Computachem
E-Newsletter
Editor:
Neil Johnston
Regular Contributors:
Rollo Manning
Leigh Kibby
WWW (Who, What Where) + E-Vents
This edition coincides with the start of the Olympic Games
and highlights the theme of Rural and Isolated Health, and the management
problems of getting dispensing services into these areas. While we touched
on this problem in an earlier edition we have decided to follow it on
a continuing basis through a new column called "Roundup". Solutions
to these problems will have significant impact on pharmacy distribution,
as it may involve automated dispensing systems, which can be applied
in other pharmacy areas which are not so isolated e.g. hospital dispensaries.
Rollo Manning discusses the impact of the Galbally Report and begins
a discussion on the marketing of S2 and S3 products. He states:
"Action will need to be taken to review the value of marketing Schedule
2 and Schedule 3 medicines only through retail pharmacy. It is not just
National Competition Policy driving the competitive edge in pharmacy
services but the entire funding approach to health service delivery.
Pharmaceutical manufacturers will be required to come forward and show
a stand on value for money through the product they market and the claims
that are made. A watershed will be evident in the latter part of this
decade unless change is evident or the "status quo" is proved to be
best."
We also touch on some comments by Peter Drucker, the
well known management guru, on the new economy and its implication for
Australian pharmacists. We have also found a potential solution for
a secure Internet payment system, which will remove a major barrier
to consumer usage of e-retail websites.
The New Zealand pharmacies which have been causing international concern
with their distribution of prescription-only drugs, appear to have had
the brakes applied, and this is good news for all of pharmacy.
In the e-commerce marketing area we explore a number of activities which
could be harnessed for promotional purposes, which includes a final
article on Ideavirus and an invitation to download the entire publication
for reference use.
You've Got Male is back in a slightly different format and a raft of
men's issues are discussed and how they can be incorporated into pharmacy
business. This is a market that can be harnessed through websites, and
is a market that has long been neglected.
Happy watching (or visiting) of the Olympics.
THE COMPETITIVE
EDGE AT WORK THROUGH ANOTHER INSTRUMENT
From Rollo Manning
The draft of the Final Report of the Rhonda Galbally Review
of the Poisons Acts takes up on a popular approach to fund health services.
It is "outcome" based. "Pharmacy" is challenged to show in a set timeframe
that its value in having the exclusive rights to sell S2 and S3 medicines
is justified. Research models will be established to determine whether
the "system" is getting value for money through the regulation, and
if not, it will seek a cheaper alternative.
This may sound harsh, but in 1985 the health system in Great Britain
set in place a model of funding health services to make the "providers"
of health services more competitive. This was believed at the time by
the "funders" of the services to be needed when it was found that a
lot of services being provided were either inefficient, too expensive
for their contribution to improved health, or lacking in innovative
ideas.
Pharmacy is a provider of services. Its efficiency will be further under
scrutiny as time goes by and more health planners and authorities introduce
this philosophy to the planning of "health gains". A service will be
required to show that its cost is justified in order to be immune from
the rigours of competition.
A competing service may be selected to take over the role of service
provider from a long established entity. This could happen in a hospital,
an urban locality, or through an entire health system such as the Pharmaceutical
Benefits Scheme. It is better to be forewarned of this movement than
to ignore change and assume a service will be there "forever". National
Competition Policy reviews are not the only way for Governments to introduce
competition. In fact the drive for efficiency is being spurred along
by information technology.
The pharmacy in the "high street" embraced technology earlier than many
services ten or more years ago but has not advanced much since then.
Windows based systems have only appeared in the market place in the
last two years and their take up has been slow.
"Who else could do the job of dispensing?" May be asked.
The answer is easy – technology.
There are already machines on the market in America which can dispense
from a remote location, by the electronic carriage of instructions.
(See the "Roundup" column at the foot of this newsletter). Rhonda Galbally
is merely reflecting a worldwide trend in the evaluation of health services.
By asking a service to prove its value she in ensuring it does not become
complacent, lacking in innovation, or suffering from a lack of self-evaluation.
Maybe the marketing of S2 and S3 medications is outmoded, ancient and
able to be replaced.
