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Digital disruption Learning from Global Best Practice
Thailand Competitiveness Conference 2017
Carlos Cordon
THE LEGO Professor, IMD
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… for example, ebookers uses big data to
personalize the user experience…
MACBOOK SMARTPHONE
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Sporting: Social Media and Big Data
Photo source: IBM.com
Digital Transformation Using Big Data, IMD Lausanne
May 21st, 2015
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The evolving eco-system
Source: Analysis
Sports
equipment &
apparel
Commercial
partners &
agencies
Data & IT
solutions
Sports clubs/
teams
Sports
federations /
associations /
events
Sport Events
and Travel
Devices Software and
analytics
Universities &
research
Coaching /
Training
Nutrition &
Supplements
Social media
Illustrative
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A combination of activity tracking,
training and social media platform
Proprietary apps and 3rd party devices as data capture devices
Source: Strava.com
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Aggregated user data creates interesting applications to find new routes
Source: Strava.com
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Safer cycling and pedestrian pathways
Using the data of millions of Strava activities they are working with departments of transportation and city planners, as well as advocacy groups to create better urban planning
Source: Strava.com
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Adidas: Omni-Channel
- Everything is online… every single item in any store in the country
- Everything is on the store, that is on-line...
- Consumers could buy in the store, on-line, on-line in the store, collect in the store, delivered at home....
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Omni-Channel: the consumer could buy anywhere using any channel
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Adidas: the omni-chain to enable the omni-channel
• All stock available real time to everywhere
• Every store is a warehouse
• RFID everywhere
• Logistics from store to store, store to client, reverse logistics… everything could go everywhere
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… an amazing example of a pharmacy distributor
and retailer: Mediq (The Netherlands)…
• From “moving boxes” to
“taking care of the patient”
• Our mission: Mediq is a
trusted partner in
healthcare, helping people
to live their lives to the
fullest potential
• Market leader in The
Netherlands with 200+
owned pharmacies and
150+ supplied pharmacies
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14
… caused by new government policies in the
NL to focus on improvement in pharmacies …
Research: Incorrect medication use leads to avoidable hospitalizations
• 2,4% of all hospitalizations are medication-related
• 19.000 avoidable hospitalizations per year in the Netherlands
• Avoidable costs: € 85 million
Recommendations: Increase guidance in pharmacotherapy
Improve compliance to guidelines
Increase support to prescriber in complex issues
Focus on high-risk patients
Source: HARM 2011
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… that triggered a new Mediq’s ambition and
journey …
15
Current environment Future environment
• Added value of pharmacy not
transparent
• Compensation for distribution is
based on volume
• Tangible added value of
knowledge-based services
• Compensation for care and
patient outcomes
Source: IPC-team
Mediq introduces new program:
Integrated Pharmaceutical Care (IPC)
G
F Z
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… a big data journey ….
Focus on medication Focus on patient
“ Expensive when necessary,
cheap if possible”
“Expensive if possible, cheap when necessary”
Industry driven Socially driven
From pharmaceutical compounding and distribution to
customized patient care
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… of improving patient care …
Patient with cardiovascular problems
Patient with diabetes
Patient with problems in the respiratory tract
Other
Review
Coach
Use of acetylic salicylic acid in combination with clopidogrel for more than one year
Add statin to medication when LDL is > 2,5 mmol/L
Start ICS if COPD patient has more than 2 exacerbation a year. Evaluate ICS.
Gastric protection, dose correction, evaluation of medication with no indication
Monitoring of compliance on statins and blood pressure medication
Monitoring of compliance on metformin
-
Monitoring persistence (patient did not show up for first or second refill)
Monitoring of compliance on tiotropium
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… all stakeholders win: pharmacists,
physicians and patients are enthusiastic …
18 Source: IPC-team
Ceased unnecessary
Plavix use Patient used Plavix 6
years without valid
indication.
•€3.500 unnecessary costs
•Increased bleeding risk
Reactions stakeholders Examples successful interventions
Added statin to
therapy Diabetes patient’s
cholesterol level was
checked after signal in
IPC tool: value much too
high
“The pharmacist puts my health at
the centre of attention”
“Mediq’s IPC helps checking repeating
prescriptions.”
Mediq’s pharmacies: “When can I join the
program?”
