The focus of this blog post is to begin to place analytics as the key capability and business improvement for the Life Sciences and Healthcare industry. I will look to give other blog posts on database types as a prelude to the pending wave around the Internet of Things (#IoT). We all know the term #BigData, and if you do a search within LinkedIn you find many articles on the topic. I want to focus on the buyers of big data solutions to solve problems specific to Life Sciences and Healthcare companies. I’ll provide the background and the types of solutions you may need to discuss with this technology.
Big players look to improve their product offerings
A few days ago I had read with interest an article entitled “Big incumbents target big updates in big data bonanza.” The focus of the piece was how Oracle, HP and IBM were releasing updates around their big data portfolios. They include SQL, plus Hadoop, and NoSQL, and according to Dan Vesset from IDC there is no one technology that addresses all the analytics use cases. Why does this matter to Healthcare and Life Sciences?
Having a ‘unified’ data platform will be part of the industry’s analytics strategy. With so much data you need a plan that supports future search and analysis ability within your companies. IDC predicts that the overall market in 2015 to reach $125B. With Healthcare and Life Sciences to have a significant part of this market. IDC tells us that we have until 2017 to have this in place, with the Internet of Things (IoT) having a real influence when it comes to healthcare and new product innovation.
Winners and Losers in the Big Data wars
I recommend you read this great article by Brian Sommer (@Brianssommer) “The Big Data Wars – will your company prevail? Part1” and there is a “Part2.”
I would contend that if you read this blog post you are either involved in analytics or providing advice for clients on this topic. So it is helpful to know where you, and your company or client sits if you agree with the previous paragraph. While the article covers generalities I would like to propose the same viewpoint for Healthcare and Life Sciences companies.
Where do you land in the Big Data wars?
“Wasters – companies that have access to big, external data but don’t do enough with it.” In attempting to comply with US healthcare regulations there are hospital systems that have implemented IT systems to capture data (meaningful use compliance). Have these systems provided valuable feedback to help ‘improve’ healthcare? Can data from within a hospital room be leveraged to improve healthcare for the patient? Depending on the healthcare system it is debatable, and yet it can lead to competitive healthcare improvements.
Conversely, Medical Device companies have to store patient related data as per regulations – are you missing an opportunity to leverage long-term historical facts to give advice for new devices? Pharmaceuticals could be connecting clinical trials data with data from wearables (I would suggest this will happen sooner than later) or doctors notes to offer greater insights into the outcome of new and existing medicines.
“Losers – These firms couldn’t be bothered by the emergence of big data.” Yes there are small group of companies that see data as a nuisance. Their happy with the way their data works today so why bother with looking at more data. To be sure not to find you in this box look at both the technology and organizational change, yet I will leave that for another blog post.
“ERP Masters – Leveraging transactional data beyond the four walls of your company.” I like Brian’s diagram because I come from several years of working with enterprise systems big data forces us to look beyond the four wall of the back office. Yes it is all about ‘integrating’ external data for more insight for the business.
- Life Sciences companies would extend ERP systems into the clinical trial process to tie manufacturing quality and product traceability through to the delivery of the products to the patients and hospital storage locations.
- Hospitals that look to become more profitable will look to extend patient records to include ‘remote/home’ data as a necessary next step in providing ‘value’ in the recovery process. Today’s hospital systems have yet to extend this far into healthcare.
- The Internet of Things (IoT) will have a significant big data impact through the Life Sciences and Healthcare value chain. ERP systems are not designed to support data collection nor analysis of data.
“Winners – These firms know more, understand more and want more.” I’ve not referenced the payers in this discussion, and that is because they take full advantage of big data to help devise healthcare plans and payment plans. Big data should be viewed and planned as a competitive advantage. Do you feel you company or clients are using big data as a spirited market advantage? Brian said it best, “They know that insights mean money, market share and margin.”
Let me know what you think? Agree or disagree…
Recent articles and tweets emphasize that Big Data, or Analytics, would improve the bottom line for a company as long as they are prepared to take advantage of this benefit. Some Life Sciences (those that offer pharmaceuticals and medical devices products) and Healthcare companies have a need for new tools if they are going to take full advantage of Big Data. Today companies have enterprise systems that need IT people to give the requisite report or summary analysis. Newer analytics tools like Tableau Software compliment the installed base of enterprise software with the added benefit of an intuitive way of doing user analysis that focuses more on collaboration and portability.
The key benefits from Big Data for Healthcare (and I will include Life Sciences in this because of the connection to pricing/payments) includes*:
- Improvements in Drug Trial Safety
- Disease surveillance
- Prescribed treatments
- Patient Outcomes
Today we still have data stored like this:
Companies have enterprise systems with data cubes and traditional spreadsheets that need IT to extract the data:
So how can I prioritize?
