Shift toward enterprise-grade AI

for healthcare & life sciences

How leaders capture the value
of artificial intelligence
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 Sharper focus Heightened
Shifting toward on AI emphasis on

Enterprise-
topline growth

grade AI It’s less about

experimenting – more
It’s less about cost –
savings more about the
customer
about doubling down
Resolving data and skills gaps
Growing Intensified
to realize value
importance of concern about
data skills

It’s less about It’s less about labor

technology availability – productivity – more
more about data about talent
capabilities development
3
Enterprise-grade AI

5,001 Respondents across 18 industries

2018 AI Survey

1,625 Europe

725 North America

1,776 Asia-Pacific
Middle East
500 and Africa .

375 Latin America

Source: 2018 AI Survey : D3 : Primary location, N= 5001

4
Enterprise-grade AI

Healthcare & Life Sciences 600 respondents

from the
healthcare and
life sciences
industries

161 Europe
Healthcare payers : 150
142 North America
Healthcare providers : 150
187 Asia-Pacific
Middle East Life sciences and
58 and Africa . pharmaceuticals : 300

52 Latin America

Source: 2018 AI Survey : D3 : Primary location, N= 600

5
 Enterprise-grade AI

Meet the Outperformers

Report significantly outperformed revenue compared to

A group of 133 competitors (past 3 years)
respondents
(22% of the OR
Healthcare & Life
Report significantly more effective compared to similar
Sciences sample) organizations (past 3 years)
with stronger (for public sector industries)
performance was
PLUS
identified
Report significantly more efficient / profitable compared
to similar organizations (past 3 years)

6
Sharper focus on AI
It’s less about experimenting –
more about doubling down

7
Enterprise-grade AI

Many healthcare payer organizations are rethinking the

direction of their cognitive journey
Stages of AI adoption - Healthcare payers
39%
34% 2016 2018

23% 86% of healthcare

19%
14% 15% payer organizations
13%
8% 9%
12%
are at least
7%
2% considering adopting
AI technologies
Not considering Considering Evaluating Piloting Implementing Operating /
Optimizing

Phase in cognitive journey

Global
cross- 24% 18% 25% 43% 23% 18% 26% 21%
industry:

8
Enterprise-grade AI

Many healthcare provider organizations are rethinking the

direction of their cognitive journey
Stages of AI adoption - Healthcare providers
43%

2016 2018

30% 29%
24% 92% of healthcare
22%
provider
9%
13%
10% organizations are at
8% 7%
2% 2%
least considering
adopting AI
Not considering Considering Evaluating Piloting Implementing Operating /
Optimizing technologies
Phase in cognitive journey

Global
cross- 24% 18% 25% 43% 23% 18% 26% 21%
industry:

9
Enterprise-grade AI

Many life sciences and pharmaceuticals organizations are

rethinking the direction of their cognitive journey
Stages of AI adoption – Life sciences and pharmaceuticals
43%

2016 2018

29%

23% 24% 83% of healthcare

17% 16%
payer organizations
12%
9% 10% 9% are at least
2%
6%
considering
adopting AI
Not considering Considering Evaluating Piloting Implementing Operating /
Optimizing technologies
Phase in cognitive journey
Global
cross- 24% 18% 25% 43% 23% 18% 26% 21%
industry:

10
Enterprise-grade AI

A greater proportion of the healthcare payer outperformers

are in more mature phases of their AI initiatives
Stages of AI adoption – Healthcare payers
45% All Others
Outperformers
Outperforming
36%
payers are in more
mature phases of
21% 21%
19%
17% their AI journey
14%

% %
12%
7%
4% 67 vs. 11
0% 0%

Not considering Considering Evaluating Piloting Implementing Operating /

Optimizing

Phase in cognitive journey

Global
cross- 21% 7% 47% 30% 18% 19% 6% 28%
industry:

11
Enterprise-grade AI

A greater proportion of the healthcare provider outperformers

are in more mature phases of their AI initiatives
Stages of AI adoption – Healthcare providers

48% All Others Outperforming

Outperformers
40%
providers are in
more mature
20% 20% 20% phases of their AI
10%
13% 13% journey
8% 7%

