Challenges in healthcare

Forces of change• Debt crises

• Globalization• Demographic and epidemiological pressures

• Advances in communication technologies• Declining R&D productivity

• Healthcare reforms

New environment (2011-2020+)• Economic volatility• Focus on key mature and growth markets • 7.6%-9.4% of global population 65+• Obesity epidemic• Social media & internet make better informed patients• Treatments for rare/acute diseases• Products marketed to healthcare payers• Value-based purchasing (using outcomes)

Old environment (1980-2000)• Economic stability

• Focus on top 10 markets• 6.0%-6.9% of global population 65+

• Print, television, websites• Blockbuster business model

• Treatments for chronic conditions• Total number of prescriptions and unit

sales

Adapted from PWC; changing context in which pharmaceutical companies operate

Helix Innovation, 2013

What do they all have in common?

New Technologies Connecting

people

+

http://youtu.be/XzYzfD_bAGI

What do you notice?Do you see applications in your own organization?

The research questions

1. What are the relevant triggers in the environment that can lead to challenges for innovation implementation for pharmaceutical companies?

2. Is the Innovation Scan perceived as a good tool to effectively tackle the management challenges industry is facing, according to potential customers?

3. Is the service model, by potential customers, perceived as a good alternative for pharmaceutical companies when the blockbuster model is not sustainable anymore?

The parties involved in research

Triggers in the external environment

Current challenges in pharma• Rising costs – 90% believes this is a problem• Increasing customer power – 75% confirms• Brand loyalty – increases with patient centered services

• Legislation is limiting communication• Behavioral change in lifestyle – 70% thinks services can

contribute positively

37%

36%

27%

Brand loyalty, no services offered

Yes Neutral No

81%

19%

Brand loyalty, services offered

Yes No

Triggers in the external

environment

NEW BUSINESS MODEL OF A PHARMACEUTICAL COMPANY

CURRENT BUSINESS MODEL OF A PHARMACEUTICAL COMPANY

A need for the transition

Management challenges when going towards the new model

Innovation Scan

Innovation scan

• Perceived as a good tool in our research (new concept)

• Systematically analyses on hard and soft parameters of organizational design

• Identifying barriers and enablers in a company to innovate / adapt

Blockbuster model

Service model

PHYSICIAN-CENTRIC FOCUSED PATIENT-CENTRIC FOCUSED

ONE-SIZE-FITS-ALL DRUG PERSONALIZED MEDICINE

Paradigm shift in healthcare industry, (Caressi, 2010).

What is a service model?

• Not another iApp

• Long term, meets customer needs, patient centered in every step.

• A “new” commercial model

From; Monitor Deloitte “Transforming commercial models to address new health care realities”, 2013

From; Monitor Deloitte “Transforming commercial models to address new health care realities”, 2013

From: Eye for Pharma, “The patient services revolution”, 2013

Conclusion

What is happening? • The world is changing• Faster and faster

(exponentially)• Patients/consumers are

taking the lead• Pharmaceutical

companies miss innovative opportunities

What can we do?• Focus on the whole

chain and its interactions

• Become user-experience expert

• Create innovations which add value

Our 3-legged proposition

New Commercial Model – Innovative Value Added Services

Innovation scan of the company / department

Innovation workshops / bootcamps with your

company, organisation or department

Consultancy to implement/support

an innovation strategy or new service offering

Our partners, networks & methodologies