Why Healthcare Companies Need to Transform to a Digital Business
Digital health will impact every individual and every organization involved in the healthcare system.3 The competitive advantages of today – development resources, sales and marketing scale, global high prices and revenues aided by restricted access – will be transformed by 2020 into a marketplace driven by distribution strength (particularly to emerging markets), pricing based on ability to pay, and more products with lower revenues and lower costs.5
The value proposition and related revenue stream will shift from drug development/drug volume to an emphasis on health outcomes. Business objectives, therefore, will be shaped by community engagement across multiple digital channels, with key stakeholders – patients, HCPs and payers – at the head of the line.2
The emphasis on outcomes will invert the value proposition, from top-down control to an individualized value prop where revenues are derived from efficacy.2, 4, 6 Patients, payers, providers and governments will be at the centre of this new model, putting a premium on comprehensive digital engagement that focuses on the entire patient pathway, from initial information-gathering behaviour, to diagnosis and living with the disease or condition.1, 7
Building active digital communities and leveraging digital tools and resources that drive improved outcomes will require the industry to rebuild its reputation among patients who lack trust that pharma firms are always acting with their best interests in mind.8
The trend is a product of an evidence-based research study undertaken by the Healthcare Division in Valtech to map the pharmaceutical landscape of digital mega trends. The research study provides essential insights on how Pharma companies could utilize digital engagement to break down stakeholder barriers, impact stakeholder behaviour and demonstrate more cost-effective outcomes. The research study is based on information from 100+ trusted sources and has resulted in the identification of 14 mega trends.