tag:econsultancy.com,2008:/topics/digital-transformation Latest Digital Transformation content from Econsultancy 2018-04-25T15:02:19+01:00 tag:econsultancy.com,2008:BlogPost/69963 2018-04-25T15:02:19+01:00 2018-04-25T15:02:19+01:00 A brief history of artificial intelligence in advertising Lori Goldberg <p>Over a century later, American Jule Gregory Charney – who is considered the father of modern meteorology, teamed with his Norwegian and American counterparts in mathematics, meteorology and computer programming to develop the first computerized program derived for the prediction of weather. Their computerized approach was perhaps the first example of artificial intelligence (also known as machine learning) influencing consumer behavior through weather reporting.</p> <p>With this predictive analytics, shopkeepers and advertisers could effectively move merchandise associated with changes in weather, from simple umbrellas to pharmaceuticals, clothing, vacations, and air conditioners.</p> <p>Today, IBM’s The Weather Company provides actionable weather forecasts and analytics to advertisers with relevance to thousands of businesses, globally. Through the speed and agility of digital advertising, ad campaigns can flight and pause with the precision of changes in the weather… and as we know, the weather always changes. Ads for cold weather products can appear when local temperatures drop below 68 degrees, while ads for Caribbean vacations can target New York days before an approaching snowstorm.</p> <p>In the last 20 years, artificial intelligence has flooded the advertising market by helping to scale operations through programmatic and content creation, emulating human conversation via chatbots and virtual personal assistants, and refining advertising platforms to understand consumer intent.</p> <p>Just as our ability to forecast weather allows us to target advertising dollars, artificial intelligence is influencing more and more advertising decisions on our behalf. To this point, below is a brief history of advertising’s use of artificial intelligence and perhaps a glimpse of the future.</p> <h3>1998 - AI thinks you'll like this book</h3> <p>The concept of clustering consumer behaviors to predict future behaviors began at Columbia University in a report on “digital bookshelves” by Jussi Karlgren, a Swedish computational linguist. And it was in 1998 that Amazon began using "collaborative filtering" enabling recommendations for millions of customers.</p> <p>Today, Spotify recommends music you may like, Netflix suggests films and television programs you may like, and Facebook suggests friends you may know. This all comes from AI-based clustering and interpreting of consumer data paired with profile information and demographics. These AI-based systems continually adapt to your likes and dislikes and react with new recommendations tailored in real-time.</p> <h3>2013 - AI targets the labor of content creation</h3> <p>With the increasing popularity of content marketing, more content means more advertising opportunities. But the cost and pace of good journalism are considered too slow given volume of ads and eyeballs to be had. The solution: Yahoo’s Automated Insights Wordsmith Platform (now Verizon’s) uses artificial intelligence to scan billions of daily sports-related data points (scores, statistics) and structure the information in computer-generated articles summarizing games, informing fantasy sports fans, and reporting stats.</p> <p>Articles are produced with speed and scale never possible by human journalists. The AI produces natural language content and adjusts for tone and personality, giving each piece a specific journalistic attitude. Automated Insights published 300 million pieces of content in 2013 and has far exceeded 1.5 billion annually since.</p> <h3>2014 - AI optimizes decision-making and reduces labor in advertising</h3> <p>Artificial Intelligence is making advertising easier, smarter, and more efficient. When programmatic ad buying was popularized in 2014, it introduced us to artificial intelligence-based ad buying, effectively removing the broken, laborious manual tasks of researching target markets, budgets, insertion orders, and layers of additional analytics tracking – not to mention high prices.</p> <p>Through programmatic – a marketplace approach to buying and selling digital ads - the whole process is managed through intelligent tools that make decisions and recommendations based on the desired outcomes of the campaign. What was once used for ad remnants quickly and affordably became the new normal for digital publishers and some offline opportunities as well, with <a href="https://www.emarketer.com/Article/eMarketer-Releases-New-Programmatic-Advertising-Estimates/1015682">forecasts</a> estimating over $33 billion spent via programmatic in U.S ad dollars.</p> <p><img src="https://assets.econsultancy.com/images/0009/3899/Chat_Bot_1000px.png" alt="robot with customers" width="600"></p> <h3>2015 - A search result that understands user intent</h3> <p>Since the early 2000’s, artificial intelligence has been a compliment to search engines and their ability to provide a more logical search result. In 2015, Google introduced its latest artificial intelligence algorithm, RankBrain, which makes significant advances in interpreting search queries in new ways. Through RankBrain, Google has been successful in interpreting the intent behind a user’s search terms, making for a more relevant result.</p> <p>If Google receives a search query for a term it is unfamiliar with or lacks proper context for, it can now leverage a mathematical database derived from written language that can pair the terms with related words that give it context. Through this artificial intelligence, Google can provide a more accurate result, pleasing both consumers and advertisers.</p> <h3>2016 - AI is listening, learning and responding</h3> <p>As Amazon Echo, Google Home and Apple charge forward with speech recognition on virtual assistant devices in our homes, a whole new opportunity beckons for advertisers. Just as ads ranked in Google's AdWords, will advertisers bid to influence Alexa’s product recommendations? Amazon is currently in 15 million homes and is developing advertising opportunities for Clorox, Proctor &amp; Gamble, and others to promote their products on Alexa.