Digital as Emergent Strategy – Lessons for Pharma from Honda

The door to the magical realm is open! Are we awake?

Traditional Pharma Business Model depended upon face to face visit of Medical Representatives to Health Care Practitioners (HCPs). Covid-19 pandemic makes it challenging to carry out the same. Therefore, like all other industries Pharma Marketers as well are in search of ideal “Digital Options” to reach out to their customers.

This article is my opinion on adoption of “Digital” in Pharma. I will begin with a caveat that the fundamental option remains Face to Face call and Digital is only an augmentation. “Wisdom is to know when to reinvent the wheel and when to copy paste”.  Now is the time for Pharma marketers to copy paste three elements that have worked in the evolution of “Business Models”.

Adopt Emergent Strategy = Nuts and Bolts Approach

An Intended Strategy is about evaluation of choices and deciding which ones to execute. Basically, it is well thought out and executed as planned. And when you chose an unplanned series of actions in response to unanticipated opportunities and challenges it is known as an Emergent Strategy. Nuts and Bolts approach. It is a perspective that most “Digital” which are a part of our everyday life like GOOGLE, FACEBOOK, WHATSAPP are a result of Emergent Strategy. Most of them had no clue about monetization when they began, they evolved that portion over a period.

Another classic example. In the 60s, Honda entered US motorcycle market with a strategy to make motorbikes of similar quality as the Harley-Davidson and European ones like the Triumph at a lesser price. And it met with failure because when Honda bikes in the US were used for high speed long rides it resulted in oil leakages. Unfortunately, Honda’s US sellers did not have capabilities to repair them. Therefore, they were being sent to Japan to be fixed. An expensive proposition that caused great losses to Honda.

Apart from big bikes, Honda was also importing a few small bikes known as Super Cubs for personal use of their Japanese employees based in USA. One of the employees used to go mountain biking with his super cub and soon other colleagues joined him. Looking at fun Honda people were having with mountain bikes other people were enquiring where to buy those dirt bikes. Sears wanted to sell the Super Cub through their catalogue. Initially Honda was reluctant but agreed to the idea as they had nothing to lose and it will allow them to pursue their American dream.

In due course Honda realized that this was a much better approach (Emergent) than what they had the planned. They adopted small bikes as their strategy. And today Honda is a big name to reckon with for motor bikes in USA. Current scenario an Emergent Strategy is best suited for Pharma Marketing than wait for executing a perfect plan.

Failing Fast

Deploying Nuts and Bolts approach. This would require the safety to fail without compromising on critical thinking. Transformations are not possible if we have the fear of making mistakes because then we will not venture out to try anything new.

The idea is not just trying new things but trying them rapidly and whatever idea/concept that does not work should be evaluated and thrown out. We need to launch and move rapidly with minimally viable models. All the while keeping in mind that we do not have venture capitalists with deep pockets to support us. Or the KPI is only the number of users.

I have come across an interesting case about Domino’s and how it bounced back on customer ratings. Experiencing comments like ‘your pizza tastes like a cardboard,’ Domino’s adopted digital technology and a new menu in 2009, they experimented with online ordering with a tracker component that allowed customers to follow their pizza from end to end till doorstep.

Let us continue experimentation with small steps to contain losses till we arrive at the right solution. Management has our back, provided our failures are not related to incompetence.

Understand and create Network effects.

Initial days internet was mainly used by military and few research scientists. As more and more people started using internet it led to the 3Cs. Content, Community and Commerce.

More number of users brought more value this is known as Network Effect. A phenomenon where increased number of people using a product, or a service increases the value significantly.

This is also the reason why despite all its fame and popularity Apple could not displace Microsoft Windows operating system. The idea is if a greater number of HCPs show willingness to adopt Digital engagement, it would lead to increased acceptance and the numbers will increase substantially. It works because we act the way our groups/tribes act. We act in compliance with our group norms. Peer to peer influence.

Covid-19 crisis presents pharma marketers with a rare opportunity. The door to the Magical Realm is open. Are we awake to grab the opportunity?

Now is the ripe time to take the journey into the unknown. People have already shown us the path. Adopt the mind of a wayfarer, questions and actions are the keys. Solutions will emerge. Harnessing this “Digital Moment” will only accelerate growth.

We need to avoid the mindset computerization leads to loss of jobs. On the contrary it has brought speed, transparency, and increased opportunities right from the top to those at the bottom of the pyramid.

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