The majority of digital transformation efforts fail to achieve their long-term objectives. The biggest barriers to success are not about technology—they are about people, processes, and the way new digital systems impact existing workflows. A people-centered approach to digitalization can help pharmaceutical companies maximize the benefits of new digital technologies.
Why Digitize? The Promise (and Pitfalls) of Digitalization in Pharma
Pharmaceutical manufacturing operates in a high-stakes environment with intense regulatory pressure, leaving little room for error. And yet, a large number of manufacturers still rely on paper systems, email, spreadsheets, and ad hoc communications for shift handover, quality data, and other critical knowledge transfer. In fact, McKinsey reports that pharmaceutical companies still lag behind other industry sectors in digital maturity—in spite of recognizing the potential benefits of digitalization.
Digitalization of shift handover, overall equipment effectiveness (OEE) reporting, quality reporting, tier communication, and plant process management (PPM) have the potential to ensure compliance and improve quality and operational efficiency for pharmaceutical manufacturers. True digital transformation involves much more than simply taking individual analog processes and making them digital. It involves integrating systems and processes in a way that enhances data accessibility, improves decision-making, and fosters a culture of continuous improvement and innovation. By leveraging technologies such as the Industrial Internet of Things (IIoT), AI (Artificial Intelligence), and advanced analytics, pharmaceutical manufacturers can achieve a level of operational intelligence and efficiency previously unattainable.
However, successful digital transformation still remains elusive for many organizations in the pharma industry and beyond. McKinsey estimates that 70% of digital transformation efforts fail, and other estimates put the number even higher. One key reason? Failure to align digitalization initiatives with the needs of people in the organization.
To reap the long-term benefits of digitalization, pharmaceutical companies need to move beyond an Industry 4.0 approach to technology deployment to Industry 5.0: harnessing technology to augment and maximize human capabilities. While Industry 4.0 puts technology first—primarily in the form of cloud software and IIoT devices, automation, and cyber-physical systems—Industry 5.0 emphasizes the collaboration between people and smart systems. By putting the needs of people first, pharmaceutical manufacturers can increase the odds of success for digital transformation initiatives.
What impacts the success of digital transformation?
Successful digital transformation is 20% technology and 80% people. These are some key reasons why digitalization efforts fail to gain traction.
Technology failure factors:
- Wrong technology
- Integration problems
- Cybersecurity challenges
- Poor UI/UX design
People failure factors:
- Little or no stakeholder involvement
- Lack of leadership commitment
- Unclear vision and goals
- Poor alignment to user needs and workflows
- Resistance to change
- Lack of skills and expertise
- Poor communication
- Inadequate training and support
Digital Transformation: The Intersection of People, Processes and Technology
At its core, digital transformation lies at the intersection of people, processes, and technology. Before rolling out new software solutions, it is critical to first understand the needs of users and how the system will fit within or replace existing workflows. All of these elements must come together for successful digitalization.
- People: Start by understanding the needs of people in the organization. What are their expectations and requirements for a new digital initiative? What is the essential knowledge base that each user group needs to perform their jobs well? How does communication flow within and across shifts, teams, areas of responsibility, and tiers of the organization? What are the work styles and preferences of users?
- Process: Before rolling out new software, first understand existing workflows, approval processes, and key performance indicators (KPIs) for the organization. What are the efficiency drivers for various processes? Where are there bottlenecks that need to be addressed? How will the new technology fit into the day-to-day activities of each user group?
- Technology: Technology factors include software features and toolsets, the user interface and experience (UI/UX), and the broader IT infrastructure in which systems sit. How will new software solutions need to integrate with existing tools, systems, and platforms? How will users interact with the solution? How will technology tools, such as AI or data visualizations, enhance human capabilities and decision-making?
Getting Started with Digitalization:
A People-Centered Approach A people-centered approach to digitalization includes careful attention to the needs of each user group before, during, and after the rollout.