0% 1% %
40 vs. 22%
Not considering Considering Evaluating Piloting Implementing Operating /
Optimizing

Phase in cognitive journey

Global
cross- 21% 7% 47% 30% 18% 19% 6% 28%
industry:

12
Enterprise-grade AI

A greater proportion of the life sciences and pharmaceuticals

outperformers are in more mature phases of their AI initiatives
Stages of AI adoption – Life sciences and Pharmaceuticalsls
47%

All Others Outperforming life

Outperformers
sciences and
25% 25% pharmaceuticals
21%

15%
20%
18% are in more mature
8%
13%
phases of their AI
7%
journey
0% 0%

Not considering Considering Evaluating Piloting Implementing Operating / %

56 vs. 15%
Optimizing

Phase in cognitive journey

Global
cross- 21% 7% 47% 30% 18% 19% 6% 28%
industry:

13
Enterprise-grade AI

Healthcare and life sciences are reflecting a deeper

understanding of AI as they prioritize where it can add value
AI driving greater value in the different key functions
Global cross-industry
• Information Technology 79%
63% 80% 78% Information Customer 91% 85% 53% • Information Security 67%
Technology Service
• Customer Service 60%
Information 37% 34% 48%
75% 69% 63% Marketing
Security
• Innovation 59%
• Risk 40%
10%* 6%* 17% Procurement Sales 31% 17% 18% • Marketing 36%
• Sales 33%
• Finance 30%
10%* 13% 9% HR Innovation 63% 71% 77%
• Product Development 28%

• Supply Chain 21%

51% 26% 20% Finance Manufacturing 0% 0% 49%
• Manufacturing 17%
• Procurement 13%
Product • Human Resources 10%
3%* 17% 31% Supply chain Development 6%* 15% 74%

Payers (2018) Risk

Providers (2018)
61% 37% 40%
LS & Pharma (2018)
TOP 3

BOTTOM 3
14
Enterprise-grade AI

Data-driven platforms are increasingly becoming a tangible

way of realizing the benefits of AI

Capital allocation to platform business models continues to accelerate

Up to “Evolving of data
C-Suite
$1.2 trillion platform has helped in
in the next 2 – 3 years formulating our policies
by providing us with
useful insights on
customer trends.”
39%
Head of Research &
Development,
Leading Healthcare Provider
39% of CEOs surveyed are considering or actively pursuing
the adoption of a platform business model

15
Enterprise-grade AI

Many healthcare payer organizations view AI as a strategic

platform play
Healthcare payers

View AI as strategic Majority of the outperformers view AI

platform play as a strategic platform play
Strategic platforms
powered by AI can
predict problems and
81%
proactively direct
45% 31% automation to improve
quality

Outperformers
All others

16
Enterprise-grade AI

Many healthcare provider organizations view AI as a strategic

platform play
Healthcare providers

View AI as strategic Majority of the outperformers view AI

platform play as a strategic platform play
It speeds up the
process of
interchanging cross-
87%
border information
53% 45% and refines strategic
decision-making which
helps in organization
Outperformers
All others
growth.

17
Enterprise-grade AI

Many life sciences and pharmaceutical

organizations view AI as a strategic platform play
Life Sciences & Pharmaceuticals

View AI as strategic Majority of the outperformers view AI

platform play as a strategic platform play
Platform is helping us
in taking informed
decisions as it
75%
provides key insights in
46% 38% real time.

Outperformers
All others

18
 Enterprise-grade AI

Healthcare payer organizations continue to invest in AI but

with more realistic expectations

Healthcare payers
IT spend on AI/Cog IT spend on AI/Cog RoI to justify AI/Cog
(This Year) (In 3 Years) investment
Organizations have
reduced their
expectation of high
ROI from AI and have
come to more realistic
terms

Global 4 %| 5 % 8 %| 9 % 11%| 17%

cross- 3% 4% 7% 9.5% 9% 15%
industry:

2018 2016
19
 Enterprise-grade AI

Healthcare provider organizations continue to invest in AI

but with more realistic expectations

Healthcare providers
IT spend on AI/Cog IT spend on AI/Cog RoI to justify AI/Cog
(This Year) (In 3 Years) investment
Organizations have
reduced their
expectation of high
ROI from AI and have
come to more realistic
terms

