Presentation from DayOne core team member Frank Kumli about innovation in healthcare and the Digital Era in Pharma. More about DayOne at dayone.swiss

1. The Digital Era in Pharma
MSD Innovation Factory – 09 January 2018
Frank Kumli, www.dayone.swiss

2. Agenda
1
It is about Healthcare It is broken
Non-traditional players They are here to stay
Trends to watch The world is accelerating
The opportunity All along the value chain
How to get there Five prerequisites
How to innovate Always be in “Day 1” mode!

3. It is about Healthcare
It is broken

4. Mega Trend 1: Ageing
The Silver Tsunami
3
Source: http://www.un.org/en/development/desa/population/publications/pdf/ageing/WPA2017_Infochart.pdf
Ageing
2017
The number of older
persons worldwide
is expected
to double by 2050
1 in 8 people are
aged 60 or over
in 2017
1 in 5 will be
aged 60 or over
in 2050
Almost all countries are ageing
Older persons
are becoming
more likely
to live alone
and less likely
to live with
their children
2017 2050
Photo credit: “Dancing elderly couple” by Dennis van Zuijklekom, 2015.
(https://flickr.com/photos/dvanzuijlekom/19943090382/), used under CC BY-SA 2.0, cropped from original.
The designations employed and the presentation of material on this map do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concer-
ning the delimitation of its frontiers or boundaries. Dotted line represents approximately the Line of Control in Jammu and Kashmir agreed upon by India and Pakistan. The final status of Jammu and Kashmir has not yet been agreed upon by the parties. Final boundary bet-
ween the Republic of Sudan and the Republic of South Sudan has not yet been determined. A dispute exists between the Governments of Argentina and the United Kingdom of Great Britain and Northern Ireland concerning sovereignty over the Falkland Islands (Malvinas).
2017 2050
0
10
20
30
40
50
60
70
80
90
100
1990 2010
Percentage
Household living arrangements of persons aged 60+
Other
With children
With spouse only
Alone
0.0
0.5
1.0
1.5
2.0
2.5
1980 1990 2000 2010 2020 2030 2040 2050
Billions
Persons aged 60 years or above
More developed regions Less developed regions

5. Mega Trend 2: Chronic Disease
The (bad) Life Style Tsunami
4
Source: https://www.hsph.harvard.edu/news/magazine/f12-infographic-chronic-disease/

6. The Healthcare reality: Complexity
Wasteful and not patient centric
5
Source: http://www.icosystem.com/simplifying-the-complexity-of-healthcare/

7. The Healthcare opportunity: Efficiency
Probably the biggest business opportunity around
6
Source: https://www-01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=HLW03016USEN

8. Pharma: a broken Business Model
An industry that is reinventing itself
7
Source: https://www.technologyreview.com/s/609647/google-has-released-an-ai-tool-that-makes-sense-of-your-genome/©

9. Non traditional players
They are here to stay

10. Non traditional player 1: Tech
Data, data, data…and trust
9
Source: https://www.technologyreview.com/s/609647/google-has-released-an-ai-tool-that-makes-sense-of-your-genome/©

11. Non traditional player 2: Platforms
Reach, scale and convenience
10
Source: https://www.pymnts.com/amazon-commerce/2017/amazon-prepares-to-sell-online-pharmaceuticals/

12. Non traditional player 3: Retail
In your community, outside of expensive care settings
11
Source: https://www.japantimes.co.jp/news/2017/03/06/business/lawson-offers-specialized-services-elderly-customers/#.Wk8wPLaZP-Z

13. Non traditional player 4: Insurance
Pay-as-you live!
12
Source: https://www.slideshare.net/FTPartners/ft-partners-research-prepare-for-the-insurtech-wave

14. Non traditional player 5: THE PATIENT!
Needs to be be at the center
13
Source: https://www.patientslikeme.com

15. Trends to watch
The world is accelerating

16. Trend 1: Telemedicine
Getting traction, after 20+ years of experimenting
Source: https://www.medgate.ch/en-us/aboutmedgate
15

17. Trend 2: Health data
The new green
Source: http://www.who.int/bulletin/volumes/96/1/17-197426.pdf
16

18. Trend 3: Artificial Intelligence
Probably the biggest promise for Healthcare
Source: https://www.cbinsights.com/research/artificial-intelligence-startups-healthcare/
17

19. Trend 4: Bots and Voice
Efficiency, convenience and homecare
Source: http://www.healthcareitnews.com/news/mayo-clinic-arms-amazon-alexa-first-aid-skill
18

20. Trend 5: Blockchain (and ICOs)
Audit trails, data integrity and…funding!
Source: https://www.fastcompany.com/40512559/can-this-app-that-lets-you-sell-your-health-data-cut-your-health-costs
19

21. The opportunity
All along the value chain

22. The opportunity: All along the value chain
Marketing is dead! Long live services
21
http://www.ey.com/Publication/vwLUAssets/EY-digital-deals-spotlight-on-life-sciences/$FILE/EY-digital-deals-spotlight-on-life-sciences.pdf

23. The opportunity: Collaboration
22
Families &
friends
Social
media Co
HIT Co
Payors Medical
Technology
Co
Telecom Co
Employers
Pharmacies
Co.
Life
sciences
Consumer
electronics
Retailers Co
Food Co
Providers
Information
companies
Self-managed
patient
► Social support
► Community
engagement
► Patient
data
► Financing
► Risk sharing ► Remote
care
► Diagnostics
► Connectivity
► Counseling
► Drugs
► Efficacy
insights
► Behavioral
change
► Access
► Nutrition
► Functional
Foods
► Health
literacy
► Medical
expertise
Source: adapted from EY

24. How to get there
Five prerequisites

25. 1. Start with the Journey
Understand these pain-points to solve
Source: http://www.reitsema.nl/roeland/graphics/redesign-patient-journey/
24

26. 2. Engage in design thinking
Emphatize, design but make sure to Prototype and iterate
Source: https://www.nngroup.com/articles/design-thinking/
25

27. 3. Co-create your business model
Be on top of how to create, deliver and capture value
Source: https://strategyzer.com/platform/resources, http://www.connectia.it/en/cosa-e-il-business-model-canvas/
26

28. 4. Engage legal, regulatory and compliance
They will keep you out of trouble
Source: https://www.supplychain247.com/article/what_does_increasing_regulatory_oversight_mean_for_the_pharma_supply_chain/one_network_enterprises/
27

29. 5. Know your customer
Help him achieve his goals
Source: https://rockhealth.com/reports/streamlining-enterprise-sales-in-digital-health/
28

30. How to get there: 5 prerequisites
1. Start with the Journey
2. Engage in design thinking
3. Co-create your business model
4. Engage regulatory and compliance
5. Know your customer
29

31. “The outside world can push
you into Day 2 if you won’t or
can’t embrace powerful trends
quickly. If you fight them,
you’re probably fighting the
future. Embrace them and you
have a tailwind” Jeff Bezos
30

32. Innovate
Always be in “Day 1” mode!
Day 1 is:
True Customer Obsession
Focus on results and not process
High-Velocity Decision Making
Embracing External Trends
The outside world can push you into Day 2 if you won’t or can’t embrace powerful
trends quickly. If you fight them, you’re probably fighting the future. Embrace them and
you have a tailwind.
Jeff Bezos
Source: https://www.forbes.com/sites/quora/2017/04/21/what-is-jeff-bezos-day-1-philosophy/#31a7c6051052
31