|By Business Wire||
|March 12, 2014 10:21 AM EDT||
Life sciences companies are aggressively embracing new technology-driven approaches to commercialize their products and reduce operating costs, according to a new report issued today by the IMS Institute for Healthcare Informatics. The current technology wave in life sciences – including cloud-based business intelligence applications and storage, embedded analytics and systems integration – has the potential to drive transformational change over the next three years in overall healthcare system efficiency and the effectiveness of treatments. The availability and adoption of secure, healthcare-specific tools and services are key to accelerating that opportunity and deriving greater value from new, expanded sources of health information to optimize patient outcomes.
The study – Riding the Information Technology Wave in Life Sciences: Priorities, Pitfalls and Promise – found that life sciences companies are aggressively shifting their technology-based approaches to align cross-functional activities, optimize their organizations and improve the effectiveness and agility of commercial teams. In addition, new investment is being focused on enabling greater patient engagement.
The report cites findings from an IMS Institute survey of decision makers in IT, marketing, sales, operations and management from 70 life sciences organizations who were asked about their current and planned use of new IT solutions. Overall, respondents expect continued cost reductions across the industry, and 40 percent pointed to planned cuts of more than 10 percent in their organizations during the next three years. In addition, 74 percent of survey participants are looking to derive greater value from the influx of healthcare information that includes anonymized Electronic Medical Records (EMR) and other real-world data. New investments in a range of commercial operations applications, such as customer relationship management, social media or integrated multi-channel marketing solutions, were cited by more than 70 percent of respondents as a priority.
“Realizing the full benefit from new technologies will be a high priority for all life sciences companies as commercialization approaches are revised amid changing customer demands and a growing need for efficiency,” said Murray Aitken, executive director of the IMS Institute for Healthcare Informatics. “Applications that are healthcare-specific, cloud-based, integrated, secure and analytically powerful will yield substantial advantages to these organizations, and ultimately to patients and the health system overall.”
The report’s key findings include the following:
- The largest global pharmaceutical companies will need to reduce combined operating costs by $36 billion annually through 2017 to maintain their operating margins and current levels of R&D activities. Pressure on operating margins is expected to grow as companies face rising costs at the same time drug prices are being constrained or reduced. With an estimated R&D cost inflation rate of 5 percent annually, organizations will need to reduce other operating costs to maintain margins. While the source of cost cutting will vary by company, a primary focus likely will be on sales, marketing and administration costs, which amount to nearly 30 percent of net sales. Of those surveyed by the IMS Institute, 87 percent indicated that their commercial organizations are being optimized through a range of approaches, including selective insourcing and outsourcing, resource shifting and implementation of previously unavailable technology-based solutions.
- Companies see interoperability of technology systems as an urgent and critical need. As technology systems and applications within life sciences companies have proliferated during the past decade, they often have remained siloed and inefficient. Integrated systems, cited by 85 percent of survey respondents as a need for optimizing their commercial organizations, are increasingly viewed as a means to improve workflow speed, eliminate conflicting data interpretations across departments, and reduce the cost of vendor teams managing manual data handoffs. Life sciences organizations are seeking pre-built, cloud-based application suites as a means to achieve these enterprise-wide system efficiencies.
- Life sciences companies are shifting their primary data storage to the cloud, and investing in new sales and marketing-related applications. Due to the sensitive nature of healthcare data, the adoption of remote, cloud-based technologies by life sciences companies has been slow compared to other industries. Organizations are embracing efforts by cloud providers to accelerate progress in establishing and maintaining secure and compliant environments for the collection and storage of health information. Seventy percent of participants expressed a need to utilize third-party, cloud-based applications.