A recent discussion on an Internet bulletin board for pharmacists indicates
some doubt as to the value of some products from a therapeutic standpoint.
A headache or sore throat may be get better just as quickly with a glass
of water.
It is not just the retail pharmacy sector under review, but the entire
marketing structure. Pharmaceutical manufacturers were silent during
the conduct of this review, and now will have to take an interest as
they too are in the evaluation process. It was as if they did not want
to go public on a stance for fear of losing their support base in the
onselling of product to the public through retail pharmacy.
What manufacturer in their right mind would not rather have an "open
selling" market place, rather than a "chemist only" policy?
And yet none emerged in the NCP review process.
The next five years takes on an even greater dimension of evaluation,
with the recommendation in the NCP review of Poisons Acts that the system
must prove it’s worth or change.
ends
The
comments and views expressed in the above article are those of the author
and no other. The author welcomes any comment and interaction that may
result from this and future articles. The editor would be pleased to
publish any responses.
PETER DRUCKER ON THE NEW ECONOMY
Most people who have read any management theory would
have come across the thoughts of Peter Drucker in some form or another.
As a management guru he has no equal, so when he makes pronouncements
on the new economy, most managers sit up and listen.
In a recent interview, Peter Drucker was asked some specific questions
on the new economy and e-commerce.
His answers can be summarised in three points:
* Speculative booms precede the growth of real business by 10 years.
* Everyone has underestimated the rapidity with which"old business"
has adapted to e-commerce (and to eventually become leaders).
* The most enduring and successful Business to Consumer (B2C) model
will be the one that uses e-commerce to sell, and physical locations
to deliver.
Peter Drucker comments that at the moment, the new economy
is in a speculative phase, and much like the gold rushes of an earlier
era, many Internet "miners" are salting their claims.Most of the recent
crashes are the result of irrational and speculative investment caught
up in the euphoria of the promise of easy riches.
In a less speculative environment, these businesses would never have
been funded and never have made it to the Internet.
The current Internet scramble parallels an earlier phenomenon in Australia
when Pay TV first emerged. The hype and promise lured the speculators,
fast talking business executives, the ultimate business crashes, and
finally the more sober reconstruction from the ashes of these ventures
into more stable business models.
No one should be alarmed or surprised over the spate of Internet failures.
It is all new territory and is a natural evolution of an industry giving
birth. In Australia, we are nearly three years into the speculative
boom that Peter Drucker talks about, which means that we are facing
at least seven years more of a speculative boom environment, with more
companies going to the wall, disgraced executives and disappointed shareholders
and investors.
However, this should not deter pharmacists from progressively establishing
an Internet presence, provided it is done rationally and without haste.
In newsletter edition #11, we hinted at the type of pace involved, describing
it as "baby steps".
The speed at which old business has taken to the Internet is really
astounding. Certainly most of the investment has been of the B2B model,
in the form of procurement exchanges e.g Corprocure and the other companies
noted in previous newsletter editions.Many of these alliances would
have been ridiculed by the participants in the not so distant past.
The point made by Peter Drucker that successful B2C Internet entities
will use the Internet to sell and physical locations to deliver is a
sensible observation, given the spate of fulfillment problems experienced
by online retailers. Most Australian entities are moving towards this
model, including Dstore, one of the pioneer online department stores
(with a strong pharmacy department).
Dstore has announced that it will open "bricks-and-mortar" stores to
distribute its goods, having come from a totally cyberspace environment.
The driving force behind the decision to go "physical" was partially
fulfillment problems, but mostly the realisation that the bulk of business
will still come from "bricks and mortar" establishments. Dstore states
that only 10% of its ultimate sales will come from online activity.
Therefore to grow, it must join the ranks of traditional retailers or
at least form strategic alliances with them.
Computachem predictions for pharmacy have been that within the next
three years, those pharmacies making a commitment to online retailing
will see the online component rising fairly quickly to 25% of sales,
with the following three to four years rising to 35%-40% depending on
the level of promotion, and the ability of appliance and furniture manufacturers
to incorporate functional Internet computers within their construction.
Australia's best know Internet/mail order retailer, Pharmacy Direct,
would obviously have a fairly high component of external sales, but
an increasing amount of instore sales would also be occurring.
