7 out of 10 digital projects in India's pharma sector fail: Vector study

Vector Consulting Group study finds pharma firms spend up to ₹75 cr annually on IT systems, but 70% of digital projects fail due to adoption gaps and poor execution

Don't want to miss the best from Business Standard?

Seven out of ten digital projects in India’s pharmaceutical sector fail to deliver results despite heavy investments, according to a study by Vector Consulting Group.

 

The report, based on a survey of 28 CXOs from pharma firms with revenues above ₹1,000 crore and interviews with 12 senior leaders, highlights a mismatch between investment and effectiveness. Nearly 89 per cent of companies continue to use spreadsheets for critical operations despite deploying digital tools.

 

Large firms spend ₹50–₹75 crore annually on IT systems that often remain underutilised. Almost three-fourths admitted to scrapping at least one tool in the past three years due to poor adoption, redundancy, or integration issues.

 

Operational challenges also persist despite digital rollouts. Stockouts of essential medicines continue at 93 per cent of companies, forecasting errors at 84 per cent, and delays in batch releases at 76 per cent, even with dashboards, demand planning software, and lab management systems in place.

 

Vector’s white paper attributes these failures to the “G.A.P.” framework — projects often start without clear problem definition, end prematurely after go-live without resolving data and adoption issues, and face persistent user resistance.

 

The paper cites failed customer relationship management, lab management, and inventory dashboard rollouts, alongside re-implementations that succeeded after tighter problem scoping and adoption support.

 

“Technology itself isn’t the issue,” said Chandrachur Datta, Partner at Vector Consulting Group. “The challenge lies in how companies approach digital transformation. Unless the GAP is addressed, even advanced tools, including AI, will fail to create measurable results.”