Blog3: Drawing upon an organisation with which you are familiar, evaluate the ways in which it’s digital business model has contributed to its success.
Background
The digital revolution in business area has spawned a consumer revolution oriented to growing information needs. With the advent of new technology tools, consumers are becoming easier to get their health data, also with developing in material world, the public are more concerned about themselves, especially their health problem, which will change the relationship between healthcare providers, customers and pharmaceutical companies.
The current consensus is that constant digitization of healthcare requires pharmaceutical companies must changing their traditional behaviors to keep their competitive, like integrate data which related or not related to health to build a whole healthcare database. Novartis is a typical pharmaceutical company who did extremely successful in digital area.
What Novartis did in digital area
Novartis did three main things in digital area, first thing is use digital technology to change the process from pharmaceutical companies to doctors and finally to the patients and develop new drugs with digital technology. Novartis think “digital technology is transforming the whole healthcare industry, affecting the entire process from drug development to doctors providing medical treatments to patients”, such as sensor applications that are helping researchers and doctors to get more patient feedback on treatments for more precise treatment. Also, the increased incidence of cancer and chronic diseases requires healthcare services offer better services. These changes will force promote the application of digital technology in the healthcare industry and bring better medical services to the public.
One of Novartis’ key strategies is to drive digital transformation and strengthen its position in the healthcare sector. For instance, to visualized this strategy, Novartis designed a mobile applications, which aim to treat drug abuse and help people with diabetes manage the disease have been approved by the US Food and Drug Administration (FDA) to combine traditional medicines with digital technologies that help patients follow healthy behaviors, this mobile application is expected to improve the quality of healthcare and medical treatment for patients.
Secondly, Novartis pay a lot attention to digital transformation of clinical research and market data analysis. At the end of July 2018, Novartis announced a partnership with SHYFT company which belong to Medidata, this collaboration include of two main components: build a database named STRATA for aggregating and managing an increasing number of third-party and proprietary business data sources; and design a LUMEN Insights Platform to extracts value from historical data and provides guidance for business purposes. In this collaboration, Novartis expand its own health database and extend use data efficiency from clinical to market.
Finally, Novartis working share on health data in their database through Cloud, Novartis announced the appointment of Bertrand Bodson who leaded Sainsbury’s Argos successfully transferred to an online retailer from a traditional retailer, as its Chief Digital Officer in August 2017. Bodson will control the developing and implementing a company-wide digital transformation strategy, including efforts to improve the company’s ability to use data in drug discovery and development. The data was collected from their customers will be voluntary shared with other pharmaceutical companies. Also, collaborate with other stakeholders, like patients and doctors, and automate their whole business processes.
Evaluation of Novartis’ behaviours
Novartis is a good example of handle the changing trend and maintain its dominant position in the healthcare field, digital transformation is an important strategy of Novartis.
With the development of embedded deformation chip in recent years, Diovan, an antihypertensive drugs with embedded deformation chip was developed by Novartis, has been applied in clinical trials, chip will record the data from patients’ inside body and provide the data back to Novartis which can help Novartis and doctors receive the information about the patient immediately and sustainable. Novartis can maintain its dominant position rely on these data, and because of these useful data can shared via digital technology like mobile phone and Cloud, patients and Novartis can check it at anytime and any location. Sharing health data and drugs develop data, it is a very efficient way to use each participator’s advantage, reduce the costs of develop new drugs and the risk of clinical trials, it can help Novartis to develop more drugs to satisfy their customers, on the other hand, it is a clever way to attract more new customers.
Reference:
Champagne,C., Hung, A. & Leclerc, O. (2015). How pharma can win in a digital world. Retrieved from:
Of Weak. (2018). Novartis Digital Innovation Analysis. Retrieved from
yang 
Hi! This is a very interesting blog about Novartis.
It seems that Novartis is very successful because it performs very in the old days and able to maintain its dominant position in the future. The Apps seems could provide a very effective and efficient platform and give convenient to both patients and doctors. Using Apps is very good idea because also everyone has smartphones at present. However, I am still worried about the senior citizens who do not know how to use smartphones. Based on my experience, some senior citizens are not that easy to accept new things such as theInternet or smartphones. In addition, I worried about the safety of the data. Data of people’s health record is very important and might be misused by some organizations. For example, insurance companies might interest in these data and refused those people who might have a larger chance to get ill. But actually, these people are the one who has an urgent need for insurance.
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The digital model of medical treatment is a really significant change for the whole human beings. Nowadays, technology and society culture development make lots of industry transfer their traditional operating methods. As one of the majorities of people’s daily life, the medical treatment perspective’s digital transferred benefits both doctor and patients. The advanced technologies applicated by Novartis make the process of the industry more effective and the tracking system can be checked by customers. This might make them more confidence with the pharmacy products. The most interesting point in these blogs is the DIIOVAN, which is antihypertensive drugs with embedded deformation chip is really amazing. Through these drugs, the company can overview patients’ physical condition. There are at least two benefits in different ways. For example, a company could research and develop more effectively for more perfect drugs and the patients might felt it is tailored for themselves.
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Thanks for sharing a good example to us. For those pharmaceutical enterprises, customer data is a useful and important tool to develop new medicine and machine. For example, without the development of embedded deformation chip in recent years, it is also unable to produce drugs and equipment more useful for high blood pressure. Besides, it shifted the production of the drug from a single ex post control to an ex post prediction, for example by analyzing the data that came back from the chip, analyzing what types of people are more likely to have high blood pressure, and what are the signs that high blood pressure is coming on. But do you think the data of customers could be shared with other pharamaceutical enterprises, because if a customer change a new embedded deforation chip, does that mean the data should be collected again and this might cause low efficient and repetitive work?
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