Global 4 %| 3 % 9 %| 8 % 8%| 13%

cross- 3% 4% 7% 9.5% 9% 15%
industry:

2018 2016
20
 Enterprise-grade AI

Life sciences and pharmaceuticals organizations continue to

invest in AI but with more realistic expectations

Life sciences and pharmaceuticals

IT spend on AI/Cog IT spend on AI/Cog RoI to justify AI/Cog
(This Year) (In 3 Years) investment
Organizations have
reduced their
expectation of high
ROI from AI and have
come to more realistic
terms

Global 3 %| 4 % 8 %| 9 % 9%| 15%

cross- 3% 4% 7% 9.5% 9% 15%
industry:

2018 2016
21
 Enterprise grade AI

Arthritis Research UK is a nonprofit organisation focused on investing in

breakthrough treatments, the best information and vital support for
everyone affected by arthritis. It wanted to extend beyond its standard
Launching a fundraising role and offer personalised treatment-based advice to
people with arthritis.
cognitive virtual
Working with cognitive, Arthritis Research UK created a virtual assistant
assistant to designed to answer queries about a diverse range of self-management
provide topics.

personalised
support Results

©2017 IBM Corporation

and raising Offers support at
all hours
Improves
engagement
Boosts visibility

efficiency
“We’ve seen quite a few unmet
informational needs, and a by attracting public
virtual assistant was a way we for people seeking by providing interest and
could help people right away, at personalised care meaningful support potential donors
scale.” - Liam O’Toole, Chief information to people with
Executive Officer, Arthritis arthritis
Research UK

22
22
 Enterprise grade AI

Care experience is a digital health company in the US helps healthcare

organizations identify opportunities to improve the patient experience
Analyzing as it is a top priority for healthcare organizations.

unstructured To improve the patient experience, the company uses an open data
model that pulls in structured and unstructured patient feedback from
patient feedback multiple sources, including surveys and clinical applications. It analyzes
and flag emotional the continuous streams of subjective, unstructured data, uncovering
insights into the patient experience that otherwise would have gone
content raising unnoticed and unused.

efficiency Results

©2017 IBM Corporation

“I’m a 7 generation
th

entrepreneur who has spent the

Delivers insights Helps healthcare Provides a more
last decade deploying organizations retain nuanced
technology to capture the voice
understanding
of the patient.” - Gautam
Mahtani, Founder and CEO
to help guide clinical managed care of the patient
action plans and patients, protecting experience, going
make concrete revenue and deeper than
improvements in the effectively managing standardized surveys
patient experience financial risk to extract personal,
emotional feedback
23
23
Heightened
emphasis on topline
growth
It’s less about cost savings –
more about the customer

24
Enterprise grade AI

There is increased emphasis on topline value drivers

around the patient for healthcare payers
Value drivers for implementing AI (Healthcare payers)
Customer satisfaction 80%
36%

Customer retention improvement 63%

39%

Customer acquisition cost reduction 57%

30%

Other operational cost reduction 50%

20%

Other capital cost reduction 39%

5%

Revenue growth from new market entry 35%

32%

Revenue growth from speed to market 29%

36%

Headcount reduction 28%

19%

Headcount redeployment 27%

18%

Revenue growth from shorter sales cycle 18%

29%

Revenue growth from larger order 18% 2018 2016

28%

25
Enterprise grade AI

There is increased emphasis on topline value drivers

around the patient for healthcare providers
Value drivers for implementing AI (Healthcare providers)
Customer satisfaction 96%
50%

Customer retention improvement 53%

38%

Customer acquisition cost reduction 41%

28%

Headcount reduction 40%

20%

Other operational cost reduction 36%

25%

Other capital cost reduction 33%

8%

Headcount redeployment 33%

13%

Revenue growth from speed to market 27%

28%

Revenue growth from new market entry 23%

27%

Revenue growth from shorter sales cycle 17%

32%

Revenue growth from larger order 10% 2018 2016

37%

26
Enterprise grade AI

There is increased emphasis on topline value drivers around

revenue growth and cost for the life sciences industry
Value drivers for implementing AI (Life sciences and pharmaceuticals)
Revenue growth from speed to market 64%
42%

