Pharma companies may be able to unlock £22 billion through digital tech, says research
According to new research from global professional services company, Accenture, there is an estimated £22 billion that could be unlocked by pharmaceutical companies over the next 10 years through harnessing digital technologies.
The research revealed that through investment in digital technologies it may be possible for the pharma industry to accelerate growth by five percent. This growth could translate to an estimated £12 billion in new revenue over the course of a decade. Additionally, it may be possible for companies to reduce their costs by more than £11 billion through implementation of these technologies, which could also then lead to savings of 10% being passed on to the customers.
Several ways in which digital technologies can transform the sector and tackle the long-term productivity challenge were identified through the research. New opportunities in healthcare-as-a-service and integrated patient support will be created via the collection of data through sensors, wearables and smart packaging. Analytics-based virtual screening and simulation can significantly speed up the R&D process, while digital platforms enable open innovation with industry peers and academics. Furthermore, additive manufacturing can support personalised medicine by producing bespoke combinations of pharma products to order.
“Most pharmaceutical companies we work with recognise that digital technologies can drive transformation and growth, but many aren’t yet realising this potential. This research quantifies the potential prize for industry, individuals and society if they get this right,” said Yen-Sze Soon, managing director at Accenture. “The solution is what we call Industry X.0, an action plan for embracing and profiting from technological change. More than just transforming into digital businesses, pharma companies must look at how they reinvent operating models, production and value chains.”
Industry X.0 is how Accenture defines the digital reinvention of industry. In its survey of 931 executives from 21 countries on this subject, Accenture found that only 13% of respondents believe their businesses are getting both greater efficiency and business growth as a result of digital investments. Four fifths (80%) want new efficiencies, new growth and new experiences to be delivered all at the same time, and 64% agree that failure to leverage the components of digital value will cause them to struggle for survival in the future.
This analysis into the potential of digital tech used methodology that had been developed in partnership with the World Economic Forum to understand the value of digital transformation for both industry and society. It looked at four industries (Construction, Food and Drink, Pharmaceuticals and Aerospace) and several key technologies (Artificial Intelligence, Additive Manufacturing and Automation and Robotics).