What is Digital Transformation in Healthcare?
Digital transformation in healthcare refers to the integration of digital technologies into all aspects of healthcare services, revolutionising how care is delivered by enhancing the patient experience in a variety of ways.
The overall goal of digital transformation in healthcare is to create a more connected, efficient, and patient-centred healthcare system.
Digital transformation approaches
Two approaches to digital transformation are the inside-out and outside-in models.
They can both have benefits to healthcare organisations starting on this journey so are a good place to start thinking about the process.
Inside-out transformation
Healthcare organisations, can start their innovation and transformation journeys with an inside-out approach.
This involves assessing their existing internal capabilities, addressing operational inefficiencies, and identifying gaps in their services.
They evaluate their current capabilities, or lack of, alongside emerging marketplace opportunities and what their competitors are doing.
In this model, technology is typically viewed as a solution to improve internal processes, such as patient record management.
Inside-out approaches can be great for assessing patient care and implementing internal care solutions.
Outside-in transformation
For healthcare companies, successful digital transformation requires a reorientation around an outside-in approach to deliver a superior and more relevant customer experience.
This strategy places the focus on the patient and uses external insights—such as patient expectations, feedback, and evolving healthcare needs—to inform transformation efforts.
It starts by reorienting around delivering a superior and personalised patient experience and the technology that could deliver that.
This outside-in perspective ensures that the transformation aligns not just with operational efficiency but also with delivering value to patients in a rapidly evolving healthcare landscape.
As Wayne Gretzky famously said, it’s about "skating to where the puck is going to be, rather than where it is."
While understanding how a sector will change can be challenging, we’ve outlined areas of focus in this article to help you get started.
Setting digital transformation goals
The specific needs of your digital transformation are shaped by your business objectives. However, we’ve identified three areas where we commonly assist healthcare companies in navigating their transformation journey:
• Patient experience
• Digital health platforms
• Data analytics
In the next section we break down each of these in more detail.
Patient experience in healthcare
Customer experience is at the heart of successful digital transformations. Accenture found half of healthcare consumers surveyed agree that a bad digital experience with a healthcare provider ruins the entire experience with that provider.
This goes even further with 39% believing a good digital experience has a major impact on the patient experience. With 26% even being willing to switch for a better experience.
In fact, the importance of delivering a seamless and positive customer experience is magnified in healthcare, where patient satisfaction directly impacts outcomes and loyalty.
As we have explored in detail in our discussion on customer loyalty, a strong customer experience is foundational to building lifetime customer value and fostering repeat business.
In healthcare, this translates to patient retention, trust, and overall better health outcomes.
Examples of how experiences in healthcare can be improved
There are many ways customer experiences in healthcare can be improved. We have focused on three here but the one you should focus on must be aligned with your customer.
1. Personalised care journeys:
Personalisation is a key driver of customer experience, and in healthcare, patients expect and deserve care that is tailored to their unique needs and circumstances.
This personalisation extends beyond medical treatment to include how patients are communicated with, the level of empathy they receive, and the overall environment in which their care is delivered.
Service design reviews can ensure that patient care is tailored by integrating digital tools that track a patient’s history and preferences.
For example, care pathways can be personalised based on individual conditions, offering a seamless experience from diagnosis to treatment, with proactive follow-ups via digital platforms.
This could be as simple as healthcare professionals remembering patient preferences or as complex as using data analytics to anticipate patient needs and proactively address them.
These elements are crucial in building trust and ensuring that patients feel cared for throughout their healthcare journey.
2. Utilising digital tools:
Digital tools have modernised how customer experience is delivered in healthcare.
From online appointment scheduling and telemedicine to patient portals and mobile health apps, technology has made it easier for patients to access care, manage their health, and interact with healthcare providers.
These tools not only enhance convenience but also empower patients to take an active role in their healthcare, leading to better engagement and satisfaction.
For instance, telemedicine allows patients to consult with healthcare professionals from the comfort of their own homes, reducing the barriers of distance and time.
Online patient portals enable patients to view their medical records, schedule appointments, and communicate with their care team, all in one place.
These digital interactions must be seamless, intuitive, and secure to ensure that they contribute positively to the overall customer experience.
3. Data analysis:
To continuously improve customer experience, healthcare organisations must regularly measure patient satisfaction and other related metrics.
This involves collecting feedback through surveys, interviews, and direct patient interactions.
Analysing this data helps identify areas where the patient experience can be enhanced, whether it's reducing wait times or improving the clarity of communication.
Moreover, healthcare organisations should be quick in responding to feedback.
Implementing changes based on patient input not only improves the experience but also demonstrates that the organisation values patient opinions.
This responsiveness is key to building trust and fostering a patient-centric culture.
Digital health platforms
Digital health platforms enable remote patient monitoring, telemedicine, and personalised healthcare services.
According to the GP patient survey in 2023 1 in 3 patients used online services to order repeat prescriptions, 23.4% used them to book appointments, and 17.1% used them to access their medical records.
In 2014 the number ordering repeat prescriptions online was just 9.8%, 6.1% used them to book appointments and only 2% used them to access their medical records.
If this growth trend continues in another 10 years, close to all patients will be using a digital platform to access these types of services.