One feeds off the other.
Speedier Internet Service Providers will also accelerate the trend,
making the Internet more accessible and user-friendly.
So Peter Drucker's message is to hasten slowly, very much in line with
the advice we have been giving for some time.
SECURE INTERNET PAYMENT SYSTEM
American Express have just unveiled a new e-commerce product
that enables customers to buy online with a disposable credit card number,
thus paving the way for all credit card providers to enable secure transactions
on the Internet.
Called Private Payments, the system will be linked to a customer's account
and will be made available to all US consumer and small business accounts
over the next 30 days.
Similar systems are being tested in England, where online shoppers are
given a virtual credit card, which generates a unique identifying number
for each transaction
American Express cardholders who want to use Private Payments can request
a number at the American Express Web site or download the software.
The software automatically activates an American Express pop-up box
when the user is about to make a purchase on a site that accepts the
credit card. The box assigns the consumer a number and enters it into
the credit card field on the Web store's site.
This development appears to be the first in a series of online privacy
and security products that is being developed. A second product which
allows customer control over the amount of personal information they
share while surfing the web, has been planned for later this year.
Studies have shown that 65-70% of customers fear that their credit card
information will be stolen from them while using the Internet. Also,
80% of customers drop out of a shopping cart on a website just before
they are asked to pay by credit card.
This new technology should improve these statistics and encourage online
customers to purchase in safety. Some retailers argue that personal
information gained in respect of their clients can assist in more accurately
targeting their needs, and is thus not a negative.
There will always be opposing points of view where privacy issues are
involved.
NZ ONLINE PHARMACIES TO BE REIGNED IN
The Pharmaceutical Society of New Zealand has finally
moved to control the activities of online pharmacies within their jurisdiction.
This move follows the seizure, by the Ministry of Health, of six bags
of mail containing Viagra, Xenical and Propecia destined for US delivery.
In an attempt to eradicate problem exports of drugs permanently, the
Society is launching an official accreditation of all online sites adhering
to recommended guidelines. In the subsequent court case after seizure,
the Ministry of Health argued that the sale of the seized medicines
was contrary to the New Zealand Medicines Act, which requires a prescription
for any medicine not able to be purchased over the counter.
Kerry Bell, the Aukland pharmacist involved, successfully argued that
a pharmacist did not require proof of a prescription before export under
New Zealand law. The court ordered the Ministry of Health to return
medicines it had seized from Bell.
The matter has not ended there.
Disciplinary proceedings have been initiated by the Pharmaceutical Society
against Bell under provisions of the Pharmacy Act, where pharmacists
who breach the society's code of ethics can be fined NZ$10000, and lose
their pharmacy registration and right to practice.
The Society points out that a change in law is needed, and the New Zealand
government is now intending to close the loophole which allows pharmacists
to export medicines without prescription. This new law should be in
place by October 2000.
Prior to the official action, the US Food and Drug Administration sent
warning letters to three online pharmacies based in New Zealand, advising
that Internet sales of medicines to Americans could be illegal and that
items sold from their sites could be stopped at the border.
Debbie Young, a New Zealand pharmacist who received one of these letters,
complied with the request in respect of the one product nominated by
the FDA. She pointed out that she offers, through her website, medicines
that in New Zealand, can be sold legally by pharmacists, without prescription.
The US equivalents may require doctor visits and prescriptions. She
further commented that the drug export business was "huge" and the US
were not the only customers, also that Americans were paying a premium
on drugs in their own country.
Some experts see the trend in online pharmacies as inexorable, with
local registration relatively futile. A global solution is required,
but international treaties may be the only way. The New Zealand Pharmaceutical
Society comment that done in the right fashion, online pharmacy offers
more choice and is a great assist for rural and isolated people, but
points out that medicines must be treated as a special category in the
e-commerce world, and are not normal items of trade.
Schoolkids are showing the professionals how to do it,
judging from the quality of recent entries in the Australian Schools
Web Challenge.
Last years winner, Alan Wu aged 16, now runs his own multimedia Internet
company and sits on the Internet Youth Parliament. Another previous
winner, David Townsend aged 18 makes up to $800 an hour designing web
sites (but his usual fee is $80 per hour).
