Across Health Digital Barometer Spain 2012

Digital Barometer

for life sciences Spain

“

Across Health’s Digital Barometer Know which way the wind blows!

9/11/2012 Across Health Digital Barometer 2012 2

Fonny Schenck

Managing Partner, Across Group

CEO, Across Health

For several years now, Across Health has been running a unique digital

landscape survey among life sciences leaders in EMEA. This year’s edition

of the Digital Barometer has taken, next to a global perspective with

exclusive results from Europe, US and China, also a deep dive into the

Spanish market . It gives you a 360°view on the status, challenges and

future of “The New Normal” in life sciences, i.e. when digital communication

is no longer new, but is the norm.

I’m convinced you’ll find these results inspiring and trust they will help you

reach the next level...

Thanks again for your participation

and enjoy our hot-off-the-press findings!

Table of contents

• Executive summary

• Key survey statistics

• Current adoption of digital • Benchmark against competitors

• Digital satisfaction

• Most common eTactics

• Key challenges • Key bottlenecks

• Digital understanding

• The future of digital in life sciences • Top priorities for digital

• Digital marketing, sales & medical budgets


Executive summary


Executive summary

“It’s not about being

digital anymore, it’s now

about being clever with

digital.”

Peter Hinssen

• Overall, digital adoption levels are perceived to

be behind those of other industries in Spain

• Standard websites are still most often used,

although there is a clear acceleration of more

innovative tactics such as mobile and social. Also

self-service HCP portals are popular in Spain.

• In general, satisfaction levels for current digital

activities are low

• Future priority is put on cross-channel

programmes which points to a more mature use.

• Digital spent is low in Spain and even lower

when compared to EMEA spent.

• ROI questions, regulatory issues, lack of internal

knowledge and digital strategy are seen as most

important hurdles



Key survey statistics


Key survey statistics

• 392 respondents from life sciences companies

completed the online survey between mid May

and August 2012, of which 52 Spanish

respondents

• Industry spread Pharma, Biotech, OTC companies, Medical devices

• Geographical spread Europe, Middle East & Africa (EMEA). This report

contains a subanalysis for Spain

• Local vs international spread Global, regional, national / local

• Functional spread Marketing, Medical, Sales, Digital, IT, CRM, other


Most respondents come from pharma


77%

8%

6%

2%

2%

6%

Pharmaceutical company

Medical devices company

Technology provider

Biotechnology company

OTC company

Others

Majority of the respondents is working nationally/locally, 14% work

at a regional or global level


National / local 87%

Regional 4%

Global 10%

Functional Spread


50%

40%

10%

8%

6%

4%

8%

Marketing

eBusiness/Digital

Sales

CRM

IT

Medical

Others

Marketing and Digital/eBusiness represent 90% of all answers

Current adoption


• Benchmark against other industries and competitors

• Digital satisfaction

• Most common eTactics

Current adoption of digital

• The gap with other industries remains.

• Digital initiatives geared towards HCPs are

generally considered more competitive than

those targeted towards Patients. This is the

opposite of what we see for the EMEA region.

• Less than 1 out of 3 respondents is satisfied

with current digital activities.

• Most commonly used digital tools are classic

eMarketing initiatives, specifically the

product/disease/company website triangle.

• Emerging channels like social media and

particularly mobile marketing are rising rapidly –

Also HCP self-service portals seem to be

popular in Spain. eRep and eMSL remain small.


“The great thing in the

world is not so much

where we stand, as in

what direction we are

moving.”

Oliver W. Holmes

60% rate their company to be behind other leading industries when it

comes to optimizing the use of internet


2%

29% 31%

23%

13%

2%

No opinion Far behind Behind Average Ahead Far ahead

60%

Digital vs other industries

How would you rank your company versus other leading industries

in optimally leveraging the internet?

This is comparable to the EMEA results

How would you rank your company versus other leading industries

in optimally leveraging the internet?


