Data: The New ‘Magic Wand’ For Pharma Business Excellence?

Posted on October 1, 2018 by Tapan Ray

Pharma companies focus more on defending their current practices, rather than doing things differently. A September 24, 2014 article by Bain & Company, titled ‘New Paths to Value Creation in Pharma’, made this observation.

This happens regardless of the credence that leaders who change too early, risk losing attractive cash flows from established business models, and those that move too late risk being disrupted by emerging competitors. However, analyzing the recent history, the authors observed that pharma leaders have more often erred on the side of holding on to old models for too long, leaving room for more aggressive players to disrupt them.

Analysis of the 10 companies in the above study also found: “With their sustained success, these companies refute the widely held assumption that serendipitous innovation is the key to success in pharma.” However, on the ground all 10 of these large global drug companies have prospered despite industry-wide trends such as declining R&D productivity and the demise of the primary care blockbuster model. The authors explained: “This is because they operate in a high-margin environment.”

Starting with this scenario, I shall submit in this article, why the importance of well targeted data-based decision-making process, across the pharma functional areas, is now more than ever before.

Rewriting notes in the business playbook, taking cue from new data:

Having charted in the high margin ambience, Big Pharma exhibit reluctance in recomposing notes in the business playbook, based on a new set of real-life data. This is essential for sustainable success in a fast-changing business, political and social environment. They keep maintaining a strong belief in what they have been believing, regardless of what a large volume of credible data overwhelmingly indicates. Ongoing near unanimity in their collective decision to further intensify expensive advocacy initiatives in the same direction, continues. Other pharma players follow the same course.

This vicious circle continues sans any positive outcome, neither for pharma, nor for the patients. Already dented reputation of the industry gets more dented. In my various articles in this blog, I deliberated on various areas that merit radical overhaul in the pharma business, including patient-centricity and transforming the business through digitalization.

Use of data and analytics leaves room for a huge improvement in pharma:

Let me express upfront, I am not trying to say, in any way, that pharma companies, in general, are not making investments for customized data generation or in analytics for use in new drug discovery and development, aiming improved process productivity. But, in many other functional areas, such as drug marketing, stakeholder engagement or even in strategic corporate communication for greater effectiveness, usage of scalable data and modern analytics leave much room for improvement.

Quality of data-use – ‘the proof of the pudding is in the eating’:

As the saying goes, the proof of the pudding is in the eating, let me give a couple of examples on the quality of data-use and their outcomes in the areas under discussion.

Sizeable data clearly establishes the wish of most stakeholders, including patients for transparency in drug pricing, alongside improved access to affordable medicines. However, Big Pharma and their associates trying to swim against the tide keep advocating how the expensive process of drug innovation merits high drug prices. Understandably, negative public perception towards the industry further intensifies. Assuming that data analytics are extensively put to use while developing such communication, can anyone possibly cite such efforts as examples of productive use data?

Similarly, if any pharma company, for example, Sanofi besides many others, claims that it aims at ‘promoting and sustaining ethics and integrity in all our activities’ and has developed a comprehensive body of policies and standards, to provide guidance on a range of challenges specific to pharma industry like anti-bribery. However, in practice, we hear and read, even very recently that ‘Sanofi to pay more than $25 million to resolve corruption charges’ and which is not a solitary instance, either. The question, therefore, surfaces, how can data play any role in the fight against corruption by uncovering, preventing and deterring corruption.

‘How data is changing the fight against corruption:’

There are many published research papers, which established that effective use of data can prevent such corruption, and surely in cases of alleged repeat or multiple offenders in the pharma industry. One such paper titled, ‘How data is changing the fight against corruption,’ published in the OECD Forum Network on February 13, 2018, also reconfirms this point. It says:Data – both big and open – is indeed changing the anti-corruption landscape, by uncovering, preventing and deterring corruption.

Is pharma leveraging the data power for holistic business success?

