across health digital barometer china 2011

2011China Digital Barometer

for life sciences

Across HealthCEO

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. This year’s edition we have reached out to EMEA, US and China. The results of the Chinese respondents gives you a 360° view on the status, challenges and future of “The New Normal”, aka digital, in life sciences.

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 the hot-off-the press findings!

January 2012 2Across Health Digital Barometer China 2011

Executive summary


Table of contents

• Executive summary

• Key survey statistics

• Digital landscape: as-is situation• Digital satisfaction

• Benchmark against competitors and other industries

• Most common eTactics

• Key challenges• Bottlenecks

• Digital understanding & processes

• ROI measurement

• The future of digital in life sciences• Digital integration & budgets


Executive summary

“It’s not about being

digital anymore, it’s

now about being

clever with digital.”

Peter Hinssen

Digital Barometer China 2011

• Digital satisfaction is not as low as in the other

regions

• Digital activities are more advanced than in

Europe, led by online medical education. But also

tablet & virtual detailing, webcasts and mobile

marketing are heavily piloted.

• ROI questions, lack of digital strategy and

regulatory & legal issues are the main bottlenecks.

Lack of internal knowledge holds the 4th spot...

• Digital opportunities are mostly being included in the

marketing process

• Digital budgets continue to be low vs total marketing

spend (around 8%)


Key statistics


Table of contents








• ROI measurement



Key stats

at a glance

• 23 respondents from China life sciences

companies completed the online survey

between October - November 2011

• 29 additional respondents were

recruited at a workshop in China in

December 2011

• Industry spread

Pharma, biotech, medical devices

• Functional spread

Marketing, medical, sales, digital, IT, CRM,

other

• Local vs international spread

Global, regional (Asia), local


Most respondents work within a pharma country

affiliate and have a marketing or medical responsibility

17%

83%

Medical devices company

Pharmaceutical company


National57%Regional

17%

Global26%

Marketing48%

Medical26%

Sales9%

eBusiness/Digital

9%

IT9%

Digital landscape


Table of contents



• Digital landscape: as-is situation

• Digital satisfaction





• ROI measurement



Executive summaryDigital landscape

• Satisfaction with digital is higher than within

Europe

• The sentiment around activities towards

HCPs is 26% while digital patient

programmes are reaching 17%

• A gap with other industries exists (43%) and

is only hesitantly being closed

• Most investments in the eTactic mix go to

websites and online medical education

• But several new tools, like tablet & virtual

detailing, webcasts and mobile marketing are

heavily piloted

“The great thing in the world is not so much where we stand, as in what direction we are moving.”

Oliver W. Holmes


26% of respondents is satisfied with current eBusiness activities

(much higher than Europe 12%)

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

Extremely

Satisfied

Extremely

Dissatisfied

2%

10%

23%

38%

13% 13%

0 1 2 3 4 5


N=52

26%

This more positive view is also reflected when comparing own

digital presence versus competition. 26% feels they are ahead

(Europe 15%)

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

initiatives targeted at healthcare professionals?

26%

HCPs

22%

4%

22%

26%

22%

4%

No opinion Far behind Behind Average Ahead Far ahead


N=23

In Europe, positive sentiment dropped significantly over time...


initiatives targeted at healthcare professionals?

25%

17%13%

1% 2% 2%

0%

10%

20%

30%

40%

50%

2009 2010 2011


26%

19%

15%

HCPsJanuary 2012 15Across Health Digital Barometer China 2011

As in Europe, 17% feels they are ahead competition when it comes

to digital consumer marketing


initiatives targeted at consumers/patients?

Patients

22%

9%

17%

35%

13%

4%


17%


N=23

How would you rank your company versus leading other industries

in optimally leveraging the internet?

Only 43% feel they are behind the other industries (67% Europe)

Digital vs other industries

43%

9%

26%

17%

26%

17%

4%



N=23

Digital Strategyin the New Normal

Peter Hinssen

Managing Partner, Across Health

For more information on Peter’s recent book “The

New Normal”, click to newnormal.com.

