Duchesne Kilian

5th year Sup’Biotech

Biotechnologies Engineering School

Professional Thesis: Digital

Transformation and Management Practices

Year 2021-2022
 Acknowledgements

First of all, I would like to thank my work placement tutor, Mrs Corinne
MONTEIL, for her patience and her wise advice during my work placement, which
contributed to my reflection. I would also like to thank my supervisors Mr Didier
PERTUY and Mrs Hélène ARBEILLE, for their precious collaboration in providing me with
details in their field of expertise.

I would also like to express my deepest thanks to the managers and teaching
staff of the Sup'Biotech and ISG schools, for allowing me to complete my double degree
course.

I would also like to thank the professors of the ISG and Sup'Biotech, who
provided me with the necessary tools to succeed in my university studies.

A big thank you to my mother and father, for their love, advice and
unconditional support, both moral and economic, which enabled me to achieve the
studies I wanted and consequently this thesis.

I would like to express my gratitude to the friends and colleagues who have
given me moral and intellectual support throughout the process. A big thank you to
Thomas PETIT for his advice on the style of my thesis.

I would particularly like to thank my colleagues at Sanofi who were kind enough
to answer my questions, as well as for their critical opinions.

I would particularly like to thank my colleague Ms Lucie TARAYRE for her

psychological and emotional support, but also for her precious help in the proofreading
and correction of my thesis.
 Table of contents

Introduction ...................................................................................................................... 4
1. Background and theoretical framework ..................................................................... 5
1.1 Digital Transformation and Industry 4.0 ........................................................................ 5
1.2 Levers of digital transformation .................................................................................... 7
1.3 Challenges of digital transformation ............................................................................. 9
1.4 Risks of digital transformation .................................................................................... 14
2. Criteria for a successful digital transformation in the company ................................. 17
2.1 Organisation of the company ...................................................................................... 17
2.2 Business technology ................................................................................................... 20
2.3 Management of the company ..................................................................................... 24
2.4 Case study: Sanofi's digital transformation .................................................................. 27
3. Success criteria for a successful digital transformation in the connected medical
devices sector ................................................................................................................. 34
3.1 Medical devices: a rapidly evolving sector ......................................................................... 35
3.2 Criteria for a successful transformation to develop tomorrow's devices ....................... 37
4. Conclusion ............................................................................................................... 39
Bibliography ................................................................................................................... 40
Table of illustrations ....................................................................................................... 44
 Introduction
Digital transformation or digitalisation is disrupting companies and the
economy in all sectors. Indeed, 9 out of 10 executives consider that digital has had a
significant or major impact on their sector of activity, according to a study carried out
in 20161 . Yet it is still a vague concept in terms of how it is defined in the literature.
Some define it as "the changes brought about by digital technologies in all aspects of
human life"2 ,or others as "the use of technology to improve business performance and
reach"3. In both cases, these definitions insist on the drastic nature of the
transformation and the notion of digitalisation has become an essential component in
the construction of new business models (8 out of 10 managers affirm it1). Indeed,
under increasing pressure from new entrants (46% of companies have already carried
out a digital transformation project to remain competitive4), to adapt to new consumer
behaviour and finally to take advantage of new technologies in order to increase
productivity, companies are obliged to review their processes and the way they benefit
from their stakeholders. Another characteristic of digital transformation is the
extension of value production and the immediacy of exchanges within society and
business.

After describing these elements, we will propose digital transformation as a

reconfiguration of the company's business model based on the exploitation of the
potentialities offered by digital technology to produce, deliver and capture value.
However, a digitalization project is not without risk for a company and can be
particularly costly in some cases. Indeed, a 2017 study 4 states that 33% of companies
have interrupted a digital transformation project, and nearly 59% are at an
intermediate stage or even in a digital dead end. Digital transformation therefore
appears to be an uncertain project, in which some companies can get bogged down.
The whole challenge of a successful digitalization project is based on a central
paradox: staying in the race against the competition while taking the time to reshape
the business model of companies. All this rests on a pillar that is the human being,
ultimately at the centre of the digital transformation challenges, so how is digital
transformation linked to the evolution of management practices?

1 CSC Survey 2016 - Digital Transformation Barometer

2olterman, E., & Fors, A. C. (2004). Information technology and the good life. IFIP Advances in Information
and Communication Technology, 143, 687-692. https://doi.org/10.1007/1-4020-8095-6_45
3
Digital Maturity Matrix Fonte: Westerman et al, 2011 [122] | Download Scientific Diagram. (n.d.). Retrieved
June 9, 2022, from https://www.researchgate.net/figure/Figura-4-Digital-Maturity-Matrix-Fonte-Westerman-et-
al-2011-122_fig2_317175716

4 Fujitsu study 2017 - The digital transformation PACT

 In order to answer this question, we will ask ourselves the following questions:
How does digitalisation differ from the computerisation of work processes? What are
the challenges and risks of this transformation for companies? What best practices
have been put in place previously to support this transformation? How does this
transformation reshape the organisation of the employee experience and what new
management practices could be put in place?

Finally, we will propose a model for successful digital transformation in a rapidly

evolving sector: connected medical devices.

1. Background and theoretical framework

1.1 Digital Transformation and Industry 4.0

As introduced earlier, the digital transformation is a real metamorphosis of the

industry. A metamorphosis is a change of phase, and there are 4 such important
changes in human history in the literature5 . The first was the invention of fire, which
allowed us to enter prehistory. Then the second metamorphosis took place some ten
thousand years ago, that of agriculture and animal husbandry, which is still relevant
today. Two centuries ago, it was the industrial revolution and finally we entered the
fourth phase in the 2000s, with information technology. This is known as Industry 4.0,
which is characterised by the collection of all available data from production systems 6
. Digital technology makes it possible to greatly intensify interactions, communications,
development and access to knowledge, the complexity of which is increasing very
sharply compared to the industrial era.

Originating in Germany, Industry 4.0 was born out of a desire to compete in a

global environment7. By studying different differentiation factors and needs, its
creators deduced that it would not succeed in the long term by relying solely on cost
advantages. One of the first ideas was therefore that new technologies and networking
would help to differentiate German industry in the long term, and to be more
customer-oriented than in the past.
Another starting point was to create added value with the help of new business
models, derived from these data-driven models, i.e. to identify new business models
that would be successful in the long term.

5 Jutand F., L'imaginaire, un architecte et un moteur des transitions, 2018, I'm Tech (online)

6
Assar M., Transformation in the DNA of the industry, 2019, ITM Bootcamp (online)

7 Industry 4.0-Overview and Policy Implications. (n.d.).

 Industry 4.0 also remains a challenge in an international context because it is
no longer just a German idea, but a European one, which is being copied on a global
scale, particularly in emerging countries such as China and Korea. The competitive
advantage of European industry will therefore not always exist in these areas, and we
will have to adapt these technologies and company organisations to move forward as
best we can.

Figure 1 Conceptual image of Industry 4.0 technologies

In France, the Lemoine report8 proposes a definition of the dynamics generated

by digital transformation and proposes three distinct dimensions: automation,
dematerialisation and the reorganisation of intermediation schemes.

Automation is synonymous with the effects of increased productivity in the

broadest sense: productivity of labour, capital, energy and raw materials, but also the
increased capacity for individualisation of supply.
Dematerialisation, on the other hand, means the emergence of new
communication and distribution channels that replace or transform physical branch
networks, leading to lower production and transaction costs.

8 Lemoine, P. (2014). The new grammar of success The digital transformation of the French economy.
 Finally, the effects of disintermediation/re-intermediation are synonymous
with the reorganisation of value chains, with the emergence of new players between
traditional companies and their customers, which requires the reinvention of business
models.

Having established this theoretical framework and taken the illustrative

example of Industry 4.0, we will now study the different levers of digital transformation
in order to better understand the issues at stake.

1.2 Levers of digital transformation

When we talk about digitisation, we think first of all of massive data processing, or
Big Data, which refers to the ability to collect, store and process large flows of data of
various kinds in real time. Indeed, this data can be web traces, videos or even genomic
data, or biological and medical research data. The aim of this processing is to reveal
information that is difficult to detect by traditional means and which is likely to create
value. Industries are using Big Data in a major way to control the factory, particularly
in terms of industrial processes, but also with other tools such as virtual reality or
augmented reality. What is important to remember about processing such as Big Data
in a context of digitalisation is that the data that describes it is constantly evolving.

