To extend the value of its digital breakthroughs, the life sciences sector should rectify some of the weaknesses affecting its business models and technology decision-making processes.
At KPMG, we predict the future of life sciences will likely be shaped by tech-enabled connectivity, strategic uses of AI, and patient-centric supply chains. Globally, the life sciences sector is working on improving operations and creating new value by transforming digitally. But the innovation efforts of those in the sector face tough headwinds that include economic conditions, organisational performance, geopolitics and the competition for talent.
In a highly regulated sector where companies are often fragmented and siloed, transforming at scale can be difficult. By examining the perspectives of 123 life sciences technology leaders from around the world (based on a comprehensive survey of 2,450 technology function leaders, including chief digital officers, CIOs, CTOs, CISOs, chief AI officers and other executives from 26 countries, across 8 industries) this report provides valuable insights into how organisations are balancing speed, security and value.
This content also compares life science tech function decision-making against previous year’s results, and a cross-sector average. KPMG life sciences technology specialists also weigh in on the findings and provide their own unique perspectives.
Our research finds that life sciences tech leaders are racing to make the most of advanced technologies, but siloed, decentralised teams and historical underinvestment in data management are limiting the benefits. There should be a balance between keeping up, and applying a strategic approach to extracting genuine value from tech.
It is essential to navigate the hype using evidence-based decisions, find solutions that are resilient, and scale new tools such as AI safely and responsibly.
Key findings from the research
Top five challenges slowing down technology transformation in life sciences
- Risk-averse cultures that are slow to embrace change
- Cyber security or privacy concerns
- Unaddressed tech debt blocking the path for new upgrades
- Inability to agree on priorities or get stakeholder buy-in
- Compliance concerns/ Skills shortages within organisations (two-way tie)
Embracing emerging technology
63% say that risk aversion by their organisations’ senior leadership teams is delaying digital transformation journeys — making life sciences the sector most likely to cite this concern.
Undaunted, tech leaders in the sector are bravely embracing emerging technologies. They lead all the other industries surveyed in prioritising and investing in edge and quantum computing, VR/AR/XR and spatial computing, XaaS technology and modern delivery in the next year to support organisational ambitions.
More than one-third say their organisations are using AI at scale and are achieving returns on investment.
73% think AI will revolutionise industry practices, significantly enhancing efficiency and creating new business models.
Technology investment decision-making
When it comes to taking a balanced approach to optimising technology, the life sciences sector leads the way:
- 40% of life sciences tech leaders are planning to balance legacy systems and new tech, which is 14 percentage points higher than the cross-sector average.
- 56% of life sciences tech leaders say they are satisfied with the amount of value they are getting from their technology investments.
- 59% say their tech investment decisionmaking processes usually result in sound decisions that lead to valuable outcomes — which is 13 percentage points behind the average across all sectors surveyed.
Managing risks
61% worry that cyber security is frequently treated as a box-ticking exercise in staff training and isn’t embedded as extensively as it could be.
Compared with most other sectors, fewer life sciences tech leaders plan to prioritise enhancing their data security.
To respond to evolving market trends and risks, life sciences is the sector that is most likely to use red teaming exercises to verify AI guardrails as the top tactic for adapting digital transformation strategies.
For more, contact our team
Brian Egan
Partner
KPMG in Ireland
Cian Kelliher
Partner
KPMG in Ireland
Eoin McAtamney
Managing Director
KPMG in Ireland