Digital vs other industries

1% 2%

31% 29%

30% 31% 28%

23%

7%

13%

3% 2%

EMEA Spain


9% 15%

Note: EMEA: Europe, Middle East & Africa

Digital Strategy in the New Normal


Peter Hinssen

Chairman, Across Technology

Author of the best-selling “The New Normal”

Once we cross over into the times where digital is the New Normal, the way we interact with our customers will change completely. The worst mistake you could make is to take your existing analog interaction patterns with customers and transfer them to the web. Don’t transfer, but re-think. It’s all about intelligence. It’s all about the contact, it’s all about “you”. As the master of marketing, Philip Kotler, once said: “Marketing takes a day to learn. Unfortunately it takes a lifetime to master.” You’ve got a couple of years, max.”

“

How would you rank your company versus your competitors in using digital marketing

initiatives targeted at healthcare professionals?

8%

4%

23%

31%

23%

12%


1 out of 3 rank their company ahead of competition in using digital

marketing towards HCPs

35%


HCPs

6%

10%

40%

27%

13%

4%


In terms of consumer / patient-driven digital marketing initiatives, only

17% ranks their company as being ahead of competition


17% Patients


initiatives targeted at consumers/patients?

The level of digital competitiveness regarding HCP activities is higher in Spain

than at EMEA level


initiatives targeted at HCPs OR consumers/patients? (% ahead + % far ahead)


9%

35%

19% 17%

0%

20%

40%

EMEA Spain

HCP Patients

28%

52%


The iPad (r)evolution


For long, we all have been using legacy CRM systems and some of us have even

tried out tablet computers in day-to-day calls. It almost started to seem normal

practice to work with the slow and heavy tools we had. But then the iPad (and cloud

computing) took us all by surprise.

Still today, almost weekly companies are approaching us with the same question:

“We just bought iPads... how do we go beyond the rapidly waning novelty factor –

and PDF detail aids?” And this is only the start...

Indeed, the iPad holds a lot of promise for integrated cross-channel approaches. But

the tool itself is already being commoditized... If done well, interactive detailing can

quickly become the main gateway for reps and their customers to access the

company’s whole multichannel service offering. In that scenario, the iPad can

completely change the way we have been doing business for decades in

just a few years... If not, it will be just another technology-led hype... and

the track record of pharma is not really strong in this area!

“

Pat Thistlethwaithe

Managing Director, USA

Only 29% of respondents are satisfied with their current digital activities


On a scale from 0 to 5, how satisfied are you with your current digital activities?

Extremely

Satisfied Extremely

Dissatisfied Average

score 2,8

2%

13%

21%

35%

23%

6%

0 1 2 3 4 5

29%


On a scale from 0 to 5, how satisfied are you with your current digital activities?

AVG. Score

2,6

2,8

2

1

13%

13%

21%

28%

35%

41%

23%

15%

6%

0% 20% 40% 60% 80% 100%

Spain

EMEA

0 1 2 3 4 5 Extremely

Satisfied

Extremely

Dissatisfied

2%

Although still low, digital satisfaction levels are higher in Spain (29%)

than for EMEA (17%)


90%

73%

73%

69%

69%

65%

56%

46%

42%

40%

37%

37%

27%

17%

12%

10%

4%

13%

6%

12%

6%

10%

10%

27%

15%

37%

27%

19%

27%

15%

10%

17%

4%

8%

17%

17%

17%

21%

33%

27%

40%

23%

31%

40%

38%

58%

69%

63%

2

6%

4%

2

8%

1

2

2

6%

3

8%

3

10%

10%

Company website

HCP self-service portal

Disease website

Product website

Online MedEd

eMail marketing

Web Banners

Social media

SEO

Mobile marketing

Tablet eDetailing

SEA

Web conference

Virtual eDetailing

eRep

eMSL

Often / Standard practice Pilot planned or ongoing

Never Do not know / NA

Top eTactics used in:

Spain



13%

42% 42%

24%

63%

48%

40%

46%

73% 69%

40%

73%

37%

27%

0%

20%

40%

60%

80%

Social media HCP self-service portal

Online MedEd Mobilemarketing

Diseasewebsite

TableteDetailing

Webconference

EMEA Spain


* Percentages indicate tactics that are “Often / Standard” practice.

