The document discusses trends in the global healthcare industry, including: 1) Healthcare expenditures are rising as populations age in Western countries, with prescription drug costs accounting for 10% of total healthcare spending. 2) Asia is becoming an increasingly important market, with many multinational companies moving business units and headquarters to countries like China and Singapore. 3) Technological advances and the use of mobile technologies are enabling new diagnostic and treatment options but also need to be implemented in a cost-effective manner to contain expenditures. 4) Aging populations and rising rates of chronic diseases are driving increased healthcare costs, while access to care remains inadequate in many parts of the world.

1. SERVICE WITH CHARACTER TO CREAT CUSTOMER VALUE
IN INDONESIA PHARMACEUTICAL INDUSTRY PART 1
Moch

2. THE CREDIT SUISSE EMERGING CONSUMER
SURVEY 2013
Credit Suisse Emerging Consumer Survey 2013, IMF, EIU, UN

3. 2014 GLOBAL HEALTH CARE SECTOR OUTLOOK
www.deloitte.com/2014healthcareoutlook

4. INDUSTRY BACKGROUND
• Health care industry accounts for 15% of GNP
 Aspopulations in the Western world age, this is proportion is likely to
grow
 Medicare drug benefit is expected to cost ~ $ 500 billion over the next
10 years
 Prescription drugs account for 10% of all health care spending
 The World Health Organization states that health expenditure per
capita in ASEAN is around 4 percent of GDP
• Huge marketing expenditure – this industry is the highest
spender on
 Sales force (~ $ 10 billion)
 Media advertising (~ $ 5 billion)
 Promotions (~ $ 11.5 billion)
 Marketing spend is 2.5 timesspend on R&D spend for the top 9 pharma
firms
PlenarySession, Choice Symposium, EstesPark,Colorado June 8, 2004
Stephen Lock , The Economist March 17 2014

5. ASIA IS THE NEW CENTER OF GRAVITY FOR
MULTINATIONAL COMPANIES
• Asia is no longer just a booming sales
market or low-cost manufacturing
center. It's the place where many
business units are now headquartered.
• Shifting business leaders
– In 2011, Philips moved its global HQ for
domestic appliances from Amsterdam to
Shanghai, and Rolls-Royce shifted its global
marine business HQ from London to
Singapore.
– Also in 2011, Bayer relocated its general
medicine business unit to China.
– GE moved its x-ray equipment HQ from
Wisconsin to Beijing in 2011 and its global
marine business HQ to Korea in 2013.
– P&G moved its global beauty care business
unit from Ohio to Singapore in 2012.
http://csi.mckinsey.com/Home/Knowledge_by_region/Asia/Asia_center_of_gravity.aspx

6. An Elderman White Paper : The State of Healthcare in South East Asia

7. SOUTHEAST ASIA: HEALTHCARE AND
HOSPITALS
http://www.ihe-online.com/feature-articles/southeast-asia-healthcare-and-hospitals/index.html

8. FEW MEGA TRENDS WE CAN
EXPECT TO TRANSFORM THE INDUSTRY OVER
THE NEXT FIVE TO SEVEN YEARS
Diagnostics and prediction usurp primary dollars from therapeutics:
Services become paramount rather than product per se
Convergence of the food, retail and healthcare industry
Mega consolidation along the supply and delivery chain: Hospitals
can learn from the Wal-Mart's of the world as healthcare becomes
consumerized
The consumer as the eventual CEO in a world where healthcare is
anywhere, any time
ttp://www.forbes.com/sites/reenitadas/2014/02/19/the-re-imagination-of-health-care

9. TOP 4 HEALTHCARE PREDICTIONS FOR 2014 - ASIA
Frugal Innovation is the Way
Forward, High Tech Does Not
Mean High Cost
Aggressive Cost
Cutting of
Pharmaceutical
Drugs and
Transparency in
Pricing
Strong Movement Toward Value
Chain Consolidation to Increase
Efficiency
High
Penetration of
Mobile
Technology is
Enabling
Transition of
Care to the
Home
http://www.forbes.com/sites/reenitadas/2014/01/31/top-4-healthcare-predictions-for-2014-for-asia

10. TOP ISSUES AND TRENDS
Aging population and chronic diseases
• Current growth rate of the older population, at 1.9 percent, is significantly higher than that of the total population at 1.2 percent.
• Chronic diseases are, by far, the leading cause of mortality in the world, representing 63 percent of all deaths
Cost and quality
• United States spends $8,508 per person on health care, nearly $3,000 more per person than Norway, the second-highest spender.
• 23 percent of U.S. adults and 13 percent of adults in France either had serious problems paying medical bills or were unable to pay them
• 1.7 million patients develop infections while in the hospital, and 99,000 die as a result in the U.S
Access to care
• More than one billion people worldwide lack access to a health care system
• There will be a shortage of 230,000 physicians across Europe in the near future
• The number of caregivers in 36 countries in Africa is inadequate to deliver even the most basic immunization and maternal health services
• Uneven distribution of caregivers is also a problem. Developed countries increasing, but emerging markets struggling to keep up
Technology
• Advances in health technologies and data analytics can help facilitate new diagnostic and treatment options but need to contain these new expenditures by restructuring
care delivery models and promoting more efficient use of resources
• Adoption of new digital health information technologies (HIT) is driving change in the way physicians, payers, patients and other sector stakeholders interact
•Electronic medical records (EMRs)
•Telemedicine
•Mobile health (mHealth) applications
•Electronic medical prescriptions
• Need to focus on security, privacy and patient safety in addressing new technology.
www.deloitte.com/2014healthcareoutlook

11. WINNING COMPANIES IN THIS NEW MARKET
WILL MARRY THE YIN AND YANG
Winning the battle for consumer healthcare : Science vs the marketers | AT Kearney market research and analysis

12. FOUR DEFINING ELEMENTS OF THE
NEXT GENERATION PATIENT
Appetite for personalized
information and real-time feedback
Active participation in care and
treatment
Focus on convenience and on-
demand services for busy lives
Value-hunting through comparison
shopping
PwC Health Research Institute | Customer experience in the pharmaceutical sector: Getting closer to the patient | November 2013