Navigating Innovation for Pharma

Why Innovation in Pharma Needs a Rethink

We often frame pharma transformation as a technology upgrade – applying AI to R&D, introducing digital tools, and modernising infrastructure.

But that’s just part of the story.

The real challenge?

Pharma remains one of the most complex, highly regulated industries in the world. And the systems that built it were optimised for risk control and long timelines, not agility.

They’re designed to protect patients.
But they can also paralyse innovation.

In a time where digital health is exploding and AI is reshaping the landscape, pharma leaders must adopt a new playbook, one that balances rigour with rapid learning, and tradition with transformation.

What’s Broken in Pharma Innovation?

Pharmaceutical innovation takes time. From target identification to regulatory approval, the path from bench to bedside can span over a decade and cost billions.

But that’s not the only barrier.

Here’s where many organisations get stuck:

• They treat digital as a sidecar, not part of the core.
  Digital tools are often bolted on instead of built in.
• They lack safe spaces for learning.
  Experimentation feels risky, so innovation gets stuck in pilot purgatory.
• They use one-size-fits-all risk frameworks.
  Everything is treated with the same caution, even when not all initiatives carry equal risk.
• They forget that culture is intertwined with strategy.
  Without curiosity, humility, and psychological safety, even the best ideas die on arrival.

What Digital Health Leaders Do Differently

In our conversation, Stephen Ranjan, Global Head of Digital Health at Roche, shared lessons from building innovative digital health strategies across companies like Merck, J&J, and Epic.

Here’s what forward-thinking leaders do differently:

1. Create protected spaces for experimentation

Innovation can’t start in the core. It begins at the edge, with small, fast pilots in controlled environments.

2. Focus on behaviour, not just feedback

Understanding what users do, not just what they say, reveals far more about adoption risks and real-world value.

3. Separate explore from execute

Avoid organ rejection. Don’t shove new ideas into legacy processes. Design for transition, not friction.

4. Use strategic partnerships as learning engines

External partners, especially startups, can help pharma organisations test new models quickly and safely.

5. Build systems, not just products

To drive sustainable transformation, leaders must consider the full business model, not just digital features.

Where Pharma Leaders Often Struggle

Even experienced executives can fall into familiar traps:

• Expecting startup-style speed in a legacy culture
• Underestimating internal friction and power dynamics
• Overengineering risk frameworks that stifle innovation
• Failing to connect innovation teams with the core business
• Not modelling the behaviours they expect from others

As Stephen Ranjan said in the episode, “Without a landing spot inside the business, innovation stays on an island.” 

How to Lead Innovation That Lasts

If you’re navigating digital transformation in pharma or healthcare, here’s what to prioritise:

Start small, scale smart

Build credibility through low-risk experiments that answer high-value questions.

Map innovation to readiness

Match ideas to your tech maturity, clinical evidence, and—crucially—organisational appetite.

Treat partnerships as platforms

Design for integration from day one. Great ideas die when they don’t fit into business-as-usual.

Build leaders, not just solutions

Innovation doesn’t scale unless people grow with it. Coach your team. Build resilience. Model change.

Focus on the system of systems

Digital health isn’t a department. It’s a mindset that connects science, operations, and patient experience.

Conclusion

In pharma, innovation isn’t just about being bold. It’s about being wise.

That means understanding risk, creating room to learn, and building bridges between disruption and the core.

Because the future of digital health won’t be led by the fastest, flashiest tools.

It’ll be shaped by leaders who know how to experiment with integrity and scale with purpose.

🎧 Listen to this episode of Transformation 2.0® with Stephen Ranjan to explore how pharma can thrive in a world of digital disruption and continuous change.