Corporates & Digital Health: Part II

Digital health has been around for a while and as such, the challenges presented to large and complex organisations have been the subject of experimentation in recent years. Different organisations have tried different approaches to benefit from enhanced internal processes and/or through the development of new products and services based on digital health technology.

Models

Several models have become evident and I list the most common types below along with comment on their advantages and disadvantages.

Outsourcing

The skills, capabilities and know-how involved in running a global technology or pharma business are very different to those necessary for developing and/or implementing digital health technologies. As such, a practical solution is to hand over the day to day activities to third party specialists whilst managing such efforts.

Choosing capable and reliable partners is paramount and can save considerable time and effort in building internal skills, capabilities and know-how. Such up-front investment presents obvious downsides in that such value remains outside of the company whilst competitors may adopt models that actively accrue this value in-house, promoting a gradual "digital transformation".

Integration

Each corporate organisation has structures and processes that have been built over time; change may happen but change is typically slow and based on caution. As such, it is tempting to introduce digital health expertise into these teams to keep the structure and processes in tact. The inherent clash of cultures between "old school" and digital health is not easy to overcome and the potential offered by digital health can only too easily become overlooked by teams dominated by a "business as usual" mindset. That said, the potential rewards are high in that when executed correctly, the associated dissemination and upskilling provide long-term benefit.

Internal Consulting

In effect, a small team of internal consultants with specialist expertise in digital health is made available to work with other teams who themselves offer expertise and knowledge in territorial markets and/or therapeutic areas and/or internal processes. Teams that combine experience of digital health and corporate knowledge are more likely to be successful. The breadth and impact of such structures is highly dependent on the marketing/communication skills of the team and the level of support from senior management such that their deployment maximises the return on their intervention. Ideally, some form of learning and dissemination strategy should complement such efforts to promote legacy from the consulting team's interventions.

Firewalled Unit

Typically operating as a separate business unit ring-fenced from the cultural inhibitions of its parent organisations, these groups can be more agile. Whilst providing significant advantage, the value built within such organisations is likely to stay there (or to eventually move onto into competitive organisations when staff move on), limiting the long term value to the corporate parent. Such activity may extend to incorporate test bed facilities where projects can be trialed for learning and evaluation, which can work well when complemented by an internal consulting team.

Pros & Cons

There is of course no absolute right or wrong in selecting a model and each has advantages and disadvantages. In addition, one organization may choose to adopt more than one model.

The fundamentals of business outlined in part I of this article should not be ignored in that the development of new products and services (for sale) should be commercially led and the implementation of DH technology to enhance internal process should be led by the associated business function. Beyond these ground rules, strategists must consider carefully which models are best suited to the circumstance.

The choice of model(s) is highly influential on developing and implementing strategy for digital health and the models are not exclusive. They also present dilemmas.

Influencing Factors

There is a chicken and egg scenario to consider here. The objective of a digital health strategy may well determine what type of model(s) to adopt. Equally, such models may already be in place when a new digital health strategy is to be developed, such has been the piece meal development of digital health been in some organizations. Finally, a strategy to enhance the efficiency of internal processes may require different models in comparison with a strategy that has the goal of developing new digital health products.

In all such circumstances there are trade offs to consider. I have already touched upon the balance between speed, independence and value building within the organisation. There is also the matter of decision-making; should this be dispersed or centralised?

Knowledge of these models is valuable in that most corporates share the same challenges which these models can help address:

• siloed business functions supporting long established process typically do not led themselves to the necessary multidisciplinary and agile approach often required in digital health
• new thinking and expertise is required; from considering the needs of multiple stakeholders (including the end user) through usability and experience to digitally-induced behavior change and engagement.
• "The way we've always done it" runs through almost every organization and extends into the commercial realm including resistance to new business models, more appropriate to digital health than "old school thinking".

The experimentation by corporates in digital health is set to continue with most recognizing both short term and long term importance of this field that is beginning to mature. Each organization is likely to create a bespoke mixture of the models detailed above and whilst we fully expect occasional adverse headlines, further investment and reorganization will broker the gradual embrace of digital health by the corporate world.

ABOUT

Having established a networking and learning forum at the request of our pharma contacts in 2017, the Corporate Working Group In Digital health has broadened its delegation and been reinstated by DHV-NET in our post-pandemic world. There was a fascinating session on creating effective partnerships at the March meeting of the group; some of these insights may well feature in a future edition of this news letter.

I'm pleased to share that we're teaming up with UBS to co-host the next group meeting on May 20th in London where we'll explore the future of digital therapeutics - taking a very commercial perspective on one of the core facets of digital health.

For any interested parties, please register for this invite-only session through this link; we'll discuss this with our UBS partners and reach back out.