Thus, a key factor of success is to know how to study its changes and to know
how to adapt accordingly quickly and intelligently. Unlike the 20th century company,
where the main success factor was stability, the new advantages are now linked to
agility and speed of adaptation. Performance is driven by the ability to continuously
use existing data and identify new opportunities and patterns from unknown sources9.
The architecture of massive data will evolve through information sharing, using new
digital technologies, while optimising decisions and generating new insights for
businesses9.

9Günther, W. A., Rezazade Mehrizi, M. H., Huysman, M., & Feldberg, F. (2017). Debating big data: A literature
review on realizing value from big data. The Journal of Strategic Information Systems, 26(3), 191-209.
https://doi.org/10.1016/J.JSIS.2017.07.003
 Figure 2 Data of some mobile applications generated in 1 minute

Secondly, we are witnessing a cultural mutation between the manufacturer and

the customer, through collaborative production. This is due to the fact that the
customer is becoming central, and the evolution of his expectations implies that the
industrialist must be able to reorganise himself, to be able to manufacture small series
of products. We can also imagine a renewal of artisanal production and custom
development, responding to specific expectations. The relationship between producer
and consumer is set to change in the coming years, and a new mode of product design
seems to be opening for manufacturers. By involving customers and consumers in the
creation of products, or by associating employees in internal competitions,
collaborative participation is a lever that it is useful for companies to consider in this
context of digitalisation.

Another development at the centre of the industry with its customers/consumers

concerns recycling and waste management, where in some cases we talk about
delayed obsolescence. In the face of this, models such as the circular economy are
emerging and making sense. Combined with this, the standardisation of many products
and strong competition from emerging countries are forcing manufacturers to respond
to the needs of their customers as a priority, and we talk about the servicisation of
industry. Indeed, the majority of solutions established today combine products and
services.
 Figure 3 Virtuous circle of the circular economy

It is important to note that at the centre of all these changes, the human being
occupies the major place. When we talk about digital evolution, we are talking about
a human being with expanded skills, assisted or even augmented by technology, which
integrates the evolution into his technical skills. He or she must also respond to the
new needs of the company, with more and more digital skills as a result of increased
automation and robotisation. The human factor is therefore an important key to
success in the transition of companies to the industry of the future.

All these changes are taking place in a very short space of time and give rise to a
strong feeling of acceleration, so agility and efficiency must be encouraged, with a
spirit of continuous improvement at the heart of the operation of all the players in the
industry. It is therefore necessary to study the various issues at stake.

1.3 Challenges of digital transformation

The global adoption of the internet and the consequent development of digital
technologies are enabling new forms of business, which can, however, be a hindrance
to non-digital businesses and their traditional activities. Indeed, companies that do not
adapt become less attractive to customers, to the benefit of companies exploiting the
potential and opportunities created by digital 10.

10
Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Qi Dong, J., Fabian, N., & Haenlein, M. (2021).
Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122,
889-901. https://doi.org/10.1016/J.JBUSRES.2019.09.022
 Digital technologies have become the source of evolution in business practices,
but are also transforming the organisation and operating modes through the
automation of industrial processes. The key success factors in this environment seem
to be the alignment of technologies with the company's strategic orientations, the
mastery of Big Data sources, and the identification of skills for coordinated work within
the organisation. Faced with these challenges, an information technology governance
that supports and develops the organisation's strategy and objectives must be put in
place. The main issue is the improvement of value creation processes through digital
technologies, taking into consideration risk management and technical performance11.

Digital tools such as smartphones, tablets and computers have not only
influenced our lives, but also those of the company 12. Firstly, new skills have emerged
within individuals and employees, leading to behavioural changes such as the
introduction of teleworking or easy and quick exchanges via social networks. Secondly,
the needs of customers and consumers have evolved, as well as the ease of comparing
products with other competitors in terms of quality, price, after-sales service, etc.; all
this influenced by a change in the competitive landscape due to the emergence of
startups, digital platforms, or new forms of advertising through social networks such
as Facebook, Twitter...

Thirdly, the business environment has changed, as a result of globalisation or

the emergence of crisis moments such as the Coronavirus.

Taking these elements into consideration, the company has to succeed in its
digital transformation in order to survive in a rapidly changing world.

Digital evolution has changed the industry, from legal requirements to country
infrastructures. Technological revolutions such as artificial intelligence, robotics and
computer software have left their mark on industries, impacting legal requirements at
all levels: global, country and industry-specific.

Similarly, countries had to adopt specific regulations and laws in the context of
the health crisis to ensure the protection of citizens. This has led to the introduction of
teleworking and the limitation of paper-based exchanges for companies in order to

11Bounfour, A., Fernandez, V. & Waller, E. (2015). Cloud computing and organisational design: towards a
comprehensive research agenda. Information Systems & Management, 20, 3 §10.
https://doi.org/10.3917/sim.154.0003

12DUDéZERT Aurélie, La transformation digitale des entreprises. La Découverte, "Repères", 2018, ISBN:
9782348036019. DOI: 10.3917/dec.dudez.2018.01.
 maintain their activities. The infrastructure of countries must also adapt to this
digitalisation by building up data storage capacities and transmission channels in line
with national economy policies.

As a result, companies are forced to adapt in a local and international digital

environment, requiring them to review their strategies to take advantage of these
developments.

The competitive landscape has also changed as a result of these new digital
technologies, where information flows more freely 13. As a result, new forms of
commerce have emerged such as the US and Chinese leaders, Amazon and Alibaba,
who have moved to online commerce, which is less rigid and allows for shorter order
processing times.

In addition, one could mention the emergence of digital platforms such as

Netflix or AirBnB, which make it easier for younger companies to enter the market, and
whose barriers to entry have almost disappeared14. On the other hand, many
industries are being dominated by large companies rich in digital information and data,
which will lead to limitations as time goes on.

The way in which these organisations collect and process massive data, while
reassuring the various stakeholders, is a key piece of intangible capital. Indeed, like
financial capital, we speak of the digital capital of companies in a knowledge economy.
As we can see, in the face of increasing competition in this digital context, the
company is obliged to adapt its strategy according to the field in which it operates, in
order to satisfy the new expectations of its customers.

With the world now connected through the development of international

communication networks, consumer behaviour and preferences have changed, and
knowledge has evolved8.

Indeed, consumers have become more informed, thanks to easier access to

information, in particular by comparing prices or the quality of products or by
consulting other consumers' opinions on the desired product. The emergence of online
shops and online payment have also changed the buying process for customers, who
are no longer obliged to travel or pay at the point of purchase. Online reviews can also

13
Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The Journal of
Strategic Information Systems, 28(2), 118-144. https://doi.org/10.1016/J.JSIS.2019.01.003

14Nadkarni, Swen & Prügl, Reinhard (2020). Digital transformation: a review, synthesis and opportunities for
future research. Management Review Quarterly. 71. 10.1007/s11301-020-00185-7.
 be an advertisement for success or, on the contrary, a nuisance for the company's
brand image.

The company must then take cognisance of these different changes and evolve
its product and service offering accordingly, by evaluating its business models
externally while considering the changes in employee behaviour internally.

As mentioned above, customer expectations have changed. However, these

customers are also employees of companies. Especially since young employees are
now more accustomed to digital tools, and even more skilled at using them. Several
challenges arise for the company and for human resources managers in the face of
these changes, particularly with regard to rigid, strictly hierarchical work processes,
which do not correspond to the expectations of connected employees, interacting in
collaborative modes in their personal lives6. Younger employees are more competent
in the use of digital technology, but less experienced when faced with older employees,
who are themselves less used to using these technologies; the company is therefore
obliged to find common ground between these generations.

Therefore, one of the conditions for a return on investment in the use of digital
technology at work is the appropriation15 by employees, managers, and leaders of
organisations. In order to work on deployment strategies for all the players in an
organisation, it is therefore essential to identify the factors of appropriation.

Thus, a key challenge for leaders in this era of change is to attract new digital
talent, while retaining human capital. Considering these challenges, the adaptations
required within the organisation to take advantage of the opportunities offered by
digital, constitutes a necessary change on the part of leadership.

The willingness of managers to adopt digital technologies is a necessity for a

successful digital transformation. Indeed, in a company that is transforming itself
through the adoption of digital tools, the behaviour of the manager also changes in
parallel with that of the customer and the employee. Also, the digitalisation of certain
tasks can call into question the interest and meaning of the work done by employees16.
However, as we saw earlier, the search for meaning is at the heart of employees'

15Grimand, A. (2012). The appropriation of management tools and its effects on organisational dynamics: the
case of the deployment of a jobs and competencies repository. Management & Avenir, 54, 237-257.
https://doi.org/10.3917/mav.054.0237

16Berger-Douce, S. (2015). Performance through responsible innovation. Entreprendre & Innover, 24, 37-44.
https://doi.org/10.3917/entin.024.0037
 concerns, particularly among the youngest. Managers must therefore realise that their
power no longer lies in the possession of information, but in their ability to use it.

