Written by Thilo Kaltenbach, a partner in Arthur D. Little’s Healthcare practice, and drawing from the consultancy’s recent study, “Principles of Winning Digital Strategies”, this article reveals a lack of active digital health strategies among pharma companies, even though the industry as a whole is building its future around these technological developments. However, most companies also believe it will be crucial to have such strategies in place by 2020, when digitization is predicted to have revolutionized the healthcare industry. The article explains how a strong digital solution must address the whole customer journey and focus on specific stakeholders within the healthcare system, including patients, physicians, payers, and healthcare providers and suppliers. For example, physicians need to be addressed because they influence patients, the end receivers of the offerings. The article also discusses qualities that a winning digital solution needs to have, such as strong value add, connectivity, and regional applicability.
Japanese mobile entrepreneur Masayoshi Son withdraws from the bidding for the US business of Telekom. The resistance of the cartel regulators seemed to be too strong. "In the United States, the providers on average make twice the revenue per customer as in Europe," explains Christian Niegel, mobile expert at strategy consultancy Arthur D. Little. “Therefore, the American authorities have a strong interest to keep supporting competition.” According to Niegel, the Americans are well ahead of the Germans concerning the development of the new mobile radio standard LTE. Thus, he does not consider mergers necessary to stem the investments in network expansion, as is needed in Europe.
Pharma giant Novartis bought the rights to use Google’s intelligent contact lenses. Among other functions, the lenses are capable of measuring the glucose concentration within the eye and sending it to a smartphone. “We see the cooperation as trend-setting within the digital health market,” says Dr. Thilo Kaltenbach, a partner at Arthur D. Little. “Together with the perspective of technology firms, it is easier to realize innovations in the pharmaceutical and medtech industry,” he adds.
This article, drawing heavily from Arthur D. Little’s recent study, “Principles of Winning Digital Strategies”, discusses how digitization of healthcare has gone from “a nice marketing gimmick” to a “transformational strategy”. The article states how by 2020, digital health initiatives will facilitate new business segments for companies and enhance competitive advantage. As a large portion of pharma companies have not yet implemented digital health strategies, the article emphasizes that in order to have active digital health strategies in place by 2020, pharma companies need to act now.
This article, drawing on Arthur D. Little’s recent study, “Principles of Winning Digital Strategies”, talks about how even though digital health strategies will be a promising opportunity for the future, the trend has not reaped many rewards yet. Although a significant portion of pharma companies have yet to implement digital health strategy solutions, the article says that by 2020, the trend will have established prominence in the industry and organizations will need to have put strategies in place. The article discusses necessities for successful digital health strategies, such as system intelligence, devices on which patients can use technology, and health status-tracking sensors.
Among experts, one thing is certain: digital health will sooner or later start its triumphal march. Patients’ demand for respective applications rises, and technology-driven doctors incite the development even further. “Companies now need to equip their devices with apt digital components,” Dr. Thilo Kaltenbach from Arthur D. Little says. The consultancy expects a global market potential for digital health products and services of US$200 billion in 2020.
The Chinese trading platform Alibaba is an emerging company that outpaces its competitors including the US online trading giant Amazon. Lars Riegel, a trading expert at Arthur D. Little, illustrates Alibaba’s potential and ambitions: “In B2B-Business, Alibaba accomplished a monopoly and dominates about 80 percent of the Chinese online trade. European and American exporters cannot sell their goods disregarding Alibaba if they want to establish themselves on the Chinese market. Alibaba also establishes itself increasingly as an internet service company particularly in the sector of advanced search engines and payment services. The Alibaba internet payment service Alipay for example is more than a hundred times bigger than Ebays Paypal. The Chinese trading platform will keep growing in B2B just as in B2C. It’s only a matter of time when Alibaba will expand into new markets” Riegel concludes.
In a professional article, Dr. Matthias von Bechtolsheim explains in detail what local power supply companies can do to increase their results. Often classical bottom-up approaches to change projects do not reach fossilized structures. On the other side, top-down approaches mostly lack the possibility of implementation. A new bridging approach combines the advantages of both methods. The author identifies five topic areas that often feature significant potential for improvement: portfolio, real net output ratio, third-market services, organizational design and IT.
Smartphones and tablets ease everyday work. But such mobile technologies open up gateways for offenders to intrude into corporate IT. Yet clear rules for mobile communications for all employees, protective software and sophisticated encryption can stop invaders. Of course, all security upgrades imply investments. “But this is only a small fraction of the cost for devices and connections – and definitely a rewarding investment considering the importance of corporate data,” says Claus Heerlein from Arthur D. Little.
Smartphones and tablets facilitate daily work – but they also open up new entry points into corporate IT for intruders. The trend of mobile access to corporate IT continues. A survey of a German safety initiative shows that 15 percent more companies allow mobile access to the corporate network than three years ago. Therefore, companies need clear rules for mobile communication and to invest further in conservation programs and sophisticated encryption to prevent intrusion. It’s an investment that will pay off, as Dr. Claus Heerlein, principal at consultancy Arthur D. Little, knows: "The investment is only a fraction of the other device and connection costs – and compared with the value of the data to be protected, for most companies, a worthwhile investment."