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