/Founder & CEO of Vivaldi/

Erich Joachimsthaler, Ph.D

Boca Raton | May 15 – 17 2016

Annual General Meeting - PBIRG

IT’S A COMPLEX HEALTHCARE WORLDComplex Patients, Markets and Technologies

OVER HALF OF THE S&P COMPANIES WILL BE REPLACED IN THE NEXT DECADESOURCE: INNOSIGHT 2016

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20

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Year Tenure

1965

19902016

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PROGRESS TOWARD DIGITAL TRANSFORMATION

SOURCE: BOSTON CONSULTING GROUP 2016

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ADAPTED FROM JEFFREY W. YABUKI /PRESIDENT & CEO – FISERV/

The only thing moving faster than technology is changing consumer expectations.

THE NEW EMPOWERED CONSUMER

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IN CONTROL:

Abundance of choice

MOBILE:

87% sleep with their phone side by side, and check it 150 times a day

NOW:

30 billion WhatsApp are sent every day

SMART:

88% trust online reviews as much as personal recommendations

ADD:

Only 20% of TV spots are fully viewed, 47% prefer only reading headlines

85% of consumers have the confidence and believe in their ability to take responsibility about their own health and know where to access information.

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IPSOS 2015

THE ACTIVE, SELF-DIRECTED PATIENT OR PHYSICIAN

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FINDING:

Each month 19 million people search WebMD for health informationFifty percent of doctors search Wikipedia for info (even more than UptoDate

EVALUATING:

¼ of patients with chronic disease visit peer sites to meet fellow sufferers

CHOOSING:

81% of patients want equal say in care decisions with their care provider

USING:

Patients are willing to pay 19% for a “no wait time” prescription

75% of people want text message reminders to take meds

Access to care anywhere (Orbis, eye care delivered on a DC-10, or Women on Water, a ship that delivers safe abortions near places where it is illegal)

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Historically, pharma companies have controlled the generation and dissemination of information about their products.

Digital has weakened that control.

MCKINSEY, 2015

THE PHARMA CO’S SALES PROCESS

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TRADITIONAL MODEL IS OBSOLETE

Coverage and call rates (down to about 1 to 2 a day per sales person) in hopes to sell a product, a pill or a diagnostic test

BUT WE DON’T CHANGE IT

We still map the customer journey and make the same old assumptionshoping to improve the patient experience or physician experience

Hope is NOT a strategy!!!

Solve Something / Help Practitioners with their Work

Enable People

Deliver Value / Give Insights into the Success of their Treatment

Help Manage their Lives / Help Patients with Treatments

Fit Into their Lives

Give People Time Back

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IMPROVING PEOPLE’S LIVES

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TOO LITTLE, TOO FEW AND TOO FRAGMENTED

MERCK’S UNIVADIS:

Medical information platform

MERCKENGAGE:

Patient engagement platform

SANOFI’S GO MEALS:

Diabetes food initiative

JANSSEN’S CARE4TODAY:

Suite of health management solutions

ASTRA ZENECA’S SIMPLY4DOCTORS.COM:

General practitioners access to resources including disease information

PFIZER’S GETOLD.COM:

A content site on aging

IBM AND @POINT CARE :

Access to curated medical content

BOSTON CHILDREN’S OPENPEATRICS:

Connects doctors and nurses globally

PILL PACK:

A new generation of a pharmacy

ABBVIE + KAROLINSKA HOSPITAL:

Video solutions for Parkinson’s Disease

PUSHDOCTOR.CO.UK:

Connects patients via video wth 7,000 GPs

UMOTIF / TRIALREACH:

Platforms to connect those with chronic illnesses with practitioners

VIVALDI’S REIMAGINATION OF MARKETS’ PROCESS

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GO BROAD

GO DEEP

GET CREATIVE

GET REAL

GO BROAD: EMPLOY AN OUTSIDE-IN PERSPECTIVE

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Products

Brands

Price

Customer Service

…

Taking care of

my family

Getting

“my job” done

Feeling in control

of my finances

Balancing

priorities

Treating and

rewarding myself

Inside-OutNarrow Company View

Brand

Company

Management

etc.

Outside-InBroad Customer View

Families

Individuals

Housemates

etc.

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The Flight of the Bumble Bee

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TRADITIONAL FOCUS GROUPS

QUANTITATIVE SURVEYS VIVALDI REAL EXPERIENCE

METHODOLOGY (REM)

FORESIGHT LAB BIG DATA

REAL WORLD CONTEXT

ARTIFICIAL CONTEXT

CONTROL

ENVIRONMENT

OPEN

DIALOGUE

SOURCE: IDEA COUTURE, ADAPTED VIVALDI PARTNERS, 2016

ILLUSTRATIVE

Demands

Activities

2,000 people x 30 days x 10 episodes / day

= 60,000 episodes

Activities

Andrea Prepare diner for friends/ Have diner with friends Find (Create) Meaning in Life

Spend time with family At Ease With Myself

BBQ with friends Find (Create) Meaning in Life

Meet friends At Ease With Myself

Spend time with family/ daughter Find (Create) Meaning in Life (Re)Discover Joyfulness