Before the Rollout: Preparation
The journey toward digital transformation begins well in advance of introducing any new software to the team. A critical first step for manufacturers involves a deep dive into current operations and understanding the specific needs of users. Establishing clear, actionable goals from the outset is crucial. Key activities during this preparatory phase include:
- Needs Analysis: This initial step involves engaging with all levels of the organization affected by the upcoming changes. Through conversations ranging from frontline workers to senior management, the aim is to pinpoint existing workflow inefficiencies, prioritize needs, and identify any potential points of resistance to change. This feedback is invaluable for tailoring the digital initiative to meet the unique requirements of each department or location.
- Setting Goals and Objectives: It’s essential to articulate what the project aims to achieve, and the benefits expected for various stakeholder groups. Defining clear, quantifiable Key Performance Indicators (KPIs) provides a benchmark for measuring the initiative’s success.
- Pilot Testing: Launching a pilot program, perhaps targeting a specific team or shift, offers a controlled environment to gather insights. The feedback collected at this stage is critical for tweaking the software setup and fine-tuning the broader rollout strategy, ensuring a smoother transition for the entire organization.
- Planning and Managing Change: Armed with insights from the pilot, it’s time to develop a comprehensive plan for the rollout. This plan should incorporate change management principles, identify specific training needs, and outline a communication strategy to support the upcoming changes.
During the Rollout: Execution
The success of the digital initiative hinges on how well users adapt to the new system during the rollout. Support mechanisms and clear communication are key. Activities during this phase include:
- Training and Support: Customized training tailored to the distinct roles of each user group, incorporating hands-on sessions and real-life examples, can significantly enhance user engagement. Employing a “train the trainer” model, where selected employees from each department become training leads, can be particularly effective.
- Open Communication: Maintaining an open line of communication throughout this phase is vital. Updating the team on progress, soliciting their feedback, and addressing any concerns promptly can help mitigate resistance and foster a positive atmosphere. Celebrating milestones and quick wins boosts morale and emphasizes the value of the new system.
- Monitoring and Fine-Tuning: Stay flexible and ready to adjust your approach based on real-time feedback and the initial outcomes of the rollout. Address any technical or training issues swiftly to maintain momentum. A no-code software application is key to adjusting to the users’ feedback instantly.
After the Rollout: Sustainment
The true test of a digital transformation effort is its ability to deliver long-lasting benefits. Continuous support and iterative improvement are key to embedding the new system into the fabric of daily operations. That includes:
- Ongoing Post-Rollout Support: Keep the lines of support open for IT and software-related queries post-rollout. Offer refresher training sessions as necessary and ensure employees feel supported as they integrate the new application into their workflows.
- Collecting Feedback and Documenting Experiences: Create and maintain feedback channels. Monitor how the software is being used in practice, the challenges users face, and the impact on operational efficiency. Recognize and reward departments or individuals who demonstrate effective use of the new system.
- Evaluating Success and Iterating: Revisit the original goals and KPIs to evaluate the project’s success. Investigate any gaps between expected and actual outcomes. Insights gained should inform the refinement of strategies for future digital initiatives, ensuring that each successive effort builds on the lessons learned from the last.
Creating Sustainable Change Through Digital Transformation
Putting people at the center of digital initiatives maximizes the chance of a smooth rollout and high levels of user acceptance. By focusing on the human aspect—understanding the needs, workflows, and challenges faced by employees—pharmaceutical companies can ensure that digitalization serves to enhance, rather than disrupt, daily operations. A people-centered approach not only facilitates the technical transition but also fosters a culture of continuous improvement, innovation, and collaboration. This culture, in turn, empowers employees, encourages the sharing of ideas, and ultimately leads to more sustainable and impactful digital transformation.
Author Details
Andreas Eschbach, Founder & CEO- eschbach
Publication Details
This article appeared in American Pharmaceutical Review: Vol. 27, No. 6Sept/Oct 2024Pages: 65-67
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