Revenue growth from new market entry 58%

34%

Other operational cost reduction 57%

22%

Customer satisfaction 55%

47%

Customer retention improvement 44%

42%

Revenue growth from shorter sales cycle 44%

37%

Revenue growth from larger order 41%

35%

Customer acquisition cost reduction 30%

37%

Other capital cost reduction 25%

12%

Headcount redeployment 25%

21%

Headcount reduction 24% 2018 2016

22%

27
Enterprise grade AI

All organizations see customer experience growing in importance,

with leading organizations expecting AI to drive significant benefits
C-Suite
Direction of business landscape change AI’s impact on the customer experience
in the next 2 to 3 years1 outranked any other business model2

19%
More emphasis on
2017 Now 2-3 Years from now
More emphasis on product
customer experience
Global Customer experience 26% 47%

19% 68%
Competitive position 22% 47%

Cost structure 19% 43%

Healthcare payer and providers
13% 73% Capital investments 19% 42%

Organizational structure 16% 42%

Life sciences
27% More emphasis
60%on 2017 Revenue model 16% 41%

28
Enterprise grade AI

An US for-profit health insurance and services company, having more

than 13 million members, was faced with escalating costs owing to
maintenance of outsourced call centers to respond to around 700
calls/month from the administrative staff of associated Providers about
member benefits, eligibility, authorization, and/or referrals. About 60%
of the calls were related to routine pointed questions (Level 1) with well
defined answers. The payer wanted to eliminate these Level 1 calls.
Cognitive agent
voice-only Watson implemented a human-like conversational cognitive technology
solution on a Voice-channel environment to deliver consistent, accurate
responses to level one call inquiries through interactive, conversational
significantly dialogue and eliminate the call from being transferred to the Provider
reduces call rates Call Center.

to the payer’s Results

©2017 IBM Corporation

provider call Offers support at all
hours
Improves
engagement
Lowers operational
cost
center
and raising for administrative
staff from Healthcare
by providing
meaningful support
by resolving high
volume Level 1 call
efficiency Providers in the to the Provider Call inquiries with
Payers’ network Center minimal or no human
intervention

29
29
Enterprise grade AI

An US not-for-profit payer was challenged with high administrative

costs owing to high volume of Level 1 provider calls, agent attrition and
corresponding knowledge gaps. They were looking for a Contact Center
transformation to lower operational costs, improve user experience and
open new revenue streams

Voice-enabled
cognitive agent A cognitive solution orchestrates back-end data to cost-effectively drive
fast, accurate interactions through natural language conversation,
solution improves extract meaning from unstructured questions, find member-specific
provider agent information and provide personalized answers. The solution integrates
services and implements business logic for benefits coverage using a
experience Service Orchestration Engine which leverages the Payers APIs along
and raising with relational and non-relational databases for healthcare data models

©2017 IBM Corporation

efficiency Results

Personalized and Deflect Level 1 calls Saves cost

consistent User to Virtual Agent
Experience across
touch points

30
30
Growing importance
of data
It’s less about technology
availability – more about data
capabilities

31
Enterprise grade AI

Data is growing fast – in volume, variety, and complexity –

traditional analytics solutions are unable to fully exploit its value
Digital universe will double every two years at least, a
50-fold growth from 2010 to 20205
> 1,000
readings per second
generated by patient
monitoring equipment1 60% 1100 Terabytes These days organizations
Generated per lifetime

attempt to distill every

Exogenous Factors

50 Terabytes
of data is produced by each transaction, every human
cancer patient in a lifetime2
30%
Genomics Factors
6 Terabytes
Generated per lifetime interaction, yet very little
> 665 Terabytes 10% 0.4 Terabytes
Generated per lifetime
of the total is captured
Clinical Factors
of data generated by the
Health-related data generated for a single individual6
average hospital3

10 Petabytes Only 0.5%

of data generated annually of world’s data is being analyzed (2015)7
by the not-for-profit health
plan, Kaiser Permanente4
terabytes of data

32
Enterprise grade AI

Healthcare payers are leading the way on capitalizing on data

Capture, manage, and access business, technology, and operational information on key corporate data

