A new study by Vector Consulting Group has revealed that while Indian pharmaceutical companies are investing heavily in digitalisation, most projects are failing to deliver measurable business outcomes.  

According to the study, seven out of ten digital projects in India’s pharmaceutical industry fail to deliver results, despite heavy investments in digital tools.

The findings are based on a survey of 28 CXOs from pharma firms with revenues above INR 1,000 crore and interviews with 12 senior leaders.  

The research highlights a clear mismatch between investment and outcomes, with 89 percent of companies reporting that they still rely on spreadsheets for critical operations, even after deploying digital systems in these areas.  

Some large firms spend as much as INR 50– INR 75 crore annually on IT systems that remain largely underutilised. Nearly three-fourths of respondents admitted to scrapping at least one tool or module in the past three years due to poor adoption, redundancy, integration failures, or high cost relative to returns.

Despite investing heavily in digital systems, the core challenges remain unresolved. Stockouts of critical medicines persist at 93 percent of firms, even with inventory dashboards in place. Forecasting errors continue for 84 percent even with advanced demand planning software. And 76 percent still report delays in batch releases, despite the use of lab management systems.  

To explain these pitfalls, Vector’s white paper introduces the G.A.P. framework, arguing that the challenge lies not with the tools themselves but with a recurring gap in how companies approach digital transformation:

G – Getting a tool ≠ solving the problem: Too many projects start with vendor-promised benefits rather than clearly defined problem statements and objectives, which rarely deliver results.

A – Activation of the tool ≠ the end of the project: The real work begins after going live. Unless data integrity and teething issues are fully resolved until adoption is complete, systems fail.

P – Planting a tool won’t ensure use: Old habits and workarounds persist unless users are adequately supported until the new system makes their work easier and produces tangible results.   

Chandrachur Datta, Partner at Vector Consulting Group, said, “These three steps need to be addressed together to close the GAP, and they build on one another.”

“A strong use case or well-defined problem is the necessary starting point. It guides the selection of the right digital project and keeps a dedicated implementation team— with clear ownership and accountability—focused on solving the real issue, not just going live. This focus also ensures that critical aspects such as data quality and user adoption are addressed, making the transformation truly effective,” he explained.

The white paper features case studies of failed CRM, lab management, and inventory dashboard rollouts, alongside successful re-implementations where clear problem definitions, dedicated data management, and adoption support transformed digital tools into true enablers, delivering measurable business impact.

“Every pharma company has a digital story, but too many of these stories don’t end well. Technology itself isn’t the culprit—the real challenge is how companies approach digital transformation. Unless firms close the GAP, even the most advanced tools, including AI, risk becoming just another wave of unfulfilled promises,” Datta added.