</p> <p>Facebook Messenger, WhatsApp, and Slack began using AI to reduce the human labor involved in answering simple customer support questions - a cost center for any company of size. AI-powered chatbots respond to customer questions by chatting online under the auspices of customer support technicians and helpdesk prophets. These chatbots interpret the keywords in the users typed questions and <a href="https://econsultancy.com/blog/68388-how-klm-uses-bots-and-ai-in-human-social-customer-service">form likely answers to questions</a>.</p> <h3>What's next for advertisers?</h3> <p>While it's clear that AI is influencing the methods, targeting, and labor behind advertising, the future of AI may be in the ad itself. Case in point: in 2015, <a href="https://www.theguardian.com/media-network/2015/jul/27/artificial-intelligence-future-advertising-saatchi-clearchannel">M&amp;C Saatchi developed</a> what is widely considered to be the world's first AI-powered advertisement.</p> <p>Built for a fictitious coffee company, Bahio, and debuting in central London, this virtual "poster" changes based on consumer reaction, with various text and image options that elicit different reactions. Given the consumer data collected by Google, Facebook and others, perhaps custom AI-oriented advertisements are the future of advertising with language, cadence, images and colors custom designed to appeal to the viewer. Could these custom ads be triggered by the user data in our cell phones?</p> <p><em><strong>Further reading:</strong></em></p> <ul> <li><a href="https://econsultancy.com/blog/69964-marketers-beware-these-six-misconceptions-of-ai/">Marketers, beware these six misconceptions of AI</a></li> <li><a href="https://econsultancy.com/blog/69961-the-implications-of-voice-tech-for-marketers-from-brand-to-customer-service/">The implications of voice tech for marketers, from brand to customer service</a></li> <li><a href="https://econsultancy.com/blog/67422-how-argos-models-ppc-on-tv-weather-seasonality">How Argos models PPC on TV, weather &amp; seasonality</a></li> </ul> tag:econsultancy.com,2008:BlogPost/69956 2018-04-17T13:26:22+01:00 2018-04-17T13:26:22+01:00 Goldman Sachs buys personal finance & budgeting app to bolster its growing retail banking business Patricio Robles <p>Case in point: Goldman Sachs, which <a href="https://www.wsj.com/articles/goldman-sachs-comes-to-the-app-store-1523829570">just acquired</a> Clarity Money for a sum reported to be in the high eight figures.</p> <p>Clarity Money is the creator of a personal finance and budgeting app that helps its approximately one million users “take control of” their finances. To do that, it aggregates data from the accounts users give it access to and then analyzes that data “harness[ing] the power of artificial intelligence (AI), machine learning and data science.”</p> <p>The app allows users to set savings goals, highlights spending habits and overspending, identifies subscriptions that could be canceled, and suggests credit cards that might be a good fit.</p> <p><img src="https://assets.econsultancy.com/images/0009/3625/clarity.png" alt="" width="433" height="623"></p> <p>According to the Wall Street Journal, Clarity Money's app “is expected to serve as the smartphone storefront for Goldman's growing suite of retail products, which the Journal has reported could include wealth-management tools, home mortgages, point-of-sale loans and insurance policies.”</p> <p>Those retail products, which include high-yield savings accounts and personal loans, are being offered under the Marcus brand, which has acquired some 350,000 customers and originated $2.5bn in loans.</p> <h3>Customer acquisition <em>and</em> tech</h3> <p>Goldman believes that Marcus has the potential to become a far more substantial part of its business. How big? The firm reportedly believes that its personal loan offering has the potential to generate over $1bn in profit over the next three years – an amount equivalent to profits from its trading operations – and <a href="https://econsultancy.com/blog/69789-goldman-sachs-is-taking-a-fintech-approach-to-grow-its-consumer-lending-business">is taking a fintech-like approach to gaining traction in the market for point-of-sale consumer financing</a>, a $200bn a year business.</p> <p>But despite its lofty ambitions and process to date, Marcus' current numbers, however respectable, are a drop in the bucket for Goldman, which has been using direct mail to woo new customers, and that's where the Clarity Money acquisition comes in.</p> <p>Clarity Money's million users are all potential customers for Marcus, and if the financial giant is able to convert a good percentage of them, the acquisition could pay for itself quite quickly. </p> <p>But the acquisition isn't just about customer acquisition. As the Wall Street Journal notes, Marcus somewhat remarkably doesn't yet have any mobile apps. So if Goldman does indeed use Clarity Money as the “smartphone storefront” for Marcus, the acquisition will be a critical component of the Marcus business going forward, and one on which the Goldman's consumer venture's success or failure might rest.</p> <h3>A digital transformation study to watch</h3> <p>For that reason alone, Goldman's acquisition of Clarity Money could be one of the most important of 2018 to watch. Indeed, as the Wall Street Journal points out, other financial firms have purchased personal finance apps only to later shutter them. For example, <a href="https://econsultancy.com/blog/69874-capital-one-s-new-browser-extension-is-a-great-example-of-common-sense-fintech-innovation">Capital One</a> purchased Level Money in 2015 only to kill it off 18 months later, and Prosper ditched Billguard, which it purchased for $30m, after two years.