Digital transformation is revolutionizing every industry. Please click "Accept" to help us improve its usefulness with additional cookies. Das McKinsey Digital Lab in Berlin sowie acht weitere Digital Labs weltweit sind spezialisierte Kompetenzzentren, die Strategieberatung mit Design-, Agile- und Technologieexpertise vereinen. Digital upends old models. Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our cookie policy. Article Healthcare Providers: Preparing for the next normal after COVID-19. The consultancy firm bagged £588,000 for seven weeks work on a major review into digital transformation in the NHS, which was ordered by health secretary Matt Hancock in July. A new report from McKinsey & Company explains how to work with this industry dynamic instead of against it. 11 Although a number of countries have achieved promising digital-adoption rates in healthcare, the full value of a digital transformation of the sector remains elusive. 14. Why digital transformation should be a priority for health insurers. Article Changing patient behavior: The next frontier in healthcare value. 18 We help healthcare organizations use digital and analytics to improve healthcare cost, quality, and access. The Centers for Medicare & Medicaid Services (CMS) has issued a new proposed regulation that would require all health plans subject to CMS authority to make certain clinical, claims, and coverage information available to patients and their personal representative, cms.gov. 20. For example, recent regulation from the Centers for Medicare & Medicaid Services in the United States proposed several policy changes. The latest set of services, My Kanta Pages, is a national data repository in which citizens may enter information on their own health and well-being. More thought and effort are needed—and success is most likely for systems where all stakeholders are working collaboratively. For more, see e-estonia.com. The company then created a shared-services center. Our flagship business publication has been defining and informing the senior-management agenda since 1964. 2. Instead, the barriers to a digital transformation in healthcare are often decidedly nontechnological. Earlier this year, the global strategy consulting giant surveyed around 900 C-suite executives and senior managers at businesses around the world, aiming to track digital transformation … For example, Australia developed the National Digital Health Strategy and set up the My Health Record as an opt-out medical record for all Australians. Hey, Ari. Subscribed to {PRACTICE_NAME} email alerts. The report, Best-in-class digital document processing: A payer perspective, recommends a strategy that makes the paper process more efficient and slots it into a larger digital strategy. Ari Libarikian: I'm good, Michael. In China, Alibaba Holding’s AliGenie Opportunities for digital transformation are available throughout a life sciences organization, from improving finance, supply chain, and manufacturing operations, to developing new products and services, to engaging differently with customers and patients. Many healthcare tasks have been automated or digitally enhanced for decades. Meanwhile, the Danish government has announced investment into an app-based platform known as the World-Class Digital Service (WCDS); it can be used to access all publicly held data on Danish citizens and is jointly financed with local authorities via the country’s Technology Investment Fund. Please click "Accept" to help us improve its usefulness with additional cookies. Skip to main content. Health systems have been unable to close quality, access, and financial gaps, even as their budgets continue to grow. 15. Oil and gas, manufacturing, and healthcare are used as examples to demonstrate this – technological breakthroughs will fundamentally alter the way these industries operate. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. Here's how I finally scored a PlayStation 5 online after a month of disappointment, Windows 10 20H2 update: New features for IT pros, Meet the hackers who earn millions for saving the web. 16 Among the countries we looked at, whether the prevailing system was government run or market oriented, those with the most digitally advanced healthcare played an active role in promoting digital transformation. The model allows healthcare organizations to benchmark progress globally. Gareth L. Jones is a consultant in McKinsey’s London office, where Zinaida Peter is a knowledge expert, Kristin-Anne Rutter is a partner, and Adam Somauroo is a knowledge specialist. “Digital transformation in healthcare is making forward progress but it is a long journey,” says Martin Kopp, global general manager, healthcare providers, SAP Health. Still, the adoption of value-adding innovation is not possible without investments that are substantial enough to achieve an organization’s long-term performance goals. As with any market, healthcare systems operate most efficiently when the incentives of each part are mutually reinforcing. The article emphasizes that not all digital transformations succeed – in fact, as McKinsey points out elsewhere, most don’t. Home; Introduction; Aims; Programme Overview; Module Details; How to Apply; FAQ; Contact Scores are for stages 6 and 7. 