Healthcare payers Healthcare providers Life sciences & pharmaceuticals

81%| 46% 55%| 45% 57%| 41%

Outperformers
All others

33
Global cross-industry 65%| 52%
Enterprise grade AI

More outperforming healthcare payers organizations have

invested heavily in technology to build their data capabilities

Invested in technologies for strategic goals (Healthcare payers) Global

cross-industry
71%
Cloud computing
25% 2.8x more 2.6x more

57%
Process automation 2.4x more 1.8x more
23%

43% 2.4x more 2x more

Mobile technologies and applications
18%

36% 9x more 5x more

Artificial intelligence/cognitive computing
4%

12% 2 x more 2.1 x more

Internet of Things
6% Outperformers
All Others

34
Enterprise grade AI

More outperforming healthcare provider organizations have

invested heavily in technology to build their data capabilities

Invested in technologies for strategic goals (healthcare providers) Global

cross-industry
51%
Internet of Things
21% 2.4x more 2.1x more

47%
Process automation 1.6 more 1.8x more
29%

37% 1.8x more 2x more

Mobile technologies and applications
21%

37% 1.5x more 2.6x more

Cloud computing
24%

23% 2.9 x more 4.5 x more

Robots
8% Outperformers
All Others

35
Enterprise grade AI

More outperforming life sciences & pharmaceuticals organizations

have invested heavily in technology to build their data capabilities
Invested in technologies for strategic goals (Life sciences and pharmaceuticals)
Global
cross-industry
51%
Cloud computing 3.4x more 2.6x more
15%

48% 1.8x more 1.8x more

Process automation
27%

34% 2.6x more 2.1x more

Internet of Things
13%

9.3x more 5x more

28%
Artificial intelligence/cognitive computing
3%

18% 18 x more 4.5 x more

Robots
1%
Outperformers All Others

36
Enterprise grade AI Robust data foundation

“Enhanced treatment capabilities with the help of

data driven results thus helping in serving better to
our end customers”
- CCO, Leading Healthcare provider
Organizations see
a lot of value
being created by
data platform in “It sped up the process of interchanging cross border
information and refine strategic decision-making
the last 5 years which helps in organization growth.”
- CIO, Leading Life Sciences company

“It help us analyze potential data on people’s

medical histories which help us to suggest them most
feasible insurance plan.”
- CAO, Leading Healthcare payer

Source: 2018 AI Survey : A11: Value created by data platform during

past 5 years – Text

37
Enterprise grade AI

Leading healthcare payers are building enterprise-wide data

strategy and governance processes
Extent to which organization adheres to enterprise data management practices
(Healthcare payers)

More top performers

86% | 73%
Only authorized users can
consume the data from the
enterprise data lake
86% | 71%
Data is delivered to users in a
seamless experience
than others are highly
adhering to key data
management
practices
88% | 73%
Active governance is used to
create and maintain consistent,
complete and accurate business
data

38
Enterprise grade AI

Leading healthcare providers are building enterprise-wide

data strategy and governance processes
Extent to which organization adheres to enterprise data management practices
(Healthcare providers)

76% | 72%
Only authorized users can
consume the data from the
enterprise data lake
83% | 72%
Data is delivered to users in a
seamless experience
Top performers
are performing
better than their
peers when it
comes to the way
76% | 70% they are
Active governance is used to delivering data to
create and maintain consistent,
complete and accurate business their the patient
data

39
Enterprise grade AI

Leading life sciences and pharmaceuticals organizations are

building enterprise-wide data strategy and governance processes
Extent to which organization adheres to enterprise data management practices
(Life sciences and pharmaceuticals)

More top
performers than
others are highly
adhering to key
data
90% | 64% 87% | 65% 82% | 63% management
Only authorized users can Data is delivered to users in a Active governance is used to practices
consume the data from the seamless experience create and maintain consistent,
enterprise data lake complete and accurate business
data

40
Enterprise grade AI

Leading healthcare payer organizations focus on the highest

degree of rigor for data architecture

Level of rigor required while performing activities (Healthcare payers)

67% | 57% 43% | 49%

Proactively manage organizational change Define and measure data quality, and
as part of data-driven initiatives actively mitigate any data-quality issues at
the source