</p> <p>If Clarity Money is to avoid that same fate, Goldman will have to navigate potential conflicts between its interest in growing Marcus and maintaining the neutral experience that Clarity Money's users signed up for. Specifically, Goldman could find it tricky to offer a Marcus-branded credit card, which it is reportedly considering, while maintaining the feature in Clarity Money that recommends credit cards based on users' finances and spending habits.</p> <p>How Goldman addresses this might provide a blueprint for other large banks as their relationships with fintechs are expected to <a href="https://econsultancy.com/blog/69680-fintechs-and-banks-to-partner-in-2018-thanks-to-open-banking">become a lot more cozy</a>.</p> tag:econsultancy.com,2008:BlogPost/69918 2018-04-05T15:21:05+01:00 2018-04-05T15:21:05+01:00 DBS Bank now earns twice as much income from digital customers Patricio Robles <p><a href="https://www.bloomberg.com/amp/gadfly/articles/2018-03-28/dbs-reckons-digital-push-can-bring-fintech-sized-returns">As detailed by</a> Bloomberg, the bank earns S$1,300 from those digital customers as compared to S$600 from traditional customers. What's more, those digital customers cost less to take care of as measured by cost-to-income. It takes S$468 to service a digital customer, 36% of income, compared to S$348 to service a traditional customer, or 58% of income.</p> <p>Overall, DBS Bank's return on equity, a key measure for banks, is nearly 10% higher for digital customers than it is for traditional customers. As Bloomberg's Andy Mukherjee noted, if the bank can grow its share of digital consumer and small business customers from 39% today to 50-60%, DBS could achieve a total return on equity 14.5%, an amount “unprecedented in DBS's history.”</p> <p>Such a return on equity would prove beyond a doubt that digital transformation is not something banks should invest in 'just because', but that it can be incredibly profitable.</p> <h3>A product of dedicated investment</h3> <p>DBS Bank's digital success isn't an accident. By 2015, the bank was on record as indicating that 99% of its customer interactions were driven in some fashion by technology. </p> <p>With that in mind, it shouldn't come as a surprise that DBS Bank has been investing heavily in recruiting digital talent, including web and mobile app developers and UI designers. It <a href="https://www.dbs.com/newsroom/DBS_first_in_Singapore_to_incorporate_hackathons_into_its_talent_development_programme">has even incorporated hackathons</a>, originally a startup invention, <a href="http://www.straitstimes.com/business/dbs-using-hackathon-to-hire-100-software-developers">to hire talent</a> and get its teams working alongside independent third-party developers.</p> <p>The bank's investments have produced a growing portfolio of digital assets, including what DBS Bank claims is the largest open API platform offered by any bank in the world.</p> <p><img src="https://assets.econsultancy.com/images/resized/0009/3279/dbsapi-blog-flyer.png" alt="" width="470" height="237"></p> <p>When it launched that platform, which has over 150 APIs covering functionality such as funds transfers, mobile wallets, rewards and real-time payments, David Gledhill, DBS Bank's CIO, <a href="https://bankinnovation.net/2017/11/singapores-dbs-bank-launches-worlds-largest-api-platform/">stated</a>:</p> <blockquote> <p>DBS embarked on a journey to transform our tech infrastructure nine years ago. With that early start, we are now ahead of many others in being digital to the core. This has given us an edge – enabling us to operate with fintech-like agility and nimbleness, and also platform-like inclusiveness. This will be transformative in ways not imagined previously, both for the customer and the bank.</p> </blockquote> <p>Many companies, from major multinationals to startups, have integrated with DBS Bank's API platform. For example, McDonald’s is using DBS Bank's APIs to integrate PayLah!, the bank's mobile wallet, as a cashless payment option. And Activpass, a fitness, wellness and beauty startup, has integrated DBS Bank's rewards program into its app so that customers can redeem their DBS Points to pay for services.</p> <h3>The new fintech landscape</h3> <p>Although it's still ongoing, DBS Bank's already successful digital transformation reflects the new fintech landscape in which many of the biggest gains are now being notched by established institutions that have invested wisely in technology and <a href="https://econsultancy.com/blog/69874-capital-one-s-new-browser-extension-is-a-great-example-of-common-sense-fintech-innovation">digital customer experiences</a>.</p> <p>From <a href="https://econsultancy.com/blog/69782-fintech-propels-quicken-loans-above-wells-fargo-in-mortgage-originations">Quicken Loans overtaking perennial leader Wells Fargo in mortgage originations</a> to <a href="https://econsultancy.com/blog/69789-goldman-sachs-is-taking-a-fintech-approach-to-grow-its-consumer-lending-business">Goldman Sachs' expectation that it will be able to generate $1bn in revenue</a> from its new online consumer lending business over the next three years, any doubts that established financial institutions are capable of catching up and becoming digital innovators have been erased. Startups and institutions that haven't been investing should take note.</p> tag:econsultancy.com,2008:BlogPost/69910 2018-04-03T20:30:00+01:00 2018-04-03T20:30:00+01:00 Join our Asia-Pacific webinar: Digital Transformation in the Retail Sector Jeff Rajeck <p>So, what can retail brands do to meet expectations and, ideally, rise above the rest?</p> <p>In response to the challenge, many retail companies are rethinking the customer experience and, indeed, their entire operations around digital technology. They are, in other words, going through digital transformation.</p> <p>Jeff Rajeck, Research Analyst for Econsultancy in Asia-Pacific, will be covering the details of these changes in a webinar titled "<a href="https://econsultancy.com/events/digital-transformation-in-the-retail-sector-2/">Digital Transformation in the Retail Sector</a>" taking place on <strong>Thursday, April 19th</strong> – 3:30pm (New Zealand), 1:30pm (Australia-AEST), 11:30am (Singapore, Malaysia, Philippines &amp; Hong Kong), 10:30am (Thailand &amp; Indonesia), 9am (India).