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R E D E F I N I N G B O U N DA R I E SInsights from the Global C-suite Study
Figure 1. Life Sciences CxOs believe convergence is by far the top trend
Life Sciences Industry
R E D E F I N I N G B O U N DA R I E SInsights from the Global C-suite Study
We surveyed 143 top executives from the Life Sciences industry for our latest C-suite Study. So how do they differ from CxOs in other sectors?
Twin forcesCxOs say industry convergence is the key trend reshaping the business landscape –and Life Sciences CxOs are utterly convinced that’s the case. They think the shift in consumer purchasing power will also have a major impact, as patients get a greater say in how they’re treated and outcomes-based pricing takes hold (see Figure 1).
Industry convergence
66% 83%
50% 50%
46% 30%
43% 53%
32% 22%
25% 26%
24% 15%
The “anywhere”workplace
Rising cyber risk
The redistribution of consumer purchasing power
The sustainability imperative
Alternative finance and financing mechanisms
The sharing economy
Global
Life Sciences
2
R E D E F I N I N G B O U N DA R I E S | Insights from the Global C-suite StudyLife Sciences – Industry Point of View
Yet, even though they’re acutely aware of the extent to which the boundaries between different sectors are blurring, Life Sciences CxOs still expect most of the competition to come from the pharma and healthcare ecosystem. While CxOs in other sectors are steeling themselves to deal with new rivals from unexpected quarters, Life Sciences CxOs seem relatively unfazed about invaders entering their patch (see Figure 2).
Figure 2. Life Sciences CxOs aren’t looking out for rivals from ‘left field’
They’re also much more relaxed about regulation, market pressures and macro-economic factors than they were two years ago. Technology, they told us, is now the main game-changer – and that’s the first time they’ve ever put it ahead of regulatory concerns (see Figure 3).
Global
Life Sciences51% 34%
other industries
29% 54%
More competition expected from…
within the same industry
2015 Life Sciences
2013 Life Sciences
69%
87%
62%
81%
41%
54%
40%
47%
Figure 3. Life Sciences CxOs say tech has now become a bigger influence than regulation
72%
68%
Technology factors
Regulatory concerns
Market factors
People skills
Socio-economic factors
3
R E D E F I N I N G B O U N DA R I E S | Insights from the Global C-suite StudyLife Sciences – Industry Point of View
Star techs Predictably, Life Sciences CxOs are far more excited about the potential of bioengineering than their peers in other industries. They’re also interested in cloud computing, new manufacturing technologies and mobile solutions as a means of delivering digital care (see Figure 4).
Figure 4. Life Sciences CxOs are betting on bioengineering
They plan to review their offerings and partnerships in light of the technological advances they envisage. But they’re less likely to revisit their delivery channels or the customer segments they target, be these patients, physicians or payers (see Figure 5).
Cloud computing and services
63% 50%
61% 42%
57% 39%
37% 26%
28% 43%
23% 8%
12% 71%
10% 12%
Mobile solutions
Internet ofThings (IoT)
Cognitive computing
Advanced manufac-turingtechnologies
New energysources andsolutions
Bio-engineering
Man-machinehybrids
Global
Life Sciences
68%
56%
61%
67%
60%
44%
57%
55%
Figure 5. Life Sciences CxOs are focusing on reassessing their offerings
73%
81%
Product/service portfolio
Operating model
Partnerships
Delivery channels
Revenue model
52%
52%
Customer types or segments
4
14%less
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R E D E F I N I N G B O U N DA R I E S | Insights from the Global C-suite StudyLife Sciences – Industry Point of View
They also realize new technologies bring new risks. Like Healthcare CxOs, they’re especially concerned about regulatory compliance violations. But loss of intellectual property and financial risks also prey on their minds.
That said, Life Sciences CxOs are much bolder than their peers in many other industries. We identified a small group of highly successful enterprises in our overall sample. Torchbearers, as we call them, are particularly comfortable leading the way, when they’re launching new business models or new offerings. Most Life Sciences CxOs also aspire to be market pioneers (see Figure 6).
Figure 6. Most Life Sciences CxOs aim to reach the market first
Global Torchbearers
Life Sciences
80%
69%
You can see the various installments of our latest Global C-suite Study at ibm.com/csuitestudy