new physician engagement models - technology as enabler by ... · rural areas & others latin...
TRANSCRIPT
New Physician Engagement Models -
Technology as Enabler
By David Lennon
Is this Good Customer Experience?
1 Includes cities in China (incl. Hong Kong and Macau) and Taiwan
2 Includes Afghanistan, Bangladesh, India, Pakistan, Sri Lanka, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Papua New Guinea, Philippines, Singapore, Thailand and Vietnam
3 Includes 2,497 other large cities not included in City 600 that account for 19% of global growth
GDP growth contribution 2014-2018 (predicted real exchange rate)
China Accounts for ~30% of Global Growth
Source: McKinsey Global Institute
28
6
17
100
South &
SE Asia2
36
5
Middle East
& Africa
3
Eastern
Europe &
Central Asia
China1 Small cities &
Rural areas &
Others3
Latin
Americ
a
North
America,
Western
Europe, North
East Asia,
Australia &
New Zealand
4
Global
growth
25
0 60 57 39 37
15
7
GDP growth contribution (%)
# of cities
Healthcare Growth has been Strong
0
50
100
150
200
250
300
350
400
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
China Hospital Sales, RMB billions, 2003-2013
Source: IMS
But Low Contribution from Launches
Source: IMS China TOP 10 MNC CHPA data, exclude OTC brands
ASTRAZENECA
ROCHE
NOVARTIS
0.0
8.6
BAYER
PFIZER
MSD
GSK
ELI LILLY
SANOFI
22.9
44.9
119.5
190.4
286.7
395.0
395.2
838.5
New launches1
since 2009 NRDL
#
2013 sales from
new launches
M RMB
MSD
PFIZER
NOVO NORDISK
BAYER
ROCHE
NOVARTIS
SANOFI
ELI LILLY
ASTRAZENECA
GSK
0.0%
0.3%
0.3%
0.9%
2.1%
1.6%
5.9%
6.0%
5.2%
14.9%
New launches sales
contribution
% 2013 IMS Sales
1 New launches = Products with first sales since 2009; different from
NDA approvals due to line extensions and delays in commercial launch
NOVO NORDISK
9
7
6
6
5
3
2
2
2
SANOFI
ASTRAZENECA
NOVO NORDISK
GSK
MSD
BAYER
PFIZER
NOVARTIS
ELI LILLY
ROCHE
10
Increasing Price Pressure
Source: IMS 2013-2018 Market Prognosis
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
2.5
2.0
1.5
1.1
0.5
0.0
20.0
15.0
10.0
5.0
0.0
-5.0
RM
B
His
tori
cal/
Fo
recast
Gro
wth
(%
)
Historical/Baseline Forecast Growth
Hospital Sector Average Price per Standard Unit
Medical Rep Investment Keeping Pace
Source: Cegedigm
+25% CAGR
-5% CAGR
-7% CAGR
Growth Under Pressure
GDP Growth
Healthcare access
Lack of innovation
Reform: Price/profitability
War of reps
Typical Responses: The Rise of...
Key Account
Alternate Channels
Patient Centricity
Medical
Ethical Promotion
Current Approaches Incremental
Digital promotion
Call center/virtual medical representative
Broad market/portfolio representatives
Why Don’t these Approaches Work?