</p> <p>Jeff will be sharing insights from the Econsultancy report <a href="https://econsultancy.com/reports/digital-transformation-in-the-retail-sector">Digital Transformation in the Retail Sector: Meeting the many challenges</a> and discussing the findings with two industry experts, <strong>Sriman Kota, Executive, Watson Commerce, AP, IBM</strong> and <strong>David Brigham, Analytics Director, Mirum Agency.</strong></p> <p>In the webinar, Jeff will cover:</p> <ul> <li>the elements of optimizing the retail customer experience,</li> <li>how retail brands are making the customer experience more personalized,</li> <li>examples of brands who blend the digital and physical experiences,</li> <li>why data-driven marketing is the key to delivering a world-class digital customer experience,</li> </ul> <p>and include data, case studies, best practices, a Q&amp;A section and, of course, a lively discussion of the topic among the co-hosts!</p> <p><em><strong><a href="http://www.workcast.com/register?cpak=1278815415995928">Register here now</a> to attend Econsultancy's Digital Transformation in the Retail Sector.</strong></em></p> <p><img src="https://assets.econsultancy.com/images/0009/3228/digital-transformation-in-the-retail-sector.jpg" alt="" width="800" height="422"></p> tag:econsultancy.com,2008:BlogPost/69898 2018-03-23T15:00:00+00:00 2018-03-23T15:00:00+00:00 What are the key digital trends in IT in 2018? Nikki Gilliland <p>Has anything changed in a year?</p> <p>Econsultancy’s latest report, produced in partnership with Adobe, has once again explored the digitally-driven opportunities and challenges facing organisations from the perspective of IT professionals.</p> <p>Subscribers can <a href="https://econsultancy.com/reports/digital-intelligence-briefing-2018-digital-trends-in-it/" target="_blank">download it in full</a>, but in the meantime, here are a few key takeaways from the research, which is based on a survey of almost 400 senior IT leaders.</p> <h3>Continuing concern over security</h3> <p>Much like in 2017, security remains the most pressing concern for IT professionals. </p> <p>However, due to a number of security breaches being disclosed by high-profile companies since then - including Equifax, Uber and Yahoo - the situation appears even more front-of-mind.</p> <p>This year, 42% of respondents cite the threat of security breaches and cyber-risk threats as something that concerns them than any other challenge.</p> <p>This, coupled with the fact that businesses are required to be more open and collaborative then ever before, puts IT professionals in a precarious position. </p> <p><img src="https://assets.econsultancy.com/images/0009/3137/Cybersecurity.JPG" alt="" width="700" height="504"></p> <h3>Collaboration between departments improves</h3> <p>One of the key requirements of IT leaders is to keep up-to-date with industry developments, as well as maintain a good understanding of both technology and business issues. </p> <p>The 2017 Trends report highlighted how organisations needed to place greater focus on an internal information exchange, as just 25% of respondents citing that they sourced knowledge of tech and industry changes from members of the leadership team. </p> <p>This year, that figure has risen to 31%.</p> <p>Meanwhile, there’s also been a slight increase in the proportion of IT respondents citing the digital marketing team as a way of staying connected. While there’s still a way to go before organisations excel at sharing with others, the small increase is an encouraging sign.</p> <p><img src="https://assets.econsultancy.com/images/0009/3138/staying_connected.JPG" alt="" width="700" height="513"></p> <h3>Challenges with legacy systems</h3> <p>When it comes to other big internal obstacles, the solutions are not quite so straightforward. </p> <p>The most significant issue is difficulties with integrating legacy systems with new tools or technologies. This was cited as a top-three challenge by 45% of respondents, up from 41% last year.</p> <p>Interestingly, integrating legacy systems appears to be more of a challenge for larger companies (or those with annual revenues of more than £150 million). </p> <p>For smaller organisations, challenges are spread more evenly. 35% cite internal siloes, 40% cite lack of shared understanding about what digital transformation means, and 36% cite adequate budget.</p> <p>As a result, the all-round solution perhaps lies in greater leadership, with the C-Suite taking better responsibility for ensuring digital transformation initiatives are met.</p> <p><img src="https://assets.econsultancy.com/images/0009/3136/legacy.JPG" alt="" width="700" height="488"></p> <h3>Excitement about AI and IoT </h3> <p>Finally, it appears that there is also a difference between what IT professionals in different-sized organisations view as the most exciting prospect ahead.</p> <p>For higher revenue companies, AI comes out on top, with 27% of respondents citing this compared to just 14% in smaller revenue companies. The Internet of Things is ranked higher among the latter group, with 22% of respondents citing this compared to 20% in bigger organisations.</p> <p>Research suggests that AI could prove to be the more valuable out of the two, with top-performing companies being more than twice as likely to use AI for marketing (28% versus 12%).</p> <p><img src="https://assets.econsultancy.com/images/0009/3135/AI_and_IOT.JPG" alt="" width="700" height="508"></p> <p><em><strong>Don't forget to download the <a href="https://econsultancy.com/reports/digital-intelligence-briefing-2018-digital-trends-in-it/" target="_blank">Digital Trends in IT 2018 report</a> for more.</strong></em></p> tag:econsultancy.com,2008:Report/4744 2018-03-22T10:00:00+00:00 2018-03-22T10:00:00+00:00 Digital Intelligence Briefing: 2018 Digital Trends in IT <p>The <strong>2018 Digital Trends in IT </strong>report, based on the eighth annual trends survey conducted by Econsultancy and <a title="Adobe" href="http://www.adobe.com/marketing-cloud.html">Adobe</a>, explores the digitally-driven opportunities and challenges facing organisations from the perspective of IT professionals, looking at both internal business factors and external technological and consumer trends.