I am not sure, but available evidences suggest most of them are not – at least, aiming for holistic business success. This is because, in the pharma industry, including Big Pharma, as I wrotein the past, alleged corrupt practices are widespread and continue unabated. This is quite evident from the national and international business magazines and media reports, coming rather frequently. The Transparency International Report titled “Corruption in the pharmaceutical sector – Transparency International 2016”, discusses the raging issue across the various functions of many drug companies.

Besides pharma and biotech R&D, there are many other critical areas, where leveraging data power with expert application of analytics, pharma players can reap rich harvest in terms of sustainable long-term business growth. However, for that there are some prerequisites, like – an open mind, unbiased approach, a mindset to accept reality as they are, and then neutralize the unfavorable ones with cerebral power. Trying to rationalize what is not working makes the situation worse, more complex, creating stronger headwinds.

Many sources of data capturing, still limited usage:

There are many sources of abundant data availability of various kinds, for pharma players. However, targeted data gathering of scale and appropriate analysis of the same, still remain rather limited in pharma. For example, while marketing their brands, numerous drug players in India don’t venture going beyond limited sources for data capturing for broad analysis. Such data may usually include, syndicated retail and prescription audits, besides internal sales and marketing details together with associated expenses or productivity related statistics. Data mining for dip-stick analysis is done seldom, according to industry sources.

Additionally, there are copious others who operate predominantly on ‘gut feeling’ and hearsay, sans any customer related meaningful and real-time data. When we create hype on patient-centricity, and alongside witness the general outcomes of such approaches, it requires no rocket science to fathom how much intelligent data input has gone behind such strategies.

The present system itself generates an enormous amount of real-time data in various areas, though most are not effectively utilized for weighty payoff, especially in pharma. The ongoing process of data generation also includes, drug innovation initiatives, manufacturing, supply-chain, distributor–wholesaler-retailer activities, digital apps and different websites, besides scores of other sources. But, the information, as stated above, apparently, is hardly analyzed through analytics to obtain targeted strategic inputs. Leave aside, intelligent application of the same to scale newer heights of all-round business success.

Data generation for swimming against the tide of public perception:

Although, it’s not yielding positive results, I understand, pharma keeps spending a lot, both at the company level or through their trade bodies, to rationalize what they want the stakeholders to believe. For example,’ drug price control limits access to drugs’. Various reports to this effect are made public and used for the aggressive advocacy campaigns, though hardly taken seriously by those who matter.

Any price control, I reckon, may not be supported in ordinary circumstances. However, drug price control has definitely helped India to improve access to drugs without impeding any reasonable growth of the industry. That 5 or 10-year CAGR of the drug industry comes in double digit, despite continuation of drug price control regime for the last 48 years, offers a testimony to this fact. It’s a different issue, though, that Indian public health care system remains in shamble, even in the present regime. The lackadaisical attitude of all governments on public health related areas, is held responsible for this failure.

Conclusion:

The bottom-line is, expensive data generation effort, when gets primarily driven by self-serving motives, becomes increasingly counterproductive, as cited above. More informed stakeholders of date, including patients, probably other than the stock markets, want to see pharma players more in sync with the ground realities, and are acting accordingly. Thus, for sustainable business success, saner senses should prevail to generate adequate amounts of credible and targeted data, analyze them properly through analytics and use these with cerebral power to create a win-win situation in the pharma business.

In my view, any comprehensive ‘Decision Support System’ of an organization should go beyond the generation of mammoth internal business-related data. It should be integrated with the same kind of targeted external data of scale, with the use of modern analytics. This needs to happen – both at the macro level – as an organization, and also at the micro level – with its various functions. The corporate illusion of always ‘operating in a high-margin environment’ in pharma, will not guarantee sustainable business success, any longer.

From this perspective, using well-integrated internal and external data as the bedrock of all strategic decisions in pharma, I reckon, would soon prove to be a ‘magic wand,’ as it were, for pharma business excellence.

By: Tapan J. Ray

Disclaimer: The views/opinions expressed in this article are entirely my own, written in my individual and personal capacity. I do not represent any other person or organization for this opinion.

Disruptive Digital Innovation To Reduce Medication Need?