31. To meet its gold-standard qualification, England requires that health apps receive regulatory approval from three bodies Governments tend to have unique relationships to their systems of healthcare, whether at the local, regional, or national level. And they’re only getting better as we head into 2019. Governments tend to have unique relationships to their systems of healthcare, whether at the local, regional, or national level. Similarly, NHS Digital in England has developed a first set of standards on the interoperability of clinical IT systems. Mark Hagland, “Peter Kung: UCLA Health will be an incubator of healthcare innovation,” Healthcare Innovation, August 23, 2014, hcinnovationgroup.com. “UCLA biodesign innovation fellowship opportunity drives transformative innovation,” UCLA Clinical and Translational Science Institute, ctsi.ucla.edu. “Criteria for health app assessment,” Public Health England, October 9, 2017, gov.uk. The organization has a history of innovating around care delivery using the latest digital technologies. Many of the predictions I made last year continue to hold. TechRepublic Enterprise Spotlight provides you with periodic updates about the newest IT-related products, services, and special offers from TechRepublic partners. e-Estonia, e-estonia.com. Almarai working with McKinsey and SAP on digital transformation 23 November 2020 Consultancy-me.com Founded in 1977 by the two Irish brothers in collaboration with Prince Sultan bin Mohammed bin Saud Al-Kabir (who is currently the chairman of the board), today Almarai is one of the globe’s largest dairy companies. Cross-regional EMRAM score distribution, Q3 2016, Healthcare Information and Management Systems Society, himms.eu. 17. 21. As the price of healthcare rises and safety lapses persist, developed countries are seeking ways to lower costs and improve quality. 262–3, ascopubs.org. In the 1990s, Estonia tapped into transferable skills among former aerospace engineers to build its first eGovernment system and later the X-road system, a solution that ensures secure transfers of health information and other digital infrastructure for public services. © 2020 ZDNET, A RED VENTURES COMPANY. For many large organizations, it's building a new business within the established company. Technology itself isn’t the problem. We'll email you when new articles are published on this topic. collaboration with select social media and trusted analytics partners We invite you to answer the following questions on your organization’s digital program. These have created an entirely new digital narrative, one conducive to better healthcare. By using this Site or clicking on "OK", you consent to the use of cookies. That means rethinking some of the assumptions around healthcare. Marc de Jong, Nathan Marston, Erik Roth, and Peet van Biljon, The eight essentials of innovation performance, December 2013. NHS Digital, digital.nhs.uk; “NHSX: New joint organisation for digital, data and technology,” Department of Health and Social Care, February 19, 2019, gov.uk. Involve the business units as soon as possible and use a minimum-viable-product approach. They also have found that "employees who are used to paper-based processes typically need help in adapting to the new digital processes. Industries are transforming all around us and surprisingly, still, have a long way to go to fully digital. April 2016. Shaping a predictive, preventive, and personalised future 42 Appendix 1. McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. 1 Similarly, NHS England has developed an open API architecture policy and supporting guidance. 13 Among more market-oriented countries, the US government introduced financial incentives to physicians and hospitals in the American Recovery and Reinvestment Act of 2009 to encourage the adoption of electronic health records. As technologies are often complex there tends to be a communication gap in the C-suite, which can derail transformations quickly. Digital technologies and applications have the potential to markedly enhance a payor’s profits. How bug bounties are changing everything about security, 22 holiday Zoom backgrounds for your virtual office party and seasonal gatherings, Pick a vendor and assess the need for process redesign, Select a dedicated IT team to manage a proof of concept project and then build the tech infrastructure, Create a digital factory to build new IT tools and processes that will reshape the  day-to-day workflow in all departments, Establish a dedicated change management effort to help employees transition to the new system. (Research and Markets) Digital transformation initiatives. How are you? We strive to provide individuals with disabilities equal access to our website. According to a report by McKinsey and Company, healthcare organisations are digital stragglers.. The adoption of IT in healthcare systems has, in general, followed the same pattern as other industries. Do not underestimate the effort required to redesign internal IT workflows. Many are finding the solution in digital innovation. The rationale for digital transformation 