</p> <p>The research is based on a sample of almost 400 senior IT leaders (manager level or above) who were among around 13,000 digital professionals taking part in the annual Digital Trends survey carried out at the end of 2017 and start of 2018.</p> <h3>The following sections are featured in the report:</h3> <ul> <li>The need for scalable, enterprise digital experience platforms</li> <li>The internal focus: digital transformation and workflows</li> <li>Managing the existential threat… and embracing the opportunities</li> <li>Actionable tips to help future-proof your IT function</li> </ul> <h3>Findings include:</h3> <ul> <li> <strong>IT executives preoccupied by need to keep up with customer expectations.</strong> The high proportion (39%) of IT respondents that cite <em>keeping up with changing customer expectations and behaviour</em> as one of their top external challenges demonstrates the increased customer centricity of a new breed of CIO.</li> <li> <strong>Security is still the biggest headache for IT professionals.</strong> As was the case last year, security is the main preoccupation for IT executives in terms of external threats, with respondents most likely to cite the <em>threat of security breaches and cyber-risk threats</em> as a challenge (42% compared to 41% in 2017).</li> <li> <strong>Legacy systems are the greatest obstacle to digital transformation.</strong> The most significant in-company barrier to driving digital transformation is the integration of legacy systems with new technology, cited as a top-three challenge by 45% of respondents, up from 41% last year.</li> <li> <strong>Enterprise CIOs identify requirement for extensible digital platforms.</strong> Extensible digital platforms are the top priority for IT executives at larger organisations, with well over half (57%) ranking this as a top-three priority for 2018. This compares to 42% for <em>security of data</em>, and the same percentage for <em>joining up data to achieve a single view of the customer</em>.</li> <li> <strong>Companies struggle to master workflow capabilities.</strong> Fewer organisations than last year are taking a range of initiatives to improve workflows against the backdrop of tighter security and compliance requirements that companies are typically working towards. Just under half (48%) of respondents say they are <em>switching to paperless, digital end-to-end workflows</em>, compared to exactly half last year.</li> <li> <strong>IT executives focus on real-time personalised experiences, AI and the Internet of Things as exciting opportunities. </strong>IT professionals are most likely to see the delivery of personalised experiences in real time as the most exciting prospect in three years’ time, ahead of other technological innovations such as the Internet of Things, artificial intelligence, virtual or augmented reality, voice interfaces and payment technologies.</li> </ul> <p><strong>Econsultancy's Digital Intelligence Briefings, sponsored by <a title="Adobe" href="http://www.adobe.com/marketing-cloud.html">Adobe</a>, look at some of the most important trends affecting the marketing landscape. </strong><strong>You can access the other reports in this series <a title="Econsultancy / Adobe Quarterly Digital Intelligence Briefings" href="http://econsultancy.com/reports/quarterly-digital-intelligence-briefing">here</a>.</strong></p> tag:econsultancy.com,2008:BlogPost/69883 2018-03-20T14:30:00+00:00 2018-03-20T14:30:00+00:00 How the blockchain can be applied in healthcare Patricio Robles <p>Healthcare is no different and as players in the healthcare space look to embrace digital innovation, there are a number of areas in which blockchain technology could potentially be employed. Here are three of the most promising.</p> <h3>Electronic health records (EHRs)</h3> <p>The healthcare industry has spent considerable time and money adopting electronic health records (EHR) but challenges persist. For example, while EHRs were intended to help address the issue of interoperability, getting all of the systems that need to talk to each other to talk to each other remains an elusive goal.</p> <p>The blockchain, which essentially provides for a distributed ledger, offers a potential solution to interoperability challenges. Already, the MIT Media Lab and Beth Israel Deaconess Medical Center have experimented with the application of blockchain to medical records. </p> <p>In an article in the <em>Harvard Business Review</em>, John D. Halamka, MDAndrew Lippman and Ariel Ekblaw, three of the researchers involved in the experiment, <a href="https://hbr.org/2017/03/the-potential-for-blockchain-to-transform-electronic-health-records">explained</a>: </p> <blockquote> <p>Imagine that every EHR sent updates about medications, problems, and allergy lists to an open-source, community-wide trusted ledger, so additions and subtractions to the medical record were well understood and auditable across organizations. Instead of just displaying data from a single database, the EHR could display data from every database referenced in the ledger. The end result would be perfectly reconciled community-wide information about you, with guaranteed integrity from the point of data generation to the point of use, without manual human intervention.</p> </blockquote> <p>One of the greatest advantages of this approach is that the patient is ultimately in control of his or her data, which could aid in allowing patients to opt to share their health data with researchers and third parties.</p> <p>Interestingly, last year, IBM <a href="https://www.computerworld.com/article/3156504/healthcare-it/ibm-watson-fda-to-explore-blockchain-for-secure-patient-data-exchange.html">forged a development agreement</a> with the U.S. Food and Drug Administration (FDA) to explore the blockchain-powered exchange of patient-level oncology-related data from a number of sources, including EHRs. </p> <h3>Pharma supply chain</h3> <p>The integrity of the pharma supply chain has never been more important. This supply chain is under growing threats such as drug shortages and counterfeits. Counterfeits alone are estimated to cost pharma companies $200bn annually. It's one of the reasons why, by 2023, pharma companies will be required to adhere to the Drug Supply Chain Security Act (DSCSA), which calls for the complete tracking of drugs from raw materials to production to dispensing.