The Web Schools Challenge was established in 1997, and invites primary
and high school students to research a subject and develop a website.
National manager, Melissa Sinclair, commented that previous winners
have made their mark in the information technology world and that today,
the research skills of students are becoming increasingly sharper. They
have the technical know-how to take this information and build useful
and sophisticated sites.
Judges of the program come from Internet industry leaders and education
specialists and have commented on the level of skills demonstrated by
students between nine and 18 years of age, in their ability to research
design and build their sites, plus be able create online content in
fun and innovative ways.
The environment for learning and technology is changing rapidly.
Entries for the program came from more than 900 teams, with finalists
from all states and territories-from the smallest towns to the largest
cities. This year's topic, "Time Traveller" was selected to tie in with
Australia's Centenary of Federation in 2001. Students were encouraged
to research the history of their local community and document how Australia
has changed in the past 100 years. Entries were judged by state and
national judging panels on teamwork, research, design and implementation,
creativity, effort and initiative.
Run as a community project by Access Online, the event is supported
and promoted by every state and territory department of education, and
by libraries and educational bodies throughout Australia.
The national winners of this year's Web Challenge:
Primary: Stuart Park Primary School
Lower Secondary: Sefton High School
Upper Secondary: The Hutchins School
ABC Online Award for Best Design: The Fahan School
Sony National Award for Innovation & Design: The Fahan School
Pharmacists should consider capitalising and promoting this school resource through sponsorships and other innovative means.For example, you could give a prize for the best design for a pharmacy website, offer prizes for Internet educational activity and partner schools through loyalty programs to help schools invest in future technology. This is a great marketing opportunity, because it is these kids that are going to show mum how to shop on the new website that they just designed at school!
Surfing the web and TV game shows are two of the most
popular pastimes in the US.
The trend is similar in Australia.
In a new television program being developed in the US, these activities
are bundled into a program called "Web Challenge", where three pairs
of teams equipped with laptops and Internet connections,are pitted against
each other in a general knowledge quiz. It is not enough simply to know
the answers to the questions as contestants can only score by finding
the correct answers on the Web.
While most people have a general knowledge of search engines, there
are definite skills in performing searches quickly and efficiently.
A knowledge of the variety of search engines and knowing where to locate
information on the Internet is a prerequisite. Although there are many
thousands of people using search engines by the hour, they are not necessarily
using the easiest and best ways.
Web Challenge aims to demonstrate the best methods, highlight flaws
in the various search engines, educate the audience to the wonders of
the Internet and provide good entertainment at the same time. The viewers
will find the process of the search just as much fun as in the results.Much
like watching a football game, where the viewing is as much about observing
process and strategy as well as the end result.
A new product development called Web TV has just been launched in the
US, and this item looks set to become the mass produced method of linking
the masses to the Internet. Retailing at $99, it is possible, through
two windows, to view your TV program and access the Internet simultaneously.
This will enable game shows such as Web Challenge, to extend their studio
participation to their connected audiences through both TV and Internet
mediums.
It promises to be a powerful multimedia tool and of course, Microsoft
has been first to launch with its version, bugs and all! Web programmers
and designers have found that the new device has not been developed
for existing standards and distorts most sites. Patches are being developed
to correct a number of flaws, but it appears most sites may need to
be re-programmed.
Disregarding the immediate problems, pharmacists with imagination may
be able to devise a local promotion using their website, perhaps involving
schools, given the interest that is demonstrated in the previous article
("Whiz Kids Web Challenge").
It is a good method for developing a continuing interest in your site
and promoting health at the same time.
In previous editions we have been exploring the concept
of Ideavirus as expounded by Seth Godin, the author of a new marketing
concept for the Internet.
This is the last of this particular sequence of articles, but for those
who are interested in exploring his work further, you are directed to
the site http://www.ideavirus.com
where you will be invited to download the entire reference book for
free.
Make sure you have sufficient paper for the printout.
I believe that this book will be a valuable reference for anyone wishing
to become part of the world of e-commerce and the Internet culture.
"Marketers have been pursuing word of mouth for years.
