Customer Centricity: Adapting to a Changing Global Market

Copyright © 2014 HCL Technologies Limited | www.hcltech.com

Customer Centricity : Adapting to a changing Global Market Kumar Ramananda | Global Head , Life Sciences Commercial Solutions | HCL Technologies

Copyright © 2014 HCL Technologies Limited | www.hcltech.com2

Healthcare Ecosystem – The “NEW” Normal

Digitization

Advancements in pervasive technologies, interoperability and genomics

Consumerization of medical devices The internet and mobility are

creating more “prosumers” than ever before

Regulators

PayersLife Sciences

Patients

increasing thirst for healthier lives Proliferation of Health Information Generation Y with willingness to

collaborate and share

Healthcare Providers

Life Sciences &

HealthcareChallenges

Government healthcare spending pressure

More proactive management of formularies

Legislative support for lower-cost generics

Prescription monopoly under erosion Access increasingly crowded Purchasing consortia taking on

negotiation role

Increasing Regulatory Scrutiny

Public Distrust Multiple Governing bodies

Shift from “Volume” to “Value” New stakeholder groups

Need for comparative effectiveness strategies


To manage the complexity for individual best healthcare service, patients are seeking more

peer-to-peer advice, information, help, exchange, etc.

PROVIDERS

PATIENTS

PAYERS

PAYERS

PROVIDER

PATIENTS

PATIENTSPATIENTS

Patients gain power and enforce the shift towards a shared and participatory decision-

making treatment process

Rivalling interests of saving costs vs. best treatment complicate the relationship of

payers and patients

Controls, Managed Care, Reimburse-ment, etc... creates an intransparency of the regulating and care giving landscape

Complex Network of Mutual Influence Without a Common Goal

What is our role in this Ecosystem ?


Regulatory

Patient Affairs

Manufacturing &

Supply chain

Market Access

Medical Affairs

Sales

Marketing

Clinical Operations

Contract NegotiatorsGPOs, MCOs, Health Insurers, Employers

PayersInsurers, Government,

Employers

PatientsPOLs, Communities

RegulatorsFDA, EMA, G-BA, Other Countries

Thought LeadersKOLs, Recognized Physicians,

Researchers, Specialists

Policy & Guideline Makers

NIH, NHS, NICE, IQWIG,

Prof. Societies, Legislators

CompetitorsDirect & Indirect

CaretakersHome Care, Case

Mgrs

CompetitorsDirect & Indirect

Pharma

Inter operational complexity adds more challenges to deal with fragmented market of different customers!

+ Pharma’s Complex Internal Silos


@Inflection Point and the Cost of Inaction

Lack of Economic data early in the life cycle

Weak Value proposition and data-driven market access

narrative

Lack of insights on payer as customer,

their economics

Lack of insights on patient populations

Potential to save or generate

substantial dollar value over the

product’s life time

Today

X



From Ignoring to Engaging

Ignoring Consumers Talking to consumers Engaging Consumers

1990’s 2000’s 2010’s

Sales Force

Channels

Products

Patients

Payers

Regulatory

Customer Opportunity & Impact

One size fits all

Mostly Paper & minimal digital presence

Blockbusters

Powerless victims

Administrative Gate keepers

Limited influence with policies & standards

Minimal & Provider focused

Arms race reaches saturation

Internet hype but underperform

Hard to come by

Information deluge & Mostly one way

Scrutinize access & price

Started reigning in

Moderate

Diminished access & Virtualization

Interactive Content & Virtual Engagement

Patent cliff decade & depleted pipelines

Patient is an informed consumer

Complete shift in bargaining power

Increased control on promotion & pricing

Significant

Pharma


“We take funds that might otherwise be used to shout about our service, and put those funds into

improving our service. That’s the philosophy we've taken from the beginning. If you do build a

great experience, customers tell each other about it. Word of mouth is very powerful.”

"If you're competitor-focused, you have to wait until there is a competitor doing something.

Being customer-focused allows you to be more pioneering."

- Jeff Bezos

Customer Centricity – Engagement and Partnerships


Customer Centricity – Engagement and Partnerships

From Traditional to Utilization or Value based partnerships

Capping and Patient Adherence programs

Benchmark, Outcome Performance and Drug performance guarantees

Demonstrate value beyond product efficacy

Need an ally in their quest change patient behaviours

Need a partner to deliver improved patient health outcomes

Disease Awareness programs with focused disease branding

Evidence based Marketing and Sales programs

Direct to Physician& Direct to Patient

Compliance to Treatments

Engaging Payers Engaging PhysiciansEngaging Patients

Pressure Build: Future Leaders, Consumers and Employees are DIGITAL NATIVES


Explosion of Irreversible Phenomenon : Disruptive Technologies


In the early 2000s – Our approach to Stakeholder Engagement…

11

StakeholderInfluence

Market Access

PatientFlow

ManagedCare

Ope

ratio

nal

Stra

tegi

cIn

tegr

ation

Basic Patient profiles for sales force messaging and practice size

Limited number of GPs for segmentation and messaging;

Basic KOL Engagement

Payer archetyping to understand the affordability level


Today - Market Access has become the “Foundation” to start with!

12

StakeholderInfluence

Market Access

PatientFlow

ManagedCare

Ope

ratio

nal

Stra

tegi

cIn

tegr

ation

Significant amount of data available on

Patient behaviour, Social

innovativeness scorefactors that influence prescription decision

makingindividualized engagement

models

Advanced level of insights into POL, KOL,

MSL, PAG

disease incident rateLevel of generic

subscription Affordability score

Foundation

Differentiation

Position

Value Creation

Social

Devices

EHRClaims


Customer Centricity – Critical Success Factors

• Decisions based on economic value begin in the development lab. • Market access strategy should be integrated with other aspects of bringing

a drug to market• Pricing and value propositions should be built around quantified economic

value. • Payer and market access strategy should be approached with the same

rigor, process, and insight-driven analysis as traditional commercial strategy.

• Companies should have insight into payers’ decision making and the processes and criteria they use, as well as the skills to use these insights

• Secure access to the most valuable data and derive unique insights by combining advanced analytics– through collaboration with payers, providers or third parties


Bringing it all together

Prognosis:As Technology drives consumerism in healthcare the value discussion will focus completely on the patient enabling all

stakeholders towards a common goal.

Value Evolution Technology Evolution

Value

Scientific Stakeholders

Payers & Providers

Patients

Access Stakeholders

Product

Novel Therapies

Internet of Things

Digitization

Self Diagnostics

Patient


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Customer Centricity: Adapting to a Changing Global Market

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