Prepare diner for family/ friends Find (Create) Meaning in Life

Spend time with friends/ family (e.g. cooking) Find (Create) Meaning in Life

Spend quality time with family/ friends Find (Create) Meaning in Life

Thomas Jazz Dancing (once a week) Putting 'Me' First Ensuring a Positive Future

Play golf Bringing Nature Into My Space

Do sports (especially biking) Ensuring a positive future

Exercising at home with DVDs Putting 'Me' First Ensuring a positive future

Work out/ go to the gym Ensuring a positive future

Went to gm Putting 'Me' First

I went sailing for an hour Bringing Nature Into My Space Putting 'Me' First

To work out Ensuring a positive future

Andrea Go to cinema (Re)Discover Joyfulness

Go to Starbucks Putting 'Me' First

Go out & style At Ease With Myself

To be with my boyfried in my favorite bar Find (Create) Meaning in Life Putting 'me' first

Going out on Friday night with friends At Ease With Myself (Re)Discover Joyfulness

At night we went for dinner Putting 'Me' First At Ease With Myself

Having breakfast in a hotel Putting 'Me' First

Susan Enjoy nature Bringing Nature into My Space

Spend time in nature (e.g. lake) Bringing Nature Into My Space

Walking in the country & lunch with friends Bringing Nature Into My Space

Mapping Demand Cluster

LOCATION

DATA

SENSORS

WEARABLE

DEVICES

TECHNOLOGY

GO DEEP: EPISODE RECONSTRUCTION METHOD

STRUCTURED ANALYSES OF DAILY ACTIVITIES

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NEW THINKING: UNDERSTAND THE ACTIVE, SELF-DIRECTED

PROBLEM SOLVER PATIENT OR PROVIDER

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OBJECTIVES:

Improve people’s lives (health, wealth, happiness) & deliver results

DECISIONS:

Information, Tools, Advice

PROCESS:

Time, Money, Energy, Cost, Benefit

PRODUCT/SERVICE:

Usefulness, Value, Utility

ADD:

Daily life, Whole life, Work

OLD THINKING: UNDERSTAND PATIENTS OR PROVIDERS AS TARGETS AND AUDIENCES

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NEEDS:

Higher-order versus Lower-order

WANTS:

Emotionalization

PROCESS:

Frictions to minimize, eliminate or avoid

HABITS:

Unconscious

JOBS TO BE DONE:

Products in search of prescribing physicians

70% OF PHARMA COMMUNICATIONS ARE IDENTICAL

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SOURCE: STRATAINSIGHTS ANALYSIS, 2016

GET CREATIVE: REIMAGINE THE MARKET

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“What happens when…”

HELPS US PAINT

A PICTURE OF THE FUTURE

SO THAT WE CAN BOTH

PREPARE FOR IT AND CREATE IT

WHAT HAPPENS WHEN

THERE ARE 24 BILLION CONNECTED DEVICES

AND ONLY 7.6 BILLION HUMANS

TREND: THE CONNECTED WORLD

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WHAT HAPPENS WHEN

THERE IS NO SUCH THING AS

A NORMAL, TRADITIONAL FAMILY

TREND: MODERN FAMILIES

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WHAT HAPPENS WHEN

GLOBAL TRADE BARRIERS ON DRUGS

BREAK DOWN AND CHEAPER DRUGS

FLOOD THE US MARKET

TREND: BREAKING BOUNDARIES

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WHAT HAPPENS WHEN

CONNECTED CARE IS

UBIQUITOUS AND ENABLED

BY SMART CONTEXTS AND DEVICES

TREND: THE FUTURE OF THE INTERNET OF THINGS

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GET CREATIVE: REIMAGINE THE MARKET

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Cu

sto

me

r E

xp

ec

tati

on

s

Transform

Enable

Enhance

Low Medium High

Intensity of Transformation

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40

60

80

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REIMAGINE THE MARKET

LETS GO BACK TO OUTPATIENT CARE BEFORE 2007

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No way to assess physicians

Had to call to make an appointment

No way to find a new physician when moving cities and states

Had to rely on word of mouth

No transparency into physician’s availability

ZOCDOC FILLED AN UNMET NEED OF THE CONSUMER

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Can see physician reviews to pick the best provider for you

Can make an appointment online

Can easily search network to find recommended physicians

Access to advice outside of social circle

Can get an appointment when needed

285/24/2017

$1.5 billion funding promised

Partnership model (Google, AbbVie, Ancestry,

etc.)

Arthur Levinson, CEO

Expertise: cellular biology, genetics and newer

experimental methods such as synthetic biology,

optogenetics

Actual funding: $240 million (Dec 2015)

CALICO: GOOGLE VS. DEATH - REIMAGING AGING

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GET REAL: REIMAGINE THE FUTURE OF MOBILITY AND DO IT

PARKNOWFinds an available public

parking space through

GPS installed

PARKATMYHOUSEA social network of private

parking garages for an

hour or for a penny

CHARGEPOINTAutomatically finds a

location of where to swap

the battery

DRIVENOWPay per use, billed

by the minute

Mission:Become world’s leading

provider of premium products

and premium services for

individual mobility

PERSPECTIVES FROM THE AUTOMOTIVE SECTOR

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Low Medium High

Intensity of Transformation

Cu

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xp

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tati

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Transform

Enable

Enhance

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80

100

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Automotive

Manufacturers

Tesla

We are hell bent on becoming the best manufacturer on earth. /Musk, May 2016/

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GO BROAD

GO DEEP

GET CREATIVE

GET REAL

Thank you!

@ejoachimsthaler

e j@ vivaldigroup .com

Erich Joachimsthaler, Ph.D./ Founder & CEO of Vivaldi /