A conversation on Commercial Excellence in Healthcare

Published
Sept. 17, 2024
Read
4 minutes
A conversation on Commercial Excellence in Healthcare
Achieving commercial excellence in healthcare means going beyond traditional sales and marketing; it encompasses a comprehensive approach that includes customer-centric practices, data-driven decision-making and cross-functional collaboration.

Understanding these key components is crucial for optimizing operations, improving patient outcomes, and driving sustainable growth in a complex and dynamic market. Manveet Hora, Managing Partner at Kestria India, interviewed Ravinder Dang, President - Providers & Diagnostics, APAC at THB, about the essential components of commercial excellence in healthcare.

What is commercial excellence, in the context of the healthcare industry?

Simply put, Commercial Excellence is about maximizing business opportunities in the market & driving higher efficiencies through current or new processes within a company.

For example, in a med-tech company with 200 reps in India, where 20% of reps outperform the others this illustrates the 80/20 rule. Similarly, one brand within a company might dominate the market while another struggles – this gap can also appear across sales channels or regions.

So, the objective of commercial excellence is to look at possibilities of maximizing performance across reps, brands, channels or geographies to boost company revenue by understanding what's possible given market conditions and resource constraints.

Do you see organizations investing in this function?

The Commercial Excellence Officer role is evolving, historically National Sales Heads or CMOs were expected to handle this role. However, as technology  & data becomes critical to delivering better customer experience, there’s a growing recognition that current marketing or sales leaders may not have the needed experience & expertise to drive higher through-put to maximise revenues or drive higher go-to-market efficiencies.

Today, some global multinationals & pharma companies from India have fairly developed commercial excellence functions as they are integrating data-driven insights into their global strategies, much of which is driven by teams in India. Consulting firms like ZS Associates, Axtria, and Indegene are also making progress in this area, though the industry is still in its early stages.

Could you share more about how technology, Commercial Excellence and healthcare intersect?

Many healthcare companies are still running their business on legacy systems that typically support the purchase-to-pay and produce-to-sell cycles, reflecting a manufacturing or sales-focused mindset, versus adopting a data-driven approach. This contrasts with retail, where data is analyzed based on customer interactions, purchasing patterns, and basket composition. In my view, e-pharmacies or a digitally driven customer interaction ecosystem have a deeper understanding of their customers than traditional pharmaceutical companies or providers. This is a competitive advantage as improved insights allow for delivering better customer experiences

Commercial Excellence should not only solve present challenges but also set a long-term vision for integrating data with the right technology stack to provide a full 360-degree customer view. Without the right technology & data architecture, achieving desired outcomes will be difficult. As we move forward, AI-enabled tools will play a huge role in supporting decision-making through predictive & prescriptive analytics.

How can an organization drive and build a culture of commercial excellence?

Culture defines how things are done within an organization. For example, in a factory with Six Sigma standards, the culture evolves to prioritize flawless quality, while a manufacturing plant with less stringent controls may tolerate varying quality levels.

In Commercial Excellence, driving cultural change might involve making the decision-making process linked to well-defined metrics which are displayed on shared portals. For example, one of our customers, moved from PowerPoint presentations with to live, 24/7 dashboards. This shift helped create a culture that moves away from discussing massaged power points to hard data. Also, it drives focus on what needs to be fixed instead of time on making pages.

Many leading companies today are not mandating training days, but emphasize self-directed learning, allowing individuals to access essential resources on demand, digitally, on mobile & web hooked devices. The whole shift to on-demand training drives deeper engagement and also provides insights into employee behaviour linked to improving their knowledge & competencies.

What is your view on the healthcare industry in India?

India's healthcare market is set for significant growth due to its large and aging population. By 2040, over 100 million people are expected to be 60 or older, a population cohort with higher needs for healthcare support. India, often referred to as the diabetes capital of the world, faces rising rates of kidney and neurological ailments, further amplifying market potential.

As India's economy grows, private paying capacity is increasing. Additionally, the Prime Minister’s reimbursement policy currently covers around 100 million families, with discussions underway to expand this coverage, particularly for senior citizens. While the current system is not perfect, ongoing political compulsions are likely to drive significant reforms in the coming years.

Healthcare infrastructure is spreading beyond the top 20 cities to 80-100 Tier-II cities bringing high-quality hospitals and tertiary care to more regions. When seen in the context of India’s current low per capita healthcare expenditure, these developments suggest considerable growth potential.

Overall, demographic shifts, rising affluence, evolving policies, and expanding physical 7 digital infrastructure suggest that India's healthcare market will experience substantial growth in the coming years.

About THB

THB is a healthcare data-technology company that specializes in enhancing patient care through advanced data analytics. They offer a range of solutions including real-world clinical evidence, and business insights to healthcare enterprises. Their platforms are designed to provide hyper-personalized care, engage healthcare professionals effectively, and generate clinical evidence from extensive datasets. With a focus on digital transformation in healthcare, THB supports over 150 clients across six countries, impacting millions of patients and doctors globally.

Manveet S. Hora
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