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mHealth and Digital Masters : Novartis Vs Kodak

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During years, pharma companies have been trying to bring more value to patients and physicians by using mHealth.
In this study we observed the consequences of a slow transition to digital on a leader in his sector (Novartis Vs Kodak). We also think that pharma companies need to move from mHealth to Digital Masters to bring the best value to all stakeholders.
Some facts:
Digital Masters outperform their peers*
-26% more profitable than their average industry competitors
-9% percent more revenue with their existing physical capacity
-More efficiency in their existing products and processes
-More Productivity
(*): LEADING DIGITAL: Turning technology into business transformation, Havard Business Review press




Published in: Health & Medicine

mHealth and Digital Masters : Novartis Vs Kodak

  1. 1. 1 PHARMA COMPANIES -------------------------- FROM MHEALTH TO DIGITAL MASTERS Joseph Pategou International Strategy and Influence joseph.pategou@skema.edu
  2. 2. 23/05/2016 2 SUMMARY Objectives I. Methodology II. Mobile health market III. Case Study: Novartis Vs Kodak IV. Future Challenges & Opportunities V. From Mhealth to Digital Masters INFORMATION ABOUT THE AUTHOR Appendix Digital Economy – Joseph Pategou
  3. 3. 23/05/2016 3 OBJECTIVES Digital Economy – Joseph Pategou
  4. 4. Identify the Mhealth Market Identify the Challenges & Opportunities Identify the DNA OF DIGITAL MASTERS 23/05/2016 4 OBJECTIVES Digital Economy – Joseph Pategou
  5. 5. 23/05/2016 5 METHODOLOGY Digital Economy – Joseph Pategou
  6. 6. 23/05/2016 6 METHODOLOGY  Primary data (Books, Statistic , Newspapers….)  Interviews • Qualitative method of interpretation • Sample: 5 personnes • 1 questionnaire of 7 questions • Position of the Interviewees:  Expert of mobile health  Top managers from unions in the pharmaceutical Industry France Mr Guillaume Marchand  President and Co-founder of Health dmd Mr. Richard LERAT  Chief of Staff of the Presidency of LEEM Mr Lionel REICHARDT  Founder of 7C's Health  Pharmageek Mr François-Régis Moulines  Director of Communications and Public Affairs of SNITEM Mrs Claire Leblond  Community Manager at SKEMA Business School  Case Study : Novartis Vs Kodak Digital Economy – Joseph Pategou Sources: Appendix
  7. 7. 23/05/2016 7 METHODOLOGY  Questionnaire 1.What is your definition of mobile health? 2.What is your view on offers and demands in this market? 3.What is the role of pharmaceutical companies on the French market? 4.Is there a regulation of the market for mobile health in France? If so, how do you rate this regulation? 5.What is the place of France in this market on the global stage (turnover, market share etc.)? 6.What is the place of Novartis in the market for mobile health in France? 7.How will evolve the market of mobile health in the future (in 5 years and 10 years)? Digital Economy – Joseph Pategou Sources: Appendix
  8. 8. 23/05/2016 8 Mobile health market Digital Economy – Joseph Pategou
  9. 9. The mobile Health corresponds to all services related directly or indirectly to the health, permanently available via a mobile device connected to a network. 23/05/2016 9 Mobile Health Market Digital Economy – Joseph Pategou Sources: Appendix
  10. 10.  Global Market  $ 2.4 billion in 2013  $ 26.5 billion in 2017  Europe $ 6.9 billion  Asia-Pacific $6.8 billion  North American $ 6.5 billion  Four major countries in Europe 23/05/2016 10 Mobile Health Market Rank Country 1 UK 2 Spain 3 France 4 Germany Digital Economy – Joseph Pategou Sources: Appendix
  11. 11. 23/05/2016 11 Mobile Health Market  Health Applications  100,000 mobile health applications (iOS and Android)  60% for welfare and shape market  40% for health professionals  200 companies  2,000 jobs  7 out of 10 mobile users have not downloaded health application because they haven't found 2013 IOS Android Percentage of smartphone 22,2% 65,2% Percentage of application 90% 10% Digital Economy – Joseph Pategou Sources: Appendix
  12. 12. 23/05/2016 12 Mobile Health Market 4-Punctual tools (example: translation of medical language and Géomedica)  This market was boosted by the rise of smartphones and application development. Digital Economy – Joseph Pategou Sources: Appendix
  13. 13. 23/05/2016 13 Mobile Health Market  Helpers dominate this production activity Digital Economy – Joseph Pategou Sources: Appendix
  14. 14. 23/05/2016 14 Mobile Health Market  Traditional healthcare players: It includes Pharma, Hospitals, health insurance and Med-tech companies, representing 3,4% of the total number of app publishers.  App specialists: App specialists are small companies with 3-10 employees. They have an app developer background and are familiar with the available development tools. This group represents 14% of the total mHealth app publisher community.  Helper: Helpers are companies or individuals with the primary motivation of publishing mHealth apps in order to help others and are typically small companies of 3-10 employees. They represent 32% of the market. Digital Economy – Joseph Pategou Sources: Appendix
