When it comes to healthcare, we often think about hospitals and doctor visits. Although this is a big part of the industry, there’s so much more going on behind the scenes that make this industry one of the largest and most labor intensive across the globe. The global healthcare market reached $8.7 trillion in 2017, and it is projected to grow at a compound annual growth rate (CAGR) of 5.4 percent to reach $10.059 trillion by 2022.
The healthcare industry is under immense pressure to digitize in order to improve workflow efficiency and cut costs. In addition to the ever-growing demand for better and more efficient healthcare services, the industry has witnessed a massive push during the pandemic.
The healthcare industry has made great strides in terms of technological advancement, and this only means that the scope of digitization is only going to increase in the future. From hospital IT systems to medical devices, healthcare has adopted technological innovations at every level. Today, we’re seeing this phenomenon extend to procurement.
However, there is a lot of ground that needs to be made up in terms of integrating existing institutions and preparing for future global outbreaks. One of the most critical aspects of this transformation is the procurement machinery, which needs to be overhauled with innovative technologies that can optimize workflow and reduce costs.
There are a number of challenges that the healthcare industry is currently facing, and digitization can be the answer to many of them. Some of the most pressing issues that need to be tackled include:
Each of these challenges can be tackled with the help of digitization and with so much at stake, it is critical that the healthcare industry embrace digitization in order to stay ahead of the curve. It has been estimated that around 70% of the total cost of a typical pharmaceutical product lies in the supply chain. This indicates how important it is for an organization to be able to control its assets effectively, manage its processes, and comply with regulations and policies. The digitization of the procurement department is key to business impacts including, but not limited to:
The impact of digitization is undeniable. It has already led to the emergence of a new set of business processes and practices, enabled by technology. And the extent of this change can be felt across industries and sectors. Digitization in healthcare is expected to continue to flourish, especially as the sector transitions from an analog approach to digital health. The positive impact of digitization cannot be overlooked and will lead to a sustainable future for the healthcare industry and its stakeholders alike
As with most trends in technology, business process reengineering and organizational change are crucial prerequisites for a successful digital transformation. While there might be multiple reasons behind a business decision to embark on a digital journey, there is usually one overarching reason: the promise of enhanced and sustainable value creation on a wider scale. The key question then is: How does your organization intend to capture this value?
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