I agree with the opinion of Dr. Rado Kotorov in his article “The CIOs Top 3 priorities for 2015”:
- The CIO role will transform from a technology leader to a business leader
- Manage data as the enterprise’s most valuable strategic asset
- Make Business Intelligence (BI) pervasive and ubiquitous
Consider the following
Change is imminent so consider a tool that your users can easily leverage to do key analysis, and I don’t mean Excel spreadsheets or Access database. Yesterday I went through a demo of the Tableau software (rank high in terms of “Ability to Execute” and as a “Leader” in the Gartner Magic Quadrant for BI and Analytics). In summary they have solved the problem of connecting to multiple source systems. The product is also easy to set-up and more importantly provides a means to allow for collaboration with others.
In my opinion, reaping the benefit of Big Data means finding ways to turn IT systems to supporting the users to help the business. As leaders in the industry you need to find ways to allow users to unleash their creativity and help the organization analyze and solve business problems. This may mean an additional cost in the short-term. Alternatively you can wait for the right resources or invest in replacing key parts of your enterprise landscape – either choice may not be as appealing as selecting tools to make data analysis easier. I would recommend Tableau Software…
Would you agree I am open to your opinion, so tell me what you think?
January was an interesting month. Too many work projects that took time away from writing. Last month, WordPress provided a nice summary of last year’s topics. A look back at 2012 revealed that you were most interested in the healthcare value chain and supply chain.
Looking ahead for this year I would like to focus on the following:
- Healthcare improvements
- Analytics and Mobility
- Big data
- Supply chain management (SCM)
- Customer relationship management (CRM)
- Business transformations for Pharmaceutical and Medical Devices
- Book reviews on relevant topics
Besides these topics I continue to see my activity on Twitter as a ‘service’ to those who are interested in the Life Sciences and Healthcare industry. Key hashtags include:
- #pharma, #medicaldevices, and #lifesciences – how technology, social media, and regulations impact this industry segments.
- #mHealth and #mobility – the use of mobile devices will impact healthcare.
- #hcsm and #sm– how to best leverage healthcare social media.
- #healthit, #it and #CIO – all topics related to IT.
- #sales and #productivity – is a new focus for me since being active in sales
I hope to continue to blog and ‘tweet’ on topics that give help to others. I thank those of you that offered feedback on my blog posts.
The question I keep hearing about is ‘how can Life Sciences CIOs help meet the needs of the business at the current pace of technology?’ Last month I wrote about Realizing a 360 degree view of your customer… and a focus on CRM. This described how IT technology can add value in helping the business keep and acquire customers. This month I want to summarize what is impacting today’s executives and what can be done to have IT be an enabler of value within Life Sciences.
The situation today
In the recent Gartner 2012 CIO Agenda “Re-Imaging IT” by Andrew Rowsell-Jones he presents a summary of the results from an extensive CIO survey, and a key question around the relevancy of IT departments when the business has a broader definition of technology.
Many of you reading this blog post experience the rapid pace of technology as you go about your business each day. Technology is reaching more people across the globe consider these points:
- I’ve heard that in China over 70% of the population have never owned a laptop and went straight to handheld devices.
- In India, mobile phones are more popular than toothbrushes
- And other facts about the rapid pace of technology
In the Gartner survey CIOs ranked the following business strategies in order of importance:
- New customers
- Reducing IT costs
Yet the Life Sciences industry executives have to deal with little or no growth in IT budget and increasing demands from the business for more technology (especially around analytics and mobility). CIOs are constrained from delivering IT innovation from budget to skilled IT resources to organization and culture plus alignment between IT and the business.
CIO as the Chief Innovation Officer
I had read this Forbes article by Perry Rotella entitled CIO = Chief INNOVATION Officer. The essence of the article was to lay out the case for CIOs to have their organizations adopt more of an ‘agile’ approach to the use of technology within IT. I recognize and experience that Life Sciences companies have to deal with Regulations, Compliance and Security. Yet I believe this to can be solved.
I do agree with Perry in this article that the CIOs “greatest responsibility is to create value” for the organization. You drive ‘growth’ via ‘innovation.’ IT enabled innovation can differentiate how you deliver service for medical devices, offer a great customer experience, and improve the productivity within the organization.
IT Service providers can aid and enable CIOs move to a more ‘agile’ approach to generate IT Innovation. I would suggest the following actions:
- Embrace the fact that your current approach to delivering projects will have shortened lifecycles – full of frequent changes.
- Find IT providers that add value from a solution/technology perspective. Think of them as extensions to your team. This reduces the need to up-skill or hires talent to your IT team.
- Fill the gap within your IT team around new technology with IT service providers that can rapidly add value to key projects.
- CIOs are asking for short ‘assessment’ projects that can diagnose the current process and offer solutions with costs and timelines. I’ve helped companies adjust their supply chain or enact benefits studies around specific business processes.
- Focus on smaller and shorter (in terms of duration) IT projects.
- Proof-of-concept projects in cloud computing. Balancing validation between on-premise and on-demand applications. Yes a ‘hybrid’ model is possible. Remember the previous points and align these projects with the business to meet the greatest value.
