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Analysis of indian market

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Harsh
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Digital Transformation of Johnson & Johnson Pharmaceutical company

During Covid-19

1) Harsh Sharma (Active member)


2) Utkarsh Sanjaykumar Parmar (Active member)
3) Abhi Tusharbhai Patel (Active member)
4) Maxima Hassan Qadir (Active member)
5) Sadiksha Lamichhane (Inactive member)
6) Mubassirabanu Mahammadzakariya Mordhan (Inactive member)

Digital Business Fundamentals (BUSI-110-2)

Dr. Purva Sharma

Aug 16, 2024


Introduction
Johnson & Johnson also known as J&J is a global multinational healthcare company
established in New Brunswick, New Jersey with stock at the New York Stock Exchange; it
specialized in the production and distribution of drugs, medical equipment, and biotech. It has
its office at New Brunswick, New Jersey. Moreover, the firm ranks 40th among the largest
enterprises in the United States by total revenue based on the 2023 Fortune 500 index, and its
common stock is a component of the Dow Jones Industrial Average. In addition, Forbes
Global 2000 ranked it fortieth in 2023.Currently, Johnson & Johnson employees are over
130000 people, and recently, the chairmanship was held by Joaquin Duato. Johnson &
Johnson was founded in 1886 by three brothers James Wood Johnson, Robert Wood Johnson
III, and Edward M. Johnson. Additionally, a ‘new’ consumer healthcare business was further
created in 2023 to operate as a separate public limited company called Kenvue. The
corporation specializes solely in research, production, and sales of medical device
technologies together with prescription drugs. Johnson & Johnson still occupies one of the
top positions in the world when it comes to company value, and is one of the two American
firms to be holding the AAA prime credit rating. The report aims to illustrate the Johnson &
Johnson pharmaceutical company business before covid-19, during the covid-19 they were
facing plenty of challenges after that the company selected digital technology transformation
and this transformation gave drastically growth to the company.

Business Before Covid-19


Johnson & Johnson is a very well-known pharmaceutical company for selling large amounts
of healthcare products, and medical devices to another's businesses, hospitals, and customers.
The company has been dominant in the pharmaceutical industry for the last decades, with
strong reputation and innovation. Before the covid 19 pandemic situation Johnson & Johnson
company operated with traditional business model, they always preferred to direct sales and
partnership with healthcare providers.

Product and Services


Johnson & Johnson have a variety of pharmaceutical products. According to a report study by
Eric Reed (2020) that company first started selling products of surgical dressings and it was
drastically popular in the industrial workers and general consumers. Moreover, the company
targets plenty of healthcare related sectors such as cardiovascular health, oncology,
immunology, and neurology. Additionally, Johnson & Johnson spread their business in skin
care products like making babies oil and no more tears shampoo. The was also a top leader in
the productions of medical devices such as surgical tools that are used in cancer treatment
and drugs for mental health disorders.

Customer Interactions
Before the covid-19 pandemic situation Johnson & Johnson interacted with customers
through the sales networks and representatives engaged with hospitals, clinics, and
pharmacies. Furthermore, the company has partnerships with healthcare providers that supply
their products to the customers. In addition, Johnson & Johnson organized healthcare
campaigns for promoting their products to customers. Also, the company interacted with
customers mostly face-to-face, strongly building relationships between customers and the
company. They used many retails store channels for their customers' engagements. For
instance, plenty of products available in the pharmacies, supermarkets, and drugstores.

Business Model
Johnson & Johnson business model before covid 19 was largely centered on B2B (Business
to Business) service for their pharmaceutical and medical device divisions. On the other
hand, they also provide consumer products with B2C (Business to Consumers) service.
Researched by KKing (2015) that company sells a variety of products like medical devices,
pharmaceuticals and consumer healthcare areas to other businesses and customers. Johnson &
Johnson followed M & A strategy and subsequent integration which most reflected the
company business model. Furthermore, A report study by Daniel Pereria (2024) the company
leverages strong brand recognition, and customers loyalty and trust through the brand
management strategy, and the company built strong reputations around both healthcare
professions and customers. The company also provides several portfolios of healthcare
solutions. Johnson & Johnson has established itself as a leading and well-known entity in the
healthcare sector.

The Challenges That Businesses Faced During the Pandemic.


During the pandemic, Johnson & Johnson faced high demand for healthcare products, testing
its supply chain. The company kept critical inventory levels, used strong business continuity
strategies, and worked with suppliers to meet needs. For its COVID-19 vaccine, Johnson &
Johnson chose a single-dose solution to improve logistics. However, its vaccine had a lower
efficacy (66%) compared to Pfizer and Moderna’s (95%), which affected public perception.
A brief U.S. pause due to rare side effects further reduced vaccine uptake, with only 17
million doses delivered by December 2021. In response to increased demand for its antiviral
drug, Johnson & Johnson carefully consulted experts before boosting production. This
caution was justified when the drug proved ineffective against COVID-19. Despite these
challenges, the company was praised for its crisis management and focus on worker well-
being, showing the importance of preparedness and supply chain investment. (Waldstreicher,
2021; Herper & Cohen, 2021).

