This document summarizes a webinar hosted by Across Health on digital transformation. It discusses Across Health's focus on customer engagement and digital innovation strategies. It also shares results from Across Health's annual digital maturity survey, which found that about half of organizations have been engaged in a digital transformation program for over a year. Respondents indicated that capabilities and change management are important components of digital transformation, and that skills gaps and lack of internal engagement are common bottlenecks. The webinar provided a framework for a successful digital transformation strategy that addresses both digitizing the core business and developing new digital health models.

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MTM Snapshot: webinar on digital transformation
April 16, 2019

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Across Health is a pragmatic, end-to-end
boutique consultancy and trusted advisor
to senior leaders of innovative multinational
healthcare organizations.
With a focus on customer engagement in the digital age, we partner with
our clients to design, develop, execute and measure pragmatic, evidence-
based omnichannel customer engagement strategies and companywide
digital innovation and transformation programmes – for the short,
medium and long term.

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Our 4i methodology: a virtuous cycle of strategy & execution
STRATEGIC width
TACTICAL depth

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Across Health is taking the pulse of the industry…
…annually and quarterly
• Annual digital maturity survey
• N = 250+
• Coming up in April for the 11th time
• Slideshare.net/acrosshealth (2018)
• Can be run internally too
• Quarterly minisurvey on 1 topic
• N = 50+
• Fielding & reporting in < month
• First topic: Digital transformation

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Technology is eating every industry…
How about healthcare?

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Big tech is eyeing healthcare now as well…
“The healthcare system is complex and the
companies are entering “into this challenge
open-eyed about the degree of difficulty.”
Jeff Bezos 2018

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So, what is “digital transformation” (DT), really?
“Digital business transformation is the
process of exploiting digital technologies and
supporting capabilities to create a robust
new digital business model”
Gartner 2019

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The 2018 view on DT for Life Sciences (Across Health Maturometer)
How would you rate the pace of implementation of digital transformation in your organization?
n=113 (Global/Regional);
n= 114 (National/Local)
3%
2%
15%
18%
32%
21%
44%
50%
6%
9%
National/Local
Global/Regional
Very fast Fast About right Slow Very Slow
50%

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But something’s moving: in 2018, digital MARKETING budgets
exceeded 20% of total spend for the first time
n for 2018= 73
European Scope
If you oversee a product or marketing budget, which percentage of MARKETING budget
is allocated to digital initiatives THIS YEAR?
14.8%
16.0%
15.6%
15.1%
15.7%
18.9%
21.5%
08%
10%
12%
14%
16%
18%
20%
22%
24%
2012 2013 2014 2015 2016 2017 2018

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The first swallows of (digital) spring?

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Let’s find out…through the first-ever MTM Snapshot on this topic
March 2019

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The respondents: most are digital/multichannel and
marketing
n= 57
Your function

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About 50% have been engaged in a digital
transformation programme for >1 year
n= 57
Is your company currently engaged in a digital transformation programme?

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The good news – there is a virtuous cycle!

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> 1 year n= 27
6-12 months n=19
< 6 months n=11
The longer a digital transformation programme is
running, the greater the impact
Impact: Segmented by stage
50%

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Those who have had a digital transformation process
running for >1 year are substantially more satisfied
> 1 year n= 27
6-12 months n=19
< 6 months n=11
Satisfaction: Segmented by stage
50%

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What should be key components of
digital transformation?

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A comprehensive view on successful change…long before
“digital transformation” became mainstream (Gleicher)

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Quick poll 1
• What is the most important component of a transformation strategy?
• As-is assessment (internal & external)
• Capabilities
• Change management
• KPIs/dashboards
• Technology
• Business case development
• Other

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Technology and change management become less important
over time, while processes and KPIs gain importance.
Capabilities is rated consistently in the top 2
> 1 year n= 27
6-12 months n=19
< 6 months n=11
Components of digital transformation: Segmented by stage

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And what are the bottlenecks?

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Quick poll 2
• What is the most important BOTTLENECK of a transformation strategy?
• Skill gap
• Lack of internal engagement
• No clear ambition or roadmap
• Fragmented or duplicate efforts
• No technical platform
• Lack of board support

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Skills gap and lack of internal engagement are
consistently the top bottlenecks
> 1 year n= 27
6-12 months n=19
< 6 months n=11
Components of digital transformation: Segmented by stage

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A comprehensive digital strategy is by definition “dual” and should
cover both “digitizing the core” (omnichannel) and “innovation”
(digital health)
Digitizing the core Developing innovative digital
health business models
+DIGITAL
TRANSFORMATION =

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Checklist for a successful digital transformation strategy
8 features of a balanced digital strategy (Bain 2017):
1 NOT…Planning to plan “heavy on enablers, unclear business value”
2 NOT…Pure experimentation “heavy on business apps, lacking enablers to scale”
3 NOT…Blind spots “underinvestment in certain areas”
4 NOT…Scattershot “lots of small investments with no coherent strategy”
5 NOT…Nearsighted “investments weighted to the short term”
6 NOT…Farsighted “investments weighted to the long term”
7 NOT…Big brother “excessive centralization, lack of business ownership”
8 NOT…Islands “high decentralization, duplication of investments”

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Does pharma know what ’good’ looks like ?

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A unique mix of online & offline capability building
blocks, including elearning, workshops & serious game
Run your own internal as-is assessment and
benchmark with the industry average & leaders
Industry-leading primary research into channel,
content, context and competition trends – for HCPs,
patients and payers
Some of our building blocks to accelerate DT @ your company
https://www.across.health/offerings

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Thanks a lot!