mhealth and digital masters : novartis vs kodak

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PHARMA COMPANIES--------------------------

FROM MHEALTH TO DIGITAL MASTERS

Joseph PategouInternational Strategy and [email protected]

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SUMMARY

Objectives

I. Methodology

II. Mobile health market

III. Case Study: Novartis Vs Kodak

IV. Future Challenges & Opportunities

V. From Mhealth to Digital Masters

INFORMATION ABOUT THE AUTHOR

Appendix

Digital Economy – Joseph Pategou

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OBJECTIVES


Identify the Mhealth Market

Identify the Challenges & Opportunities

Identify the DNA OF DIGITAL MASTERS

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OBJECTIVES


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METHODOLOGY


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METHODOLOGY

Primary data (Books, Statistic , Newspapers….)

Interviews

• Qualitative method of interpretation

• Sample: 5 personnes

• 1 questionnaire of 7 questions

• Position of the Interviewees:

Expert of mobile health

Top managers from unions in the pharmaceutical Industry

FranceMr Guillaume Marchand

President and Co-founder of Health dmd

Mr. Richard LERAT

Chief of Staff of the Presidency of LEEM

Mr Lionel REICHARDT

Founder of 7C's Health

Pharmageek

Mr François-Régis Moulines

Director of Communications and Public Affairs of

SNITEM

Mrs Claire Leblond

Community Manager at SKEMA Business School

Case Study : Novartis Vs Kodak


Sources: Appendix

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METHODOLOGY

Questionnaire

1.What is your definition of mobile health?

2.What is your view on offers and demands in this market?

3.What is the role of pharmaceutical companies on the French market?

4.Is there a regulation of the market for mobile health in France? If so, how do you rate this

regulation?

5.What is the place of France in this market on the global stage (turnover, market share etc.)?

6.What is the place of Novartis in the market for mobile health in France?

7.How will evolve the market of mobile health in the future (in 5 years and 10 years)?


Sources: Appendix

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Mobile health market


The mobile Health corresponds to all services

related directly or indirectly to the health,

permanently available via a mobile device

connected to a network.

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Mobile Health Market


Sources: Appendix

Global Market

$ 2.4 billion in 2013

$ 26.5 billion in 2017

Europe $ 6.9 billion

Asia-Pacific $6.8 billion

North American $ 6.5 billion

Four major countries in Europe

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Rank Country

1 UK

2 Spain

3 France

4 Germany


Sources: Appendix

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Health Applications

100,000 mobile health applications (iOS and Android)

60% for welfare and shape market

40% for health professionals

200 companies

2,000 jobs

7 out of 10 mobile users have not downloaded health application

because they haven't found

2013 IOS Android

Percentage of smartphone 22,2% 65,2%

Percentage of application 90% 10%


Sources: Appendix

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4-Punctual tools (example: translation of medical language and Géomedica)

This market was boosted by the rise of smartphones and

application development.


Sources: Appendix

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Helpers dominate this production activity


Sources: Appendix

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Traditional healthcare players: It includes Pharma, Hospitals, health insurance and Med-tech companies, representing 3,4% of the total number of app publishers.

App specialists: App specialists are small companies with 3-10 employees. They have an app developer background and are familiar with the available development tools. This group represents 14% of the total mHealth app publisher community.

Helper: Helpers are companies or individuals with the primary motivation of publishing mHealth apps in order to help others and are typically small companies of 3-10 employees. They represent 32% of the market.


Sources: Appendix

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Medical specialists: Medical specialists leverage their medical know-

how to develop mobile apps. They represent 20% of the market.

Fitness specialists: This group of app developers represents around

10% of the total mHealth app developer community. The typical

company size is 11-100 employees.

Connecters: This group of mHealth app publishers represents 18% of

the total mHealth app developer community.


Sources: Appendix

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Pharma app publishers can be clustered into three groups:

Niche players (Use apps in order to promote their core products to healthcare professionals)

Still Trying (Publish many apps but so far have not been really successful)

First Success

Leading Pharma companies

6.6 million downloads since 2008

1 million active users since 2008

Pharma companies app portfolios’ performance is disappointing

The raison of this situation:

The app portfolios are not globally available

The app portfolio is built around the core products of the Pharma companies and

not around the actual market demand

No cross-referencing and common and recognizable design


Sources: Appendix

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In terms of demand

France

7 million health mobile users have looked for health information in 2013

22% have downloaded apps.

52.9% of mobile user’s health with chronic illness want their doctor to advises them

mobile health applications

Europe

185 million Europeans will benefit from mobile health in 2017

€ 99 billion save on health spending

In terms of regulation

The market of mobile health is not controlled or regulated

Action plan 2012-2020, adopted by the European Parliament

• Clear legal framework to ensure the development and adoption of applications


Sources: Appendix

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Case Study: Novartis Vs Kodak


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Novartis


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Novartis: Vision on the Mobile Health

Michele AngelaccioHead, Mobile Strategy and

InnovationNovartis

"Through solutions such as mobile health, we intend to make a major change in the way in which care is delivered and to increase access to health services."

“Also looking to expand its mobile health services from healthcare monitoring to virtual healthcare”


Sources: Appendix

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Place of Novartis in this market

Active companies in the field of digital

Some facts :

Novartis won the PharmaSuccess Award Marketing Excellence in 2013

In 2013, Novartis is the digital company of the year

Novartis won the PharmaSuccess Award Marketing Excellence in 2014

Partnership with Google

2013 Novartis organized an ‘mHealth Challenge’ a 48-hours development marathon in the heart of Silicon Valley in the United States, aimed at identifying a novel way to use mobile technology to address a major health challenge.