There are five important principles that idea merchants with an ideavirus
understand...principles that marketers pursuing old-fashioned word-of-mouth
didn't use:
1. Idea merchants understand that creating the virus is the single most
important part of their job. So they'll spend all their time and money
creating a product and an environment that feed the virus. 2, Idea merchants
understand that as long as they can recognise and manipulate the key
elements of idea propagation...the identification of sneezers, the persistence,
the smoothness, the vector and the velocity ....they can dramatically
improve a virus's chance of success.
3. Idea merchants remind themselves on a regular basis that digital
word of mouth amounts to a permanent written record online, a legacy
that will follow the product, for good or ill, forever.
4. Idea merchants realise that the primary goal of a product or service
is not just to satisfy the needs of one user. The goal is to deliver
so much wow, to be so cool, to be so neat, and to be so productive that
the one user tells five friends. Products market themselves by creating
and reinforcing ideaviruses.
5. Idea merchants know that because an ideavirus follows a life cycle,
they will have to decide when to shift from paying to spread it, to
charging users and profiting from it."
At Computachem, we are still coming to terms with the vast range of
competitive activity and "noise" that the Internet generates. We have
decided to adopt and implement many of Seth Godin's strategies within
our own, and our client, marketing structures. We hope you can learn
along with us.
YOU'VE GOT
MALE
by Leigh Kibby
An Internet Interview with Rick Hayes
You've Got Male is now fully in the IT age. This is the
first in a series in the field of men's health: Rick Hayes is one of
the principal researchers into men's health promotion in Australia.
He is a popular and frequently sought after speaker in this field. He
is an associate lecturer in Health Promotion at the School of Public
Health at La Trobe University. He is also a guest lecturer at both Deakin
and Monash Universities, a men's counsellor and a member of a number
of critical reference groups related to men's health issues.
Rick is the Men's Health Promotion Officer at the North East Health
Promotion Centre (Melbourne) and has been a member of the Centre's award
winning team since January 1998. He is their principal researcher for
a Department of Human Services funded project, "Older Men's Access to
Health and Welfare Services." Drawing upon his work there, he has recently
written a book for the Centre titled Developing a sub-regional framework
for Men's Health Promotion. It will be published soon by VicHealth and
released in their health issues series. An earlier draft already has
been used extensively in Australia and increasingly overseas.
He is a contributing author for book on "Health Care Reform and the
Community" that is being published by Oxford University Press. He is
also a doctoral candidate at La Trobe University. His research topic
concerns facilitating men's health promotion in employment and recreation
settings. Rick is the Chair of the Victorian Branch of the Australian
Institute of Welfare and Community Workers. He has collaborated with
and consulted for international organisations to develop and deploy
mentoring programs for senior executives and staff in Adelaide, Melbourne
and Sydney. These programs support both personal and professional development
in the context of a rapidly changing world of business.
Additionally, he regularly holds workshops to empower professionals
to become more effective speakers and presenters.
Here are the questions posed to Rick. His answers appear in blue.
What are the key health issues for men?
[Rick Hayes]....In terms of physical health, men generally experience high rates of mortality in relationship to cardio vascular disease, circulatory system disease, suicide, cancer, and accident and injury. Prostate and testicular cancers are, of course, particular to men. I would also say that one of the key health issues is the tendency among the larger population and health professionals to see men as problems in terms of health. We seem to be piqued by the fact that men don't seem to want to cooperate with the way we would like them to act. Of course, the men have very strong opinions about why this is so.
What are the key issues related to the well-being of men?
[Rick Hayes]........Research is increasingly showing that social and emotional health and well-being are of great concern for men of all ages, classes and ethnic origins. Both work (or, the lack of it) and relationships are central to either promoting or diminishing the health and well-being of men. Finding ways as individuals and as groups to renegotiate the roles and responsibilities that men take in their lives will be important for men. Employers and schools can go a long way in helping to facilitate these conversations that often lead to life changing actions.
What do these issues mean to the health profession?
[Rick Hayes].........That health professionals need to acknowledge the fact that most of the issues that affect men's health such as employment, housing, environmental considerations, family relationships, etc. take place in the day to day events of men's lives and not in "health care" settings. This means that health professionals must make lively partnerships with people working in a wide variety of settings: home, school, work and leisure. They must also work in partnership with other professionals. One of the overwhelming comments that we hear from men is their desire to be heard and listened to and not merely told what to do. Research also shows that they want to be engaged with competent workers with caring attitudes expressed throughout the whole encounter.
