SCIENCES Multichannel transformation in pharma · EXECUTIVE SUMMARY ADOPTION OF MULTICHANNEL KEY CHALLENGES FUTURE OF DIGITAL LIFE SCIENCES ... • Global footprint (offices in 9

01 02 03 04 05 KEY SURVEY

STATISTICS

EXECUTIVE

SUMMARY

ADOPTION OF

MULTICHANNEL

KEY

CHALLENGES

FUTURE OF

DIGITAL LIFE

SCIENCES

June 6, 2014

From fission to fusion:

Multichannel transformation in pharma

27/06/2014 2

Across Health: Focused Fusion Consulting

Customer Innovation

Strategy & Execution

• 60+ strong consultancy

• Focus on innovative customer-

centric approaches (e-powering

traditional

channels– “fusion”)

• Holistic approach: From strategy

to implementation & success

metrics/KPIs

• Unique offering in the industry

• Global footprint (offices in 9

strategic markets)

Life Sciences Focus

• Pharmaceuticals

• Devices & Diagnostics

• Consumer Health

• Patient & Professional

Associations

Online is rapidly coming to the fore

27/06/2014 3

Are you ready for the digital native physicians

in Europe?

27-6-2014 4

27/06/2014 5

Current adoption

of multichannel After the website trap…the app trap…

6/27/2014 Across Health 6

The digital advantage – Capgemini 2013

Digital maturity by industry

The digital advantage – Capgemini 2013

Digital maturity by industry

Formula for change

6/27/2014 © Across Health 9

6/27/2014 © Across Health 10

Are all 4 criteria met in pharma?

• Need for change

• “Long fuse”

• Have to change vs want to change?

• Clear vision & goals

• Companywide strategy, vision & objectives?

• Capability to change

• Skils?

• Resources (HR & budget)?

• Cross-channel mix optimization methodology?

• Concrete first steps

• Consistent measurement

• Visible results?

Current adoption

of multichannel But the burning platform is heating up...

27/06/2014 Across Health Multichannel Barometer 2014 11

Current adoption

of multichannel

38%

43%

29%

44%

41%

47%

19%

16%

24%

Europe

US

Emerging

Dissatisfied Neutral Satisfied

Under 20% are satisfied


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

copyright © Across Health, 2014

Emerging: Brazil, China, Colombia, Hungary, Mexico, Poland, Russian Federation,

South Africa, Turkey, Uruguay


Table of contents

• Current adoption of multichannel

• Strategy

• Internal expertise & support

• Most common eTactics

• Key challenges

• The future of digital in life sciences

• Digital marketing, sales & medical budgets

• Measurement & customer intelligence


Multichannel barometer

• 302 life sciences leaders completed the Barometer, making it the

largest of its kind

• Industry spread

• Pharma & Biotechnology, OTC, Medical

Devices, other (e.g. nutrition, diagnostics)

• Geographic spread

• Europe

• US

• Emerging

302 RESPONDENTS

FROM 100 LIFE SCIENCE

COMPANIES COMPLETED

THE ONLINE SURVEY

BETWEEN FEB. 25 AND

APRIL 3, 2014


Are you multichannel-ready?


Current adoption

of multichannel

20%

56%

24%

We have one, but its validity isquestioned

We have one, but it is notimplemented with rigour

We have one, and it is wellexecuted

Less than 13% have a well-executed

companywide digital strategy


Do you have a company-wide digital strategy in place (i.e. across all brands & functions)?


57% 41%

2

No

No need

Yes

Current adoption

of multichannel Internal expertise is low & not

advancing


Do you feel that you have sufficient knowledge of all opportunities

offered by the internet for your business activities?

Note: 2009-2011 data EMEA only

4%

4%

2%

1%

2%

4%

24%

20%

24%

18%

16%

21%

27%

31%

42%

44%

36%

38%

31%

34%

21%

30%

34%

25%

14%

10%

10%

8%

12%

12%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2009

2010

2011

2012

2013

2014

Totally insufficient

Insufficient

Between sufficient and insufficient

Sufficient

More than sufficient (expert)


Current adoption

of multichannel

21%

39% 40%

Yes, just being created Yes, but the impact is low Yes, and it is highly effective

Less than 30% have an effective local digital

team (less than 15% for international teams)

27.06.2014 Across Health Multichannel Barometer 2014 19

Do you have a central digital team at the LOCAL level?


67%

29%

4%

No

Yes

Don’t know Not sure

Current adoption

of multichannel Mismatch between adoption of

channels and their perceived impact


• Integrated cross-channel

• Patient adherence tools

• e-MSL

• Remote patient monitoring

• Web conf/virtual meeting

• Online MedEd

• SEO

• HCP self-service portal

• Mobile MKT

• SEA

Adoption****

Pe

rce

ive

d im

pac

t***

10

0

0% 100% copyright © Across Health, 2014

Impact scale from 0 (not impactful) to 10 (very impactful)

*Company, product, or disease website. **electronic or personal health record.

