Many companies in the industry are experiencing pressure to act due to the digitalization in the health sector. It is now essential to adapt the own business model to the new circumstances. However, many digitalization initiatives remain unsuccessful because they are developed with great haste and completely shoot past the market as well as the customers. This is the precise situation that a global leader in health care wanted to avoid when he contacted Homburg & Partner.
The company’s goal was to fully understand the new market conditions in its industry in order to determine the most effective line of attack for future digital initiatives. A guidepost was developed that represents a foundation for positioning strategic decisions at the global organizational level. It also enables a uniform, comprehensible and successful digital course to be followed across state borders.
“The clear mapping of the digital landscape and positioning of new digital offers included the important definition of current and future product segments. This does not only help locate clear, strategic focal points and to make these tangible, it also wins over the team on a playful level.”
“Innovative products and services create opportunities for new growth potential, but also carry the risk that other companies – including tech players and start-ups in addition to traditional competitors – overtake established companies. A clear market mapping of new digital segments is therefore of the essence to clearly capture the ‘where to play’ and derive the ‘how to win.’”
The central task was to structure and subsequently analyze digital products and services in the healthcare sector. The focus was not only on market segments that are in the client’s core business and are experiencing new possibilities thanks to digitalization, but also on those that are completely new but in line with the strategy. For the analysis, clear structures were determined according to the “5 Cs” which classify all content of each segment by customers, competitors & champions, concepts, context and changes. In the course of the survey it was also important to involve the entire company in the process to ensure that the results would be positively received and successfully used across state borders. A global team that comprised representatives from regions and states ensured this factor for success.
For the qualitative and quantitative penetration of the segments, interviews with experts from the segments to be analyzed were used in addition to reading, evaluating and aggregating more than 450 internal, freely available and purchasable reports (market, investors etc.). In an iterative process, the contents were discussed in workshops and weekly consultations with the core team from the start to end of the project. This way – despite the large mass of content – the core team was involved and constant communication was ensured.
The client already had an awareness for the necessity for digital action, yet there had not been any concrete starting points for productive global initiatives. Therefore, we developed a global guide for effective digital strategic decisions that channels the client’s initiatives into the appropriate paths. By initiating the client’s digital initiatives at the right spot, their effectiveness and success increased.
From the project start, the client already possessed manifold market knowledge in the areas relevant to him. The largest portion of information was not structured or available in a uniform manner, however. Therefore it was not suitable as a solid operative basis for action. We then carried out a centrally positioned, comprehensive analysis of internal and external company data that were known throughout the company from the very start and significantly expanded the existing market knowledge. In this manner, the company received the same level of knowledge on a global level and can now make use of this as a springboard for future transformation projects. Everyone involved now speaks the same language.
A major challenge in any transformation process is: It cannot be directed too centrally from above. Instead, stakeholders from every concerned unit must be involved for the change to be take root. This was also important in our client’s case. By actively involving 15+ business units and regional companies in the decision-making process from the outset, we achieved a result that satisfied all stakeholders. Despite the strong inclusion of the stakeholders, we managed to implement the project in merely five months. The digital compass created in this manner was then presented to the entire company. In less than a week, more than 1,000 employees had read and commented on it, a fact that underlines the strong identification with the solution.
The client wanted to ensure that the knowledge base developed in the project will not only be preserved in the company but remain topical for years to come – also in view of future transformation processes. We thus integrated continuous updates of the digital knowledge base within the client’s operating model, thereby ensuring that the new digital expertise is distributed throughout the company and scrutinized regularly as well. This way, the client will not benefit from the project only once, but enjoy the long-term impact of the project results: The knowledge transfer processes and the open exchange of ideas and knowledge ensure that the company will successfully scale the digital transformation together across states and roles.
If you would like to find out more about digital landscaping or discuss similar approaches for your company, please spend a few seconds to leave an inquiry via our contact form. Our partner Karl-Hubertus Gruber will personally contact you promptly. Alternatively, you are welcome to email or call us!