- Technology is enabling the healthcare industry to derive greater value from Big Data. Large, connected anonymized patient datasets are already accessible for analysis in some countries with national health systems; in other countries, the pooling of EMR, claims and other data sets will be essential to creating repositories representative of patient populations. In the U.S., some hospital systems are collaborating to pool data for analysis, with the aim of refining treatment algorithms to achieve the best possible patient outcomes. The ability of life sciences companies to benefit from these data sources currently is limited due to the lack of consistent formats and privacy standards among cloud-based service providers. Progress is being made to facilitate access to shared repositories in the cloud that can be used by multiple stakeholders to examine the burden of illness and understand the value of medicines.
- Analytic systems designed to interpret and create actionable insights have not kept pace with the abundant and growing amounts of data generated or accessed by life sciences companies. As competition among life sciences companies intensifies, and the mix of new medicines skews toward those with relatively small target patient populations, analytic systems that help bring medicines to the right patients and their physicians are essential. Implementation of these systems accelerates the improvement of health outcomes while also bringing more efficiency to the entire health system. Querying large, observational data sets, however, requires clinical expertise that is often highly specialized. Cloud applications that translate complex disease measures into pre-built definitions enable non-expert users to derive greater insights.
- New mobile applications for both patients and physicians are seen as increasingly important for strengthening healthcare engagement. As life sciences companies focus on innovative ways to bring value and services to their customers, mobile applications are likely to play a greater role in keeping patients more engaged in their own healthcare, facilitating communication between patients and healthcare professionals, and delivering targeted, helpful information to physicians and payers. Nearly 60 percent of survey respondents rated patient apps as extremely or very important to address commercial challenges, while 69 percent similarly rated investments in physician apps. Currently, apps for physicians and other healthcare providers can offer drug-agnostic disease education and training to help guide decision making, as well as dosing calculators and web-based access to information about specific drugs.
The full version of the report, including a detailed description of the methodology, is available at www.theimsinstitute.org. It can also be downloaded as an app via iTunes at https://itunes.apple.com/app/ims-institute/id625347542. The study was produced independently as a public service, without industry or government funding.
About the IMS Institute for Healthcare Informatics
The IMS Institute for Healthcare Informatics provides key policy setters and decision makers in the global health sector with unique and transformational insights into healthcare dynamics derived from granular analysis of information. It is a research-driven entity with a worldwide reach that collaborates with external healthcare experts from across academia and the public and private sectors to objectively apply IMS Health’s proprietary global information and analytical assets. More information about the IMS Institute can be found at: http://www.theimsinstitute.org.
About IMS Health
IMS Health is a leading global information and technology services company providing clients in the healthcare industry with comprehensive solutions to measure and improve their performance. By applying sophisticated analytics and proprietary application suites hosted on the IMS One intelligent cloud, the company connects more than 10 petabytes of complex healthcare data on diseases, treatments, costs and outcomes to help its clients run their operations more efficiently. Drawing on information from 100,000 suppliers, and on insights from more than 45 billion healthcare transactions processed annually, IMS Health’s 9,500 professionals drive results for over 5,000 healthcare clients globally. Customers include pharmaceutical, consumer health and medical device manufacturers and distributors, providers, payers, government agencies, policymakers, researchers and the financial community.
As a global leader in protecting individual patient privacy, IMS Health uses anonymous healthcare data to deliver critical, real-world disease and treatment insights. These insights help biotech and pharmaceutical companies, medical researchers, government agencies, payers and other healthcare stakeholders to identify unmet treatment needs and understand the effectiveness and value of pharmaceutical products in improving overall health outcomes.
DevOps has often been described in terms of CAMS: Culture, Automation, Measuring, Sharing. While we’ve seen a lot of focus on the “A” and even on the “M”, there are very few examples of why the “C" is equally important in the DevOps equation. In her session at @DevOps Summit, Lori MacVittie, of F5 Networks, will explore HTTP/1 and HTTP/2 along with Microservices to illustrate why a collaborative culture between Dev, Ops, and the Network is critical to ensuring success.
Oct. 8, 2015 12:45 PM EDT
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Bradley Holt, Developer Advocate at IBM Cloud Data Services, will demonstrate techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, ...
