Is Digital Transformation Changing Healthcare?

1. © 2016 Information Services Group, Inc. All Rights Reserved.

2. © 2016 Information Services Group, Inc. All Rights Reserved.
Robert Krohn and Peter Magagna
Is Digital Transformation
Changing Healthcare?

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“Yes” and “No.”
The business of Healthcare
is changing…
Digital is just an enabler…

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Patients are
the real
change
agents….
PATIEN
T
Payers
Pharmacy
Pharma
Companies
Providers
Govern-
ment
Medical
Devices
Doctors
…as they
evolve into
consumers
of Healthcare
Services.

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Patients
are driving
the change
to digital.
 One in 20 Google searches are for health-related information
 62% of smartphone owners looked up health condition information
 66% are willing to use mobile apps to manage their health
 79% are willing to use a wearable device to manage their health
 41% of health execs say data volume has grown over 50% in one year
 35% of reported data breaches were in the healthcare industry
 52% of patients want access to EMR data related to physician notes
 66% of health systems will offer digital self-scheduling by end of 2019
 64% of Americans would be willing to have a video visit with a doctor

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How are wearables impacting Healthcare?
 Wearable technologies are closing the gap with consumers.
 Data and information security is serious business.
 Markets continue to converge.
 The impact on public health will be widespread.

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Big data and
analytics
are enabling
companies to:
 refine market segmentations
strategies
 reduce “fraud claims”
 predict behaviors and actions
 model risk
 make informed decisions

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Patients
expect digital
to bring them
what they are
looking for…
 Ways of interacting that were not
possible before
 Full transparency and predictability
 Closer, intimate, on-demand
relationships
 Quick access to information

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The outcome is a change in priorities…

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…resulting
in shifting
spend
priorities.
 Digital programs come with costs—new investment
in infrastructure, applications, security, analytics—
which results in higher spend.
 At the same time, margins are getting squeezed
from all directions. The days of raising premiums
to make margins are coming to an end.

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Clients are
balancing
new
investments
with cost
optimization.
 Focusing investments and restructuring around
digital….but with a “critical eye”
 Expecting strong business cases with hard dollar
ROI
 Focusing on optimizing costs to achieve efficiency
 Driving change because of patients rather than
competition.
Clients are:

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The trend
is
digital…
 Digital is leading investment projects.
 ROI is critical with immediate results expected.
 Any “non-digital” (KLO) work is highly scrutinized.
 Any “nice to have” in the KLO space is eliminated.
 Transformation work equates to digital.

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What does
all this
mean for
service
providers?
 Take advantage of opportunities in transformation.
 Be prepared to reduce price for KLO work.
 Proactively pitch “patient” not “digital.”
 Lead with “business outcome-based” solutions.

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