08 2. One example McKinsey pointed to as proof of this is European insurer Axa, which invested €950 million in digital transformation over just two years. Gerard O’Dwyer, “Danish government launches wide-ranging digital services project,” Computer Weekly, November 29, 2018, computerweekly.com. In a few cases, new regulations may warrant consideration to accommodate industry evolution. Martin Benedict, Werner Esswein, and Hanno Herrmann, “eHealth-platforms: The case of Europe,” in Adrien Ugon et al.. “Alibaba debuts AliGenie open voice platform,” October 16, 2017, hangzhou.gov.cn. Welcome to your digital transformation health check. For example, one of the latest recipients of the award, UCLA Health, was recognized for three use cases covering reduction of denials of payment through automated notifications to case management, improving depression screening in primary care, and optimizing blood utilization using real-time clinical-decision support. Please click "Accept" to help us improve its usefulness with additional cookies. Digital transformation, according to McKinsey’s research, is extraordinarily difficult. The payer decided to incorporate paper-based communication into its overall omnichannel strategy instead of replacing it because "many of the providers and government agencies it dealt with were behind the curve in digital adoption and regulatory issues were making it difficult for the payer to move consumers to digital channels. 26. ALL RIGHTS RESERVED. NHS digital transformation remains tough; Digital Health Interview: Sonia Patel’s first 120 days as NHSX CIO; 6 Comments. Iris Deng, “Tencent releases open platform to help drive AI projects at other companies,” South China Morning Post, September 19, 2018, scmp.com. The sharing of medical data is at the core of a digital health ecosystem. Accordingly, healthcare payers may need to consider additional investment in workforce-education and -communication programs to encourage a mind-set shift toward digital. Please click "Accept" to help us improve its usefulness with additional cookies. Finally, digital health ecosystems may also strengthen the underlying technology and data foundation of healthcare delivery by utilizing previously unavailable information to help stakeholders develop a more comprehensive understanding of consumer needs and preferences. The processing of your personal data in connection with this survey is based on McKinsey’s legitimate interest in sharing a dynamic diagnostic of your digital health across various dimensions—compared to other industry players—and priority actions to get your transformation moving forward at speed. The Department of Health and Social Care paid McKinsey nearly £600,000 for its work on a review into NHS technology services. 28. “Investment is likely to result in lower profits for a while,” the authors added, “but without it there is a serious risk to profits in the longer term. ", SEE: 10 things companies are keeping in their own data centers (TechRepublic download). That may explain why some of the most integrated systems, including in the United States, have been at the forefront of digital adoption. How are you? Reinvent your business. Omnichannel marketing and analytics transformation fail "when information is buried in large piles of paper.". Some industries have digitized their processes—travel, banking, and entertainment, for example—so that consumers have now come to expect digital service delivery. 30. Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our cookie policy. McKinsey: Digital transformation in healthcare must preserve paper - for now. Timeline of reviews and policy initiatives 2013 to 2018 48 Appendix 2. Such as medication errors, adverse drug reactions, allergic reactions, and overdoses in hospitals, long-term-care facilities, and outpatient settings. Build IT architecture that can cope with all aspects of document processing. For all the ways that technology is transforming the way people shop, bank, and travel, it has yet to make major inroads into how they receive healthcare. The system’s architecture is open, allowing software suppliers to develop their own interfaces for Kanta’s content. The first step was to optimize the scanning and OCR processes and then to enter the new files into a document management system. McKinsey research also suggests that the companies with a long-term view outperform their peers. Iris Deng, “Tencent releases open platform to help drive AI projects at other companies,” South China Morning Post, September 19, 2018, scmp.com. Assists healthcare, high-tech, and telecommunications companies with digital and analytics transformations targeted at their core businesses. For more, see e-estonia.com. As a healthcare business, you probably know that keeping up with digital transformation in healthcare can feel overwhelming. 