Thus, taking into account the different issues related to the business
environment, competition, changes in customer expectations and employee
behaviour, managers need to adapt their business plan to sustain their business,
ensuring change and the adoption of new technologies, in the form of actions to be
undertaken.

Figure 4 Characteristics of a digital business transformation

A final challenge for companies is environmental issues. These can present both
constraints and opportunities for organisations. The environmental constraints are
mainly related to the life cycle of digital technologies17 , and the negative impacts they
may have. Indeed, it is necessary to take into consideration the local and global impacts
that new digital tools can have, where the dependence on the resource is even more
important.

In order to manage these impacts as well as possible, ecodesign is a sustainable

solution for the company of the future. It will have to take several parameters into
account, without reducing the costs of its products and services, and will have to
control the use of equipment during the various stages of its life cycle, in order to retain
the gains of eco-design.

The new digital technologies represent a tool for the company of the future,
which must be put at the service of higher objectives, notably the reduction of negative

17Bahers, J., Capurso, I. & Gossart, C. (2015). Networks and the environment: cross-sectional views on the
management of Waste Electrical and Electronic Equipment in Toulouse and Milan. Flux, 99, 32-46.
https://doi.org/10.3917/flux.099.0032
 environmental impacts in other sectors. Through the mobilisation of all actors, digital
technology is the source of new opportunities through real-time access to a large mass
of data, or through the emergence of more interactive models.

The companies of the future therefore have everything to gain by participating

in an ecological transition of the new modes of operation, even if many issues must be
taken into account to take full advantage of it. This includes controlling the energy
consumption of digital tools, the security of digital systems and the creation of new
services.

Thus, the mobilisation of all the players in the future may enable the
reconciliation of digital transformation and energy transition, provided that efforts at
technological and systemic innovation continue, while including a facilitating
regulatory framework.

1.4 Risks of digital transformation

Digital transformation presents as many advantages and challenges as it does

risks and can be the cause of many disappointments. Various factors can be the source
of this, such as the technical difficulties of implementation, the lack of understanding
of the purpose of the tools or the impact of these tools on the nature of the work. It is
therefore appropriate to study the risks associated with this transformation.

The first risk of failure in a digital transformation is the technical risk. Indeed, a
digital transformation generally entails the implementation of new digital tools, which
must allow for continuity of work in relation to the old tools 18. To avoid discontinuity
of processes, they must be operational as soon as they are put in place, which may
generate inappropriate tensions in the performance of the activity. Some of these new
tools may even remain counterproductive, despite being functional. The literature also
describes the low digital maturity of some companies in the case of SMEs19, which
could reinforce certain inequalities.

Another difficulty concerns the understanding of the tool. Indeed, these new
tools are often accompanied by the knowledge required to master the basics 20 , which

18Doran, J., & Ryan, G. (2014). Firms' skills as drivers of radical and incremental innovation. Economics Letters,
125(1), 107-109. https://doi.org/10.1016/J.ECONLET.2014.08.011

19Riera,C., & IIJIMA, J. (2019). The Role of IT and Organizational Capabilities on Digital Business Value. Pacific
Asia Journal of the Association for Information Systems, 11(2), 4. https://doi.org/10.17705/1pais.11204

20Boboc, A. (2017). Digital and work: what influences? Sociologies pratiques, 34, 3-12.
https://doi.org/10.3917/sopr.034.0003
 can lead to misunderstandings, or even a lack of meaning in terms of the expected
goals of organisational transformations21 . This is all the more true in organisations
where communication and knowledge sharing are not emphasised22. There is also
resistance to change23, which is detrimental to the changes in mindset brought about
by digitalisation.

Technology can also be a source of tension for the user, when it contradicts the
rules or quality criteria specific to the profession24. In some cases, the worker may even
feel that he or she is losing the relationship with his or her colleagues or clients, to the
point of losing the meaning of his or her work. For example, the literature25 highlights
the impact of these new technologies on human relations in the organisation. Indeed,
in most cases, the new tools developed reduce, sometimes rightly, the need for human
interaction. This type of virtual network approach is increasingly considered by
employees as a support tool, aiming to reduce the human capital of the company, and
reducing the margin of autonomy of workers. Thus, digital transformation can be
perceived negatively, similar to Fordism or Taylorism, depriving work of the interest it
may represent in some cases. On the contrary, digital technology can give a strong
autonomy to the individual in the organisation, constituting a factor of enrichment for
the employees. However, these new collaborative tools are dependent on a number
of factors, specific to each organisation and each local working context 20.

A few examples of key sectors found in the literature could be cited in this
respect. From an operational point of view, some authors underline the significant
costs of digitalisation in terms of infrastructure development, particularly in the field

21
New organisational modes: obstacles and facilitators in the implementation of a culture of cooperation - HAL
Open Archive. (n.d.). Retrieved June 20, 2022, from https://hal.archives-ouvertes.fr/hal-03671527/

22Ologeanu-Taddei, R., Fallery, B., Oiry, E. & Tchobanian, R. (2014). Uses of collaborative tools: the role of
organizational forms and human resource policies. Management & Avenir, 67, 177-191.
https://doi.org/10.3917/mav.067.0177

23Dasí,À., Pedersen, T., Gooderham, P. N., Elter, F., & Hildrum, J. (2017). The effect of organizational separation
on individuals' knowledge sharing in MNCs. Journal of World Business, 52(3), 431-446.
https://doi.org/10.1016/J.JWB.2017.01.008

24Bobillier-Chaumon, M.-E. (n.d.). Conditions of use and factors of acceptance of activity technologies:
Questions and perspectives for work psychology. Retrieved June 20, 2022, from https://halshs.archives-
ouvertes.fr/tel-01559686

25Barnier, F., & Chekkar, R. (2017). Conditions of acceptability of a home automation technology in
professional service contexts. Communication and Management, 14(2), 53-80.
https://doi.org/10.3917/COMMA.142.0053
 of logistics26. The health sector, for its part, is subject to data confidentiality issues27 ,
resulting in a lack of trust between health professionals and developers of digital
technologies in this sector. The military sector is characterised by a lack of
sustainability of digital technologies28 , while the agricultural sector falls victim to the
vulnerability of connected objects used 29 .

Finally, the immaturity of certain digital technologies can be a major source of

risk. A multitude of articles have looked at the risks of mobile technologies, particularly
in relation to the confidentiality of data communicated30 , or the rapid obsolescence
of devices31 . The problems associated with data analytics technologies are also
highlighted, along with cybersecurity and the difficulty of processing the ever-
increasing volumes of data. These privacy risks are particularly important when
implementing cloud or social media technologies, which leads organisations to be wary
of using them. In contrast, there are few articles on the issues related to blockchain
technologies, probably due to the immaturity of the latter and the absence of
standards and recognised expertise on the subject.

26Borisova, V., Taymashanov, K., & Tasueva, T. (2019). Digital Warehousing as a Leading Logistics Potential. In
Sustainable Leadership for Entrepreneurs and Academics (pp. 279-287). Springer, Cham.

27Yang, L., Zheng, Q., & Fan, X. (2017). RSPP: A reliable, searchable and privacy-preserving e-healthcare system
for cloud-assisted body area networks. Proceedings - IEEE INFOCOM.
https://doi.org/10.1109/INFOCOM.2017.8056954

28Zimmerman, P., Gilbert, T., & Salvatore, F. (2019). Digital engineering transformation across the Department
of Defense. The Journal of Defense Modeling and Simulation, 16(4), 325-338.
https://doi.org/10.1177/1548512917747050

29Barreto, L., & Amaral, A. (2018). Smart Farming: Cyber Security Challenges. 9th International Conference on
Intelligent Systems 2018: Theory, Research and Innovation in Applications, IS 2018 - Proceedings, 870-876.
https://doi.org/10.1109/IS.2018.8710531

30Harshanath, S. B. (2018, October). Detection and Protection Related to Data Sharing Technologies. In
TENCON 2018-2018 IEEE Region 10 Conference (pp. 0156-0161). IEEE.