In the coming weeks I will address mobility and big data. These are some of the hot topics within Life Sciences and they can mean different things depending on if you’re a pharmaceutical or medical device company.
The problem we are looking to solve is the change in realizing a 360 degree view of your customer for the medical devices industry. Most companies that I deal with are struggling with leveraging customer relationship management (CRM) solutions that live in the cloud versus the traditional ‘on-premise’ applications. In this blog post I will give for you a set of questions to ask so that you can select an IT service provider to help you navigate the technology choices to help your organization reach this goal.
Why medical devices and not pharmaceuticals? Within the business of medical devices you have the normal sales force activities to place your products and services. You also have a service management aspect of medical devices where equipment must be serviced and maintained. The clients I work with are the IT folks that are responsible for ensuring that technology is in place to support the organization, and it is the business that is driving the choice for technology. Ultimately I want to share some pointers on what to ask for to reach a better view of your customer with the right technology.
Let’s begin with how today’s IT solution’s have evolved? ERP solutions have been where customer data has been stored and where sales orders are entered. CRM was an extension of the sales order taking process along with added enhancements for a variety of business activities. Medical device companies have added ‘service management’ activities that are managed. This ranges from dispatching service technicians to service order status and contract management. I also recognize that there is a lot of other activities. The goal for technology was to offer a better view into customer services and a more complete view of your customer.
Can your CRM deliver on a view of your customer?
I came across a great article of “What exactly is a 360-degree view of the customer?”
“The term a “360-degree view of the customer” has been used in the industry for several years. But what exactly does it mean, and what information would you actually display on the agent desktop?
Whenever a customer interacts with an organization, it is vital that the richness of information available on that customer informs and guides the processes that will help to maximize their experience, while simultaneously making the interaction as effective and efficient as possible. This includes everything from avoiding repetition or re-keying of information, to viewing customer history, establishing context and initiating desired actions.
A true 360-degree view needs to include views of the past, present and future:
- The past means providing a meaningful and easily digested view of the customer’s history. This includes product or policy activity, interaction history across all channels, including community, recent product views, campaign activity and process history.
- The present requires presenting key customer information about who they are and how they relate to your organization, but also requires determining the context of the call. Is there a recent order or current fault, why are they interacting with us now?
- The future relates to actions that can be initiated to guide the future of the relationship. Is the customer likely to churn? Are there up-sell or cross-sell opportunities or targeted messages to bring in at this time?
Delivering on the 360-degree view is not simply about having a unified database of all activity, but rather being able to pull together the pieces of information that are relevant for a specific customer and specific interaction into an intuitive workspace for the agent or the customer.”
CRM Sales force automation (SFA) has several solutions that business folks can readily adopt. They include Saleforce.com and Veeva. They give a cloud based solution that can easily do all the functions of gathering ‘present’ day information around your clients and prospects. They also offer the flexibility to offer reports and data so that account reps can easily access via their mobile devices. This puts the traditional ERP packages at a distinct disadvantage because they cannot be easily upgraded with similar functions. Customizing these applications is not a cost effective solution.
The key for many folks considering these solutions is the total cost of ownership (TCO) between the ‘on-demand’ versus the traditional applications. Keep in mind the annual maintenance costs can be higher than expected for some of these applications and there is a cost around developing “integration” points between these packages for your key business processes.
CRM Service Management (SM) from the ERP vendors has all the necessary integration so that your customers can get information not only on their service orders they can use data on the products they own. Customer service agents can easily dispatch field service reps and they can get access to data on the nature of the repair or service needed before the customer site visit. This can happen today because most IT solutions have extended their solutions to work with today’s mobile applications.
So far there are very few customer implementations of ‘on-demand’ service management. Be sure to ask for references when someone tells you they’ve done this in the past.
How to realize a 360 degree view of you customer?
The clients I speak with today have multiple systems that the organization must use to gain this insight. First start by organizing the key items you want your field folks to have to ‘improve’ customer satisfaction? You need to think through ‘business process interaction.’ What do you need from your SFA application and your SM application for a given business process outcome. Remember it is not just present day information your looking to have, it is this plus history and future data around expiring contracts and new service programs that will help your customer facing folks be more ‘effective.’
I would ask your IT service providers the following questions:
- Share examples of where you’ve done Best Practices or Business Process assessments around either sales force automation and/or service management?
- Do you have capabilities with ‘on-demand’ applications like Veeva or Salesforce.com?
- What kind of ability does your firm have around the ‘on-premise’ applications (SAP, Oracle and Microsoft)?
- Do you have industry expertise in Medical Devices?
- Can have you done ‘benefits’ or ‘value’ realization assessments?
My clients are asking for help because the business as asking for change. The business wants to sell more and yet they may not have all the tools necessary to deal with your customers. Asking these questions of your IT service providers can help you find the needed help in reaching a 360 degree view of your customer.