Emerging
Intermediaries
Requirements of
B2B Channels
HCP Behaviors
19.0
14.2
9.1
7.7 7.5 7.2 7.1
5.4 4.7
4.3 4.1 4.0 3.8 3.8 3.5 3.4 3.2 3.2 3.1 2.8 2.8 2.7 2.1 2.0 2.0 1.9 1.8 1.8 1.5 1.4 1.4 1.1 1.0 1.0 0.9 0.6 0.6 0.5 0.4
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Bao
tou
Total city level healthcare spending (2011) Bn RMB
Source: McKinsey Global Institute
Many Markets in One
Systems Adopting More Sophistication
Health-care industry, pubic-payer illustration
Source: McKinsey & Company, Big Data: What’s Your Plan, March 2013
Interlinked
data inputs
Analytic
models
Decision
support tools
Business
value + + = Universal lDs Patient demographics
Physician ID
Hospital ID
Treatment data Diagnoses
Procedures
Drugs and dosages
Medical aids
Cost data Hospital care
Primary care
Specialty care
Prescriptions
Predict hospitalization
risk for individual
patients
Patient-risk-score
calculator; patient-
workflow manager
Reduced spending
on patients with
chronic diseases
Measure cost and quality
of treatment, adjusted
for patient morbidity
Contract-evaluation
tool; pay-for-
performance models
More cost-efficient
care
Monitor treatment of
patients with chronic
diseases and compare
with medical guidelines
Patient-treatment
monitor; physician-
alert tool
Reduced spending
eg, on unnecessary
hospital stays
Compare hospital
productivity with others,
accounting for patients’
health and demographics
Outside-in productivity-
benchmarking tool for
hospital staff
Reduced hospital
budgets
Central government SFDA approval NRDL
Province Pricing
PRDL
City Brand listing,
Reimbursement ratio
Hospital Listing and usage
Simplified Drug Reimbursement Process
Engagement Opportunities at Multiple Levels
Source: Interviews
Local official open to collaboration
“We are in great need for know-how support”
Director, Shanghai Healthcare Reform
“Need support on effective cost containment and ways to
utilize united system across 9 provinces”
Deputy Head, Shaanxi Province Medical Insurance
“We are planning to build 13 more 3A hospitals beyond
the 17 we have today. To achieve this, we will require
support from all parties”
Deputy Head, Chongqing Municipal Price Bureau
Marketing Needs to Meet Customer
Expectations
From...
• Mass approach
• Core messages
• In call or events
Expectations...
• “Personalized to me”
• “For my need”
• “When I need it”
To...
• Right customer
• Right solution
• Right time
Requires More Customer Involvement
Source: IBM Global C-Suite Survey, 2013
54% more
39% Underperformers
60% Outperformers
Collaboration with customers drives
superior financial performances
Where CxOs want to include customers
50%
56%
60%
72%
75%
90%
Environmental and social policies
development
Pricing structure development
Business strategy development
Customer policies and procedures
development
Product/service testing
New Product and service definition
Shifting Focus: Organizational Openness
Operational control 28% 52% Organizational openness
Neutral
82%
71%
59%
43%
48%
33%
Today 3-5 Years
B2B Channels have even Higher Requirements
Beyond right customer, right solution, right time...
Stickiness Longevity Scalability
How will Technology Help Us?
Robo-REP
Low-cost interventions at alternate points of value chain
Big data applied to current approaches
$
Robo-rep: Integrated, Rep-led MCM
SMS
Virtual meeting
1:1 Detailing
Real-time
medical Info
MSL Skype call
Weixin peer
group
Requirements
Integrated content
management
High-end CRM
Powerful CLM analytics
Creating Value at Alternate Points of “Sale”
Presidents,
Vice-Chairman
– Value
demonstration
projects
E.g.: EHR-driven
Health Economics
and Outcomes
Research
Point of Access
Nurse; other
HCPs
– Technology
interventions to
improve
stratification at
diagnosis
Point of Diagnosis
Pharmacists
– Piggy-back on
dispensing systems
to improve
treatment choices
and adherence
Point of Dispensing
Big Data: Are You Ready?
Source: Google Cloud Analytics
Technology Data Culture
Scalable and performant Scale with business demands
Understanding of organizational data
availability What data exists, state and its availability?
Data driven approach to insights What data exists, state and its availability?
Open standards Enable adoption within existing IT landscape & skillsets
Data requirements First Class citizen in Business
Processes Design Ability to collect data intra/inter business processes.
Fail Fast Use of Agile approaches to analysis and hypothesis validation?
Support mixed workloads
Real-time/Batch, HPC, Interactive etc.
Availability and inventory of proxy data Use of proxy data when required data is not available
Promote Experimentation Experiment, Experiment, Experiment to validate and learn, do you
have infrastructure and process support?
Accessible across organization Ease and simplicity access across all locations
Accessibility to Data across organization (Minimal) policies and procedures for data access and availability across
organization
Enabler for data driven behavior Focus on consumption, not on administration
Cost Effective Support healthy ROI with experimentation
Conclusions
Growth is likely to continue in China, but with increasing pressure on finding
cost-effective measures to engage customers
Current approaches have been incremental to the current model, and lack
aspects of stickiness, longevity, and scalability required for pharmaceutical
commercial effectiveness
Pursuing more integrated, technology-enabled solutions to a broader range of
customers will be needed
Thank You
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