31Jenzri, W. (2018). Dimensionality Of Perception Of Quality Of Service On A Traditional Versus Virtual Offer
Channel! And Qualitative Reference Concept: Qualitative Approach. INNOVATION MANAGEMENT AND
EDUCATION EXCELLENCE THROUGH VISION 2020, VOLS I -XI, 2634-2656.
 Figure 5 Cyber security vulnerability statistics

2. Criteria for a successful digital transformation in the

company

As we have seen previously, a digital transformation has both advantages and

disadvantages, sometimes presenting costly risks for companies. This part of the report
presents the "best practices" identified as necessary to successfully carry out a digital
transformation of the company, according to the current literature and depending on
the different entities concerned.

2.1 Organisation of the company

Organisational structures have had to evolve under the pressure of external factors
(market, health crisis, etc.), the development of new technologies but also with the
implementation of new managerial practices. Digital transformation has accelerated
this process, and companies must rethink their organisational structures in order to
remain sustainable. As we have seen previously, the human element is at the heart of
a successful digital transformation. Indeed, an organisation is above all a set of people,
skills, desires, and motivations aligned around means and a business model. If we take
the example of the United States, corporate culture is considered to be a central pillar
towards the success of companies. When we look at strong players such as Google,
TikTok or Netflix, they make a point of setting up and spreading their corporate culture.

Indeed, it is the latter that must make it possible to maintain the cohesion of
employees and their visions in line with the company's project, in the face of difficult,
innovative, and dynamic competition. Corporate culture is a concept that goes beyond
a simple product, strategy, or leader, because it is anchored in time. A growing body
of research also shows that the majority of young employees would rather earn less
 money at a job they love than earn more at a boring job 32. Sam Altman describes
corporate culture in his course33 as "Every day, the beliefs and values and the
behaviours and actions of every member of our team in pursuit of our company's goals
and mission". The dimension of a corporate culture is therefore subject to
amplification by time, or the size of the company. Thus, it must be defined as early as
possible, in order to promote the alignment of values among employees, the
stabilisation of good practices inherent in its definition, and the coherence of the
organisation with its strategy. In Europe, this notion seems less widespread, often
being very theoretical, and is often little implemented by managers or employees.

Some of the principles applied by the new digital players are good examples of how
to facilitate the establishment of a corporate culture that is anchored in time:

A corporate culture that is embraced and shared by all employees that goes beyond
goals and profits, being ambitious even with limited resources, being able to reinvent
itself in the same way as established traditional models and respond to new needs,
putting the customer/user at the centre of its offering in order to guarantee the best
customer experience, Be capable of strong agility/adaptability, notably through
collaboration and the elimination of silos, and finally ensure that the company reflects
generous values that will give meaning to its employees through transparency, sharing
and passion.

Another factor to consider and anticipate is the phenomenon of resistance to

change. Indeed, similar to the law of gravity, the resistance induced by a change in
physical conditions is proportional to that change. The same is true for an organisation,
the stronger and more sudden the change, the more fear and misunderstanding there
will be towards the actor of these changes. History shows us that disruptive
innovations were first slowed down by resistance from users or lobbies: the arrival of
the Internet, the smartphone, solar panels, and windmills, etc. It is therefore vital to
anticipate the likely resistance caused by a digital transformation. Let us remember
that a business organisation is first and foremost made up of human beings; the
transformation of an organisation will first and foremost take place thanks to or
because of its managers and employees, the term "human resources" therefore taking
on its full meaning.

If we take the case of France, several factors are not negligible, such as the current
difficult economic context, heavy regulation, and the weight of the trade unions, which

32 "Generation Nice", New York Times, August 15, 2014

33(7) Reading 10 - Culture (Brian Chesky, Alfred Lin) - YouTube. (n.d.). Retrieved July 5, 2022, from
https://www.youtube.com/watch?v=RfWgVWGEuGE&t=20s&ab_channel=YCombinatorVault
play a major role in the adoption or not of changes within companies. While the
substance of a company leader's ambitions may be rejected by his or her employees,
it is also dependent on the form, which most often leads to the greatest resistance. As
changes are often experienced as a risk, with an uncertain future and an anxiety-
inducing climate, the ability of the company director to develop a clear and coherent
vision and strategy is an important necessity. It is also important to know how to
communicate the causes, opportunities and concrete impacts of the changes to be
brought about, which will be the key to convincing and getting employees to adhere
to them.

As a result of the digitalisation of many activities, certain skills have become

particularly sought after by recruiters, and are an important part of the digital
transformation of an organisation. The demand for these jobs is very high, resulting in
strong negotiating power due to the scarcity of these profiles. The challenge for
companies is to recruit these digital talents, but also to motivate them and keep them.
Indeed, aware of their value, they do not hesitate to change organisation to protect
their employability and expertise. Similarly, if these new experts find that a company's
willingness to transform is too limited or too slow, they will quickly seek a new
challenge elsewhere and change organisations. Although remuneration is an important
aspect in recruiting an employee, motivation depends on a much larger number of
factors:

First of all, the company must allow them to improve, by allowing them to
experiment with hypotheses or suggestions. These experts will also need real
resources (human, technical and financial), which are commensurate with their
objectives and the company's expectations. It is also important to offer autonomy to
these talents, as well as conviviality within the teams, otherwise they risk suffocating
and easily losing their motivation. They also need to be convinced that they are part of
something bigger than their own personal success, which translates into the pride of
belonging to an ambitious company with inspiring and recognised qualities. Finally, the
organisation must be able to guarantee internal recognition to these digital talents, by
offering them career prospects or training opportunities, but also external recognition,
which can be translated into the representation of the company in the media for
example. Most digital transformation programmes are ambitious in terms of employee
training.

Moreover, the digital world is characterised by continuous evolution, which implies

several challenges: finding the most up-to-date content and trainers, and considering
training as a continuous process. The idea is to support employees to help them
progress and update their expertise over time. The digital transformation of a company
goes beyond the simple need for one-off training. Indeed, it consists of changing the
 culture, practices and giving employees the desire to learn to use digital technology.
Desire and passion are powerful drivers for changing the organisation, ensuring the
expertise and performance of teams, accelerating innovation and the employability of
each individual.

In summary, whatever approach is chosen, the transformation of an organisation

requires collaboration and a genuine culture of mutual support, fostered by a climate
of trust in the company34 . It is up to managers and leaders to establish and maintain
this culture, or risk drowning in costly digital transformation and strong competition in
these areas. Indeed, digital transformation requires, above all, the evolution of teams,
the success of which will depend on the ability of the manager to get his or her
employees to join the project. Similarly, processes must evolve to improve
performance, by integrating the new opportunities and requirements of the digital
world. Lastly, strong competitiveness means that it is necessary to provide maximum
support for employees' digital skills development. Multiple training formats are now
available and facilitate access to the greatest number.

Figure 6 Digital transformation matrix according to BPI France

2.2 Business technology

Another important aspect of digital transformation concerns digital technology,

which continues to evolve and has become a prerequisite for remaining competitive.
Unfortunately, the computerisation of large groups took place before the arrival of
smartphones and the global appropriation of the Internet, resulting in a gap with
current practices. Indeed, the computer equipment of employees is sometimes more
outdated than that of a private individual, which has significant consequences. This
lack of initiative and investment can be costly in terms of productivity. How can we ask
employees to invent the products and services of tomorrow with yesterday's tools?

If you multiply the time wasted over a year just on booting up a computer or
transferring sometimes large files, the cost in lack of efficiency and motivation is often
bitter. New generations of employees are finding it increasingly difficult to accept this

34https://www.journaldunet.com/management/ressources-humaines/1144554-les-pratiques-manageriales-
les-plus-innovantes-du-monde/ (online)
 delay and see it as a lack of competitiveness on the part of a company with outdated
equipment. The new digital leaders have an uncanny ability to get the technology,
design and content marketing teams to work together effectively to create great
customer experiences. Interface and design, collectively known as User Experience
(UX), is one of the key performance factors that companies need to take into account
when digitalising their services. In order to ensure the best possible customer
experience, companies must therefore integrate collaboration between IT and
business units in their digital transformation plan.

One of the subjects that has evolved most recently with digital technology is
commerce. Indeed, purchasing is undergoing a real revolution with the Internet, and
can be done online, on mobile or at the point of sale. It has even become very easy to
compare offers and prices from customers, who serve as direct advertisement to
future prospects, thanks to their opinions. Some choose to compete by lowering
prices, but for most, it is a losing battle against developing countries or other players,
based on optimising production costs with a business model based on quantities
produced.