  15. 15. 23/05/2016 15 Mobile Health Market  Medical specialists: Medical specialists leverage their medical know- how to develop mobile apps. They represent 20% of the market.  Fitness specialists: This group of app developers represents around 10% of the total mHealth app developer community. The typical company size is 11-100 employees.  Connecters: This group of mHealth app publishers represents 18% of the total mHealth app developer community. Digital Economy – Joseph Pategou Sources: Appendix
  16. 16. 23/05/2016 16 Mobile Health Market  Pharma app publishers can be clustered into three groups:  Niche players (Use apps in order to promote their core products to healthcare professionals)  Still Trying (Publish many apps but so far have not been really successful)  First Success  Leading Pharma companies  6.6 million downloads since 2008  1 million active users since 2008  Pharma companies app portfolios’ performance is disappointing  The raison of this situation:  The app portfolios are not globally available  The app portfolio is built around the core products of the Pharma companies and not around the actual market demand  No cross-referencing and common and recognizable design Digital Economy – Joseph Pategou Sources: Appendix
  17. 17. 23/05/2016 17 Mobile Health Market  In terms of demand France  7 million health mobile users have looked for health information in 2013  22% have downloaded apps.  52.9% of mobile user’s health with chronic illness want their doctor to advises them mobile health applications Europe  185 million Europeans will benefit from mobile health in 2017  € 99 billion save on health spending In terms of regulation  The market of mobile health is not controlled or regulated  Action plan 2012-2020, adopted by the European Parliament • Clear legal framework to ensure the development and adoption of applications Digital Economy – Joseph Pategou Sources: Appendix
  18. 18. 23/05/2016 18 Case Study: Novartis Vs Kodak Digital Economy – Joseph Pategou
  19. 19. 23/05/2016 19 Novartis Digital Economy – Joseph Pategou
  20. 20. 23/05/2016 20 Novartis: Vision on the Mobile Health Michele Angelaccio Head, Mobile Strategy and Innovation Novartis "Through solutions such as mobile health, we intend to make a major change in the way in which care is delivered and to increase access to health services." “Also looking to expand its mobile health services from healthcare monitoring to virtual healthcare” Digital Economy – Joseph Pategou Sources: Appendix
  21. 21. 23/05/2016 21 Place of Novartis in this market  Active companies in the field of digital  Some facts :  Novartis won the PharmaSuccess Award Marketing Excellence in 2013  In 2013, Novartis is the digital company of the year  Novartis won the PharmaSuccess Award Marketing Excellence in 2014  Partnership with Google  2013 Novartis organized an ‘mHealth Challenge’ a 48-hours development marathon in the heart of Silicon Valley in the United States, aimed at identifying a novel way to use mobile technology to address a major health challenge. Digital Economy – Joseph Pategou Sources: Appendix
  22. 22. 23/05/2016 Digital Economy – Joseph Pategou 22 Place of Novartis in this market  Novartis in the still trying group Sources: Appendix
  23. 23. 23/05/2016 23 Kodak Digital Economy – Joseph Pategou
  24. 24. 23/05/2016 24 The case of Kodak: The example that Novartis is not following Created in 1880 in Rochester, by George Eastman, Kodak was able to make it easy and cheap, the photography, previously expensive and complex activity. In the early 1990s, the company will opt for a slow transition to digital; in addition, the technology seems uncertain and costly. Kodak is quickly overtaken by Sony, Canon and even the Fuji in the digital photo. Market leader, Kodak missed the turn of digital, which has transformed the world of photography. This missed opportunity will lead the company to bankruptcy. Novartis, digital company in 2013, understood that mobile Health is transforming the pharmaceutical industry. She did not miss his appointment with the mobile health as Kodak with the digital photography. Digital Economy – Joseph Pategou Sources: Appendix
  25. 25. 23/05/2016 25 Future Challenges & Opportunities Digital Economy – Joseph Pategou