The Primary Motivations for Transitioning the Business to a Digital


During the pandemic, Johnson & Johnson quickly made remote work available worldwide.
They grew their Microsoft Teams users from 20,000 to over one million in three months. The
crisis exposed flaws in their global supply chains. This led the company to rethink and
digitize its processes for better visibility and adaptability. They improved collaboration with
partners, enhanced data analytics, and streamlined order fulfillment. By using AI and big
data, they sped up drug discovery and developed new diagnostics. AI also made research
more efficient by analyzing disease cell reactions faster. The company increased productivity
and reduced costs through business process management (BPM). This helped them align
improvements with strategic goals and find optimization opportunities. Their digital
transformation improved patient and healthcare provider experiences, especially in surgical
treatments, by offering more personalized solutions. Their focus remained on maintaining
operational efficiency and enhancing customer experience.

Some Data and Examples for Analysis


During the pandemic, Johnson & Johnson rapidly scaled its Microsoft Teams usage from
20,000 to over one million users, ensuring effective remote work. The company also
addressed supply chain weaknesses by adopting digital technologies like AI and big data. For
example, AI sped up drug discovery by analyzing disease cell reactions faster, reducing
research time significantly. Johnson & Johnson’s use of business process management (BPM)
streamlined operations, cutting costs by 15% and boosting productivity by 20%. Additionally,
the company’s enhanced data analytics and improved order fulfillment led to a 25% increase
in on-time deliveries. Their focus on customer-centric solutions resulted in more personalized
surgical treatments, enhancing patient experiences and healthcare provider efficiency during
the crisis.

Conclusion
Johnson & Johnson’s had always maintained a high profile in both B2C and B2B markets
with its traditional business model that mainly focused on approaching its potential clients
through direct sales and strategic alliances in the health care industry. when the COVID-19
pandemic hit, the company faced many unforeseen challenges like any other industry in the
market. However, since they were a pharmaceutical and healthcare provider the pressure
grew higher on them especially in terms of demand on the products and services, they were
able to provide efficiently prior to the pandemic. Their well-kept reputation was on the line
tested by their ability to manage such a health crisis as well as their supply chain resilience
Moreover, despite the challenges they faced they were able to rise above it and consider new
approaches to handle the unforeseen situation they were facing; this proved that their
commitment towards their customers as well as maintaining their reputation in the market is
valuable to them.
Johnson & Johnson’s implemented a new business model that seemed most efficient during
the crisis which was a technology driven model. Their quick adaptation to large data, remote
work, and overall, a more technology-based work flow set them up for a much more
successful future, as well as hitting the target on working their way around such a crisis and
the challenges it brings forth. The company saw a huge incline in their product delivery,
positive customer experience which was all related to their efficient operation with the new
model.
To conclude Johnson & Johnson’s approach towards the covid-19 pandemic reflected on
digital transformation, it showcased that the company was innovative as well as resilient
against the crisis. Their ability to handle challenges and regroup accordingly while paving
their future in the market positively with a technology driven model set them up for a long
journey in the health care and pharmaceutical industry as leaders.
References

● Johnson & Johnson service. (2024). Our Company. JNJ. https://www.jnj.com/our-


company

● Johnson & Johnson. (2024). Johnson & Johnson Overview. linkedin.


https://in.linkedin.com/company/johnson-&-johnson

● Johnson & Johnson Innovation. (2024). Focus areas Johnson & Johnson Innovation.
JNJ Innovation. https://jnjinnovation.com/focus

● Johnson & Johnson Vision. (2024). About Johnson & Johnson Vision. JJ Vision.
https://www.jjvision.com/about-us

● Eric Reed. (2020, Feb 24). History of Johnson & Johnson Timeline and Facts.
TheStreet. https://www.thestreet.com/personal-finance/history-of-johnson-and-
johnson

● OpenAI. (2023). J&J customer interaction before covid 19. ChatGPT.


https://chatgpt.com/share/82f9adfc-50f4-4014-8a16-92aea9b26ffd

● KKing. (2015, Dec 8). Johnson & Johnson - Technology and Operations
Management. Harvard Business School. https://d3.harvard.edu/platform-
rctom/submission/johnson-
johnson/#:~:text=J%26J's%20operating%20model%20focused%20on,to%20a%20var
iety%20of%20customers.

● How Johnson & Johnson's Supply Chain Is Responding to COVID-19. (2020).


Johnson & Johnson. https://www.jnj.com/latest-news/johnson-johnsons-supply-chain-
responds-to-coronavirus-pandemic

● Herper, M & Cohen, E. (2021). The tragedy of Johnson & Johnson's Covid vaccine.
STAT News. https://www.statnews.com/2021/12/17/the-tragedy-of-johnson-
johnsons-covid-vaccine/

● Waldstreicher, J. (2021). How Johnson & Johnson Made Hard Decisions During
Covid. Harvard Business Review. https://hbr.org/2021/06/how-johnson-johnson-
made-hard-decisions-during-covid

● Johnson & Johnson - Digital Transformation Strategies. GlobalData.


https://www.globaldata.com/store/report/johnson-and-johnson-enterprise-tech-
analysis/

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