Overview of biggest differences observed in tactics adoption

between Spain and EMEA

eRep and eMSL require thoughtful management


The traditional business model in pharma is waning. The role of the

sales force is being redefined and their tools modernized, as iPad

detailing and remote live customer interactions, a.k.a. eRep and eMSL,

are being introduced. As opposed to the amount of attention iPad

detailing currently gets, the more disruptive and potentially more

impactful remote approaches are still only used by a limited group of

early adopters.

Indeed, introducing remote detailing requires more courage,

investment and change management. Our experience teaches us that

it is truly about changing the business model step by step – any other

approach will quickly fail and die, leaving behind a wound in the

organization that is hard to heal.

“

Patrick Vidal

Managing Director, France

Finally, in the mobile space, “beyond the pill” still seems a far cry from

reality… CME apps are most commonly developed; the promising

monitoring tools seem to be the hardest

MOBILE: What apps / tactics do you develop or have developed?


35%

31%

29%

29%

25%

23%

17%

15%

10%

10%

4%

21%

CME

Product info / updates

Diagnostic tool

Treatment guidelines

Dosage calculator

Medical news / article updates

Mobile website

Adherence / compliance tracker

Symptom tracker

Remote monitoring of patients

Others

None

Key challenges


• Key bottlenecks

• Digital understanding

“When you're finished

changing, you're

finished.”

Benjamin Franklin

Key challenges

• ROI, Regulatory or legal issues and lack of

internal knowledge are the main challenges for

Spain.

• Lack of a clear digital strategy is seen as an

overall issue

• Lack of budget could become a hurdle to really

reach the turning point for digital in Spain

• Over 1/3 of respondents feel they have

insufficient knowledge of online opportunities for

their business activities.



23%

17%

17%

13%

6%

6%

6%

6%

2

2

2

10%

17%

19%

23%

13%

6%

4%

2

2

2

15%

10%

6%

19%

2

2

2

8%

10%

4%

4%

2

12%

ROI questions

Regulatory or legal issues

Not enough internal knowledge in this area

No clear eBusiness strategy

No budget

No senior management support

Healthcare compliance concerns

Customers are not ready

No headcount to support this

No expert agencies with pharma background available

Pharmacovigilance issues (adverse event reporting etc)

Others

N/A

Most important Second most important Third most important

Spain

The 3 primary bottlenecks for digital in Spain are ROI questions, regulatory issues

and lack of internal knowledge in this area. Also a lack of clear digital strategy

makes it to the top

2%

13%

21%

38%

25%

Totallyinsufficient

Insufficient Betweensufficient

andinsufficient

Sufficient More thansufficient /

expert

Over 1/3 of the Spanish respondents reports being inconfident about their

knowledge of digital opportunities for pharma

Do you feel that you have sufficient knowledge of all opportunities offered by the internet for

your business activities?


Internal knowledge

63%

Setting up the multichannel organization


Patric Jarchow

Managing Director, Germany

When organizing your company for integrate cross-channel and customer

centric approaches, a lot of small and big steps need to be taken, and

sometimes retaken.

Zero-based definition of the channel mix, upgrading the CRM platform for true

360° CLM, introducing new sales tools, training & change management,

synchronizing sales-marketing-service-medical teams, investing in customer

analytics, building the required digital infrastructure, defining new policies and

processes, ... It requires considerable vision, experienced people and a

willingness to keep moving forward.

The production agencies of the past – who recently acquired digital

capabilities – are no appropriate partners to take along in this transformation.

We believe in multichannel, and we’ve been there. Have a look at our website

and give us a call!

“

The future of digital in life sciences


• Top priorities for digital

• Digital marketing, sales & medical budgets

“My interest is in the

future because I am

going to spend the rest

of my life there.”

