We’re already three months into the 2020 decade and companies are strategizing about how they can digitally transform to serve their customers better; whether to enhance current business processes, bring new products and services to market or deliver new customer experiences. In a 2019 study by International Data Corporation, Global Digital Transformation spending reached $1.18 trillion. The two industries that invested the most in digital transformation in 2019 are discrete manufacturing ($221.6 billion) and process manufacturing ($124.5 billion). For both industries, the top DX spending priority is smart manufacturing, supported by significant investments in autonomic operations, manufacturing operations, and quality. Retail will be the next largest industry in 2020, followed closely by transportation and professional services.
Other digital savvy industries such as high tech, media and telecom have been at the forefront of this digital transformation engaging with customers enabling new experiences back to them. Nexflix, Amazon, Walmart and Target are among the most talked about in this area of digital transformation.
So why is Healthcare falling behind on Digital Transformation?
As with the other major transformations, Healthcare organizations have been trailing from other industries so recently we sat down and discussed with Dr. Pillay, Chief Innovation Officer for UAB Health System, who has been at the forefront of Healthcare Innovation for the last 30 years to discover some of the insights as to why this is the case.
“Healthcare organizations have always lagged behind from the rest of the industries in the implementation of new technologies and so it is not surprising to see the same with digital transformation. Healthcare struggles with innovation and agility due to several factors and that is something that Healthcare organizations really need to think about in the new decade as Technology disruptors are entering the Healthcare market“.
As Dr. Pillay asserted, Healthcare companies carry legacy business and customer practices that stemmed from various reasons. Some of those have to do with old and slow regulatory standards, some are due to lack of market pressures and some are because customers have no choice. With companies like Amazon, Apple and Google entering the Healthcare market, Health systems and hospitals are starting to realize that status quo is no longer viable and the technology disruptors are quickly approaching. So just like it took place with Blockbuster and Netflix, retail vs. Amazon and investment companies vs. no fee apps (Robinhood, Betterment) Healthcare organizations are on the notice. On top of all of that, the Healthcare industry is going through a major reform from fee for service to value-based care active since the Affordable Care Act was signed into law in 2010.
The top three reasons and business drivers for Healthcare organizations to make the transition to digital are the following:
1) Improve the consumer experience. This is a must as new disruptors enter the healthcare marketplace such as Amazon, Apple & Google.
2) Make the clinician experience better by providing more actionable data; physician burnout levels are at historic levels and talent shortage is here to stay.
3) Reduce waste and fraud; including unnecessary or duplicate testing and administrative paperwork.
Finally, Healthcare organizations should focus on the following areas of their organizations and start putting a cohesive strategy in order to be successful in their digital transformation.
- Digitally Aware and Digital-Minded Leadership
- Data-driven organization and alignment
- Enablement of digital technology
- Culture of innovation and agility
At Syntelli Solutions, we support Healthcare organizations by unlocking the value of their data to drive strategic initiatives that transform their operational performance, improve patient outcomes and deliver better experiences. Contact us to learn more.
Ruben Martinez-Raposo, Account Executive
Originally from Madrid, Spain, Ruben came to the US in high school back in 1995, and over 20 years later his entrepreneurial spirit and drive for innovation still in tact. Prior to joining Syntelli, Ruben has spent most of his 16 years professional career in the Healthcare industry, from startups that went IPO to global Fortune 200 companies like McKesson Corporation and Becton Dickinson & Company.
Ruben resides in Birmingham, Alabama and when he isn’t collaborating and engaging in meaningful conversations with customers, you will find him playing golf, cooking a paella or spending time at the beach with his wife, and dog Romeo.
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