41
Enterprise grade AI

Leading healthcare provider organizations focus on the

highest degree of rigor for data architecture and data quality

Level of rigor required while performing activities (Healthcare providers)

48% | 35% 66% | 34%

Proactively manage organizational change Define and measure data quality, and
as part of data-driven initiatives actively mitigate any data-quality issues at
the source

42
Enterprise grade AI

Leading life sciences and pharmaceuticals organizations focus on

the highest degree of rigor for data architecture and data quality

Level of rigor required while performing activities (Life sciences and pharmaceuticals)

72% | 48% 52% | 40%

Proactively manage organizational change Define and measure data quality, and
as part of data-driven initiatives actively mitigate any data-quality issues at
the source

43
Enterprise grade AI

Leading healthcare payer organizations top barriers to

implement AI are consistent with the cross industry view
Barriers to implement AI (Healthcare payers)

Legal/security/privacy concerns about use of data and information 86%

68%

Regulatory constraints 76%

64%

Data governance and policies for sharing across enterprise boundaries 50%
with external partners 53%

Amount/availability of data to apply and draw context for decision­making 43%

35%

Availability of skilled resources or technical expertise 38%

50%

Degree of organizational buy-in/readiness/cultural fit 17%

44%

Availability of technology 12%

21%

Degree of executive support 12%

17%
Outperformers
Degree of customer readiness 7%
12% All Others

44
Enterprise grade AI

Leading healthcare provider organizations top barriers to

implement AI are consistent with the cross industry view
Barriers to implement AI (Healthcare providers)

Legal/security/privacy concerns about use of data and information 73%

44%

Regulatory constraints 63%

65%

Availability of skilled resources or technical expertise 43%

79%

Degree of customer readiness 33%

12%

Data governance and policies for sharing across enterprise boundaries 30%
with external partners 38%

Amount/availability of data to apply and draw context for decision­making 30%

29%

Degree of organizational buy-in/readiness/cultural fit 17%

48%

Availability of technology 13%

17%
Outperformers
Degree of executive support 10%
26% All Others

45
Enterprise grade AI

All life sciences and pharmaceuticals organizations see

regulatory concerns as top barrier to implement AI
Barriers to implement AI (Life sciences and pharmaceuticals)

Regulatory constraints 70%

78%

Availability of skilled resources or technical expertise 52%

62%

Legal/security/privacy concerns about use of data and information 44%

54%

Data governance and policies for sharing across enterprise boundaries 41%
with external partners 44%

Amount/availability of data to apply and draw context for decision­making 36%

43%

Degree of organizational buy-in/readiness/cultural fit 34%

38%

Degree of customer readiness 21%

26%

Degree of executive support 21%

23%
Outperformers
Availability of technology 20%
33% All Others

46
 Enterprise grade AI

A machine learning enabled solution for net sales forecasting and planning
analytics leverages internal and external inputs which are analyzed to offer
new insights across drug portfolios

Machine Learning Market Sensing Live Scenario Planning

Based Forecasting Signals Engine
Machine learning Increased forecast Frequently updated, Quantify impacts of events
enabled net sales accuracy and efficiency leveraging large
external datasets
and choices

forecasting and Forward-looking impact

of resourcing on sales Identify and manage
Assess broad ranges of
market possibilities
planning analytics built-in risks and opportunities Real time resource allocation

©2017 IBM Corporation

hypothesis

Results
Performance Machine learning On-demand Scenarios Captures sensitivity
analyzed in algorithms captures accurately predict the of client
context of the drug dynamics interplay of forces investments across
the market drug portfolio

48
47
48
47
Intensified concern
about skills
It’s less about labor
productivity – more about
talent development

48
Enterprise grade AI

Disruption owing to technology is impacting global skills in

three ways

• Demand for and types of skills required by industry are changing

• Availability of skills in labor markets is uncertain

• Quality of skills is being challenged

49
Enterprise grade AI

Healthcare payers are less concerned about having the right AI skill
base - legal, regulatory, governance & data issues are top of mind
Barriers to implement AI (Healthcare payers)

Legal/security/privacy concerns about use of data and information 86%

68%

Regulatory constraints 76%

64%

Data governance and policies for sharing across enterprise boundaries 50%
with external partners 53%