</p> <p>The blockchain could offer a solution to address these threats and comply with the DSCSA. As Maria Palombini of the IEEE Standards Association <a href="https://www.pharmaceuticalonline.com/doc/blockchain-the-pharma-supply-chain-beyond-dscsa-compliance-0001">explained</a>, “Two specific use cases for blockchain in the pharmaceutical supply chain make sense. One is securing the supply chain – the answer to the massive, widespread growth in counterfeit drugs and their associated costs. The other is optimization of the supply chain, which offers efficiencies, cost removals, and visibility into inventory as well as speed and accuracy in the event of a drug recall.”</p> <p>Trials are already under way to see if the blockchain's potential to help the pharma supply chain can be realized. For example, supply chain consulting group The Link Lab has teamed up with blockchain startup Chronicled to build a system <a href="https://medcitynews.com/2017/03/two-california-startups-preparing-pharma-companies-blockchain/">to track</a> the movement of prescription drugs. The duo is working with an unnamed “global pharmaceutical company” to create a blockchain-based solution to verify prescription drugs.</p> <p>They're not alone. DHL and Accenture <a href="http://www.supplychaindigital.com/technology/dhl-and-accenture-working-blockchain-based-pharma-supply-chain-project">have also developed a blockchain prototype</a> to tracks drugs from their point of origin to the consumer.</p> <h3>Clinical trials</h3> <p>The distributed ledger of blockchain also offers promise for clinical trials, which pharma companies spend billions of dollars a year on. Clinical trials by their very nature produce significant data. That data is shared within pharma organizations as well as third parties such as clinical research organizations and regulators like the FDA.</p> <p>Proponents of the application of blockchain technology to clinical trials <a href="https://trialsjournal.biomedcentral.com/articles/10.1186/s13063-017-2035-z">suggest</a> that it could ensure the integrity of data generated by clinical trials while still maintaining privacy. They even suggest it could store trial metadata, such as the trial protocols and statistical analysis plans, collect and track participant consent, and manage phase control using smart contracts.</p> <p>One of the most promising potential applications of the blockchain to clinical trials relates to its ability to facilitate data sharing. <a href="https://www.forbes.com/sites/reenitadas/2017/05/08/does-blockchain-have-a-place-in-healthcare/">Estimates indicate</a> that approximately half of clinical trials go unreported and nearly 90% of trials on ClinicalTrials.gov don't have results. If blockchain could help ensure that data generated by clinical trials doesn't go to waste and is instead made available for future use, it could be a boon to healthcare industry.</p> <p><em>To learn more about digital transformation in Pharma, join us at ePharma in New York on March 21-23. Our VP of Research Stefan Tornquist will be discussing the future of digital and marketing with Anthony Lambrou, Director of Corporate Strategy and Innovation at Pfizer, as well as hosting a roundtable for you to learn, share and connect with fellow pharma marketers. Find out more and secure your spot:</em></p> <ul> <li><a href="https://lifesciences.knect365.com/epharma/agenda/3#epharma-roundtable-digital-transformation-to-future-proof-your-marketing"><em>ePharma Roundtable: Digital Transformation to Future-Proof Your Marketing</em></a></li> <li><a href="https://lifesciences.knect365.com/epharma/agenda/3#main-stage-keynotes_the-future-of-digital-and-marketing"><em>The Future of Digital and Marketing</em></a></li> </ul> tag:econsultancy.com,2008:BlogPost/69874 2018-03-16T15:32:47+00:00 2018-03-16T15:32:47+00:00 Capital One's new browser extension is a great example of common-sense fintech innovation Patricio Robles <p>The new browser extension aims to help customers avoid one of the biggest problems cardholders face: fraud.</p> <p>It works by detecting when a user is on a checkout page and automatically creating a one-off virtual credit card number to complete that specific purchase. By using a unique virtual credit card number for each individual purchase, users can be more easily protected from data theft and in the case of a recurring payment, they can more easily prevent a merchant from billing them in the future without their authorization.</p> <p><img src="https://assets.econsultancy.com/images/0009/2948/eno.png" alt="" width="700" height="525"></p> <h3>Innovation doesn't have to be complicated</h3> <p>As TechCrunch's Sarah Perez <a href="https://techcrunch.com/2018/03/09/capital-ones-shopping-assistant-eno-can-now-dole-out-virtual-card-numbers-in-the-browser/amp/">noted</a>, virtual credit card numbers are not new. Major card issuers, including Citi and Bank of America, offer them and Capital One introduced them late last year.</p> <p>Not too long ago, virtual card numbers were a selling point for a number of fintech startups. For example, a venture-backed startup called Final, which billed itself as “a credit card built for the 21st century”, made virtual card numbers a central feature of its service.</p> <p>Obviously, the barrier to offering virtual card numbers is extremely low, which is why Capital One's Eno browser extension is so important. Specifically, it is unique in that it automatically detects checkout pages and creates the virtual numbers without users having to do so manually. The need to manually create numbers is a significant source of friction that results in virtual credit card numbers not being used as frequently as they could be.