Putting Transformation Under the Microscope

The healthcare industry is a latecomer in the digital transformation movement. Today, future-looking healthcare providers and software developers are focused on understanding the potential of digitalization in the context of health, investing heavily in areas such as advanced analytics.

Research data from Trasers highlights a real vulnerability among healthcare companies that sit outside the vision-driven quadrant. Innovation around pharmaceuticals, medical devices, and patient lifestyle management is raising the bar, leaving no room for error in the approach to digital transformation. The vast majority of healthcare companies are executing sub-optimal digital transformations — a concerning reality in the digital era. CEOs must drive innovation and reinvent their existing product-service portfolios, transforming the operating value chain to deliver digital-first health services.

>Digital Transformation in a Highly Competitive Market

Top Concerns for CEOs in the Healthcare Industry

Healthcare companies must digitally transform their operations and introduce new digital-first solutions. Here are the top seven concerns healthcare CEOs will need to address to make this happen:



Over-regulation is threatening growth prospects for healthcare companies. These regulations include HIPAA and GDPR, and restrict how healthcare companies can leverage patient or healthcare provider data sources. This is a direct barrier to maximizing the value of advanced analytics: a key part of healthcare digital transformation initiatives.



Insurance and pharma retail consolidation is reducing competition through mergers and acquisitions. Healthcare companies with enough financial capital no longer need to research and develop products or services, they can simply acquire and integrate other businesses into their value chain.

New Technologies

New Technologies

Advances in pharmaceutical drugs and clinical medical devices are transforming the functionality and efficacy of healthcare delivery. These new technologies rely on data to operate. However, the data management systems are either not in place or sufficiently capable to allow most healthcare companies to benefit.

Changing Lifestyles

Changing Lifestyles

Increasingly digital lifestyles make it difficult for healthcare companies to capture the attention of patients. Information fatigue drives this, overwhelming consumers with product or service options and marketing initiatives in the digital realm.

Failure to Innovate

Failure to Innovate

HealthTech startups are delivering innovate new artificial intelligence (AI) and machine learning (ML) applications, but the data foundation is not present in most healthcare company infrastructures. This prevents healthcare companies from adopting and leveraging new capabilities, reducing the value proposition for patients.

Direct-to-Patient Care Models

Direct-to-Patient Care Models

Direct-to-patient care models are enabling patients to receive treatment in their home or workplace without attending a hospital or clinic. As healthcare becomes more decentralized, large-scale clinical environments will struggle to sustain the patient numbers flowing through the door.

Talent Acquisition

Talent Acquisition

A shortage of talent is leaving skill gaps across the workforce. The long-term education of clinical staff means today’s problem could take years to solve, mandating a proactive approach to education and training.

A Changing Approach to Healthcare Delivery

Healthcare is shifting from a transactional service focused on reactive care, to a holistic service focused on the proactive management of patient health. Healthier lifestyles, preventative care plans, and alternatives to medicine such as yoga and meditation are becoming integral to the healthcare industry. Underpinning these changes are advances in medicine and technology, enabling data-driven decision-making capabilities as these two converge.

The result is a shift away from solely downstream care, such as chronic disease management and emergency care. Instead, the healthcare industry is shifting to meet consumer demand by delivering more mid-stream and upstream care solutions, modifying individual behavior and tackling socioeconomic factors related to patient health.

Patients have more capabilities than ever, with wearables and smart health applications driving interest and ownership of personal health. They want to share this data with healthcare providers, enabling more proactive and preventative care options through data-driven insight generation. As a result, the healthcare industry is a hotbed for innovation no matter the size of the company.

The Most Successful Digital Transformations Are Powered by Analytics Capabilities

Our benchmarking services are powered by over 1.5 million data points in addition to our primary research and data collection capabilities. With access to leaders across more than 40,000 companies in various size segments, industries, and geographic locations, we can quickly gather additional data to address how your business is performing against the competition.

A graph showing which industries are investing the most in digitalization.

Source: Trasers

Data Analyzed in this report comes from 4,000+ responses. For the healthcare industry, data from 322 companies have been used.

Our healthcare industry experts can offer insights into the following sectors:

  • Payer

  • Provider

  • Pharmacy

  • Insurance Broker

  • Third Party Administrators (TPA)

  • And More


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Reimagining the Healthcare Services Value Proposition

Healthcare companies must reimagine the customer value proposition and reinvent their product-service portfolios to remain competitive. Advances in medical technology and pharmaceuticals, coupled with a shift of focus to preventative care, is creating new opportunities for digital-first disruptors.

Simultaneously, network effects on healthcare ecosystems can provide a safety net for legacy healthcare companies if used correctly. Trust and reputation are still highly regarded, somewhat mitigating the potential for digital disruptors.

Striving to keep pace with industry norms is not a recipe for leadership. The next generation of healthcare leaders will have a laser focus on innovation and digitalization, mandating a comprehensive digital transformation response from legacy healthcare companies to stay relevant. Companies must use digitalization to deliver connected experiences, reinventing the value chain to appease stakeholders.

Only 7% of Companies Are Delivering on Their Transformational Initiatives

Our research has shown that 30% of companies will fail to survive this decade due to an inability to evolve digitally. To address this negative trend, we have developed the Digital Enterprise Evolution Model™ (DEEM).

Digital Enterprise Evolution Model™

An image showing the stages of analytics capability evolution.

Copyright © 2021 Trianz

DEEM allows our clients to recognize digital evolution patterns, implement benchmarking and prioritization strategies, and initiate application management protocols to satisfy stakeholder and market requirements.

Healthcare Companies Outside the Vision-Driven Quadrant Are at Risk

Many healthcare companies are outside the vision-driven quadrant with digital transformation. This puts them at considerable risk. Most large healthcare companies are beginning to undergo digital transformations, but sub-optimal execution is undermining their efforts toward digitalization.

Many healthcare companies are planning large investments in the cloud, along with advanced analytics, robotic process automation (RPA) and process digitalization. For the 70% of companies outside of the vision-driven quadrant, an integrated strategic point of view focused on technology and data-driven operations will be essential in the digital era.

Human Capital Management (HCM) in the Healthcare Industry

The healthcare industry is heavily focused on human capital management, with this area residing in the top three alongside digitalization and analytics. The healthcare experience for consumers must be transformed to deliver more value, and customer-driven clinical personnel will lead the charge.

Healthcare companies will need to break through regulatory or structural hurdles to create value. Direct and outsourced talent from the global workforce, such as in India, is necessary to overcome skills shortages in places like North America and Europe.

The creation of a global set of company values, transformation of employee experiences (EX), and better multi-channel communication capabilities will be necessary to attract talent. CEOs must benchmark their healthcare operations—such as with the Trianz Digital Enterprise Evolution Model (DEEM™) —focusing on product-service portfolios, transforming the value chain, and transforming acquisition and management of human capital to succeed.

Experience the Trianz Difference

Trianz enables digital transformations through effective strategies and excellence in execution. Collaborating with business and technology leaders, we help formulate and execute operational strategies to achieve intended business outcomes by bringing the best of consulting, technology experiences and execution models.

Powered by knowledge, research, and perspectives, we enable clients to transform their business ecosystems and achieve superior performance by leveraging infrastructure, cloud, analytics, digital and security paradigms. Reach out to get in touch or learn more.


State of Digital Transformation
Worldwide 2020 Report

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