Sources: Appendix

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Place of Novartis in this market

Novartis in the still trying group

Sources: Appendix

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Kodak


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The case of Kodak: The example that Novartis is not following

Created in 1880 in Rochester, by George Eastman, Kodak was able to make it easy and

cheap, the photography, previously expensive and complex activity.

In the early 1990s, the company will opt for a slow transition to digital; in addition, the

technology seems uncertain and costly. Kodak is quickly overtaken by Sony, Canon and

even the Fuji in the digital photo.

Market leader, Kodak missed the turn of digital, which has transformed the world of

photography. This missed opportunity will lead the company to bankruptcy.

Novartis, digital company in 2013, understood that mobile Health is transforming the

pharmaceutical industry. She did not miss his appointment with the mobile health as Kodak

with the digital photography.


Sources: Appendix

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Future Challenges & Opportunities


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Future Challenges

1. The first one is to win the trust of patients

Pharma companies are fighting an uphill battle in many ways. One is that, as

technologies like mobile devices bring healthcare into patients’ homes, patient trust

becomes more important than ever. And pharmaceutical companies generally aren’t as

trusted as physicians or even insurers.

A Deloitte survey last year found that although people trust doctors and academic

centers most, the next most trusted entities are companies like WebMD, then Google search

results. At the bottom of the list are pharma and other types companies.

A more recent study, by Makovsky Health, found that only around 35% of consumers

would trust a disease website sponsored by a pharmaceutical company, and 16% said they

would never visit a disease website sponsored by a pharma company.

2. The second one is the ability to take risk

Pharma companies is historically extremely risk-averse, when you introduce a new

factor, it inherently increases risk. In a business that is focused on reducing risk, then those are

things that life sciences companies are going to stay away from. In the business of mobile

health will always need to take risk to be the best.

3. The last challenge

Ability to produce relevant apps for patients, for that, they need to develop a customer

culture.


Sources: Appendix

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Future Opportunities

1. Pharmaceutical companies will be closer to patients and will understand the needs, expectations and will be able to produce Blockbusters.

2. It is an opportunity for pharmaceutical companies to improve their image through the development of application which help patients.

3. This revolution may allow pharmaceutical companies to become key players in the prevention of diseases.

4. MHealth will become a new level of growth (Turnover).


Sources: Appendix

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PHARMA COMPANIES: FROM MHEALTH TO DIGITAL MASTERS


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Pharma Companies: From mHealth to DIGITAL MASTERS

Pharma companies must become DIGITAL MASTERS*

The DNA OF DIGITAL MASTERS

Digital Capabilities

Know where and how to invest in the digital opportunity The size of the investment is not as important as the reason and the

impact

Leadership Capabilities

Top-down leadership Strong governance and coordination

• Setting direction• Building momentum• Ensuring that the company follows through

Example: Chief digital officer (CDO) or Chief information officer (CIO)

(*): LEADING DIGITAL: Turning technology into business transformation, Havard Business

Review press


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Pharma Companies: From mHealth to DIGITAL MASTERS

Reasons to become digital masters

Digital Masters outperform their peers*:

26% more profitable than their average industry competitors

9% more revenue with their existing physical capacity

More efficiency in their existing products and processes

More Productivity

(*): LEADING DIGITAL: Turning technology into business transformation, Havard Business

Review press


Sources: Appendix

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Information about the author

Regulatory issues on the development of Biosimilars – Joseph Pategou

I am fascinated by healthcare and the experience of many

companies to develop new types of drug with the aim of saving

lives around the world.

Main topics of passion in the healthcare:

- Strategy

- Digital

- Innovation

- Biosimilars

If you want to know more, please contact me:

[email protected]

M. Joseph Pategou

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APPENDIX


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Reference1. Bilan économique du LEEM (les entreprises du médicament) / édition 2014

2. Livre Blanc 2013-Télémédecine 2020 Modèles économiques

3. Livre vert sur la santé mobile- Commission Européenne

4. Research2Guidance-mHealth App Developer Economics 2014

5. Pwc-L’émergence du mHealth : un levier de croissance

6. Pwc- Socio-economic impact of mHealth An assessment report for the European Union

7. Syntec Numerique-Télémédecine 2020 faire de la france un leader du secteur en plus forte croissance de la e-

santé

8. http://mobihealthnews.com/35895/novartis-mobile-health-strategy-poised-to-move-from-tracking-to-virtual-care/

9. http://www.01net.com/editorial/626092/ios-versus-android-comparaison-nest-pas-forcement-raison/

10. http://mobihealthnews.com/32420/10-digital-health-startups-that-

pivoted/http://www.novartis.com/newsroom/feature-stories/2014/06/mHealth-a-revolution-in-healthcare.shtml

11. http://www.novartis.com/innovation/focus-on-patient-outcomes/index.shtml

12. http://www.novartis.com/innovation/focus-on-patient-outcomes/remote-monitoring.shtml

13. http://mobile-health.fr/2014/06/weecare-temoignage-de-novartis/

14. http://europa.eu/rapid/press-release_IP-14-394_fr.htm

15. http://www.healthdatachallenges.com/challenges/database/novartis-mobile-health-challenge/

16. http://www.mmm-online.com/avatar-wins-hearts-at-novartis-mhealth-challenge/article/321705/

17. https://itunews.itu.int/fr/1632-Dialogue-de-Geneve-la-sante-sur-mobile.note.aspx

18. http://lemondedelaesante.wordpress.com/2012/07/31/le-remplacement-du-stethoscope-par-le-mobile-est-il-

pour-demain/

19. http://lemondedelaesante.wordpress.com/2013/03/05/la-m-sante-doit-elle-evoluer-pour-permettre-une-

adoption-generalisee/

20. http://research2guidance.com/why-pharma-companies-have-no-substantial-impact-on-the-mhealth-app-

economy/


mhealth and digital masters : novartis vs kodak

Health & Medicine