Posted on May 1, 2017 by Tapan Ray

Application of digital technology in various spheres of not just business, but in our individual day to life also, promises a disruptive change for the better, from the traditional way of doing things and achieving goals – freeing a lot of precious time for us to do much more, and even faster. An impending tsunami of this digital revolution, as it were, is now all pervasive, with various digital application platforms becoming increasingly more cost effective, quite in tandem with the fast pace of cutting-edge innovation. This is so different from what is generally witnessed in the pharma business.

Interestingly, despite high demand for cost effective health care from all over the world, not much progress in this area is still visible within this industry, in general, and particularly in the pharma business. Various reasons may be attributed to this apathy, which I shall not venture to go into, today.

On the other hand, sniffing a huge opportunity in this largely vacant space, many tech giants and startups are investing heavily to make health care of people easier, and at the same time reap a rich harvest, far outpacing the big pharma players.

As I connect the different dots on world-class digital initiatives in the health space, a clear trend emerges on the global scenario. The way Internet revolution, to start with, followed by smartphones and many other wireless digital services is changing the rhythm of life for many making it much easier, is just amazing. These include a plethora of everyday ‘must-do’ and several other functions, such as, precise need-based information gathering, online banking, tax-filing, shopping, payment, social networking, cloud computing and storage, besides a gamut of other digital services.

Similar disruptive digital innovations are expected in the health care space too, involving many long-awaited patient-centric areas, such as, significant reduction in the cost of medication. I discussed a similar issue in one of my earlier articles, published in this blog. However, today, I shall focus on this specific area, in view of its possible huge impact on the traditional pharma business model.

May reduce need of medication:

That tech startups are developing digital tools that reduce the need of medication, was very recently reported in an article titled, ‘Digital disruptors take big pharma beyond the pill’ published in the Financial Times on April 24, 2017. For example, a California-based startup, has reportedly come out with a digital device, smaller than an iPhone and fitted with a cellular chip, that can keep instant and accurate track of blood sugar levels. If the readings fall in the danger zone, an appropriate text message will be automatically generated for the person, such as – “drink two glasses of water and walk for 15 minutes”. The individual can also seek further help over the telephone from a trained coach – a highly-qualified dietitian for further guidance, the article highlights.

The whiz kid developers of wearable digital devices and apps are now intently working on many innovative health care solutions. Many of these can help early disease detection, and chart the risk profile of persons prone to various ailments, based on an enormous amount of well researched scientific data, significantly reducing the need of medication through effective disease prevention and management protocols. For example, there are umpteen evidences, demonstrating that specific moderate physical exercises help control diabetes just as well as medication, when detected early.

Thus, I reckon, such wearable digital devices and apps carry a huge promise to detect many diseases like, diabetes at its very onset or even before, and influence the person to take the necessary measures. In case of diabetes, it could be like, walking a certain distance every day, along with regular dietary advices from a remote center. Won’t such digital interventions work out far cheaper and convenient than lifelong visits to physicians and administration of anti-diabetic drugs?

The notes of the pharma business playbook need to be rewritten?

Let me quickly elaborate this point with an example of a common chronic ailment, say, diabetes. For effective management of this disease, global pharma players prefer to focus on better and better antidiabetic drug development, and after that spend a fortune towards their effective sales and marketing for generating enough prescription demand. Branded generic manufacturers are no different. This is important for all of them as most patients will have to administer the medicines for chronic ailments for a lifetime, incurring significant recurrent expenses for effective disease control. The first access point of such disease management has always been a doctor, initially for diagnosis and then for lifelong treatment.

Disruptive digital innovation could change the first point of intervention from the doctors to various digital apps or devices. These digital tools would be able to check and capture the person concerned predisposition to chronic diseases like, hypertension and diabetes, besides many other serious ailments, including possible cancer. When detected early, primary disease management advice would be available to patients from the app or the device itself, such as, the above-mentioned device for diabetes. If the preventive practices can manage the disease, and keep it under control, there won’t be any serious need to visit a doctor or pop a pill, thus, avoiding any need of active medication.

