Serves as Board Member of the RDPAC (R&D-based Pharmaceutical Association Committee) of China. In this survey, the results suggest two primary ways in which companies with successful transformations are empowering employees to embrace these changes. 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. The survey tested for best practices in a digital transformation by using different types and structures of questions. 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. 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. TURF analysis was conducted among respondents reporting successful transformations to identify the most common combinations of the 83 practices tested in the survey. Three of these changeseach of which involves making the use of digital tools a new organizational normemerged as keys to success. Finding the right balance is key. Specialist virtual-care apps already exist. 1 6. McKinsey: Last year, you launched Amulet Health Technology. Hornstein: Saying that Chinas data is unreliable is too often used as an excuse not to look at the data. 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. In fact, the DQ assessment revealed that pharma companies are limited not just by their digital and analytic capabilities but also by specific elements related to their strategy, culture, and organization (Exhibit 3). And they are able to collect petabytes of data from these and other sources, such as electronic medical records and insurance claims, capturing valuable insights. Hornstein: Being very clear about what you want to achieve. Most pharma companies recognize that digital will have a disruptive impact on healthcare. In this environment, digitally enabled "beyond the pill" solutions, which include not just drugs but also sensors to collect and analyze data to monitor a patient's condition between visits to healthcare providers, are becoming critical to serving both parties' needs. Digital transformations require cultural and behavioral changes such as calculated risk taking, increased collaboration, and customer centricity, as our previous research has shown. 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. This analysis was carried out by determining the proportion of respondents agreeing with or selecting at least one practice, then calculating the incremental value of including or excluding each practice. Success is more likely when senior leaders and leaders who are engaged in the transformation all encourage employees to experiment with new ideasfor example, through rapid prototyping and allowing employees to learn from their failures. But those that do are 1.6 times more likely than others to report a successful digital transformation. Read our latest thinking on pharmaceutical digital strategy Hornstein: The first step is to ensure your technology and data foundation is fit for purpose. 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. Yet success in these transformations is proving to be elusive. For example, sites and sponsors can be connected in order to support the data management and analytics required for adaptive trial designs. The first is reinforcing new behaviors and ways of working through formal mechanisms, long proved as an action that supports organizational change. This in turn yields higher efficiency and productivity for our field force and marketers. Here are 6 ways that digital is transforming the pharmaceutical and healthcare landscape. Successful companies will have structures, processes, and mind-sets in place that make them agile and forward looking. To do that, they build up an integrated view of the customer experience instead of a channel-oriented view, for example, by focusing on interactions the sales force can engage in. Implement digital self-serve technology for employees and business partners use. more than doubles the likelihood of a successful transformation. Serves as Board Member of the RDPAC (R&D-based Pharmaceutical Association Committee) of China. Now, we have thousands, co-existing with physical hospitals. For pharma and healthcare incumbents, the digital age raises new uncertainties about their position in the industry. Then install a proper data governance process with accountable data owners, and give them digital monitoring tools to keep incoming data high quality. However, we dont intend to work agile everywhere; there are still areas where it is better to work in the classic waterfall method. McKinsey: What makes Chinas digital healthcare ecosystem different from other markets? Respondents who say their organizations established at least one new way of working, such as continuous learning or open work environments, as part of their change efforts are more likely than others to report successful transformations. For one, organizations tend to look inward when making such changes. Indeed, all the pharma companies in our sample conceded that their digital strategy is not systematically linked to their business at every level. McKinsey examined the insurance industry to demonstrate a roadmap that others can follow. Exhibit 3 McKinsey_Website_Accessibility@mckinsey.com How pharma can win in a digital world Read the article 1. 1. According to McKinsey, uptake of IoT solutions in the laboratory has been slow: "pharma is indeed behind, and dramatically so." This is due to several factors, but most importantly, pharma "struggles to define a clear business case for technological . A second approach to empowering workers is ensuring that people in key roles play parts in reinforcing change. To capture this value, each company will need to consider how its businesses are set to be affected by the digital changes under way, and then chart its own course accordingly. For companies with a high DQ, digital is not an island operating independently of business strategy; rather, its embedded within it. Many pharma companies align on their strategy first and treat digital engagement as an aspect of execution, rather than as a central consideration in strategic planning. The survey tested for best practices in a digital transformation by using different types and structures of questions. 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. By contrast, companies considered digital leaders in other industries have a digital strategy that is fully embedded in their core business. The road to digital transformation: Roles and requirements for organizational success, How does Gen Z see its place in the working world? 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. Increased connectivity and automation in trial-management processes will also enable advanced trial design and monitoring approaches. Indeed, adding such a leader is one of the keys to transformation success. Of them, 1,521 have been part of at least one digital transformation in the past five years at either their current or previous organizations. 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. Ability to reach potential customers in spite of governmental restrictions. There is already a plethora of wireless sensors on the market to measure a patient's biophysical signals. ACCOMMODATION Accommodation is not included in the registration fee. 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. 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 define a successful transformation as one that, according to respondents, was very or completely successful at both improving performance and equipping the organization to sustain improvements over time. The survey asked which of the following roles were engaged by the organization to support the execution of the digital transformation: initiative leaders, integrator roles, leaders of the program-management or transformation office, technology-innovation managers, chief digital officers, and coaches. We quickly established our WeCom platform for HCP interaction, as well as our data lake and application hosting environment on Tencent Cloud. As a result, the average NPS among people applying to Sanofi is now 72. But in more traditional industries, such as oil and gas, automotive, infrastructure, and pharmaceuticals, digital transformations are even more challenging: success rates fall between 4 and 11 percent. Acts as Vice Chair of the European Union Chamber of Commerce in Chinas Shanghai chapter. To gain a deeper understanding of the digital challenge businesses face, McKinsey developed an assessment tool for diagnosing a companys digital maturity. Advanced data analytics that mine electronic medical records, including diagnostic results, medication history, and genomic, proteomic, and gene-expression data will help identify optimal therapies and predict how individual patients will respond to treatment. Depending on the extent to which there is a centralized digital hub, a lean working committee or a SWAT team may be established to support and drive those priorities. 