In reality, it is the customer experience (or UX) that comes first. If we take the
example of Amazon, it has transformed the customer experience and made it a
considerable asset. Offering a wide choice of products sold by itself or its partners, in
transparency with its customer reviews, and exemplary logistics allowing products to
be received sometimes within a day. As far as digital products are concerned,
purchasing is made even easier thanks to an innovative and efficient cloud
infrastructure, which can host hundreds of thousands of users. The insecurity and
complexity of the Internet in its early days held back a significant number of brands in
e-commerce, especially when it came to payment security. Courageous and innovative
new players have taken advantage of this lack to become true leaders in the field, by
finding solutions to the obstacles present. Another example in the fashion world is
Vente-privée (now Veepee), which has achieved a turnover of 3.6 billion euros in 2021,
60% of which is in France 35 . This company has not stopped evolving since its creation,
allowing it to master a real knowledge of online sales.

Despite all its benefits, online sales require the mastery of many skills:
procurement, logistics, storage, delivery, interface design, high availability hosting,
digital marketing and finally customer management through CRM (Customer
Relationship Management). Rome was not built in a day, and it has taken the digital
leaders several years to master all these skills, piling up brick by brick the know-how of

35Veepee: 21 years and 3.6 billion euros in turnover later - ladepeche.fr. (n.d.). Retrieved July 15, 2022, from
https://www.ladepeche.fr/2022/03/03/veepee-21-ans-et-36-milliards-deuros-de-chiffre-daffaires-plus-tard-
10147880.php
 their employees. A particularly important brick in the world of online commerce
concerns the CRM tool. Indeed, this data is key to building loyalty among existing
customers. It should also be remembered that even if e-commerce and mobile
commerce are exploding, not all sectors are equal; areas such as travel/tourism or
fashion are less impacted for example.

Retailers are under pressure from e-commerce, which has strong advantages over
retail outlets: 24/7 opening, competitive prices and wide choice. However, it is
important to avoid the simplistic view that e-commerce is replacing shops. If we take
the example of Apple, it is the first to invest ambitiously in its points of sale. Indeed,
the points of sale must become as attractive as possible, to give the consumer a real
reason to move. In this movement, Apple has taken up the idea of Fnac, transforming
its shops with a programme of events, demonstrations and sometimes even
photographers. A second aspect proposes to equip itself with services or information
devices, facilitating the visit of its customers, such as electronic order terminals or
connected fitting rooms. Be careful, however, to avoid the trap of gadgetry, which
would not correspond to the reality of customer behaviour or expectations.

In a context of rapid transformation, speed is a key criterion to remain competitive,

where size can sometimes be synonymous with slowness even if it brings security and
influence. Even if their business models are radically different, large companies can
draw inspiration from start-ups on certain aspects, in order to gain significant time
savings. Popularised by Eric Ries36 , the concept of Minimum Viable Product (MVP) is
now applied in most innovative companies.

In an uncertain context, time is an important factor and launching a first prototype

to test it directly on the market saves precious time. Similarly, the risk of marketing
failure is greatly reduced, rather than spending months developing a product with
useless features or even one that does not meet market expectations. Indeed,
launching later means taking the risk of not having understood the market (which is
constantly evolving), providing an answer to a problem that has already changed, or
letting a competitor take its place. Another important feature that start-ups use is the
use of 'quick failure'. This is not about disempowering employees, giving the idea that
their failures will have no consequences; rather, the concept is to practice phases of
experimentation. An idea that goes hand in hand with the MVP, the sooner the
elements of an idea are tested, the sooner the wrong assumptions are discarded,
allowing for a quicker focus on market winning innovations. Periods of change in large
companies are a source of great anxiety for employees. Moving from established

36The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful
Businesses, Eric Ries, 2011
procedures to continuous experimentation is not without stress, as it is a model linked
to the unknown. In order to motivate teams, it is the role of managers to create a
climate of benevolence and tolerance among teams, the right to make mistakes being
the basis of this model. Finally, with the acceleration of the globalisation of the
economy, it is often difficult to deliver a solution over 3 to 5 years. Indeed, with a
traditional approach, the market context will certainly have changed, and the product
will meet an outdated specification.

Instead, the focus should be on more frequent deliveries of parts, or intermediate

elements of the final product. The solution would therefore be to produce and test an
MVP as soon as possible, measure it and move forward in iterations, depending on
market feedback. The main advantage of digital technologies is the rapid feedback in
measuring the functionality of a prototype. One can easily compare different versions
of an idea with A/B testing or even look at social media listening, to measure the impact
and reputation of a solution.

If digital transformation is not only about the acquisition of tools and software, the
technological approach is of paramount importance. In times of constant change, the
company needs to be driven in a subtle and agile way, in the face of rapid competition
and changing market requirements. Without a strong and efficient technology base, it
will be impossible to accelerate solution development or to satisfy customers at the
point of sale. New methods are now needed to gain speed and optimise costs,
combined with an intelligent mindset to capitalise on the best innovations.

In summary, technologies have evolved a lot in recent years, at an impressive

speed. The IT systems of large companies are still sometimes based on outdated
technologies, slowing down and limiting the company's performance. It is therefore
necessary to rethink IT to ensure agility and speed for the business. Finally, technology
within organisations must become more agile to ensure that it is as innovative as
possible. The implementation of methods such as MVP prototyping or open innovation
are working methods that can be adapted to this type of need.
 Figure 7 Minimum Viable Product approach

2.3 Management of the company

As we have seen, the changes brought about by the transformation

The digital challenges affect all the stakeholders of a company, which is itself led by a leader
who, like a general in war, must plan and decide to take the plunge. However, the step is often
difficult to take, but yesterday's successes are no guarantee of tomorrow's victories, and the
fall is unforgiving for latecomers in a context of digital evolution.

Yet at the heart of a company's key decisions, some leaders have abandoned the
culture of leadership in favour of the comfort of applying tried and tested models and not
keeping up with new realities and practices, driven by digital. Too often models and recipes
for success depend on too many factors to remain static over time, and instability becomes
the norm. Having a static model then becomes mortifying for the company.

Managing and leading in the digital age starts with developing a curiosity and
understanding of new trends in the world. As society is changing on a global scale,
management plays a vital role as a watchdog for its entire company. Detecting new uses,
anticipating future needs, and imagining tomorrow's answers to changing problems are
among the key missions of the manager. Getting out of one's comfort zone and being in touch
with the field to stay in tune with demand is essential, and even going to meet customers to
detect dissatisfaction and imagine new responses are good bases for management work.
Another interesting practice is to go and meet innovative digital start-ups, and be inspired by
giants like Tesla, Google or Alibaba. Without an interest and passion for innovation, many
companies risk ending up like BlackBerry in the smartphone era.

Once all these insights have been gathered and analysed, the leader must define a
vision, then align the means and objectives necessary to stay on course, even if it means
regularly reviewing and auditing them to stay on course. This vision must also be ambitious
enough to truly inspire your employees. These three ideas have been developed thanks to
digital technology and can serve as examples:
- Amazon's process improvement, optimising e-commerce sales
- The development of complementary activities such as Darty, which offers a whole
range of services associated with the sale of digital products
- Diversification into new activities such as Disney or Apple developing streaming
services

In all these cases, the customer will be the final decision-maker on your choice and
who will validate the relevance of your strategy. It is better to ask questions about solving
existing problems, rather than having big, innovative ideas that are sometimes costly and far
removed from the reality of the market.

In order to evolve, this previously defined vision needs to be transformed into a clear
strategy with achievable goals and a concrete business plan, which will be necessary to get
the support of stakeholders and convince them. Without a battle plan, failure is almost
certain, and changes will take time and may no longer fit the reality once implemented. A
digital transformation strategy is not just about implementing new initiatives, but also about
stopping existing processes. Challenging established habits may seem risky, but it is essential
to move forward in order to adapt your value chain to the reality of the constantly changing
market. It is sometimes necessary to accept certain necessary disruptions, without calling into
question the entirety of one's activity, in order to determine new growth drivers. These
projects will go through a test phase, and will be less profitable at the beginning, or even suffer
some failures.

This is why it is important to validate certain hypotheses, before jumping headlong into
a large-scale strategy. The "Test & Fail" principle developed earlier in the form of an MVP is a
solid tool for this. In the context of a larger-scale strategy, one can imagine a test project
carried out by an existing team in the form of a proof of concept. One could even imagine
setting up a separate entity, such as an innovation laboratory, the aim being to be freed from
the constraints of the usual departments and projects, which are often tedious and make the
innovation process more complex. Once again, the aim is not to give oneself the licence to fail,
but to fail as quickly as possible, in order to adapt to the risks when setting up the processes
afterwards. The larger the size of a company, the more important this validation step will be
in the course of a transformation. An approach also used in some companies is "design
thinking", which has the advantage of being both structured and agile and can be adapted
quickly during field tests.