Charles F. Kettering

• Cross-channel marketing mix optimization is

the top priority for most. Strategy development and

impact measurement/dashboarding immediately

follow.

• Currently, digital initiatives capture only a small

percentage of the total marketing budget. For

medical and sales this is even lower.

• 3 out of 4 believe the digital budget will increase

– but only moderately (and still too slowly to really

change something). Meanwhile, the majority

believes that the overall marketing budget will

either remain the same or decrease.


FUTURE OF DIGITAL

The future of digital

in life sciences

Overall, cross-channel marketing optimization and digital strategy

development are seen to be the most important digital priorities

What are priorities in your organization regarding DIGITAL?


17%

17%

16%

16%

13%

10%

9,5%

Cross-channel marketing mix

optimization

Strategy development

Impact measurement / reporting /

dashboarding

Full-scale execution of tactics

Training

Assessing landscape trends

Best practice sharing

FUTURE OF DIGITAL

18%

15%

13%

13%

11%

7%

Cross-channel marketing mix optimization

Strategy development

Impact measurement / reporting /

dashboarding

Full-scale execution of tactics

Training

Best practice sharing

Assessing landscape trends

17%

17%

16%

16%

13%

9.5%

10%

EMEA Spain

Digital priorities setting for Spain seems to be in line with the EMEA

results


22%

FUTURE OF DIGITAL

Note: EMEA: Europe, Middle East & Africa - NA: North America - CH: China

Rethink the marketing mix


“

Charles MacKinnon

Managing Director, UK

When reading the Digital Barometer results, it strikes and delights me that

this year’s top priority regarding digital is the redefinition of the cross-channel

marketing mix.

It is truly essential to rethink the cross-channel mix, as it is only when you

visualize your optimal mix from the eye of your customers, calculate budgets

and resources accordingly, and redesign your customer-facing activities, that

you will be able to lead the required change, generate true business impact...

and create a virtuous circle of success.

Even if the large cross-channel breakthrough may not come before

2013-2015, visualize it today and plan for the near future. It will be a

helpful map in your exciting journey in the “New Normal”...and any

procrastination is to be avoided – your competitors have the same

priority!

Less than 10% of overall marketing budget is spent on digital initiatives

If you oversee a product budget (marketing), which percentage of it is allocated to digital

initiatives THIS YEAR?


17% 13%

0%

7% 3%

less than 5%

5% to 10%

11% to 15%

16% to 20%

21% to 25%

more than 25%

Digital marketing

Average

9,1%

FUTURE OF DIGITAL

60%

Compared with EMEA, Spain has some catching up to do when it comes

down to allocating marketing budget to digital initiatives If you oversee a product budget (marketing), which percentage of it is allocated to digital



Digital marketing

9%

17%

36%

60%

22%

13% 17%

0%

7% 7% 9%

3%

EMEA Spain

less than 5% 5% to 10% 11% to 15% 16% to 20% 21% to 25% more than 25%

Average

9,1% Average

14,8%

FUTURE OF DIGITAL

Medical budgets do not prioritize digital initiatives. Digital is however

slowly taking off

If you oversee a product budget (medical), which percentage of it is allocated to digital



44%

50%

6%

0%

less than 5%

5% to 10%

11% to 15%

16% or Above

Digital medical

Average

4,8%

FUTURE OF DIGITAL

Similarly, digital sales budgets are also quite low, but on the rise

If you oversee a product budget (sales), which percentage of it is allocated to digital initiatives

THIS YEAR?


Digital sales

33%

5%

0%

less than 5%

5% to 10%

11% to 16%

17% and Above

Average

4,6%

FUTURE OF DIGITAL

62%

How do you think your overall marketing budget and digital budget will evolve?


