Healthcare CSOs unprepared as disruption surges
June 8, 2018
June 8, 2018
Ninety percent of healthcare chief strategy officers (CSOs) think new technologies will transform their industry over the next five years. Yet only 13 percent feel their organizations are prepared. This is far less than peers in other industries, reveals Accenture research. How can CSOs get ahead of disruption and set priorities, make investments and allocate resources to compete and win in such a dynamic environment?
The US healthcare industry is uniquely susceptible to disruption. It is a growing industry with widespread inefficiencies that draw new entrants looking for opportunities. In fact, even the hint of incursions by non-traditional new entrants has negatively impacted share prices across healthcare segments including health insurers, distributors, pharmacy benefit managers and drug makers.
Big technology platform players, in particular, bring distinctive capabilities like consumer relevance, artificial intelligence, and digital supply chains powered by ecosystem effects and large cash reserves. All of these aim to address longstanding healthcare challenges and leapfrog incumbents.
The survey results indicate that disruption-ready healthcare companies (those with CSOs who feel prepared for disruption) are more likely to engage in three functional activities. These are growing and maintaining ecosystem partnerships, developing cross-industry platforms, and building and sustaining collaborative operating models.
It is no coincidence that the technology players rapidly breaking into healthcare have digital business models that are enabled by technology and cultural competencies to excel in these same areas.
Accenture Health's Brian Kalis, managing director, digital health, discusses the results of our Chief Strategy Officer Survey. See more.
View TranscriptWhile disruption-ready healthcare companies are engaged in these important areas to defend market share, innovate and grow the business, their performance lags peers in other industries. This signals they are not realizing the full value of their efforts. Accenture’s survey of CSOs reveals how healthcare stacks up in three areas of cross-industry comparison:
Healthcare CSOs can take action to ensure that disruption is an opportunity for the business rather than a threat:
There’s no time to waste in moving from awareness to action. Disruption waits for no one.