The consumer future of pharmacy Chris Ellett, Transformation Director PharmacyForum April 2018, Marbella @CJEllett77
Hello
Content 1. Consumers changing business 2. How does Pharmacy and Healthcare stack up? 3. What is this digital thing? 4. The end to bricks and mortar pharmacy? 5. What are we doing at Well?
But first…
Please stand up
The world is changing fast
90% of the world’s data was created in the last two years
Households have 10 connected devices now, will rise to 50 by 2020
50% of all searches will use voice by 2020
Consumers have evolved quickly and businesses are having to keep pace
Physical switching to online Personalisation Pure players moving into physical Convenience Augmented reality On demand Virtual experience Social media Digital Voice search Data Conversational commerce Machine learning Internet of Things AI & Robotics Smart devices Autonomous cars
So how does Pharmacy and Healthcare stack up?
15 million
15 million people in England with long term chronic conditions
People with long-term conditions now account for about 50 per cent of all GP appointments, 64 per cent of all outpatient appointments and over 70 per cent of all inpatient bed days The King’s Fund
400 million
£400m medicine wastage cost to NHS due to poor medicine management
13
Up to 13 days on average to wait for a GP appointment
160
160 different systems on average in each NHS Trust
Buys more than anybody else
NHS is world’s biggest buyer of fax machines
6.6 million 130,000
NHS uses 10% of world's pagers (130,000) at annual cost of £6.6m
40
~40% Rx still not sent through EPS despite being introduced over 10 years ago
61 million 67 billion
0.5% (£61m) of prescriptions in England are online £67bn of UK Retail sales will be online in 2017 (~18% - Non-food higher)
700,000
£700k spent on toner cartridge at Well each year
Why is pharmacy so far behind?
People might die
Whataboutery
We’re different. We don’t have the capacity/money/skills. Our customers are older/won’t use this. We tried this before. It’ll cannibalise our existing business model.
We’re different We don’t have the capacity/money/skills Our customers are older/won’t use this We tried this before It’ll cannibalise our existing business model
16% $800bn
What is digital or what digital is not?
Building a website Bolting an app on top of what we do today Digitising paper forms Digital as another channel Buying more technology Drone delivered, AI-powered wearables
“Any sufficiently advanced technology is indistinguishable from magic.” - Arthur C. Clarke
Simple On-demand Real time Intelligent Fast Automate
We’re not really here to make things digital. We’re here to make things better.
But Pharmacy is all about being close by, right?
The three ages of pharmacy convenience Convenience = Convenience = Convenience = Route Come 1st or 2nd or routine to me nearest to GP “I’ll pick up when I do my shop “I walk out the GP surgery it’s the “It just fits in and around my life” or on the way to...” first pharmacy I come across” 3.2% market growth YoY P2U receiving 0% market growth YoY for Supermarkets 3,000 nominations a week 74
Are Amazon coming?
So what are we going to do?
What we need to do is always lean into the future; when the world changes around you and when it changes against you - what used to be a tail wind is now a head wind - you have to lean into that and figure out what to do because complaining isn't a strategy Jeff Bezos
Does this all mean the end to bricks and mortar?
No
What are we doing at Well?
Bringing Pharmacy into the digital age Take the hassle out of prescriptions Deliver services to meet the raised expectations of our customers Give pharmacists time back to care for patients Build new digital healthcare businesses
In summary
Consumers are having their expectations raised by other industries – pharmacy is their next stop
A move to digital and online is inevitable for pharmacy, in fact it’s already happening
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