What do these issues mean to the medical profession?
[Rick Hayes]......Research that Divisions of General Practice have carried out show that men often feel that insufficient time is given in consultations to carefully and I might say gently work out the larger issues in a man's life. Of course, GP's often complain that the men raise these issues in the last couple of minutes of the consultation. There is a major pilot program being developed among through Divisions to explore how GP can bring health promotion into the general practice and increase the quality of their consultation with men.
What do these issues mean to Pharmacists?
[Rick Hayes].........A Pharmacist is often in a position to be a men's health advocate by developing a strong partnership in terms of understanding the medication and developing a sustainable action plan for getting the most out of the script. They are often the best people to help men understand the effects of drug interactions and to speak to the lifestyle and social issues that might impact on the drug's effectiveness. However, working behind a counter madly filling scripts often prevents this valuable interaction from taking place.
What can pharmacists do to assist men, medical professionals and allied health professional with regards to men's health?
[Rick Hayes]....Again, Pharmacists can mediate a number of the important conversations that need to take place in the community. Their competency and expertise is recognised by all parties. However, in many ways they may seem more approachable that GPs because of their location in the heart of the community. Many Pharmacists are developing "men friendly" waiting areas and are improving the manner in which the whole shop interacts with the men. Information videos and pamphlets are being utilised more widely and focus on men increasingly.
What insights have you gathered during your work with men?
[Rick Hayes].......Men are generally concerned about their health. They will talk about it and act upon their concerns, if they are in safe, well-facilitated environments associated with their own support networks.
In one sentence, what is the wisest thing you would say to Pharmacists?
[Rick Hayes]...........Men need
more than the medication, they need motivation to stay the course...that
motivation often comes from the sense that people care that they exist.
What does all this mean to Pharmacists?
Two key points are clear:
1. Pharmacists are an integral link in the "Men's Health Chain"; and
2. The responses of Pharmacists to men are critical.
It is important that Pharmacists actively plan their customer interactions,
their staff training and their store design with these points in mind.
If they do so, they will help men and build their businesses.
The comments and views expressed in the above article are those of the author and no other. The author welcomes any comment and interaction that may result from this and future articles, and can be contacted directly by e-mail at kinematic@bigpond.com . Alternatively, the editor would be pleased to publish any responses directed to neilj@computachem.com.au . For more information on previous topics click here
ROUNDUP
A regular column devoted to Rural and Isolated Health Issues
The take up of the concept of "remote controlled dispensing"
technology (RCD) has been slow to get off the ground in Australia.
Imagine a patient seeing a doctor from the Royal Flying Doctor Service,
some 600 Kms from a pharmacy but being able to obtain their dispensed
medication on the same day with patient counselling.
This equipment is on the market in America and there is no reason why
it should not at least be being trialled in Australia. The outcome is
what every health planner should want. The lack of action can only be
because the companies marketing the machine have not the foresight to
see the potential for success in the Australian scene.
There are close to 500 health clinics in "remote" Australia servicing
a population of upwards to half a million people. Their health is continually
under scrutiny and is made worse by the tyranny of distance.
Come on America – be fair – share it around – we have people in remote
places too.
Editor’s Note: Contributions welcomed to this
now to be regular column
THE NATIONAL RURAL HEALTH ALLIANCE
Want to subscribe to another
interesting newsletter?
The National Rural Health Alliance has a publication dedicated to news
and reviews of all aspects of rural health. You can subscribe on the
website at http://www.ruralhealth.org.au
or you can contact the independent editor, Jim Groves, at grovesc@winshop.com.au
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* Letters to the editor are encouraged, or if you have material you
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http://www.computachem.com.au . * Any interested persons who would
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please send a single word e-mail "Subscribe" to neilj@computachem.com.au
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* Looking for an organised reference site for medical or other references?
Why not try (and bookmark) the
Computachem Interweb Directory , for an easily accessed range of
medical and pharmacy links, plus a host of pharmacy relevant links.
The directory also contains a very fast search engine for Internet enquiries