Pharma’s approach to digital innovation is a mixed bag — but it can’t remain that way. Digital innovation isn’t a side project — it’s a core driver of competitiveness and futureproofing. Biopharmas that fail to prioritize pharmatech innovation strategically will struggle to stay relevant as the industry evolves.
Based on my observation and discussions with dozens of pharma, here’s the landscape I am seeing when it comes to pharma commitment to digital innovation today. And yes, I’m grading pharma on their current strategy or lack thereof because once you realize where your organization falls on this grading scale, you work to improve your grade. No one wants to “fail out.”
High commitment to digital innovation (A+)
These companies have a clear digital innovation strategy and strong senior-level ownership — they view digital as a core business need. The organization is aligned around supporting this type of innovation, and middle managers aren’t blockers. Not surprisingly, they’re making the most progress and reaping the most rewards. About 15% of the industry is in this range.
Moderate commitment to digital innovation (B-)
These companies think about digital innovation as a "bolt-on" and lack strategy. They’re not well-positioned to access all the benefits of digital innovation because of their lack of commitment, strategy, and execution. They frequently reorganize their digital innovation groups, thinking that is what’s preventing the full value from being realized. About 60% of the industry is sitting here right now.
Low commitment to digital innovation (D)
These companies are taking a wait-and-see approach, relying on others to lead the way and figure out how to win big with digital. In the meantime, they are hoping to win on their science alone. But they risk falling behind and becoming permanently disadvantaged as the innovation wave carries the competition forward. Sadly, 25% of the industry is getting this failing grade when it comes to digital health innovation.
Lack of vision and commitment from senior leadership is often the root cause of weak pharmatech innovation strategy and execution. Without strong leadership to drive this innovation, teams throughout the organization don't understand the vision, strategy, or keen need. So, people in these firms don’t prioritize digital efforts — or worse still, they feel comfortable stymying them.
Yet innovative digital solutions are critical to the long-term health and competitiveness of every biopharma.
If you think digital innovation should play in a larger role in your pharma organization, feel free to reach out. We have the resources to help you drive innovation and future proof your company.
If your organization is ready to embrace digital innovation, we can help. PharmStars is the only accelerator focused on bridging the gap between pharma and innovative digital health startups. PharmStars pharma membership is designed to support pharma companies in identifying, understanding, and adopting the best digital health solutions to stay competitive and improve patient outcomes. Let’s talk about how we can support your innovation goals.
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