  26. 26. 23/05/2016 26 Future Challenges 1. The first one is to win the trust of patients Pharma companies are fighting an uphill battle in many ways. One is that, as technologies like mobile devices bring healthcare into patients’ homes, patient trust becomes more important than ever. And pharmaceutical companies generally aren’t as trusted as physicians or even insurers. A Deloitte survey last year found that although people trust doctors and academic centers most, the next most trusted entities are companies like WebMD, then Google search results. At the bottom of the list are pharma and other types companies. A more recent study, by Makovsky Health, found that only around 35% of consumers would trust a disease website sponsored by a pharmaceutical company, and 16% said they would never visit a disease website sponsored by a pharma company. 2. The second one is the ability to take risk Pharma companies is historically extremely risk-averse, when you introduce a new factor, it inherently increases risk. In a business that is focused on reducing risk, then those are things that life sciences companies are going to stay away from. In the business of mobile health will always need to take risk to be the best. 3. The last challenge Ability to produce relevant apps for patients, for that, they need to develop a customer culture. Digital Economy – Joseph Pategou Sources: Appendix
  27. 27. 23/05/2016 27 Future Opportunities 1. Pharmaceutical companies will be closer to patients and will understand the needs, expectations and will be able to produce Blockbusters. 2. It is an opportunity for pharmaceutical companies to improve their image through the development of application which help patients. 3. This revolution may allow pharmaceutical companies to become key players in the prevention of diseases. 4. MHealth will become a new level of growth (Turnover). Digital Economy – Joseph Pategou Sources: Appendix
  28. 28. 23/05/2016 28 PHARMA COMPANIES: FROM MHEALTH TO DIGITAL MASTERS Digital Economy – Joseph Pategou
  29. 29. 23/05/2016 29 Pharma Companies: From mHealth to DIGITAL MASTERS Pharma companies must become DIGITAL MASTERS* The DNA OF DIGITAL MASTERS  Digital Capabilities  Know where and how to invest in the digital opportunity  The size of the investment is not as important as the reason and the impact  Leadership Capabilities  Top-down leadership  Strong governance and coordination • Setting direction • Building momentum • Ensuring that the company follows through Example: Chief digital officer (CDO) or Chief information officer (CIO) (*): LEADING DIGITAL: Turning technology into business transformation, Havard Business Review press Digital Economy – Joseph Pategou
  30. 30. 23/05/2016 30 Pharma Companies: From mHealth to DIGITAL MASTERS Reasons to become digital masters  Digital Masters outperform their peers*:  26% more profitable than their average industry competitors  9% more revenue with their existing physical capacity  More efficiency in their existing products and processes  More Productivity (*): LEADING DIGITAL: Turning technology into business transformation, Havard Business Review press Digital Economy – Joseph Pategou Sources: Appendix
  31. 31. 23/05/2016 31 Information about the author Regulatory issues on the development of Biosimilars – Joseph Pategou I am fascinated by healthcare and the experience of many companies to develop new types of drug with the aim of saving lives around the world. Main topics of passion in the healthcare: - Strategy - Digital - Innovation - Biosimilars If you want to know more, please contact me: joseph.pategou@skema.edu M. Joseph Pategou
  32. 32. 23/05/2016 32 APPENDIX Digital Economy – Joseph Pategou
  33. 33. 23/05/2016 33 Reference 1. Bilan économique du LEEM (les entreprises du médicament) / édition 2014 2. Livre Blanc 2013-Télémédecine 2020 Modèles économiques 3. Livre vert sur la santé mobile- Commission Européenne 4. Research2Guidance-mHealth App Developer Economics 2014 5. Pwc-L’émergence du mHealth : un levier de croissance 6. Pwc- Socio-economic impact of mHealth An assessment report for the European Union 7. Syntec Numerique-Télémédecine 2020 faire de la france un leader du secteur en plus forte croissance de la e- santé 8. http://mobihealthnews.com/35895/novartis-mobile-health-strategy-poised-to-move-from-tracking-to-virtual-care/ 9. http://www.01net.com/editorial/626092/ios-versus-android-comparaison-nest-pas-forcement-raison/ 10. http://mobihealthnews.com/32420/10-digital-health-startups-that- pivoted/http://www.novartis.com/newsroom/feature-stories/2014/06/mHealth-a-revolution-in-healthcare.shtml 11. http://www.novartis.com/innovation/focus-on-patient-outcomes/index.shtml 12. http://www.novartis.com/innovation/focus-on-patient-outcomes/remote-monitoring.shtml 13. http://mobile-health.fr/2014/06/weecare-temoignage-de-novartis/ 14. http://europa.eu/rapid/press-release_IP-14-394_fr.htm 15. http://www.healthdatachallenges.com/challenges/database/novartis-mobile-health-challenge/ 16. http://www.mmm-online.com/avatar-wins-hearts-at-novartis-mhealth-challenge/article/321705/ 17. https://itunews.itu.int/fr/1632-Dialogue-de-Geneve-la-sante-sur-mobile.note.aspx 18. http://lemondedelaesante.wordpress.com/2012/07/31/le-remplacement-du-stethoscope-par-le-mobile-est-il- pour-demain/ 19. http://lemondedelaesante.wordpress.com/2013/03/05/la-m-sante-doit-elle-evoluer-pour-permettre-une- adoption-generalisee/ 20. http://research2guidance.com/why-pharma-companies-have-no-substantial-impact-on-the-mhealth-app- economy/ Digital Economy – Joseph Pategou

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