28 McKinsey white paper. We're speaking with Ari Libarikian who is a senior partner with McKinsey& Company. Download full article. Maccabi Healthcare Services, DECI Fondazione Politecnico di Milano, deci-europe.eu. Do not overlook basic analytics capabilities—they are often more valuable than artificial intelligence approaches. PS5: Still need to buy one? “Interoperability,” NHS England, england.nhs.uk. 40% of all technology spending will go toward digital transformation, with enterprises spending in excess of $2 trillion in 2019. NICE, nice.org.uk. 864–71, academic.oup.com; Gerardo Aue, Stefan Biesdorf, and Nicolaus Henke, ehealth 2.0: How health systems can gain a leadership role in digital health, January 2016; “Reducing and preventing adverse drug events to decrease hospital costs,” Research in Action, March 2001, Issue 1; Jack V. Tu, John J. and Tencent’s artificial-intelligence (AI) open platform Electronic medical records are still not a part of routine care. TechRepublic Premium: The best IT policies, templates, and tools, for today and tomorrow. Jessica S. Ancker et al., “Associations between healthcare quality and use of electronic health record functions in ambulatory care,” Journal of the American Medical Informatics Association, July 2015, Volume 22, Issue 4, pp. The Department of Health and Social Care paid McKinsey nearly £600,000 for its work on a review into NHS technology services. The short-term goal is not to replace paper but to get better at dealing with it. 9. 5. tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. “We have seen organisations increase run and change productivity by 20% double the speed of delivery and decrease risk and resilience issues by a third. Everything you need to know about how technology is reshaping business, Best to-do apps for managing tasks on any platform, Digital transformation: More must-read coverage. As the world becomes more digital and more volatile, survival itself becomes less certain. Once that was done, the business units took control of the data. It established a Global Lab for Innovation with a major goal to create cost-effective results, emphasizing the need for a quick link to execution. Called Kanta, these services include personal electronic health records, a prescription service, a pharmaceutical database, a patient-data repository, and archives. The Electronic Medical Record (EMR) Adoption Model (EMRAM) is an eight-stage model that measures the adoption and utilization of EMR functions required to achieve a paperless environment and harnesses technology to support patient care. In planning the transition, the authors recommend these tactics: The authors of the report--Mathis Friesdorf, Markus Hedwig, Florian Niedermann, Florian Schaudel--work in McKinsey's offices in Germany. 19. Ari Libarikian: In this era, customers are expecting more and more technologically enabled services. 24. In a recent interview, Harold F. Wolf, president and CEO of the Healthcare Information and Management Systems Society (HIMSS), considers a change of culture to be the biggest hurdle in the industry’s digital transformation. Many countries are already pursuing efforts to modernize digital-related regulations. Because of this, I need to highlight the technology-adjacent trends that I believe will dominate Digital Transformation discussions in 2020: Top of … This might include, for example, evaluating new digital-first providers for quality care, adding some measure of digital adoption to accreditation, and assessing new software products that might be classified as medical devices. Chantal Worzala, “Policy update: Federal incentives for the adoption of electronic health records,” Journal of Oncology Practice, September 2009; Volume 5, Number 5, pp. Because the industry itself is undergoing a paradigm shift, businesses need to rethink the way they operate. 3 Cross-regional EMRAM score distribution, Q3 2016, Healthcare Information and Management Systems Society, himms.eu. Article Enabling healthcare consumerism. People create and sustain change. Michael Krigsman: What's the next step beyond digital transformation? One exception appears to be about promoting the use of technology. McKinsey & Company suggests the third step should reflect deep culture changes as long-term transformation need to be “woven into the fabric of an organisation”. To draw attention to the characteristics of health systems that best support adoption of digital tools, we conducted a high-level review of more than 30 countries. Health Information Exchange platform and is credited with helping to simplify the implementation of healthcare interconnectivity. UCLA Health was named a 2018 HIMSS Davies Enterprise Award recipient for leveraging the value of health information and technology to improve outcomes, himss.org. 22. The UK secretary of state for health and social care has also commissioned a publication—the Topol Review—to explore how to prepare the healthcare workforce, through education and training, for a digital future. The healthcare industry has not been spared from digital disruption. our use of cookies, and In a recent interview, Harold F. Wolf, president and CEO of the Healthcare Information and Management Systems Society (HIMSS), considers a change of culture to be the biggest hurdle in the industry’s digital transformation. Martin Benedict, Werner Esswein, and Hanno Herrmann, “eHealth-platforms: The case of Europe,” in Adrien Ugon et al., Building Continents of Knowledge in Oceans of Data: The Future of Co-Created eHealth, Amsterdam, Netherlands: IOS Press, 2018. Key steps to close the digital gap 19 4. 