12%

33%

52%

4% 2% 2%

27%

58%

6% 2% 4%

Decrease>25%

Decrease<25%

Stay thesame

Increase by<20%

Increase by21% to 50%

Increase by>50%

Will morethan double

Overall

Digital

Only 4% reported that the general marketing budget will increase, while

70% of respondents foresee an increase of their digital budget

FUTURE OF DIGITAL

Life sciences spending on digital


In terms of digital budget in life sciences, we’ve come a long way. Still, a

14,1% digital marketing budget is nothing more than a “good start”, even

despite the double-digit yearly growth from a low base...14.1% is not at all

reflecting the true potential of the new channels and customer expectations!

The companies that are really changing the game tend to be the ones that

are forced to. Only if resources need to be reallocated to other products or

traditional approaches do not cut it anymore, bold moves towards a

multichannel approach are made.

My question is: why do we wait for circumstances to get critical to review the

way we spend our marketing-sales budgets? Why don’t we embrace the

New Normal and really rethink the way we do business from the customer’s

perspective?

“

Eva Velasco

Managing Director, Spain

Final thoughts



So will 2013 go on record as the first year in the New Normal?

“ Some Barometer trends could certainly tempt me into answering with a strong “YES”.

Indeed, there are several positive signs for a higher level of cross-channel maturity:

the importance of internal knowledge/resources is on the rise, budgets are increasing

and cross-channel marketing and robust execution are seen as key priorities.

On the other hand, the limited overall spend on digital, the incessant focus on ROI,

the strong focus on ipad detailing (which is already becoming a commodity and not

solving some bigger issues), the product-centric approach to mobile and the limited

overall knowledge, despite many well-intended training efforts and pilot projects, lead

me to say: probably not until 2014...

Nevertheless, many enlightened teams and greenfield companies will continue to

lead the way and change the game...good luck on your journey towards the New

Normal! Beverly Smet

VP Europe South Across Health

About Across Health


COMPANY

• 60+ strong consultancy

• Focus on innovative customer-centric approaches

(e-powering traditional channels– “fusion”)

• From insight to innovation strategy, integrated execution

& impact measurement

• Unique offering in the industry

• 35+% CAGR since the start (2007)

CUSTOMERS

• Pharmaceuticals

• Devices & Diagnostics

• Hospitals

• Patient & Professional Associations

INTERNATIONAL EXPANSION ONGOING

• Head offices in Belgium (Ghent)

• Offices in Spain, France, UK, Switzerland, Netherlands,

Nordics, Germany, New Europe, China, Australia and US

Extensive experience at regional/global level

AND

local execution power

02 03

04 01

Innovation Integrated execution

Impact

Insight

How do we play?

The 4 Is

We measure the impact of the new

strategy using dashboards, KPIs,

… and create best-practice

documents/tools.

We summarize key trends, best

practices and benchmarks - also

from related and other industries -

and compare them to your current

situation.

We handle the project from A to Z as well as supporting in related activities such as change management, process & organizational development, design,

training of sales reps, etc.

We come up with a 2-3 year

innovative, balanced and integrated

roadmap and strategy for the

program that builds on the strenghts of

your existing channels.


Execute

We advocate a balanced approach

11-9-2012 Across Health - Introduction 47

Enhance Experiment

• Dashboards

• Customer experience

• Online marketing

• Personalization

• Search engine

optimization

• Social media

optimization

• …

• Mobile strategy &

tactics

• Social strategy &

tactics

• PHR/EHR strategy

• Innovation pilots

• (on-site) programme

management of large-

scale projects: cross-

channel projects,

teledetailing, self-

service portal, …

Some of our key references


http://www.patients-association.com/DBIMGS/image/Amgen.JPG

Our international footprint


Contact Details

These results have been compiled by Jeroen Corthout & Fadi Baddur

For any question, mail to [email protected]

Make sure also to check out our fields of expertise on

www.a-cross.com/health

DISCLAIMER:

Current presentation is confidential. All

proposed concepts and ideas

presented here are intellectual property

of Across Health, and are to be used in

collaboration with Across Health.

http://www.a-cross.com/health

Health & Medicine

Across Health Digital Barometer Spain 2012