Pharmacists
Physicians
Patients
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19
… reducing distribution errors and costs by
centralising and robotizing repeat medication …
– 80% of drugs are
repeated
medication
– 99% of patients go back to the same pharmacy
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… MEDIQ looked beyond industry to their
ecosystem …
20
PATIENT/CUSTOMER
PHARMACY
WAREHOUSE
MEDICAL DOCTOR (GP)
INSURANCE COMPANY
PHARMACEUTICAL COMPANY???
HOME CARE/HOME DELIVERY?
50% OF MEDIQ PROFITS COME
FROM INSURANCE SAVINGS !!!
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… MEDIQ is also looking at revenues and profits
from other ecosystems …
21
PATIENT/CUSTOMER
MEDICAL CARE INSTITUTIONS
WAREHOUSE
MEDICAL DOCTOR (GP)
INSURANCE COMPANY
• MEDIQ AGREES A DAILY FEE
PER BED FOR MEDICATION
FOR ALL BEDS
• MEDIQ PRESCRIBES DE
MEDICATION WITH THE GP
• THE MEDICAL CARE
INSITUTION DELEGATES TO
MEDIQ THE PRESCRIPTION
FULFILLMENT
• MEDIQ TAKES THE RISK OF
THE INSURANCE
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22
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Industry 4.0: Key Drivers
The Internet of Things
Big Data and Artificial Intelligence
Robotics
3D printing
Digital Lean
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Robotics: Sensors + Big Data + Artificial Intelligence
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Robots in the past: separation man - machine
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Robotics: Sensors + Big Data + Artificial Intelligence
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Key drivers: 3D Printing
The 3D printer is a machine that builds things by adding successive layers of material under computer control to create an object.
GE and Boeing are using it to make real parts, not only prototypes. Hearing aids
More than 10,000,000 3D printed hearing aids in circulation worldwide
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Digital lean: Using digital to boost lean
• Digital tools to make lean tools easier to use and more powerful: – Using sensors to automatically make spaghetti diagrams – Use of big data to find mistakes outside the factory (i.e. Tesla) – Digital “poka-yoke” tools
• Digital tools to make possible the use of lean tools in new places: – Workload balancing in stores (i.e. Percolata) – “SMED” in the field (i.e. Telecom base stations maintenance)
• Digital tools to spread the use of lean: – Using social media to share best practices among co-workers
(i.e. Whatsapp)
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Digital lean: Spaghetti diagram
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Digital lean: Lean meats the smartphone
- Change - Easy to use - Eliminate waste - Empower the user - Engages
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… it is not about finding answers to existing
questions but finding new questions …
• From: how can I have a better forecast?
• To: how can I make sure that patients come for the
product at the right date?
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Exploring new questions
• “Computers are useless. They can only give you answers”. Pablo Picasso
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… you must use new methodologies and burn the
old ones …
Explore the
world
Why: Golden Circle
Business Model Canvas
Profit Formula
Lean Start-up
UNLEARN LEARN
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… then expand the why of the company …
Simon Sinek
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… define the business model …
Customer Value
Proposition: Value offered to the market
Segment of customers
Communication and distribution
channel
Relationship with clients
Profit Formula: Revenue streams, Pricing, Cost structure
Key Resources
Key Partners
Key Processes
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… define the Profit Formula ….
ROE =NetIncome
Sales´Sales
Assets´Assets
Equity
ROE =M argin´Assetturnover´Leverage
The traditional Dupont formula
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… we are moving from traditional Profit Formulas …
ROI =NetIncome
Sales´
Sales
Pharmacy´
#Pharmacies
Investment
ROE =M argin´Salespharmacy´Pharmacyinvest
Old Mediq Profit Formula
Based on margin on products
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… to new profit formulas …
ROI =NetFee
Transaction´
#Transactions
Client´
#Clients
Investment
ROI = NetFee´Re peatedtransactions´Clients
New Mediq Profit Formula
Based on fee per service
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… and sharing profit formulas …
ROI =Savings
Client´
#Clients
Insurance´
# Insurance
Investment
ROI = Savings´Clients / insurance´# insurance
Sharing Mediq Profit Formula
Based on savings on hospitalization costs
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… and fast implementation through lean startup …
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THANK YOU VERY MUCH