In that sense, as the above FT article has articulated, ‘rather than buying a pill, people might buy an overall solution for diabetes’ can’t be more relevant. When it happens, it will have a multiplier effect, possibly impacting the volume of consumption of medicines, just as what disease prevention initiatives do. Consequently, the notes of the pharma business playbook may have to be rewritten with right proactive measures.

As reported, the good news is, at least a couple of global pharma players have started fathoming its impact. This is apparent from Sanofi’s collaboration on digital devices and patient support for diabetics, and to some extent with Pfizer on immuno-oncology, using expertise in data analytics to identify new drug targets.

The key players in this ‘healthcare value chain’:

When the digital health care revolution will invade the current space of traditional-health care, it will create both the winners and losers. This was clearly highlighted in an article titled, ‘A digital revolution in healthcare is speeding up’, published by ‘The Economist’ on March 02, 2017.

From this article, it appears, when viewed in the Indian context that primarily two groups of players are currently ‘fighting a war for control’ of this ‘healthcare value chain’, as follows:

Traditional innovators: These are pharma companies, hospitals and medical-technology companies, such as, Siemens, GE and Phillips.

Technology insurgents: These include Microsoft, Apple, Google, and a host of hungry digital entrepreneurs and startups – creating apps, predictive-diagnostics systems and new devices.

Where is the threat to traditional pharma innovators?

This emerging trend could pose a threat to traditional innovators as the individual and collective knowledge base gets wider and wider – the above article envisages. With the medical records getting increasingly digitized with new kinds of patient data available from genomic sequencing, sensors and even from social media, the Government, including many individuals and groups, can now get a much better insight into which treatments work better with avoidable costs, on a value-based yardstick. For example, if digital apps and wearable devices are found even equally effective as drugs, with the least cost, to effectively manage the menace of diabetes in the country, notwithstanding any strong ‘fear arising’ counter propaganda, as we often read and here and there, those will increasingly gain better acceptance from all concerned.

The moot question, therefore, arises, would the drug companies lose significantly to the emerging digital players in the health care arena, such as, Microsoft, Apple and Google?

Tech giants are moving faster:

In several disease areas like, cancer and diabetes, the tech giants are taking longer and bigger strides than the traditional pharma innovators. For example:

Microsoft has vowed to “solve the problem of cancer” within a decade by using groundbreaking computer science to crack the code of diseased cells so that they can be reprogrammed back to a healthy state.

Apple has a secret team working on the holy grail for treating diabetes. The Company has a secret group of biomedical engineers developing sensors to monitor blood sugar levels. This initiative was initially envisioned by Steve Jobs before his death. If successful, the advance could help millions of diabetes patients and turn devices, like Apple Watch, into a must-have.

Verily – the life sciences arm of Google’s parent company Alphabet, has been working on a “smart” glucose-sensing contact lens with Novartis for several years, to detect blood glucose levels through tears, without drawing any blood. However, Novartis has since, reportedly, abandoned its 2016 goal to start testing the autofocus contact lens on people, though it said the groundbreaking product it is “progressing steadily.” It has been widely reported that this could probably be due to the reason that Novartis is possibly mulling to sale its eye care division Alcon.

Calico, which is also owned by Google’s parent company Alphabet, has US$ 1.5 billion in funding to carry out studies in mice, yeast, worms and African naked mole rats for understanding the ageing process, and how to slow it, reports MIT Technology Review.

No wonder, why an article published in Forbes magazine, published on April 15, 2017 considered these tech giants as ‘The Next Big Pharma’. It said, ‘if the innovations of Google and Apple are another wake-up call for the life science industry, which oftentimes has relied on the snooze function of line extensions and extended-release drugs as the source of income and innovation.’

In conclusion:

An effective disease treatment solution based on different digital platforms has a key financial advantage, as well. This is because the process of generation of huge amounts of credible scientific data, through large pre-clinical and clinical trials, establishing the efficacy and safety of new drugs on humans for regulatory approval, is immensely expensive, as compared to the digital ones. Intriguingly, no global pharma player does not seem to have launched any significant digital health care solution for patients to reduce the overall cost of disease burden, be it prevention or management.