16. 10 Topic: Digital transformation. However, the Digital Trends and Healthcare report warns of bureaucratic processes and slow growth for large-scale organizations as being the main challenge to survive these digital transformation trends. According to a report by McKinsey and Company, healthcare organisations are digital stragglers.. Maccabi Healthcare Services, DECI Fondazione Politecnico di Milano, deci-europe.eu. Please email us at: McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. Several other countries have developed open platforms. 20 27 It will likely take a concerted effort among stakeholders to get past those barriers. Topol Review, topol.hee.nhs.uk. The multiple players in this sector have too much invested in the paper form process to make the move to a completely digital world. When completed, you will find a dynamic diagnostic of your digital health across various dimensions—compared to other industry players—and priority actions to get your transformation moving forward at speed. You, and Lingsong Yun, “Impact of picture archiving communication systems on rates of duplicate imaging: a before–after study,” BMC Health Services Research, November 2008, Volume 8, Number 234, bmchealthservres.biomedcentral.com. It can also include promulgating guidelines for sharing and protecting data among stakeholders and developing For example, health-maintenance organizations (HMOs) in Israel that want to prevent patients from needing high-cost hospital care have a strong economic incentive to manage their covered populations more effectively. The review was ordered by Health Secretary Matt Hancock in July, and saw the MBB strategy giant handed £588,000 for seven weeks of work, ending in mid-September. to support and transform NHS and social care. For instance, Europe’s subscription health-service provider Babylon Health’s GP At Hand service has pioneered NHS-funded teleconsultations in London, complete with an interactive, AI-supported symptom checker. 21 NHS England leads the National Health Service in England and supports the commissioning of health services. Unleash their potential. Select topics and stay current with our latest insights, Promoting an overdue digital transformation in healthcare, Stakeholders have various roles in digital transformation. For example, if providers are to encourage electronic prescribing and broad adoption of digital therapeutics, then physicians must have the skill set needed to understand the benefits and drawbacks of novel technologies. Multimedia Changing views on mental and substance use disorders: An interview with Patrick Kennedy. Many are finding the solution in digital innovation. If you would like information about this content we will be happy to work with you. Earlier in 2020, this saw McKinsey & Company bag seven weeks of work on a major review into digital transformation in the NHS. In fact, our research indicates that governments have often played a key role in instigating systemwide digital health projects. In a recent interview, Harold F. Wolf, president and CEO of the Healthcare Information and Management Systems Society (HIMSS), considers a change of culture to be the biggest hurdle in the industry’s digital transformation. Establish consistent key performance indicators to monitor success and steer toward maximum value. Digital transformation can help the NHS make better use of scarce resources. Health systems have been unable to close quality, access, and financial gaps, even as their budgets continue to grow. 7. The tool can write to multiple information systems, transmit large data sets, and perform searches across several information systems simultaneously. NHS England leads the National Health Service in England and supports the commissioning of health services. The… Digital document processing has three phases: document ingestion, internal processing and document delivery. illustrate the need to start with a high-value, low-cost innovation. Although a number of countries have achieved promising digital-adoption rates in healthcare, the full value of a digital transformation of the sector remains elusive. Scores are for stages 6 and 7. accreditation. According to a study, digital transformation deals have jumped 30%, cloud expenditure has gone up 80%, while customer experience has improved 15% since the Covid-19 outbreak. This policy sets out the key expectations for healthcare organizations when developing, upgrading, or procuring their systems in the move to open architecture. 18. 6. Similarly, our McKinsey colleagues found that the three barriers to digital most mentioned by leaders in the pharmaceutical and medical-technology industry were culture and mind-set, organizational structure, and governance. (Research and Markets) Digital transformation initiatives. Derek A. Haas, Michael S. Jellinek, and Robert S. Kaplan, “Hospital budget systems are holding back innovation,” Harvard Business Review, March 29, 2018, hbr.org. It’s clear that digital leaders that make strategic investments in the right workforce-skill mix can spur on technology breakthroughs.