Marketing in Action Case Real Choices at Novartis How would you like it if every time you used your medication somebody knew about it? Novartis wants to collect information in the cloud whenever someone uses its Breezhaler inhaler. The company has entered into an agreement with Qualcomm Life, Inc. to create an inhaler with Internet connectivity that will trans- mit information when patients use the Breezhaler. The device delivers chronic obstructive pulmonary disease (COPD) treat- ments of Onbrez, Seebri, and Ultibro. The companies will be able to accumulate data concerning the user's medical condition, the efficacy of the drug, and the device itself from a huge number of patients. The collaboration may lead to broad healthcare ben- efits, but patient confidentiality will be an important issue. The roots of Novartis go back over 250 years. The mod- ern day enterprise is the union of three Swiss companies: Ciba, Geigy, and Sandoz. Headquartered today in Basel, Switzerland, Novartis is a global leader in innovative medi- cines, eye care, and cost-saving generic pharmaceuticals. The company's global research operations include publicly funded collaborative research projects involving other corporate and academic partners. Novartis owned companies employ ap- proximately 120,000 full-time associates and provide pharma- ceutical products in more than 180 countries. With this new Breezehaler initiative, when patients use the product it will send tracking information on their smartphones or tablets. Patient statistics transmit wirelessly to a Novartis COPD mobile application, which then transmits the data to the cloud. David Epstein, a Division Head and CEO of Novartis Pharmaceuticals, stated, "By enabling near real-time data capture from the patient and the connected Breezhaler device, patients can monitor their adherence to the medication they take which is vital to their health outcomes." Novartis wants to be the first pharmaceutical company to provide a connected delivery device to give patients an easy-to-use and simple ex- perience. In addition, physicians and other healthcare providers may have access to the data and use it to directly monitor the patient's condition and medicine usage. Despite the potential benefits, the collection of large amounts of patient data comes with significant risk. The infor- mation gathered by the Breezhaler will reside on the patient's device, the healthcare provider's systems, and the cloud. This data creates an attractive opportunity for criminals to steal information like names, birth dates, insurance policy numbers, billing data, and medical diagnostic codes. Stolen medical data is handy to create fake IDs, buy medical equipment, or acquire drugs. Érik Vollebregt, a medical device cybersecurity and pri- vacy attorney, remarked, "The more information, the easier identity theft is and the more valuable the profiles that the hacker can sell to third parties." In addition, he believes that the possibility increases for criminals who hack the informa- tion systems to use the data to threaten the lives of patients and blackmail the manufacturer. Novartis can use the cloud-based medical information to acquire a better understanding of the impact of medica- tions on the treatment of COPD. However, it has to develop methods to ensure that the data sharing is confidential yet will still be of practical use to their researchers. How should Novartis use the information to create medical benefits to 5-32. What are the alternatives? both patients and healthcare professionals and at the same time protect the sensitive data? 5-33. What decision(s) do you recommend? 5-34. What are some ways to implement your recommenda- tion? You Make the Call Saurces: Jahn Mir, "Sig Phumas Bar an Big Data Outes Oppanunties and Ris" Rees lanary 25, 2016, tmpu ts santatictahamand DIONAD cesed May 10, 20 "Corpany Hatany Na, ps.nourts ontbataloeantanpanyry acced May 10, 201 "Noas Phamacndica Colatorats wh Ouomm in Di Imozion wih he Breatuar halr Deice to Tut COPO Naarts, mpanoartik.conhowsmeddaseshaars shunca-cokitens-qucanndlaieulen-trhem (acd May 10 201. 5-30. What is the decision facing Novartis? 5-31. What factors are important in understanding this decision?