In that context, it’s encouraging to note the profound comment of the Chief Operating Officer – Jeff Williams of Apple Inc., made during a radio show – ‘Conversations on Health Care’, as reported by ‘appleinsider.com’ on January 06, 2016. During the interaction, Williams reiterated that the rapid progress of technology in this direction is very real, as ‘Apple’ and other smartphone health app developers are stretching the commoditization of computer technology to serve health sciences. In not so distant future, with relatively inexpensive smartphones and supporting health apps – the doctors and researchers can deliver better standards of living, even in severely under-served areas like Africa, where there are only 55 trained specialists in autism.

Thus, it now looks reasonably certain to me that disruptive digital innovation on various chronic health care solutions is ultimately going to reduce the need of medication for many patients, across the world, including India, significantly.

By: Tapan J. Ray

Disclaimer: The views/opinions expressed in this article are entirely my own, written in my individual and personal capacity. I do not represent any other person or organization for this opinion.

Recomposing Notes of Pharma Marketing Playbook

Posted on June 20, 2016 by Tapan Ray

The global management guru Peter Drucker, in one of his management classics – “The Practice of Management”, published in 1954, that created the discipline of modern management practices, had underscored the following:

“As the core purpose of any business is to create a customer, a business has two, and only two functions, marketing and innovation. Only these two produce business results. All the rest are costs.”

The Harvard Business Review also had rated ‘The Practice of Management’ as Drucker’s best book on the managerial profession. Far more crisp than the larger compendium on Management, nicely balanced between precept and example, this book is eminently practical yet of genuine intellectual breadth. If Drucker’s work holds anything of immediate value for you, you will most likely find it here…”

Thus, Peter Drucker’s above concept is so fundamental that the pharmaceutical business can’t be any exception to it, in any way. That the old customers need to be retained, and the new customers are to be created on an ongoing basis, even in the modern times, still remain a basic requirement.

Nevertheless, the marketing process of doing so needs to change, according to the changing market dynamics. Continuation of playing the same notes from the grand old marketing playbook, with minor alterations here or there, would no longer suffice to keep pace with the changing market, and to effectively address the new stakeholders’ needs and wants.

Need to recompose notes of the playbook:

Both the current processes of pharma marketing and the patent claim for any type of drug innovation that the majority of the global pharma companies is currently following, have become highly contentious over a period of time, to say the least.

Even otherwise, in my view, both these processes have already hit the ceiling of the famous ‘law of diminishing returns’, where very simply put, the level of profits or benefits gained is less than the amount of money or energy invested.

Therefore, the question that comes up: Are the notes of the pharma marketing and innovation playbook fair, right, inclusive, and sustainable? However, in this article, I shall focus only on contemporary pharma marketing, and the opportunities that are coming up along with waves of changes in the business environment.

An example of ‘Change the logo’ saga:

Going by my personal experience, I have worked with many pharma marketing professionals, some of whom are still working in the industry. Post recruitment in the new company, having gone through a rigorous screening process, most of them would probably give a similar feedback that an anonymous quote captures as follows:

“The optimist says, ‘the glass is half full’; The pessimist says, ‘The glass is half empty.’ The marketing consultant says, ‘The glass needs resizing and a different logo.”

On a lighter vein, I am using below an example of one ‘change the logo’ approach. This is just one of many of my real life experiences. This may give you a panoramic view of how things generally are. The stretching of the same old marketing paradigm beyond its elastic limit is rather common, of course, with some sporadic digital tweaking. Nonetheless, the notes in the marketing playbook remain almost the same, producing the same tunes for some, and noise for many others.

This ‘logo change’ saga may sound quite familiar to many of my ex-colleagues of not so distant past. This approach exemplifies the limitations of a new recruit for a senior position to identify the core issues that would lead to the organization’s performance improvement.

It does not surprise me at all, when I find some top managements, who were an integral part of that selection process, promptly buying these shallow, and at the most peripheral ideas. It is quite evident that some of these top management members also suffer from similar analytical and management myopia. It is needless to mention that such things usually happen during the ‘honeymoon’ period’ of the new recruits.