Oct. 8, 2015 12:45 PM EDT Reads: 500
IT data is typically silo'd by the various tools in place. Unifying all the log, metric and event data in one analytics platform stops finger pointing and provides the end-to-end correlation. Logs, metrics and custom event data can be joined to tell the holistic story of your software and operations. For example, users can correlate code deploys to system performance to application error codes.
Oct. 8, 2015 12:45 PM EDT Reads: 160
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Oct. 8, 2015 12:45 PM EDT
Any Ops team trying to support a company in today’s cloud-connected world knows that a new way of thinking is required – one just as dramatic than the shift from Ops to DevOps. The diversity of modern operations requires teams to focus their impact on breadth vs. depth. In his session at DevOps Summit, Adam Serediuk, Director of Operations at xMatters, Inc., will discuss the strategic requirements of evolving from Ops to DevOps, and why modern Operations has begun leveraging the “NoOps” approa...
Oct. 8, 2015 12:30 PM EDT
Containers are revolutionizing the way we deploy and maintain our infrastructures, but monitoring and troubleshooting in a containerized environment can still be painful and impractical. Understanding even basic resource usage is difficult - let alone tracking network connections or malicious activity. In his session at DevOps Summit, Gianluca Borello, Sr. Software Engineer at Sysdig, will cover the current state of the art for container monitoring and visibility, including pros / cons and li...
Oct. 8, 2015 12:30 PM EDT Reads: 136
As-a-service models offer huge opportunities, but also complicate security. It may seem that the easiest way to migrate to a new architectural model is to let others, experts in their field, do the work. This has given rise to many as-a-service models throughout the industry and across the entire technology stack, from software to infrastructure. While this has unlocked huge opportunities to accelerate the deployment of new capabilities or increase economic efficiencies within an organization, i...
Oct. 8, 2015 12:15 PM EDT Reads: 211
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
Oct. 8, 2015 12:00 PM EDT Reads: 249
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, will look at di...
Oct. 8, 2015 12:00 PM EDT Reads: 597
For almost two decades, businesses have discovered great opportunities to engage with customers and even expand revenue through digital systems, including web and mobile applications. Yet, even now, the conversation between the business and the technologists that deliver these systems is strained, in large part due to misaligned objectives. In his session at DevOps Summit, James Urquhart, Senior Vice President of Performance Analytics at SOASTA, Inc., will discuss how measuring user outcomes –...
Oct. 8, 2015 12:00 PM EDT Reads: 429
Recently announced Azure Data Lake addresses the big data 3V challenges; volume, velocity and variety. It is one more storage feature in addition to blobs and SQL Azure database. Azure Data Lake (should have been Azure Data Ocean IMHO) is really omnipotent. Just look at the key capabilities of Azure Data Lake:
Oct. 8, 2015 12:00 PM EDT Reads: 272
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. Migration to cloud shifts computing resources from your data center, which can yield significant advantages provided that the cloud vendor an offer enterprise-grade quality for your application.
Oct. 8, 2015 12:00 PM EDT Reads: 197
As a company adopts a DevOps approach to software development, what are key things that both the Dev and Ops side of the business must keep in mind to ensure effective continuous delivery? In his session at DevOps Summit, Mark Hydar, Head of DevOps, Ericsson TV Platforms, will share best practices and provide helpful tips for Ops teams to adopt an open line of communication with the development side of the house to ensure success between the two sides.
Oct. 8, 2015 12:00 PM EDT Reads: 569
Manufacturing has widely adopted standardized and automated processes to create designs, build them, and maintain them through their life cycle. However, many modern manufacturing systems go beyond mechanized workflows to introduce empowered workers, flexible collaboration, and rapid iteration. Such behaviors also characterize open source software development and are at the heart of DevOps culture, processes, and tooling.
Oct. 8, 2015 12:00 PM EDT Reads: 1,048