Omnichannel, Transformation and Pharma: The Impact from Big Tech

Large technology companies have been targeting the pharmaceutical industry as a strategic sector in which to expand operations, whereas traditional companies are learning new techniques and technologies aimed at interacting with patients and physicians. The future is collaborative, but how can we achieve this? 

Companies such as Apple, Microsoft and Amazon are already allocating funds and adding to their future plans the incursion into the pharmaceutical sector. Kodak even announced some time ago that it would be renamed Kodak Pharmaceuticals and would focus a large part of its business on producing critical pharmaceutical components. It is a complete turnaround in the company's strategy, but why do this? Or rather, why now?

The answer is broad — and goes beyond the near demise of the company founded by George Eastman — but can be simplified in this way: It all comes back to experience. 

Experience is all about capturing and analyzing data, and tech companies understood this before anyone else. Kodak, in its own way and at its own time, understood that it is a tech company before anything else. 

Moreover, the decision goes hand in hand with prioritizing the customer experience above all else. This is what allowed Amazon to dive in and transform the retail market. Its first step into the pharmaceutical industry was the acquisition, in 2018, of the digital pharmacy PillPack, for US$750 million.  

It is logical, then, to think that other tech companies will go in the same direction. Microsoft, Apple, Xiaomi, Samsung have already decided to enter the health business in all its dimensions, from devices for prevention and healthcare, to the insurance industry and even the manufacturing of medicines. 

One can only imagine what a company like Amazon, with exabytes of user data and a vast distribution network, would be capable of if it launched its own pharmaceutical line.

From this perspective, it appears unlikely that we will go to a pharmacy to purchase 600mg of Amazon branded ibuprofen. With a new regulatory framework in place, Amazon could manufacture customized drugs as requested by its users, similar to how it prints books on demand in many of its distribution centers.

And that would only be the first step. The second has to do with the timely distribution of this newly manufactured brand new drug. The third step is anticipating user purchases. You can already imagine the push notification, can't you? “Hey, so-and-so, I notice you're running out of your medication. Do you want to place your order now?”

Pharma and Big Tech: A Unified Collaboration

Addressing outrage at Amazon or Google is not understanding the context: this new scenario brings opportunity. A grand opportunity, in fact. 

First of all, big tech has vast experience in the data, information, and technology infrastructure fields. They have the how-to, so to speak. However, that's not sufficient. 

With this, a window of opportunity opens up for pharmaceutical companies, which have in-depth knowledge of the industry and how it works. The what. 

Thinking about a collaborative future is, in my opinion, not only smarter but also essential. It is THE right way to do things in this new era, in which technology will increasingly be at the service of people, their tastes and specific needs. 

Added to this is an additional factor: healthcare is transitioning to omnichannel. To be in contact with all customer touchpoints is a change that implies a total transformation of healthcare in all areas.
Omnichanneling will make it possible to connect all stakeholders — professionals, patients, the general public, emergency response systems, laboratories — and to create new, more personalized and specific technology-based models. 

5 Tips for a User-Centric Approach

So, what can pharmaceutical companies do in such a context? How can they prepare for a collaborative future, one in which they will no longer compete and collaborate with their historical peers, but with global technology companies?

1. Placing the user at the center of decision-making

The great differential of tech companies is that they have understood that the use of data is their greatest asset. The phrase “gold of the 21st century,” has been mentioned on more than one occasion. This goes against the traditional approach, in which companies and customers had a vertical relationship that was marked by the product.

Fostering public-private partnerships that give rise to new regulations and thus capture, measure and analyze user behavior is fundamental for the future of the industry. This will enable companies to make more accurate decisions based on inputs collected. 

As a first step toward what is to come, there are already companies and systems that assist pharmas in data activation and user-centric experiences within a regulatory compliance framework.

2. Approach physicians and patients as part of the same ecosystem.

Focus decisions on users and physicians, both of which form part of the same ecosystem from which it is necessary to learn, and must be accompanied.

By ceasing to divide, companies can shift their focus onto generating greater links with physicians, while assisting them in their digital transformation journey. 

3. Encourage a change of mindset  

The industry must think long term, rather than focusing solely on sales, ROI and short-term variables. 

This change, which is ultimately a change in the organization's culture, allows for something greater than a brief spike in sales: it helps achieve sustained success over time, creates modernization processes, and builds more sustainable and reliable companies. 

 4. Generate spaces for innovation

“What are we going to do differently?” or “How do we plan to do it?” are among the questions to ask at this point. The best part is that there is no need to reinvent the wheel: most solutions and innovations are within reach. They are there, waiting to be seen. It takes a conscious exercise for them to appear. 

Often these resources and knowledge that can foster innovation are not within the organization itself. There are many startups, consulting firms and even think tanks that are in charge of thinking outside the box for such cases. 

5. First the user, then the technology

The tool comes after understanding the problem, not the other way around. It is common sense: a plumber first evaluates the plumbing problem then proposes a solution involving materials, tools, and time. 

The same applies to the customer journey in pharma: first, identify the problems. Then, choose the best technologies and methodologies to enable those solutions. 

The future of healthcare will be underpinned by three axes: technology companies, digital consultancies and historical companies. It is time to think about the economy of the future. Are we ready to take the next step?