By 2015, China had one of the world’s largest and most complex healthcare industries. This industry had been undergoing unprecedented change in diverse areas, from policies to technologies. Shanghai Pharmaceuticals, China’s second-largest pharmaceutical company, spanned the entire pharmaceutical value chain, from product research and development to sales. The company’s core competency was in drug distribution, which generated 70 per cent of the firm’s revenue. The company’s leadership in distribution was enabled by its information technology infrastructure and data. However, with the Internet and digital technologies becoming key drivers of China’s healthcare sector, the company needed to rethink its business and develop a future strategy to sustain its success in the age of digital disruption.
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