*** Weighted Impact score based on results from previous question “How impactful do you feel these channels are?”

**** Adoption is based on % of respondents who answered (Standard practice) to “How often do you use the following multichannel

Marketing tools TODAY?”

• Tablet eDetailing

• Pharma-owned website*

• Email MKT

• Web Banners • Direct MKT

4

• e/PHR

• e-sampling

• automation

• ePrescribing

• Quantified self

• Call centre

• Social media MKT

• Virtual eDetailing

• SM monitoring

• eRep

• Mobile Ad

6

30% 60%

Global


Key challenges

6%

14%

16%

19%

28%

40%

51%

52%

61%

No expert agencies with pharma background available

Customers are not ready

No budget

No headcount to support this

No senior management support

Not enough internal knowledge in this area

No clear eBusiness strategy

ROI questions

Regulatory or legal issues

ROI, strategy and internal knowledge are

rising…even lack of senior support…


% of respondents indicating main bottlenecks for digital in their organization.

* 2013 and 2014 data has been adjusted for comparability to previous years


% change since

2010

High increase

Low increase

Decrease

-2%

5%

1%

-2%

10%

15%

6%

11%

4%


The future of digital

in life sciences

2%

32%

51%

11%

4%

We do not see the need forcollecting or using customer

data

We are not collecting usefulcustomer data yet, but we

should

We have started doing someanalysis on our multichannel

customer data

We have alreadyimplemented some robust

customer analyticsframeworks

We leverage this dataconsistently

More than 4 out 5 have not implemented customer

intelligence for cross-channel/closed-loop marketing


Do you leverage customer data from your cross-channel initiatives for

advanced customer analytics and closed-loop marketing?

15%


% change since

2013

Increase

Decrease

2%

-2%

-2%

3%

-2%

Human intelligence vs artificial intelligence

25

Rep

100-200 customers

Marketing automation

10,000-20,000+ customers


in life sciences

24%

51%

16%

7%

2%

Very complicated Somewhat complicated Neither complicated norsimple

Relatively simple Very simple

For 9 out of 10 respondents, defining the

optimal channel mix is not simple


How complex is it to define the optimal channel mix*?

9%

*Allocating the right amount of budget to digital versus offline channels.


5%

-1%

1%

-6%

% change since

2013

Increase

Decrease

No change =

=

Emerging: Brazil, China, Colombia, Hungary, Mexico, Poland,

Russian Federation, South Africa, Turkey, Uruguay

Key challenges Multichannel budgets plateau since

2012…increasing distance vs other industries


If you oversee a marketing budget, which percentage

of it is allocated to digital initiatives THIS YEAR?

copyright © Across Health, 2014 0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

2010 2011 2012 2013 2014

Average

5%

Average

8%

Average

15%

Average

16% Average

15.6%

01 02 03 04 05 KEY SURVEY

STATISTICS

EXECUTIVE

SUMMARY

ADOPTION OF

MULTICHANNEL

KEY

CHALLENGES

FUTURE OF

DIGITAL LIFE

SCIENCES

Wrap up

Multichannel can increase HCP coverage at no extra cost

THE pharma CHANNEL LANDSCAPE IN BELGIUM (GPs, 2013)

Third-party

medical websites

THE CUSTOMER IS READY…BUT IS PHARMA READY

TO MEET HIS EXPECTATIONS OR

JUST KEEPS THE STATUS-QUO?

Pharma

website

Source: Across Health GP CrossChannel Navigator 2013 (Belgium- 80 GPs)

6/27/2014 31

Where have we been....and what’s next?

The age of the customer

is coming...

Time for a total makeover of the channel mix

6/27/2014 34 Across Health, Cross-channel excellence

Marketers are from Venus and Sales people are from Mars…


… and Medical

comes from…?

Fission…


…versus Fusion


Fission versus Fusion



in life sciences Ebusiness maturity model -

Forrester

True Multichannel is

DISRUPTIVE

LEARN

TO KILL

QUICKLY

The biggest risk

You can take

is NOT taking one

01 02 03 04 05 KEY SURVEY

STATISTICS

EXECUTIVE

SUMMARY

ADOPTION OF

MULTICHANNEL

KEY

CHALLENGES

FUTURE OF

DIGITAL LIFE

SCIENCES

Thank you!

Find us at

www.a-cross.com/health

Documents

SCIENCES Multichannel transformation in pharma · EXECUTIVE SUMMARY ADOPTION OF MULTICHANNEL KEY CHALLENGES FUTURE OF DIGITAL LIFE SCIENCES ... • Global footprint (offices in 9