Once the strategy has been established, it is now a matter of convincing the staff to
The communication aspect will be a critical element. Indeed, change often rhymes with risk
(especially in France), so it is important to choose the right words to make the change
effective. Having an inspiring speech will allow employees to join the company's leaders in a
cause, despite the uncertainties or the fear of sacrifice. Hence the importance of having a clear
and detailed plan, explaining the reasons for certain changes and reassuring stakeholders of
the risks involved and how to counter them. Similarly, change does not mean abandoning or
throwing away everything, parsimony is also an important factor to take into account.

The right mix is needed to avoid too abrupt changes with more uncertain
consequences. Collaboration between stakeholders will also allow everyone to contribute,
and can enrich the thinking of managers when implementing any transformation. This can
identify new sources of innovation but also reassure existing stakeholders that they are being
listened to. This approach does not mean, however, that a transformation will avoid all
discontent, because innovation does not mean conservatism. Beyond all this, the exemplary
nature of the leader in this transformation phase has a key impact on the adoption of major
changes. Indeed, it is difficult to imagine that an announcement can be effective without some
concrete actions that demonstrate the veracity of these words. Similarly, top management
must show itself capable of unwavering support despite the difficulties, otherwise failure is
assured. It would also be commendable to celebrate even small victories to reward those
involved, while demonstrating that management is concerned beyond mere results.

In times of change and transformation, curiosity and diversity are necessary qualities
for success. Tomorrow's leaders must be able to step out of their comfort zone, otherwise
they will not be able to convince their employees to change direction. Indeed, connectivity
also means information, allowing to react faster, to find the right partners, to identify new
solutions, etc. Lack of diversity is a serious risk, meaning that at the next disruption, a single
way of thinking or organisation will be an obstacle to the imagination of new approaches,
increasing the risks of failure. Similarly, a first victory does not necessarily mean continued
success. Indeed, in the age of digital and uncertainty, one must constantly refine and update
one's strategy and deployment plan, in order to best anticipate the evolution of the market.

In summary, digital is changing the world and impacting all markets, so tomorrow's
leaders need to acquire a solid understanding of digital and its challenges in order to master
the risks and opportunities. Secondly, leaders need to develop a vision for their companies,
which will certainly change the established models, thus risking offending stakeholders. To
avoid this, it will be necessary to test beforehand on a smaller scale, even if it means failure,
which is the notion of 'fail fast' developed earlier. Once the strategy has been launched and
the changes deployed, the attitude of top management will be decisive and indispensable for
the successful adoption of new practices. Without the involvement or support of employees
in the face of problems, stakeholders will lose confidence in their leaders, threatening the
transformation projects. Finally, digital transformation is not just a stage for the company, it
is a real adventure lived over the long term. The idea is to change the organisation and put in
place sustainable practices. If the company becomes agile and curious, constantly seeking to
innovate and not hesitating to break with established concepts, the leader will have
accomplished his mission, being able to face the next uncertainties.

Figure 8 Change management in 3 stages

2.4 Case study: Sanofi's digital transformation

In this section, we will analyse the digital transformation carried out by Sanofi France,
and explain the levers and good practices implemented during this phase of change. Sanofi
France's digital transformation is not new; as early as 2014, the pharmaceutical giant
understands the opportunities offered by digitalization, as well as the perspectives in the
health sector, both on the side of patients and professionals. Sanofi will then start to combine
its offer of therapeutic products with complementary digitalized services. As one of the
world's leading pharmaceutical companies, Sanofi France has the knowledge of diseases and
their treatments, and is at the crossroads of the healthcare ecosystem.

Thanks to the digital tools deployed, and by playing on several relational channels, the
relationship between health professionals and patients is simplified, and can be maintained
in a continuous manner. This can take the form of an application on a smartphone or a
connected object, allowing any type of information to be declared in real time. By creating
information chains, digital technology makes it possible to link information together directly
in real time to facilitate decision-making. For example, real-time monitoring of a patient's
blood sugar levels allows the doctor to follow the patient's state of health, to personalise the
daily treatment, and even to programme a rapid intervention in the event of incidents.

Sanofi France, which has the necessary infrastructure, in addition to the reasons
mentioned above, has fully committed to an innovative digital strategy at the heart of
exchanges between healthcare professionals and their patients. Thus, Sanofi France's digital
strategy consists of developing useful digital tools aimed at saving time, improving care, but
also the quality of the patient/doctor relationship.

On the one hand, the aim is to simplify the practice of health professionals, helping
them to be more efficient in the delivery of care. This can take the form of an offer of
information content or multi-channel services: computer tablets, services in the form of
applications, etc.

On the other hand, the objective is to simplify the life of patients in their sometimes
daily struggles (chronic diseases) with regard to diseases. In concrete terms, to help them
adopt the right gestures, improve their well-being and educate them in an educational
manner. This can take the form of websites with informational content, or services in the form
of applications, also aiming to develop a community dimension through social networks, so
that they do not feel alone in their struggles.

Finally, the aim is to allow both professionals and patients to benefit from digital
applications enabling them to exchange information and monitor the progress of medical
measures. The patient-professional relationship is thus facilitated, allowing a continuous
dialogue while being physically distant.

Figure 9 myDose coach, an application developed by Sanofi to monitor insulin doses

 Sanofi France's objective is to help healthcare professionals, while educating their
patients in a pedagogical manner on pathologies, the proper use of therapeutic products, and
associated well-being factors. These digital initiatives can be developed on different adapted
media, such as websites, applications or social networks. In the case of Alzheimer's disease,
for example, Sanofi has developed a NNT (Number Needed to Treat) calculation application,
which, based on data published in the scientific literature, makes it possible to evaluate the
amount of effect of a treatment in neurology. We can also mention other initiatives for health
professionals:

• Professional medical information websites: anti-bio-responsable.fr, sanofi-diabete.fr,

Toujeo.fr ;

• Digital practice aids: the "3D knee" application, the ambulatory-Sanofi.fr website, or
the Caprini mobile application, for assessing the risk of venous thrombosis;

In the same vein, Sanofi has developed tools to help patients, with three main objectives:

• Educating him about his condition: Agir-Thrombose.fr, Barnabé has diabetes, Maladie-
de-Pompe.fr ;

• Helping them take their treatment: Sanofi-Arthrose.fr, MyStar-Sanofi.fr, Diabplus-

équilibre.fr ;

• Improve your well-being: TeamDeNuit (on Facebook), Team Bien Être (on Youtube),
RetrouverLeMouvement.fr, or Nutridial ;

This digital strategy operated by Sanofi France is based on 4 main levers, which we describe
below.

The first lever is the identification of the needs of health professionals and their
patients. Indeed, through this, Sanofi will cultivate the knowledge of the various players to
develop an adapted digital offer. The aim is for each initiative to meet the needs of each
player, so Sanofi France has set up a specific system. Firstly, Sanofi will gather insights from
healthcare professionals' committees (also known as "boards"), patient associations or
studies, to identify the needs and expectations of the players. Sanofi will then analyse existing
solutions and offers in order to devise an innovative solution. The proposed offer will go
through an experimentation phase, based on pilots, before being put on the market. Finally,
Sanofi France evaluates the effectiveness of the solution once it is on the market, in order to
continue to innovate by iteration or revise the solution if necessary.
 The second lever is based on the multi-channel dimension of the offer, in particular by
relying on adoption by healthcare professionals. The visibility and adoption of a new digital
solution cannot be achieved without appropriate communication, as we saw earlier. In the
context of a pharmaceutical offer, the main actors in the dissemination of this offer are the
medical sales representatives. They are at the heart of the exchanges between health
professionals and industries and represent the basis for a wide and effective diffusion of new
digital solutions. Sanofi France's strategy has been to equip medical sales representatives,
while gradually proposing a premium offer, and to have it recognised as such among
healthcare professionals. Thus, the appropriation of new digital solutions is based on usage,
allowing a co-creative approach for the new offers developed, between Sanofi and healthcare
professionals.

The third lever is based on Sanofi France's new working approach. This is based on a
collaborative approach between Sanofi and the healthcare ecosystem and its various external
players, in the manner of an "open innovation". The open innovation department was opened
for the first time in 2015, and its objective is to develop solutions and services co-developed
by players inside and outside Sanofi France, encouraging the emergence of a link between the
various experts. Unlike the R&D department, which relies on longer time-to-market cycles due
to more traditional development approaches, the open innovation department is more
human and concrete, aiming to deliver solutions to the market within 3 years. Sanofi is truly
adopting the role of innovation catalyst, supporting the funding and collaborating with the
teams during the early stages of the project.

