This report discusses the opportunities and challenges presented by digitalization in the healthcare industry. The authors argue that digital technologies can be used to improve personalized medicine, accelerate R&D, enhance patient and provider convenience, and drive competitive advantage. They recommend that pharmaceutical companies prepare their organizations for these changes by selecting and funding the right digital initiatives, prioritizing them, and ensuring that there is a clear business rationale and financial case for each one. The report provides a practical framework for doing so.