Accordingly, the ‘logo change’ takes place in no time, paying a huge sum to the creative agency. Commensurate hype is simultaneously created around the new logo, backed by massive efforts to communicate its ‘ethereal design’ to as many targets as possible, often with no tangible outcome. Alongside, attempts are also made to change as many old things as possible, generating a multitude of seemingly high-voltage activities, though the performance on the ground remains unchanged, or rather deteriorates.

I fully understand, there is nothing wrong in changing anything, including a logo, that is not working or has outlived its time. However, when this assumes the top priority of a new and a top recruit, immediately after assuming office with a new responsibility, it somewhat doesn’t gel, and very often does not achieve the desired purpose.

Pharma marketing over-dependent on the likes of ‘Surrogate CMEs’?

Today, when there is a need to hear more from all the major stakeholders, one sided ‘telling my story’ mostly to the doctors continues to occupy a major part of pharma marketing, besides company sponsored or allegedly surrogate ‘Continuing Medical Education (CME)’ even for old branded generics.

The preparation of a canned brand communication in India is a routine pharma marketing process, with a plethora of avoidable and unproductive activities. This canned message is delivered to the doctors, usually through the Medical Representatives, conforming to a structured ‘tool-kit’, and heavily backed by free samples and gifts.

A large number of doctors too, continue to take this process, particularly in India, as an unavoidable routine, and also an integral part of their professional activities. It is widely believed, and frequently reported that the ‘magic wand’ for large scale prescription generation for pharma brands lies somewhere else.

Apparently, it is where the financial relationship between the doctors’ and pharma players is usually built and strengthened. One allegation is, in the garb of so called ‘CMEs’, even for old branded generic or as some folks call these as ‘classic’ brands, this financial relationship continues to thrive.

This gives rise to a suspicion in many, as to why pharma marketing is so over-dependent on the so called ‘CMEs’, even for old branded generics in India.

The vicious circle continues:

When the financial relationship of various hues, between the drug players and the doctors take the center stage, which pharma company has a deeper pocket counts. More expenses incurred in such relationship building process, may consequently drive the drug prices higher. In this situation, the patients get literally caught between the devil and the deep blue sea, where the Governments are compelled to intervene, as has started happening now in many countries.

In tandem, the pressure on performance keeps mounting on the marketers from the same top management, ultimately repeating the old vicious circle, where it may not be the ‘logo change’ that time, but another different sets of the same genre of hectic activities would commence, in pursuit of the illusive sweet smell of business success.

Recompose notes of the marketing playbook:

Even today, the marketing communication in the pharma industry remains primarily a monologue. Many training programs are currently sold to the industry to make this process a dialogue, as the Medical Representatives detail their products to the doctors.

However, on the ground, as I witnessed even in the last month while seating incognito in the clinics of some doctor friends, that the practice of monologue continues reflecting a great visible hurry in the product communicators’ end. Some from large pharma companies were using electronic gadgets, instead of a usual spirally bound product detailing folder, but their overall communication approaches were monologue too.

Thus, the modern age pharma marketers need to recompose the notes of their marketing playbook, soon. Some of the areas of active consideration may include the following:

A. Brand messages to be “pulled” by doctors, not “pushed” by marketers:

An interesting worldwide survey of 228 senior global marketing executives was conducted in February 2006 by the Economist Intelligence Unit, in co-operation with Google. The study highlights the need to transform the marketing communication platforms from a monologue to a more intense process of engagement, through effective dialogue with the stakeholders.

In this new environment, the relevance is more important than repetition, and marketing messages should be “pulled” by the consumer rather than “pushed” by the marketer. This calls for a transformation of the internal marketing organization. All the deliverables of pharma marketers’ must have a relevance to time, and measurable, with total accountability for top and bottom line growth in the areas of responsibility.

In the consumer products’ industry, the last decade has witnessed several innovative two-way marketing “conversations” between the customers and some of the world’s leading consumer brands. Driven by a confluence of innovation, competition and big shifts in consumer behavior, the dialogue between brands and their customers is replacing the traditional marketing monologue, the study observes.