The last lever concerns the implementation, since 2015, of an internal digital
governance named "the digital incubator". The aim is to support the development of new
emerging ideas and to ensure consistency with Sanofi's global innovation plan. Composed of
representatives from several departments with cross-disciplinary skills, this incubator ensures
consistency between the projects developed, by aligning the digital offering with the
company's strategic priorities.

These 4 levers are well reflected in each of the digital initiatives described below as
examples of applications that Sanofi France has put in place to disseminate its digital offer on
the market.

Firstly, Sanofi France's open innovation model makes it possible to disseminate and
feed projects carried out by healthcare players, by encouraging meetings based on patient-
healthcare professional needs. This makes it possible to support start-ups in terms of visibility
and networking. One example is the partnership signed in 2016 between Sanofi France and
eHealthTech, a group of ten French e-health startups. Sanofi France also collaborates with
Medicen Paris Region, which is a competitiveness cluster for innovative technologies in
innovative therapies and life sciences. EIT Health (European Institute for Innovation and
Technology in Health) is also in collaboration with Sanofi France, with the objective of
supporting start-ups and open innovation in health. Finally, Sanofi France launched the
Future4Care initiative a year ago, in collaboration with Cap Gemini, Generali and Orange. The
aim of this initiative is to support e-health start-ups, encouraging their access to the market
and their growth.

Figure 10 Future4Care initiative

A second initiative launched by Sanofi France is the cooperation charter with startups,
which guarantees working relationships and fair ethics for them. Co-constructed with
startups, this contract formalises commitments benefiting the small companies, which bring
their expertise, flexibility and projects, and Sanofi, which gives them visibility. Thus, the legal
and financial processes have been adapted, all coordinated by a central point of contact, the
French innovation manager.

A third initiative developed by Sanofi France is the setting up of information sites for
professionals. These include antibio-responsable.fr, which provides educational information
on antibiotics, with the aim of combating antibiotic resistance by promoting the proper use of
these drugs. The portal also provides information on a wide range of diseases and bacteria,
based on international publications.
 Figure 11 The antibio-responsables.fr website

Arthmouv is an application developed by Sanofi France for osteoarthritis of the knee.

The patient can therefore see his or her progress over time and share the data with his or her
doctor. This allows for a more personalised follow-up for the patient, and therefore for more
relevant advice to improve their care. Moreover, the patient feels listened to and his
involvement in the therapy is consequently reinforced. The patient-healthcare professional
relationship is greatly improved, allowing a real collaboration in the fight against
osteoarthritis.

Figure 12 The ArthMouv application

At the same time, patients can also access advice and information on their condition in the
form of videos on the Sanofi-arthrose.fr website. The website provides people with
osteoarthritis with dietary and health advice, enabling them to take control of their fight
against the disease.
 Figure 13 The Sanofi-Arthrose.fr website

Sanofi France has also set up a digital community, based on the food supplement
Novanuit®, with the aim of helping French people to sleep better. The device is available 24/7,
connected and allows, from the website, to learn how to sleep well according to the advice of
professional sophrologists. In parallel during the day, a Facebook page has been created to
exchange with the community, while following the news live. At night, a Twitter account
provides support on this theme and individuals share their own advice.

Figure 14 Team de Nuit

From the above, it can be seen that Sanofi France has not only made digital a tool, but
has also made it a support for its new strategy. The company has not lost its original identity,
retaining its R&D and pharmaceutical industrial dimension, and has brought more value to
patients and healthcare professionals. From its initiatives, we retain some good practices,
which we explain below.

The "customer centric" approach, adapted to the real needs of the market, is an
important reason for the success of Sanofi France's digital initiatives. By involving these
potential customers at several stages of the development cycle, the pharmaceutical company
greatly encourages the adoption of the services launched. Indeed, based on insights gathered
directly in the field, Sanofi France's marketing and digital managers were in touch with the
market and its realities, allowing them to better respond to the needs of healthcare players.
Similarly, by accompanying several startups, the company can quickly present innovative
solutions with rapid results. Lastly, this good practice also helps to engage employees by giving
meaning to the development of tomorrow's solutions, through an approach that is as close as
possible to the patients.

As we have seen before, communication and conviction are essential elements in a

digital transformation. The company's organisation must really convince its employees of its
new strategy. To do this, Sanofi France has recruited additional digital talent, enabling it to
develop transversality and omnichannelity. By developing employee training and creating the
digital incubator, the company has set a course for continued change by developing a
corporate culture that encourages innovation. Finally, a digital newsletter is regularly put
online, reporting on new initiatives developed, to inform employees and cultivate innovation.

Sanofi France does not confine itself solely to projects developed internally, as we have
seen from its partnership or start-up incubation initiatives. Thus, the company has set up a
major monitoring system, enabling it to respond rapidly in its field of intervention. These
proposals can then be rapidly proposed to professionals and patients, if they are deemed
relevant.

Finally, Sanofi has recently changed its logo, on the eve of the company's 50th
anniversary. This change is not only intended to renew the brand, but also to communicate a
desire to centralise all the Sanofi entities under the same logo. Previously separated into
several entities, Sanofi Genzyme for specialty medicine, and Sanofi Pasteur for vaccines, Sanofi
is now a single brand to symbolise cooperation. Indeed, to lead a transformation, it is
important to have a core group that will drive it through precise and visible objectives. This
new identity is therefore an important factor that encourages employee collaboration.

Figure 15 New Sanofi logo

3. Success criteria for a successful digital transformation in the

connected medical devices sector
3.1 Medical devices: a rapidly evolving sector

Since the early 2000s, when the Internet arrived and digital tools developed rapidly,
medical devices have continued to evolve. Some of them already had quite advanced
connectivity, allowing them to take advantage of the benefits of telemedicine. However, a
number of factors limited the adoption of telemedicine and the post-marketing monitoring37.
Indeed, during this period, the pharmaceutical industries adopted a business model focused
on the production of innovative drugs, and emphasised their R&D power. Some of them
focused in parallel on the development of injection devices, sometimes connected but rarely.
When we look at the different patents filed during this period, most of them were related to
drug formulation, or mechanical medical devices. The advent of specialty medicine and the
development of biotherapies (therapies based on molecules from biological sources) have
further impacted the medical device sector, with an emphasis on the injection of the products
developed. Indeed, as biological molecules are larger in size, the injection is now the key point
of the patient experience. The increase in the number of elderly people, leading to an increase
in chronic diseases, is also an important factor, which has contributed to the development of
at-home therapy.

All these factors were multiplied by the COVID-19 pandemic, which, because of
restrictive measures, contributed to the adoption of telemedicine. In addition, regulatory
bodies such as the FDA or EMA have encouraged the development of innovative devices, by
issuing emergency authorisations, particularly to reduce the spread of the virus. Insurance
companies have also contributed to these developments, by widening their spectrum of
reimbursement. Pharmaceutical industries have responded by changing their strategies,
intensifying their efforts on research and production of vaccines and antiviral treatments. The
spectrum of research into biotherapies has also widened, even to treatments beyond COVID-
19.

However, while this crisis has been an opportunity for research development, it has
also highlighted some of the weaknesses in the business models adopted by pharmaceutical
companies to date. The stock-outs of several medical devices have highlighted the weaknesses
of the production line of some industries, while other players, such as Amazon, have taken
advantage of these opportunities to expand into markets where they were not present.
Changing measurements, linked to virus mutations, have plagued the scientific community,
sometimes leading to confusion in communication. COVID also highlighted the disparities in
the health system, as well as the social costs of inaction, with understaffed public institutions.

Thus, even if the pharmaceutical industries can celebrate a move towards more
digitalized devices, there are still some challenges to be solved. Indeed, the digital

37
Monroe N, "Connectivity in Healthcare - from the Millennium to the Pandemic and Beyond".
ONdrugDelivery, Issue 134 (Jun 2022), pp 8-12.
transformation of the healthcare sector is still incomplete, already because the new business
models adopted are still at an experimental stage. The digital disruption and development
potential of these new devices must also be in line with the therapeutic responsibility
underlying patient treatment38 . Indeed, the digitalisation of the healthcare sector is evolving
rapidly and has the potential to meet emerging needs, but the pharmaceutical industries also
have their share of needs to solve in order to achieve this.

