Digital innovation has become a central focus for pharma and MedTech organisations worldwide. Organisations are pursuing large-scale transformation programmes to embed technology into their processes and create new value through digital models, products, and services. 

In the realm of pharma and MedTech, where stringent regulation and complex development processes are the norm, digital transformation is uniquely challenging. But the rewards can far outweigh the challenges. Digital models and data-empowered services can transform outcomes for healthcare organisations, patients, and healthcare professionals.

In this comprehensive guide to digital transformation in the pharma industry, we address the key opportunities and complexities in this evolving landscape. Harnessing insights from our work with the likes of Chugai Pharma Germany and a leading chemicals manufacturer, we demonstrate why a holistic approach is key to driving impact against your goals. Additionally, we explore why the adoption of innovation management principles is vital for translating strategic planning into execution and outcomes, showcasing the transformative power of digital innovation while navigating the challenges presented by this dynamic landscape.

The lack of a robust innovation framework poses one of the major limitations in the industry’s digital transformation journey.

Many organisations find themselves with a high-level strategy only and lack the guidelines, processes and capabilities to translate goals into action – and pilots into operational solutions.

Other organisations focus so strongly on strategising that they impede or essentially block pilots from reaching the market.

Both scenarios result in reduced output, slow time-to-market, and an inability to fully harness the potential of digital innovation.

An innovation framework creates an environment conducive to innovation and is a guide to encourage, foster, and implement digital innovation within a organisation. To facilitate and manage the transformation of innovative concepts, you need structured approaches and systematic methodologies, provided by a framework, to generate tangible outcomes.

R&D is the lifeblood of pharma organisations, with long-established processes shaped by standards and industry requirements. Here, we emphasise the need to adapt digital innovation management in traditional R&D processes – something that’s fairly new to most players and therefore often poorly developed.

This new approach requires new processes, roles, strategies, and partnerships that enable pharma businesses to stay competitive, navigate regulatory shifts, accelerate transformation, and maximise value.

Pharma organisations need to adopt R&D processes with an integrative innovation approach that includes agile and adaptive processes to harness modern technologies and develop digital solutions that serve the changing needs of markets, patients, and healthcare professionals. To successfully understand, target, and meet customer needs, you need data-driven insights and user feedback to iterate and continuously improve digital products and services.

Over the past years, digitalisation has transformed the way companies operate internally and has expanded the established product portfolio by digital services. Many organisations have already initiated appropriate organisational adaptations to leverage digital innovation within their operations. These activities often include partnerships with innovation hubs, centres, and collaboration with other industry players to stay at the forefront of technological advancements. 

Interestingly, the management approach of innovation either for in-house or for product innovation share many similarities, including a clear vision where to innovate and how innovation success is defined, an underlying innovation process with roles and committees as well as an innovation ecosystem – either with external partners or internal departments. 

Generally, innovation management can be described as the 'operating system' that enables companies to manage and develop innovation projects efficiently and effectively. It encompasses the strategic planning, coordination, and implementation of initiatives aimed at driving innovation within an organisation. (See ISO 56000 series standards)

Similar innovation management challenges emerge across pharma and MedTech, impeding progress and hindering the successful execution of innovation projects.

As we’ve explored, digital innovation can meet severe challenges  without a comprehensive and strategic management system in place. The main impact is caused by superficial implementation and lack of foresight in creating long-term and sustainable solutions. The consequences are significant for every company and its success in this industry.

To navigate these challenges effectively, it is crucial to understand the concept of innovation management. By establishing an effective framework, companies can better target their resources, develop projects more efficiently, and overcome the pitfalls that arise during the process if executed poorly.

There seems to be a generally accepted misconception that 'innovation' is per se a mysterious force which is unforeseeable and therefore cannot be managed. In strict contrast to this, innovation management approaches exist and are not new concepts at all. 

Over the last decades, best practices and approaches for innovation management have been established and refined. This evolution is evident in the development of a standardised approach, such as the international standards on innovation management, which capture the collective knowledge of managing innovation effectively (see: ISO 56002).

At Zühlke, we’ve long recognised the importance of embracing these principles and enriching them with real-world learnings  from the more than 10,000 innovation initiatives we’ve delivered.

To that end, we’ve developed a framework that combines the strengths of the ISO standard with our insights and understanding of the digital innovation management landscape. 

Our framework is designed to be simple, comprehensive, and highly practical. It gives your pharma organisation a clearly structured approach to managing innovation projects, empowering them to navigate the complexities and challenges of the digital era successfully.

Once you’ve established an innovation management framework, the real fun begins.

While various approaches across the five dimensions may have been outlined and aligned within the organisation, the questions remains whether these are actively integrated into daily operations and in alignment with key stakeholders.

The introduction of an innovation management framework will affect employees, with new tasks and a whole new set of skills to learn, not to mention fundamental changes in ways of working. This can create fear and trust issues that could impede your goals.

This is why innovation management should be seen and managed as a continuous change journey – similar to digital transformation programmes executed in most organisations, as digital transformation provides the framework for integrating innovations into the fabric of an organisation.

It's crucial therefore to constantly, patiently, and closely work with all involved stakeholders, including senior management, innovation scouts, and product and process owners, to ensure a fast understanding of goals and proactive development of the new situation. Only then can the underlying framework realise its real business value and ability to bring innovation projects to life.

Managing digital innovation poses unique challenges that demand a comprehensive and strategic approach. With a robust innovation framework in place, improvement in output, acceleration of time to market, and translation of digital innovation opportunities into business impact are achievable. 

If you’re interested in digital innovation management, don’t hesitate to contact us.