</p> <h3>Innovation and competitive advantage</h3> <p>Will Capital One's Eno browser extension give the company a competitive advantage? That remains to be seen. Certainly, fintechs as well as other major card issuers are capable of building similar browser extensions. </p> <p>But this is a good example of how established financial institutions can innovate without having to build complex new technologies. Even if the functionality in the Eno browser extension eventually becomes ubiquitous, there's potentially significant value for Capital One if it can market it effectively to cardholders and drive adoption.</p> <p>After all, even if Eno doesn't drive new cardholder acquisition, it can improve cardholder experience by helping cardholders mitigate against fraud headaches and help Capital One reduce the costs associated with fraud. That's a fintech win-win.</p> <p><em><strong>More on fintech:</strong></em></p> <ul> <li><a href="https://econsultancy.com/blog/69851-amazon-is-looking-to-partner-with-a-bank-to-offer-checking-accounts">Amazon is looking to partner with a bank to offer checking accounts</a></li> <li><a href="https://econsultancy.com/blog/69824-how-can-financial-services-companies-win-featured-snippets-in-search-an-investigation">How can financial services companies win featured snippets in search? An investigation</a></li> </ul> tag:econsultancy.com,2008:BlogPost/69867 2018-03-14T14:30:00+00:00 2018-03-14T14:30:00+00:00 How healthcare companies are getting creative to acquire data Patricio Robles <p>Here are five examples of how healthcare companies are acquiring data.</p> <h3>Roche bought an EHR</h3> <p>Last month, Swiss pharma giant Roche <a href="https://www.roche.com/media/store/releases/med-cor-2018-02-15.htm">announced</a> that it is acquiring health technology company Flatiron Health for $1.9bn. Flatiron Health, which Roche already owned a minority stake in, is the maker of an electronic health record (EHR) platform that is specifically tailored to the needs of oncology providers.</p> <p>Because of its oncology focus, Flatiron Health was in a unique position to collect data that could be used for cancer research, and that was a key reason, if not the primary reason, that Roche shelled out $1.9bn to buy the company.</p> <p>As Roche CEO Daniel O'Day explained, "This is an important step in our personalised healthcare strategy for Roche, as we believe that regulatory-grade real-world evidence is a key ingredient to accelerate the development of, and access to, new cancer treatments. As a leading technology company in oncology, Flatiron Health is best positioned to provide the technology and data analytics infrastructure needed not only for Roche, but for oncology research and development efforts across the entire industry."</p> <h3>UnitedHealthcare is paying its customers to use a fitness tracker</h3> <p>In early 2017, UnitedHealthcare, one of the largest health insurers in the U.S., <a href="https://www.cnbc.com/2017/01/05/unitedhealthcare-and-fitbit-to-pay-users-up-to-1500-to-use-devices.html">began a wellness program called Motion</a> that paid individuals it insures up to $1,500 to complete fitness goals while wearing a Fitbit device. Just this month, it was reported that UnitedHealthcare <a href="https://www.marketwatch.com/amp/story/guid/5A4DE17E-225F-11E8-8157-A2A536BAD589">expanded the program</a> to include Apple wearables, namely the Apple Watch.</p> <p>While the primary goal of the UnitedHealthcare Motion program is to reduce the company's costs by encouraging its insured to live healthier lifestyles, make no doubt about it: the tracking data it gathers from participants could be worth its weight in gold. For example, by correlating fitness tracking data with costs and demographic information, the company could develop more robust wellness models and programs.</p> <h3>Genentech and Pfizer partnered with 23andMe</h3> <p>Genetic testing and analytics company 23andMe gives individuals the ability to learn about their ancestry, genetic health risks and overall wellness through a simple saliva test.</p> <p>Not surprisingly, many people are interested in learning more about who they are genetically and that has helped the company collect more than 2m samples, giving the company a database of genetic information that is extremely attractive to pharma and biotech companies.</p> <p>The pharmas and biotechs that 23andMe has worked with include Pfizer, <a href="https://www.bloomberg.com/news/articles/2015-01-12/23andme-gives-pfizer-dna-data-as-startup-seeks-growth">which acquired 23andMe DNA data</a> "to help find new targets to treat disease and to design clinical trials", and Genentech, which partnered with the Google-backed company <a href="https://www.forbes.com/sites/matthewherper/2015/01/06/surprise-with-60-million-genentech-deal-23andme-has-a-business-plan/">to conduct in-depth research on Parkinson's</a>.</p> <h3>Amgen got cozy with an insurer</h3> <p>For pharmas looking to acquire data, partnerships with health insurers are an obvious fit for a number of reasons, including the fact that insurers have access to large patient populations.</p> <p>An example of a pharma-insurer tie-up can be seen with Amgen, <a href="http://www.pmlive.com/pharma_news/amgen_real_world_study_and_mobile_data_partnership_1203895">which teamed up with Humana</a>, a large American insurer, to create research initiatives targeting multiple conditions by applying technologies like wearables, mobile apps and Bluetooth-enabled drug delivery services.</p> <h3>Boehringer Ingelheim integrated a sensor from Propeller Health into an inhaler</h3> <p>One of the biggest challenges in the healthcare industry is getting patients to take their medicine. In an effort to better understand how patients interact with its products, Boehringer Ingelheim partnered with digital asthma and COPD management platform Propeller Health to create a sensor that attached to one of its inhalers.</p> <p>The sensor enabled Boehringer Ingelheim to collect data about usage, not only helping the company identify reasons for nonadherence but to develop ways to help encourage adherence.