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™
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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.