Preping for Surgery
There are only a few things a pharma company needs to be good at: 1) developing products and services of true, differentiating
value for patients, doctors, and payers; and 2) figuring out how to market and service those products and services powerfully,
ethically and efficiently.
Anything else you do is either a necessary evil or necessarily an actual antagonist to the company's success in the Speed of Change world.
The trick to succeeding in this world is to turn the threat into a weapon. In pharma, that means, among other things, developing
extreme dexterity in managing the flood of data about health outcomes that saturates every step of the patient journey.
The power lies in achieving rapid, real-time awareness of customer activity across all customer types, and across all stages
in the customer journey—from behavioral insights through purchasing behavior.
The ability to deal with information with great speed and agility (what I call 'knowlagility') is a critical source of competitive
advantage in myriad ways: it provides deep customer insights, it enables more efficient delivery of high value across the
healthcare delivery continuum, and, critically, it empowers companies to make credible arguments about the true economic impact
of their therapies to the healthcare system.
Yet little of this capability—which is extraordinary in its importance now, and even more extraordinary in the rate its importance
will increase—has been built into pharma IT as it is currently configured. The layers in a super-pharma organization actually
cover the company in folds of bloat, threatening the vital organs.
Let the Sucking Begin
That's why it's essential to cut out any non-essential IT process. Stop obsessing about the trivial—that means please stop
talking about social media! Instead implement programs that deliver the ability to see farther and move faster.
The idea is to get smaller, yes. Spin off those divisions that aren't crucial, sure. But more than that, cleave the processes
that are more about 'control' than value.
A ridiculous example: We have clients who can't run basic software or access popular websites. Why? Either because IT plays
the 'security' card and so access to—and insight about—much of the world gets cut off. Or else Finance cries 'efficiency'
and suggests that if only we could get people off Facebook, then we'd be more profitable.
If you are a CEO and hear these things from your managers, you can do more for your profitability by firing them.
In the Speed of Change era, IT has one of the most important jobs in the entire organization. But it's not about control;
it's about the discovery and release of value. Sure, you have to do the basics of control: secure your (cloud-based, I hope)
networks and endure the Sarbanes-Oxley torture, etc. Just understand that this is a distraction from the real work.
The real work then is in applying knowlagility to unlock potential; by uncovering patterns in the data about your customers,
and patterns in the data about potential products and services. In a post-blockbuster world, the winners will be those companies
(of whatever size) that are better at identifying the highest-value opportunities and delivering them to customers with greatest
possible speed and satisfaction.
What does this mean for the super-pharmas?
According to Clayton Christensen, author of the groundbreaking "The Innovator's Dilemma" and the healthcare-focused "The Innovator's
Prescription," "In all probability, they are too large for today's competitive conditions, and much too large for the fragmented
product markets they will confront in 10 years."
Smaller companies, or large companies with 'federated' structures (e.g. Johnson & Johnson), stand a better chance of combining
the advantages of size and agility. But whatever the size or structure, the organizing principle remains the same: In a Speed
of Change world, victory belongs to the swift.
Bill Drummy is the CEO of Heartbeat Ideas. He can be reached at email@example.com