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 years, max.


http://www.neonormal.com/

The company website is the most important etactic shortly

followed by product websites. Tablet & virtual eDetailing, web

conferences and mobile marketing are heavily piloted


79%

58%

53%

47%

38%

36%

34%

26%

25%

25%

23%

23%

17%

13%

13%

11%

11%

4%

21%

15%

23%

42%

26%

23%

47%

32%

40%

25%

28%

28%

25%

42%

26%

23%

13%

17%

25%

21%

19%

32%

32%

21%

32%

28%

38%

34%

51%

49%

43%

45%

58%

4%

4%

8%

9%

2%

6%

11%

6%

11%

8%

15%

15%

4%

13%

2%

17%

8%

Company website

Product website

Disease webstie

Online medical education

Web conference

eMail Marketing

Web banners

Tablet eDetailing

HCP Self-service portal

Mobile marketing

Search Engine Advertising (SEA)

Search Engine Optimization (SEO)

Social media

Online advisory board

Virtual eDetailing

eMSL

eRep

Often / Standard practice Pilot planned or ongoing Never Do not know / NA

N=52

CME apps are in 3rd position preceded by information providing

type of apps, which shows also in mobile a much higher use of

eCME than in other regions


52%

39%

30%

17%

17%

17%

13%

4%

Product info/updates

Medical news/article updates

CME

Diagnosis tool

Dosage calculator

Treatment guidelines

Symptom tracker

Adherence/compliance tracker

Remote monitoring of patients

What types of apps do you develop or have developed?

N=23

Key challenges


Table of contents








• ROI measurement


• Trends in eTool adoption


Executive summary

“When you're

finished changing,

you're finished.”

Benjamin Franklin

Key challenges

• Introducing digital is still very challenging

• ROI questions, lack of digital strategy and

regulatory & legal issues are the main

bottlenecks. Lack of internal knowledge holds

the 4th spot...

• 87% (!) feel they do not have sufficient

knowledge of digital opportunities and there is

extensive work in knowledge sharing

• 52% are measuring ROI in some way or another,

still it remains the major bottleneck


eRep and eMSLin the mix

May 3, 2011 Across Health digital Survey EMEA 201124

Beverly Smet

Vice President Europe South

More and more often, HCPs don’t have enough time for a decent visit by a sales rep or medical advisor. This endangers the main channel through which life sciences companies currently communicate with their customers.

Through the internet, an innovative and convenient alternative way emerges for reps and MSLs to connect with their doctors. A webcall is not only more flexible: the overall attention span and thus message recall is also higher.

ROI questions, no clear eBusiness strategy, regulatory & legal

issues and not enough internal knowledge are main bottlenecks

25%

28%

14%

8%

6%

9%

0%

3%

0%

3%

0%

5%

9%

14%

14%

11%

11%

11%

8%

5%

3%

0%

3%

11%

14%

3%

5%

11%

14%

5%

14%

6%

6%

5%

3%

14%

ROI questions

No clear eBusiness strategy

Regulatory or legal issues

Not enough internal knowledge in this area

Healthcare compliance concerns

Customers are not ready

No budget

No headcount to support this

No expert agencies with pharma …

No senior management support

Pharmacovigilance issues (adverse event …

N/A

Most important Second most important Third most important


N=52

0%

39%

48%

13%

0%

Totally insufficient Insufficient Between sufficient and insufficient Sufficient More than sufficient (expert)

Most participants feel they are ahead competition, however 87%

feel they do not have sufficient knowledge.

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

your business activities?

Internal knowledge

87%


N=23

And only half of them confirms that there is an SOP in place to

improve knowledge sharing

Does your company have standard operating procedures or other procedures for the use of the

internet in customer-facing activities?

Knowledge sharingJanuary 2012 Across Health Digital Barometer China 2011 27

Yes48%

No26%

Do not know26%

N=23

Only 22% has formal processes to share information about digital

strategies

Are there any formal processes to share the information about digital strategies within your

company?

Knowledge sharing

Yes22%

No, but should be in place

39%

No, it is not required

22%

Do not know17%


N=23

22%

4%

22%

30%

22%

Never - would love to, but do not know how

Never - not relevant

Rarely

Sometimes

Always

ROI is seen as a major hurdle, however 52% is measuring this in

some way or another

Do you measure the impact of your digital activities?

ROI

52%


N=23

Setting up thedigital organization

Ruud Kooi

Vice President Europe North

There are no silver bullets in adjusting an organization to the digital age. It requires the right knowledge and the right mindset. It needs setting up new business and technology processes. A good integration of channels in marketing/sales activities is essential, and only a correct measurement of the results enables us to generate valuable learning insights.

Think long term, act short term!


The future of digitalIn Life Sciences


Table of contents








• ROI measurement



Executive summary

“My interest is in the

future because I am

going to spend the

rest of my life there.”

Charles F. Kettering

The future of digital

in Life Sciences

• Digital opportunities are mostly being included in

the marketing process

• Digital budgets continue to be low vs total

marketing spend (around 8%)

• Only 17% rely on an actual framework around

marketing mix to base their decisions on


70% of respondents are including digital opportunities in the

marketing planning process

Are digital opportunities included in the budget and marketing planning processes?

9%

22%

61%

9%

Not at all

No, but it is changing

Yes, this is the case for several brands

Yes, this is the case for all brands


N=23

However the digital marketing budgets are on the low side…

If you oversee a product budget, which percentage of it is

allocated to digital marketing THIS YEAR?