2 Redefine individuals roles and responsibilities so they align with the transformations goals. To adjust for differences in response rates, the data are weighted by the contribution of each respondents nation to global GDP. 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). Our comprehensive digital assessment of industries demonstrated that pharma is indeed behind, and dramatically so. The most commonly cited objective for digital transformations is digitizing the organizations operating model, cited by 68 percent of respondents. 1. Integrators are employees who translate and integrate new digital methods and processes into existing ways of working. Respondents who say their senior leaders and the people engaged in transformation-specific roles do this are more likely than their peers to report success (1.5 times more for senior leaders and 1.7 times more for those in key transformation roles). As consulting firm McKinsey reports, "Digitally enabled healthcare is here, and most pharmaceutical companies aren't ready." Changing Life As We Know It. That is a profound mistake. When pharma companies look to create a digital-savvy organization, many will focus on building analytics capabilities and seeking partnerships to deliver new services or insights. This analysis was carried out by determining the proportion of respondents agreeing with or selecting at least one practice, then calculating the incremental value of including or excluding each practice. As a healthcare business, you probably know that keeping up with digital transformation in healthcare can feel overwhelming. Today, most patients research disease and therapies via WeChat mini-programs and websites, driving the emergence of internet hospitalsvirtual centers able to provide medical advice and prescribe medicines. Historically, pharma companies have controlled both the generation and dissemination of information about their products. At organizations with fewer than 100 employees, respondents are 2.7 times more likely to report a successful digital transformation than are those from organizations with more than 50,000 employees. Telehealth, AI-enabled medical solutions, virtual reality, connected care, self-monitoring, and big data analytics are just a few examples of digital transformation. Digital transformation is about people, process and is a most important, but also most difficult change. 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. Hornstein: We started with a three-year high level vision and roadmap that was fully aligned with our global ambition. But it will be more personalized, targeting the needs of each patient with greater precision than before. McKinsey: Are the majority of Sanofi employees following agile principles at this point? Leaders engaged in transformation-specific roles encourage employees to challenge old ways of working (processes and procedures). 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. That meant recruiting more agile coaches, driving agile awareness, rolling out training, and adapting our office space to support agile pod work. Their conversation highlights the importance of staying relentlessly focused on milestones while measuring return on investment (ROI), the secret to attracting and retaining digital talent, and how technological advances are changing healthcare delivery in the worlds second-largest economy. We try to empower the people we hire, create interesting career growth opportunities, including across functions and potentially to global roles, and do our best to recognize achievements. Pharma executives are well aware of the disruptive potential and are experimenting with a wide range of digital initiatives. Some set up a center of excellence for digital or appoint a chief digital officer to drive accountability and accelerate their digital transformation. Digital technology is driving rapid, fundamental change in almost every aspect of our daily lives. For example, a care plan for a Parkinson's patient might include a medication regimen with "chip on a pill" technology to monitor drug taking along with a smartwatch that monitors the patient's condition, sends him or her reminders to adhere to the prescribed treatment, and sends the neurologist compliance and health-status reports. To help in these decisions, we sketch here a picture of how we believe successful pharma companies will operate in each area in the near future. Success depends on both senior leaders and those engaged during the transformation. Never miss an insight. This will drive a step change in the efficiency, responsiveness, and agility of a wide range of complex, often cross-functional, processes, be they in the back office, the supply chain, R&D, or commercial. First is redefining individuals roles and responsibilities so they align with a transformations goals, which can help clarify the roles and capabilities the organization needs. We expect that Chinas regulators will follow suit, and reward appropriately there is definitely a patient need and positive impact on treatment outcomes. Many drugs will be part of a digital ecosystem that constantly monitors a patient's condition and provides feedback to the patient and other stakeholders. 3. They need to achieve near real-time transparency of their clinical-trials portfolio in R&D, for example, and frictionless sales and operations planning in the supply chain, as well as meet new expectations in efficiency and agility from customers, employees, patients, and suppliers. Please . Forward thinking MedTech companies, will reinvent their operational models, adapting to their customer groups along their digital roadmap as they achieve digital maturity. 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 Borne from a partnership with the Shanghai Pudong Software Park, AHT embodies Sanofis collaborative approach to digital innovation, which spans partnerships with technology giants Jing Dong Health, Ping An Health, and Tencent, as well as an array of China-based start-ups. The Efficacy of Treatment is Now Transparent. A few examples follow: Cloud and mobile technology, sensors, and next-generation business intelligence will bring about a new wave of automation in business processesthat is, streamlined, automated work flows with few handovers and end-to-end, real-time transparency on progress, costs, and business value. Digital transformation in pharma (4IR) Published Oct 13, 2022 + Follow As a consequence of the Covid-19 epidemic, the pharmaceutical industry is undergoing a profound upheaval. Success is also more likely when organizations scale up their workforce planning and talent development (Exhibit 3). 4. 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. Meanwhile, we want to have a real understanding of patient needs, use their feedback to upgrade, and help them to improve their treatment outcomes. Acts as Vice Chair of the European Union Chamber of Commerce in Chinas Shanghai chapter. McKinsey review of top 25 global pharmaceutical companies, based on LinkedIn data. We'll email you when new articles are published on this topic. Multiple articles have been published on the use of technology in post-traumatic stress disorder (PTSD), including Patrick Tucker, "The military is building brain chips to treat PTSD,", Oliver Bossert, Chris Ip, and Jrgen Laartz, ". 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