How McKesson is Achieving Large-Scale Digital Transformation

As companies around the world begin to recognize the power of digital transformation, McKesson, a company that touches almost every aspect of the healthcare industry, stands out as a leader in achieving success on a large scale.

Having embraced new technologies and tools, the company has completely transformed processes and operations across its organization-- other businesses can look to McKesson for inspiration in taking their digital journeys.

In this blog post, we will explore how McKesson is approaching their transformation efforts and offer examples of inspiring successes that you can apply within your own company.

Making Considerable Investments in Cloud

One of the cornerstones of McKesson's digital transformation is its investment in cloud technologies. The company has worked diligently to embrace the cloud, with ongoing projects extending into the next several years. According to an article by Diginomica, about 80% of McKesson's systems are still on-premise, but the company plans to "modernize its entire technology stack over the next 5 years with a much smaller on-premise footprint and public cloud technologies at the front end."

By moving many of its systems and processes to the cloud, the company will be able to scale faster, improve efficiency and innovation, and reduce costs.

McKesson's commitment to cloud technology is directly aligned with its commitment to patients and their needs. Patients now expect an exceptional level of care, and they expect healthcare providers and healthcare companies to engage with them using the same digital channels and touchpoints as other B2C companies.

According to an interview with McKesson CISO Spencer Mott, "The way healthcare is being delivered has completely changed. Patients have multiple devices, and they expect a better experience from providers and payers. They don’t want barriers and that experience lends more to the cloud.”

In the current cloud market, companies can take advantage of more availability, lower costs, and increased speed to innovate--all benefits that McKesson is already experiencing as part of their digital transformation journey.

Using Automation and Artificial Intelligence

McKesson has also launched large-scale artificial intelligence programs to help free up its teams from manual tasks. The company was a relatively early entrant into the AI innovation space, with initiatives dating back to 2012. This automated technology is now allowing the company to execute tasks faster and more accurately while reducing the risk of human error.

Market research company Emerj says in a blog post that McKesson looks "to smaller companies in the healthcare AI market to invest in so that they may have even more useful applications in the future. This is emphasized by their investment in newer companies with which they can build a relationship with early and possibly influence their approach to make their AI products."

For example, McKesson's venture capital fund, McKesson Ventures, invested in AI healthcare firm Komodo Health to help foster its predictive analytics platform. The solution helps doctors diagnose and track disease progression in patients more accurately, and it could even help doctors deliver individualized care by providing them with insights into individual patients and patient populations.

Similarly, McKesson has partnered with Genpact to leverage AI applications for data analytics and finance management. So far, the company has been able to automate business sectors such as sales order aggregation, information distribution, contract management, master data management, and the source-to-pay process.

Focusing on Patient-Centricity

Finally, all of McKesson's digital transformation efforts are designed to improve the company's focus on patient-centricity. McKesson is beginning to support more consumer-facing businesses, so it has begun to focus intently on the user experience. By viewing every aspect of its business through the lens of the patient, McKesson has been able to create more personalized and engaging experiences for patients that ultimately translate into better outcomes for them.

For example, the company is leveraging a "zero trust" model for patient security. It is also working to bring patient data together in a secure way, so it can be accessed easily by patients and leveraged by healthcare providers to improve patient outcomes. McKesson is also working to create more intuitive workflows for healthcare providers, so they can focus on delivering the best care possible to their patients--all while enabling them to be more efficient and effective in their roles.

Don't Miss B2B Online Florida

McKesson stands out as an exemplar in digital transformation for healthcare. By making significant investments in cloud technology and artificial intelligence, as well as by placing a strong focus on patient-centricity, the company is leading the way in transforming the industry. Other companies looking to embark on digital transformation can learn valuable lessons from McKesson's approach and successes.


If you'd like to learn more about digital transformation in the B2B sector, don’t miss B2B Online East. It’s happening October 16th to 17th at Hilton West Palm Beach, Florida.

Download the agenda and register for the event today.