By investing or improving digital health platforms now, you can advance patient outcomes, streamline operations, and create new opportunities for growth.
Examples of digital health platforms
Electronic Health Records (EHRs):
Enhances the accuracy, efficiency, and accessibility of medical data, streamlining healthcare delivery.
Patient portals
Through the portal, patients can view their health records, schedule appointments, message healthcare providers, and in some cases, access test results or refill prescriptions.
Staff portals
Can provide staff, such as doctors, nurses, and administrative workers, with access to tools and information they need to perform their tasks.
This includes patient records, scheduling, internal communications, task management, and access to clinical decision support systems.
Smart devices and wearable technology platforms
Wearable technology can increase patient engagement and retention, especially through the gamification of health care for patients.
Smart devices and the systems associated can also make it easier for staff to remotely monitor patients.
Benefits of implementing digital health platforms
1. Enhanced patient care:
Digital health platforms can allow real-time access to patient records, facilitating accurate diagnoses and personalized treatment plans.
They can also improve care coordination across multiple providers, ensuring continuity and better patient outcomes overall.
2. Improved patient engagement and outcomes:
Health care platforms can greatly patient satisfaction and other related metrics. This in turn can lead to increased revenues and repeat businesses.
3. Data-driven decision making:
With integrated analytics tools, digital health platforms provide valuable insights into patient data, operational performance, and population health trends.
Implementing data analytics in healthcare
Data analytics plays a pivotal role in driving digital transformation within the healthcare sector.
By understanding and leveraging data, healthcare organisations can gain valuable insights, enhance patient care, and optimise operational efficiency.
However, effectively leveraging data analytics in healthcare comes with its own set of challenges, including organisational and regulatory barriers, as well as fragmented systems.
Collecting data effectively can be particularly difficult due to inconsistent data formats, siloed information systems, and concerns over patient privacy and data security.
To overcome these obstacles, healthcare organisations must adopt robust data governance frameworks and ensure compliance with relevant regulations.
By understanding data challenges and investing in advanced technologies companies can benefit in a variety of ways.
Benefits of implementing data analytics in healthcare
1. Enhanced patient outcomes:
Analysing patient data more effectively and at scale can help lead to accurate diagnoses and personalised treatment plans. This results in better patient outcomes, fewer complications, and a more proactive approach to care.
2. Delivery of a personalised service:
Leveraging data analytics enables healthcare organisations to tailor services to individual needs, allowing for customised care.
3. Operational efficiency for proactive care:
Utilising predictive analysis techniques can help predict care delivery requirements more accurately ensuring the right amount of specialised staff are available ensuring quality care.
How to find digital transformation areas to focus on in healthcare
There are a number of ways we work with clients to diagnose possible areas of improvement and how digital transformation initiatives can help achieve this.
Identifying key areas for digital transformation in healthcare involves a structured approach to diagnosing problems and defining effective solutions. Here’s how we guide healthcare companies through this process:
Approach
We employ our Diagnose, Define, Deliver methodology to help healthcare organisations navigate their digital transformation journey.
Diagnose
The first step of a transformation journey is to diagnose the problems to be solved. A starting point here is to refer to the original goal you set.
• Understanding the Problem: Identifying and accurately diagnosing issues is crucial. We use a diagnostic sprint to swiftly uncover the root cause of problems. Techniques include:
• Root Cause Analysis: Tools like the Five Whys and Fishbone Diagram.
• Research Techniques: Customer and staff interviews, feedback surveys, data analysis (e.g., GA4, heatmaps, user recordings), and service design reviews.
These methods help us pinpoint specific issues and align them with patient needs.
Define
• Identify the problem: The results of the diagnostic phase should provide a clear understanding of the issues.
The strategy process map is a way to outline the strategic choices needed to address the identified problems, leading to a comprehensive plan.
• Plan Creation: This phase produces a detailed roadmap of the actions required to solve the problem and is a blueprint to implement the solution from the choose phase.
Deliver
• Implementation: With a defined roadmap, you can proceed to execute the plan, focusing on delivering the proposed digital transformation initiatives effectively.
By following this structured approach, healthcare organisations can pinpoint areas for improvement and implement digital transformation strategies that enhance patient care and operational efficiency.
Digital transformation barriers for healthcare companies:
Delivering digital transformation in healthcare is not without challenges.
Some potential barriers your organisation may face include:
1.Legacy systems:
Many healthcare organisations rely on outdated technologies that may not integrate easily with modern digital platforms.
This creates difficulties in data sharing and workflow optimisation, slowing down transformation efforts.
2. Resistance to change:
Staff and stakeholders may resist new technologies due to uncertainty or disruption of established workflows.
3. Data privacy and security:
Ensuring patient data is secure and complies with regulations is complex but critical.
Conclusion
By prioritising digital transformation, healthcare providers can deliver superior care, optimise their processes, and ultimately create a more responsive and patient-centered healthcare environment.
The starting point for implementing these strategies may differ depending on the current stage of your business, but with the ideas provided in this article, we hope you have a solid foundation to begin that journey
If you're interested in exploring how we can support your digital transformation efforts, talk to us today.