19%

26%

9%

4%

Less than 5%

Between 5 and 10%

Between 10 and 15%

More than 15%


N=47

13%17%

39%

13%13%

4%

Based on experience/gut feelingBased on a conceptual framework on marketing mixBased on market researchBased on customer feedbackBased on last years budgetBased on econometric modeling

17% rely on an actual framework around marketing mix, while

another 52% have at least some foundation for their decisions

How do you define your marketing mix / multichannel allocation?

52%


N=23

Marketing mixassessment

Bernard Depaepe

Managing Director Asia

Albeit slowly, companies are shifting budgets away from traditional channels to digital. The key question then becomes: which channels can I safely reduce and to which new channels should I allocate those budgets? And how much should I invest in each channel to ensure I have at least the same impact as before at a lower cost?

In times of change, it is very tricky to rely on experience or “gut feeling”, as this may lead to the wrong investments or, possibly even worse, underinvestment.

A marketing mix assessment is an objective and powerful basis for making these crucial decisions, as many of our clients have already realized.


Final thoughts


So will 2012 be agrand cru for “fusion”?

Fonny Schenck

Managing Partner, Across Group

CEO, Across Health

Clearly, digital is increasingly being seen as a key component of the future business model... Although low, budgets are increasing and companies want to enhance their knowledge around digital.

The key hurdles remain the same however: lack of a digital strategy and regulatory/legal concerns ...

So, will 2012 be the digital “turning point”? Will you boost your online budget beyond the symbolic level? Will you spend it on the right digital channels based on a marketing mix assessment and integration with your marketing strategy? Will you integrate digital with offline? And will you go for the right mix of implementation of best practices, improvement of existing initiatives and true innovation?

I wish you every success on this exciting journey!!


About Across HealthCOMPANY

• 60+ strong consultancy

• Focus on innovative customer-centric approaches

(e-powering traditional channels– “fusion”)

• From strategy to implementation and success

metrics/KPIs

• Unique offering in the industry

TARGET CUSTOMERS

• Pharmaceuticals

• Devices & Diagnostics

• Hospitals

• Patient & Professional Associations

INTERNATIONAL EXPANSION ONGOING

• Head offices in Belgium (Ghent)

• Offices in Netherlands (Breda), France (Paris), UK

(London), Switzerland (Basel), Nordics (Copenhagen),

Germany (Munich), New Europe (Prague), China

(Shanghai) and North America (New Jersey)

Extensive experience at regional/global level

AND

local execution power

Across Health Expertise Overview

INSIGHT BE NL FR GE SW IT SP UK Nordics TU USA China

EMEA

Landscape Analysis

Marketing Mix Assessment

CRM/Ebiz Benchmarking Projects coordinated at EMEA level, but taking place in different EU countries

Buzz Monitoring Projects coordinated at EMEA level, but taking place in different EU countries

INNOVATION BE NL FR GE SW IT SP UK Nordics TU USA EMEA

Fusion Strategy

Social Media Strategy Projects coordinated at EMEA level, but taking place in different EU countries

Mobile Strategy Projects coordinated at EMEA level, but taking place in different EU countries

Innovation Bootcamps

IMPACT BE NL FR GE SW IT SP UK Nordics TU USA EMEA

Dashboards

Web Analytics

Rep equivalent model

Customer-centricity metrics

1 project finished + learnings

>2 projects finished + learnings

1 proposal

1 project ongoing


IMPLEMENTATION BE NL FR GE SW IT SP UK Nordics TU USA China EMEA

iPad detailing

Other iPad projects

Teledetailing

eRep/Hybrid Rep

Vdetailing

HCP Portal

Mobile Marketing HCP

Mobile Marketing CONS

Social Media for HCPs

Social Media for CONS

Patient website

Multichannel HCP Marketing

Change Mgt & on-site consulting

Across Health Expertise Overview

1 project finished + learnings

>2 projects finished + learnings

1 proposal

1 project ongoing


0203

04 01

InnovationImplementation

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 support you in the implementationof our recommendations – from project management to website development,

edetailing, dialogue marketing, remote selling & education, change

management, process & organizational design and creative execution

We come up with a 2-3 year

innovative, balanced and integrated

roadmap and strategy to move into

the new space, based on workshops,

customer interviews and Across

insights.


Our international footprint

Some of our key references


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

These results have been compiled by Yue Feng, Francis Chay & Bernard Depaepe

For any question, mail to [email protected] ; [email protected] ;

[email protected]

Make sure also to check out our fields of expertise on

Contact Details

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.

Or follow us on

mailto:[email protected]









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

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