Personalization in Healthcare

Personalization is evident across various aspects of life, offering benefits for both users and companies. While tailored services and experiences have become the norm in various industries, healthcare often still adheres to a one-size-fits-all approach. Yet, especially in healthcare, the potential for individualized service is substantial, potentially even offering the capacity to save lives. Companies that take bold steps in personalizing products and services can therefore seize opportunities, establishing themselves as pioneers in the field.

By bringing together thought leaders from pharma, medtech, hospitals, sports, consumer goods, and insurance, Porsche Consulting hosted the second Health & Sports Ecosystem Lounge in Munich on 22 February 2024, providing the forum for a discussion on how to maximize value for individuals and create a sustainable business model. The event – moderated by Inga Bergen, founder and podcast host of “Visionäre der Gesundheit”, and Roman Hipp, Senior Partner at Porsche Consulting – delved into strategies for scaling personalization within the health ecosystem. Consumers and business players see the advantage of personalized products and services, even though they are aware that with an increased level of personalization, costs and complexity rise exponentially. However, new technologies like Generative AI and better access to consumer data can serve as enablers for scaling personalization effectively.

Robert Ader, Chief Marketing Officer at Porsche, kicked off the event with an insightful keynote. He emphasized how personalized products and experiences not only differentiate a brand but also foster long-term customer relationships. Guest speakers Dr. Janina Beilner, Senior Vice President Healthcare Vertical at Siemens, and Dr. Olaf Tidelski, Chief Customer Officer at Allianz Kunde und Markt, explained that identifying customer needs means data has to be utilized, consolidated within a unified ecosystem, and leveraged as the key to understanding individual behaviors so that personalized products can be tailored. According to the keynotes by Dr. Alexander Schellinger, Head of Health Innovation at Die Techniker, and Florian Meissner, Co-Founder at Aware, it is not just about collecting data but also a question of understanding and utilizing data to create consumer-centric pathways for better experiences & outcomes.

In terms of implementing customization, David Assfalg, CEO at Propain Bicycles, and Professor Wolfram Carius, Executive Vice President Cell and Gene Therapy at Bayer, emphasized the importance of cultivating trust in new technologies by building communities and sharing experiences. Furthermore, new opportunities arise from the use of Generative AI. As explained during the speech by Markus Hallermann, Co-Founder & CEO at komoot, Generative AI changes user expectations, transforms how individuals interact with products, and facilitates co-creation for prompt outcomes.

These insights are reflected in our survey conducted among the participants. This shows that 86% of companies aim for personalization, but only 66% understand how it might become profitable. Additionally, merely one-third (36%) generate more than 5% of their sales with personalized products and services. These challenges highlight the pressing need for discussion and collaboration to drive transformation within companies that are part of the healthcare ecosystem.

In summary, successfully personalized products and services at scale require an alignment of ambitions as to how to position the healthcare ecosystem. For a sustainable business model, it is important to think beyond using data in a classic R&D pipeline. Also, only direct-to-consumer relations allow for the collection of proprietary data that form the foundation for individualized products and services. Additionally, it is crucial to constantly improve products to attract more users that share more data – the flywheel effect provides a strong competitive advantage. Lastly, personalized products require a scalable, i.e., standardized, operating model to be efficient.