Some recent developments:

In this regard, on Jun 2016, an IBM News Release announced that ‘The Weather Company’, an IBM Business has developed an industry-first capability in which consumers will be able to interact with IBM Watson through advertising, by being able to ask questions via voice or text and receive relevant information about the product or offering. It can create a one-to-one connection with the consumer, that can be personal, relevant and valuable; and can scale across millions of interactions and touch points. This digital tool can also help the marketers uncover consumer and product insights faster than ever before, revealing connections previously invisible to human data scientists, IBM claims.

For example, an anti-allergy brand could enable visitors to Weather.com to ask questions about whether the product is appropriate for children or what sort of side effects it might cause, as WSJ mentioned in its news item of the same date.

However, only the FMCG companies, such as, Unilever, Campbell Soup Co. and GSK Healthcare have, so far, reportedly signed on with Weather Co. to start running Watson-powered ads on both desktop and mobile devices this year.

According to another 2014 report of IMS Health on Social Media, among the top 50 pharmaceutical companies, more than half do not engage with consumers or patients through social media on healthcare-related topics. The top 3 pharma companies in this regard are: Johnson & Johnson, GlaxoSmithkline (GSK), and Novo Nordisk.

Thus, in the pharma industry, the old tradition, by and large, prevails. This scenario, I reckon, signals a pressing need to recompose the notes of the pharma marketing playbook, in general, and very soon.

B. Studying the future digital trends and customize:

To find out about what digital trends to expect in future, the February 2006 survey by the Economist Intelligence Unit had asked survey takers and executives about the online trends they learned during the previous 12 months from their children or other young people. The top three new trends came out as follows:

Social networking,
Podcasting
Multi-player video games

These are just examples, individual pharma marketers would need to take calls about the relevance of specific digital tools and trends relevant to their business and customize them accordingly.

C. Two important marketing tactics proposed:

It is becoming quite evident now, across the world, that with the stakeholders-mix and the traditional doctor-focused “push” messaging delivered mainly through a large sales force coverage, are not generating commensurate a return on investments.

While this approach still remains somewhat relevant for the doctors, one needs to find out what is happening to effectively engage the other important stakeholders. For example, what is happening to those patients who are seeking meaningful engagement through various digital platforms for healthcare?

Recently, the Wharton School, Google and McKinsey & Company teamed up to write a new e-book entitled ‘Pharma 3D’, which proposes the following two important marketing tactics:

To reach patients, pharma companies need to leverage broader engagement models through alternative digital channels (including wearable, online, and social media).

Pharma companies can no longer rely solely on their relationships with physicians; they also need to engage with other influencers, like online communities and social networks.

D. Pharma marketing organizations may consider doing 3 things for success:

The authors of ‘Pharma 3D’ suggested that the pharma marketing organizations may consider doing the following three things really well, for success:

They Discover the behaviors, beliefs and needs of the people they are marketing to.
They Design experiences relevant to the people they are marketing to.
They Deliver those experiences consistently, superbly, and efficiently.

Conclusion:

Though Peter Drucker had said long ago that marketing and innovation are two most critical functions of any business and only these two produce business results, in the overall pharma marketing activities a wide gap between the modern marketing realities and the current marketing practices still exist, rather glaringly.

It is true that digital tools are now being selectively used by some pharma companies, these largely fall in the area of digitizing the manual functions, with some add on gimmickry, and glamor quotient built into it.

In my view, pharma companies, especially in India, should no longer rely solely on building relationships with the physicians. Their top marketers also need to directly engage with all other crucial influencers, including the expert groups, online communities, and the social media, whenever required, leveraging the broader stakeholder engagement models.

The old pharma marketing playbook is slowly, but surely going out of sync with the stark market realities of date. So are the mindsets of a large section of the pharma marketers. It is now high time for the top management to create an appropriate marketing organization, and then encourage it composing the new notes for a contemporary, and a more relevant marketing playbook, jettisoning the old one, for good.

By: Tapan J. Ray

PILMAN

A Tapan Ray Website

Tag Archives: Notes

Data: The New ‘Magic Wand’ For Pharma Business Excellence?

Disruptive Digital Innovation To Reduce Medication Need?