The patient-centric model is now a key element in the race towards connected health
and is being adopted by all major pharmaceutical companies. By focusing on self-medication
and including the patient in decision-making with their doctor, connected health allows for
more personalised and accurate care. When properly applied, digitisation can also improve
the treatments offered, by monitoring them, moving from a preventive to a predictive
therapeutic model, based on the collection of patient data. However, integrating this patient-
centricity model into a digital ecosystem requires a complex mix of skills, so it is essential for
pharmaceutical companies to create strong partnerships with companies specialising in either
the development of digital medical devices or innovative biotherapies.

Similarly, medical device companies have traditionally favoured a top-down approach

to the development of connected devices, starting with the product first. By focusing primarily
on the solution, the main drawback of this approach was the uncertainty of the market and
especially the adoption of the product or service, which may or may not have resulted.
Industries have since updated their models, and now favour a bottom-up approach, starting
with the identification of patient needs and building the offer around the developed solutions.
A particular case in the development of connected medical devices is the auto-injector.
Indeed, the development, accelerated by the pandemic, of remote management and self-
medication has had a strong impact on the digitalisation of this type of device. Through this
evolution, auto-injectors have the potential to give more autonomy and responsibility to
patients in the treatment of their disease, while communicating their data remotely with their
doctor. However, this market still lacks the hindsight and experience to support widespread
adoption of this type of device, despite the evolution of the patient experience provided.

38Williams C, Kobashi N, Weber N, "Meeting an Unmet Pharma Need: Pioneering the Way to a Connected
Future". ONdrugDelivery, Issue 134 (Jun 2022), pp 55-60.
 L’intelligence artificielle ajuste automatiquement en temps réel, selon les
besoins du patient, et intègre des algorithmes de machine learning pour
améliorer la précision de la thérapie

Biothérapies
Connectées

Détecteurs et connectivité sont intégrés dans l’auto-injecteur, permettant

Dis
Dispos
d’interpréter et de rassembler toutes les informations
positifs
itifs
Inté
Intégré
gréss

Un auto-injecteur intégrant des détecteurs simples peut mesurer des

signaux et enregistrer les données des injections à l’aide d’une application

Dispositifs Connec
tés

Un simple auto-injecteur mécanique peut assurer une injection

efficace et sûre via l’automédication

Dispositifs Simple
s

Figure 16 Evolution of the patient experience in relation to therapeutic innovations

3.2 Criteria for a successful transformation to develop tomorrow's devices

The evolution of the development of tomorrow's medical devices will first of all require
a change in the established business model, according to the four levers that we have
identified during our study. The first concerns the clinical impact, which includes all the
clinical consequences and improvements brought about by the solution developed, on the
side of patients and health professionals. The second lever is the non-clinical impact
brought by the device, which considers all the benefits associated with the user
experience. Thirdly, there are the impacts related to the cost of the solution, as well as for
the industries in the sector and their sources of revenue. Lastly, there is the public impact,
which concerns the impact on the health system in the broad sense, including health
professionals and patients.

Once the business model has been established, a clearer vision is then established, but
a final preliminary criterion is necessary: the forecasting of improvements to the device
developed. Indeed, trying to anticipate as early as possible the iterations will allow to
better prepare the rest of the life cycle of a solution. Similarly, a device must be improved
throughout its development cycle, but also throughout its life cycle, to remain
competitive, otherwise it will no longer meet the needs of the market.

The next criterion concerns the adoption of the system after its development. In order
to succeed at this stage, the training of the sales team is the key step in this system. Indeed,
being convinced of the benefits and being specialists in the technology developed, the
sales teams will be able to convince the health professionals much more easily. As
healthcare professionals are the direct advertisement to the final consumer, it is essential
to maximise the adoption of the devices at the beginning of the chain.

Another important criterion during the development of the desired solution is the
added value of the product compared to the competition already present on the market.
Strong partnerships add value along the value chain by providing complementary
expertise to the company delivering the product or service under development.

The case of Sanofi France illustrates the patient-centric approach as essential in the
digital age in the medical device industry. Indeed, by keeping employees together, around
values that are important to them and consistent with the company's purpose, employees
can be convinced that they are part of something bigger than their own personal success.
This approach allows a corporate culture to be built beyond a single product, as it will
remain anchored over time. Following this same principle, fostering the development of
employees' skills is essential, to enable them to keep their expertise up to date, but above
all to make them want to use the solutions they develop. Desire and passion are key drivers
to ensure expertise, accelerate innovation and ultimately adoption by sales teams.

Speed is an important criterion in the digital age, where the development of new
therapies can easily take a decade, medical devices themselves take less time, and are
operational more quickly. Thus, setting up smaller teams with their own governance,
adapted to each device in the form of a "platform" is an effective solution. This not only
makes it possible to gain in efficiency by having fewer decision-makers, but also in agility,
a key quality for adapting to the constantly changing market. On the other hand, the "fail
fast" model applied in some start-ups is not compatible in the pharmaceutical sector, for
obvious ethical reasons. The implementation of MVP prototypes, on the other hand, is an
excellent way of testing and improving the devices developed. By advancing by iteration
according to direct feedback from the market, a climate of tolerance is also established in
the teams, allowing for the right to make mistakes. Indeed, in times of constant change,
the company needs to adopt a subtle approach that mixes agility with more rigid
foundations in the face of rapid competition and changing market demands.

Finally, one of the most important criteria concerns governance, and more particularly
the associated management practices. In the digital age, curiosity is the key word for a
manager. Detecting new trends, anticipating market needs and being interested in the
realities on the ground are key activities for a manager. It is by stepping out of one's
comfort zone that innovative ideas emerge, if they are feasible given the data on the
ground. In addition to this external aspect, the manager must also be as close as possible
to his or her teams, in order to support and accompany the vision. Diversity is also a
necessary quality for success, without which it will be impossible to develop devices that
provide therapeutic value.

To conclude, any transformation implies a change of mindset, even in more specific

environments such as medical devices, where management practices are evolving to
support the central actor of these changes: the human being.

4. Conclusion

Digital transformation goes far beyond the simple introductory definitions we have
found in the literature. It is shaking up the entire industry and redefining the established
concepts of development and competitiveness, acting on different levers. From the use of
databases to customer expectations, the digitalisation of products and services places the
human being at the centre of its evolutionary phenomena. We are now talking about a
human being with skills that have been broadened and improved by technology,
integrating this transformation into his technical skills. Sometimes advantageous,
digitalisation is also a potential source of risk, which can be explained by several factors
such as technical implementation difficulties, lack of understanding of the tools or their
impact on the nature of the work.

Although costly, these risks can be avoided by new practices, depending on the
different entities of the company. Collaboration and the establishment of a culture of
mutual support in the company's organisation are essential to sustain these induced
changes. Similarly, the rapid evolution of new technologies requires agility and speed on
the part of companies in order to remain competitive, or risk losing out in the innovation
race. Sanofi France's digital transformation illustrated some of its good practices, including
the "customer centric" and bottom-up approach, or the recent standardisation of the
entity itself, which are proving their worth today in the pharmaceutical industry. Finally,
the example of medical devices shows us that it is possible to apply these practices in more
specific sectors, where development processes are anchored, but tend to evolve to remain
innovative.

In conclusion, digital transformation is not just a step for companies, but a long-term
adventure in which tomorrow's managers and leaders are the main actors. Without
involvement or changes in management practices, employees will lose confidence in their
companies and digital evolution will not take place. We will conclude this professional
thesis with a quote from Gandhi, which applies perfectly to the business world: "To evolve
and change one's point of view is part of life. A person who always holds to his position
will eventually be wrong.
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 Table of illustrations

Figure 1: Conceptual image of Industry 4.0 technologies.......................................................... 6

Figure 2: Data of some mobile applications generated in 1 minute ........................................... 8

Figure 3: Circular economy virtuous circle ................................................................................ 9

Figure 4: Characteristics of a digital business transformation ................................................. 13

Figure 5: Cyber security breach statistics................................................................................. 17

Figure 6: Digital transformation matrix according to BPI France ........................................... 20

Figure 7: Minimum Viable Product approach .......................................................................... 24

Figure 8: Change management in 3 stages ............................................................................... 27

Figure 9: myDose coach, an application developed by Sanofi for monitoring insulin doses .. 28

Figure 10: Future4Care initiative ............................................................................................. 31

Figure 11: The antibio-responsables.fr website ....................................................................... 32

Figure 12: The ArthMouv application...................................................................................... 32

Figure 13: The Sanofi-arthritis.com website ............................................................................ 33

Figure 14: Night Team ............................................................................................................. 33

Figure 15: New Sanofi logo ..................................................................................................... 34

Figure 16: Evolution of patient experience according to therapeutic innovations ................... 37