) liaison communications solutions)
Regarding Medical function in your organization, what is the Digital evolution trend in
the 5 upcoming years ?
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
68% of survey participants believe their organization has a well-defined CRM strategy,
but just 38% think it has the necessary digital solutions to execute that strategy. However,
80% are considering an increase to digital CRM investments
20%
29%
38%
Well-defined strategy
and solution Increase
Well-defined strategy but
inadequate solution
Decrease
Not developed No Change
80%
32%
How would you describe your organization's CRM How do you expect your organizations digital CRM
solution as it pertains to the digital strategy? capabilities to evolve over the next five years?
The pharmaceutical industry has been both the organizational structure (sales
embracing a customer-oriented culture, and department) and the level of digital strategy
the majority of pharmaceutical companies within it (e-detailing, remote e-detailing)
now have a CRM strategy. However, digital
CRM solutions should take into consideration
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
The main objective of a CRM program is to understand customers needs and propose new,
customized services. The main obstacles to improving CRM appear to be a lack of time and
resources (38% of participants) and a lack of visibility into the necessary investments (36%)
8,5
8,3
8,1
7,8
7,7
Develop services to Increase knowledge of Monitor sales force activity Adapt product Optimize the
respond to customer needs healthcare actors and marketing/sales strategy marketing/sales budget
adjust strategy accordingly
How would you rate the importance of the CRM program objectives on a
scale from 1 (less important) to 10 (very important)?
37,8%
35,6%
22,2%
4,4%
What is in your opinion the main obstacle for CRM improvement in your organization?
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
Think Cross-Functionally
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
Medical Pharma
CLM Marketing Reps KAMs
Reps
SERVICES
Medical Pharma Market Customer
(To HCP & Marketing KAMs MSL Regulatory
Reps Reps Access Services
Patients)
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
Key questions
What are the key new business opportunities? How much does your company expect to
gain from these new opportunities? In what
What are the essential trends to follow or form? Revenues (direct and indirect financial
anticipate? gains) or reputation (brand, image)?
What are the main expectations from the What would be the most appropriate way
clients? In what domains ? Are they currently to address these issues (legally, fiscally,
being addressed and if so, how? financially)? With what roadmap? Alone or
with partners ? Which ones? Does it require
specific adjustments (organization, process,
What is your companys current and future
structure,.)?
value proposition and how can it be enhanced ?
Methodology Deliverables
Go-to-market model
Strategic &
Business Design Partnership evaluation
business plan
Assess new opportunities and the potential ROI of individual markets while taking
into account their unique health care system policies
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
Define a structure with project managers to lead the digital strategy across departments
Business Organization
Understand
CRM
Project Market Customer
CRM Marketing Sales Medical
Manager Access Services
Integrated Plateform
Digital Stucture
Analyse
E-Marketing
Manager CLM Marketing Sales
Provide
SERVICES
E-Project Market Customer
(To HCP & Marketing Sales Medical Regulatory
Manager Access Services
Patients)
Build an integrated platform to personalize customer service and measure its impact
Rely on internal capabilities more than outsourcing in order to save time and money
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
e-Pharmacovigilance
Ensure compliance with the EUs pharmacovigilance regulations by making sure that
websites include necessary information about any adverse reactions to pharmaceuticals
made by the company
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
Messa Tall,
Partner
Survey conducted by
Philippe Leininger,
Senior Advisor
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DIGITAL PHARMA : WHAT IMPACT ON THE BUSINESS ORGANIZATION?
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Disclaimer
Copyright
2014 Kurt Salmon.
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content, the documents and information found in this
study, unless stipulated otherwise in said study.
Kurt Salmon authorises any person using this
study, without paying any fee or requesting any
other permission, to reproduce and distribute the
information, the content elements and the documents
found in this study, only for personal, not-for-profit
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This preamble must be included in all
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Any reproduction for any other purpose whatsoever
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prohibited without obtaining the prior formal written
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