</p> <p>As Propeller Health CEO David Van Sickle <a href="http://www.mobihealthnews.com/36942/boehringer-ingelheim-propeller-health-team-up-for-sensor-enabled-inhaler-pilot">explained</a>:</p> <blockquote> <p>It means things like being able to deliver subtle audiovisual cues when the medication hasn't been used and the time for a dose has passed. Or predicting when someone is leaving their home and giving them an alert so they can take a moment to go back and get their morning dose. It means the sensors sort of knowing how much medication is remaining and suggesting an appropriate time for refilling the prescription. And it means thinking about ways to put information about the daily use of these medications to work, to think of ways we can reward individuals intrinsically and extrinsically to motivate better adherence.</p> </blockquote> <p>Similar approaches <a href="https://clinicaltrials.gov/ct2/show/NCT02593032">are being explored</a> for treatments delivered in pill form and if the research proves that adherence is improved, expect to see connected inhalers and pillboxes become common.</p> <p><em>To learn more about digital transformation in Pharma, join us at ePharma in New York on March 21-23. Our VP of Research Stefan Tornquist will be discussing the future of digital and marketing with Anthony Lambrou, Director of Corporate Strategy and Innovation at Pfizer, as well as hosting a roundtable for you to learn, share and connect with fellow pharma marketers. Find out more and secure your spot:</em></p> <ul> <li><em><a href="https://lifesciences.knect365.com/epharma/agenda/3#epharma-roundtable-digital-transformation-to-future-proof-your-marketing">ePharma Roundtable: Digital Transformation to Future-Proof Your Marketing</a></em></li> <li><em><a href="https://lifesciences.knect365.com/epharma/agenda/3#main-stage-keynotes_the-future-of-digital-and-marketing">The Future of Digital and Marketing</a></em></li> </ul> tag:econsultancy.com,2008:BlogPost/69855 2018-03-12T13:30:00+00:00 2018-03-12T13:30:00+00:00 Employer-sponsored healthcare initiatives will create new opportunities for pharmas & medical device companies Patricio Robles <p>Combined, the four companies have over a million employees and are thus exposed to the rising costs of healthcare that have been plaguing the United States for years. Warren Buffett, one of the world's richest people and the CEO of Berkshire Hathaway, didn't mince words when discussing the cost of healthcare: “the ballooning costs of healthcare act as a hungry tapeworm on the American economy.” </p> <p>Detailed information about how these initiatives will function is limited, but what is known is that both will rely heavily on technology.</p> <p>The press release announcing the Amazon-Berkshire-JPMorgan venture stated “the initial focus of the new company will be on technology solutions that will provide U.S. employees and their families with simplified, high-quality and transparent healthcare at a reasonable cost.” <a href="https://www.acwellness.com/">A website for AC Wellness</a> reveals “AC Wellness Network believes that having trusting, accessible relationships with our patients, enabled by technology, promotes high-quality care and a unique patient experience.”</p> <h3>An imperative for pharma and medical device companies</h3> <p>While it's too early to speculate about the impact these employer-sponsored initiatives will have on the broader healthcare market, it's not too early for pharma and medical device companies to start thinking about how these tech-focused initiatives will affect their businesses.</p> <p>Specifically, as employers seek to improve the quality of care their employees receive while at the same time reducing costs, pharma and medical device companies should consider that their opportunity to participate in these ventures could very well be based on the digital and technology assets they develop:</p> <p><strong>Information</strong></p> <p><a href="https://econsultancy.com/blog/67131-pharma-s-mobile-social-efforts-aren-t-as-healthy-as-they-should-be">According to </a>Deloitte Consulting and the Gerson Lehrman Group (GLG), 84% of physicians say that that efficacy and outcome data, as well as clinical guidelines, influence their drug utilization decisions. 65% of physicians are interested in interacting with pharma around this type of content, which could include clinical trial data, updates on new studies and comparative effectiveness information.</p> <p>The implication is clear: pharmas with a large bank of content will be increasingly attractive partners.</p> <p><strong>Data</strong></p> <p>For obvious reasons, data is one of the most valuable assets, if not <em>the</em> most valuable asset, in healthcare today. Pharma and medical device companies that are well-positioned to generate and share data, as well as to consume and analyze it, will likely have significant advantages in forging relationships with employer-sponsored healthcare ventures.</p> <p><strong>Platforms</strong></p> <p>It is likely that employer-sponsored healthcare ventures will employ existing or new technology platforms. Pharma and medical device companies should be prepared to integrate with them.</p> <p>The good news is that many pharma and medical device companies have already started investing in the above and as more and more employers launch their own healthcare initiatives, pharmas and medical device manufacturers will find that they have new opportunities to make their investments pay. </p> <p><em>To learn more about digital transformation in Pharma, join us at ePharma in New York on March 21-23. Our VP of Research Stefan Tornquist will be discussing the future of digital and marketing with Anthony Lambrou, Director of Corporate Strategy and Innovation at Pfizer, as well as hosting a roundtable for you to learn, share and connect with fellow pharma marketers. Find out more and secure your spot:</em></p> <ul> <li><em><a href="https://lifesciences.knect365.com/epharma/agenda/3#epharma-roundtable-digital-transformation-to-future-proof-your-marketing">ePharma Roundtable: Digital Transformation to Future-Proof Your Marketing</a></em></li> <li><em><a href="https://lifesciences.knect365.com/epharma/agenda/3#main-stage-keynotes_the-future-of-digital-and-marketing">The Future of Digital and Marketing</a></em></li> </ul>