Amount/availability of data to apply and draw context for decision­making 43%

35%

Availability of skilled resources or technical expertise 38%

50%

Degree of organizational buy-in/readiness/cultural fit 17%

44%

Availability of technology 12%

21%

Degree of executive support 12%

17%

7% Outperformers
Degree of customer readiness 12%
All Others

50
Enterprise grade AI

The availability of skilled AI resources is less of a concern for

leading healthcare provider organizations than for their peers
Barriers to implement AI (Healthcare providers)

Legal/security/privacy concerns about use of data and information 73%

44%

Regulatory constraints 63%

65%

Availability of skilled resources or technical expertise 43%

79%

Degree of customer readiness 33%

12%

Data governance and policies for sharing across enterprise boundaries 30%
with external partners 38%

Amount/availability of data to apply and draw context for decision­making 30%

29%

Degree of organizational buy-in/readiness/cultural fit 17%

48%

Availability of technology 13%

17%
Outperformers
Degree of executive support 10%
26% All Others

51
Enterprise grade AI

Having the right skill base is a top concern for all life sciences and
pharmaceuticals companies implementing AI
Barriers to implement AI (Life sciences and pharmaceuticals)

Regulatory constraints 70%

78%

Availability of skilled resources or technical expertise 52%

62%

Legal/security/privacy concerns about use of data and information 44%

54%

Data governance and policies for sharing across enterprise boundaries 41%
with external partners 44%

Amount/availability of data to apply and draw context for decision­making 36%

43%

Degree of organizational buy-in/readiness/cultural fit 34%

38%

Degree of customer readiness 21%

26%

Degree of executive support 21%

23%
Outperformers
Availability of technology 20%
33% All Others

52
Enterprise grade AI

90% of healthcare and life sciences organizations believe AI

will have an impact on the demand for skills in the next 5 years

Organizations feel that there will be some impact on demand for skills
“We are continuously
focusing on the
strengths and
56% weakness of the talent
48%
within the organization
44% and accordingly we will
prepare them through
32%
28% 27%
our training programs,
workshops and on the
18%
15% job training sessions”
9%
6%
8%
5%
Head of Research &
4% 3%
1% Development, Leading Life
Sciences company
None at All Very little impact Some Impact Moderate impact Significant impact
Payers Providers LS & Pharma

53
 Enterprise grade AI
“Trained specialists are acquired from all fields for
discussions and better understanding”

“Organizational structure is redesigned to manage the

functioning and employees are engaged in training
sessions for learning.”

Many “Infusing modern techniques with

organizations appropriate support system and talented
have started to workpool.”

reskill teams,
“We, as a organization are thinking to start various
source new incentive programs to enhance skills and provide better
talent and services to customers with the changing technology.”
manage legacy
workforces
“Some sessions on artificial intelligence and computing
skills are given to employees so that the upcoming
generation be skilled for automation trends in the
market.”
Source: 2018 AI Survey : AI9B: Org actions to prepare for skills -
text

54
Enterprise grade AI

In Taiwan, where there is a shortage of doctors, caregivers can

efficiently provide for at-risk patients by automating a function
that is challenging and time-consuming for humans, and augment
AI helps augment the work performed by the caregiver. In turn, Toshiba, which
operates in an already saturated market, has expanded to a new
the work of industry – consumer health and wellness – with a subscription-
caregivers through based revenue stream.

providing alerts of To gain a real-time understanding of patients with heart

conditions, Toshiba Electronics Taiwan Corp, a subsidiary of
abnormal vital Toshiba, Japan, turned to cognitive computing capabilities and
signs the Internet of Things (IoT). Biometric sensors from wearable

©2017 IBM Corporation

devices collect a constant stream of data, such as heart rate and
blood oxygen.
Results
Trained to read and interpret patterns in this data, the cognitive solution
can distinguish with increasing accuracy between healthy and abnormal
patterns.

It accounts for individual health characteristics with a sophisticated

algorithm that adjusts the expected normal range based on a patient’s
initial readings.

In the event of abnormal readings, the system raises an alert to help

patients and caregivers take preventive action. 55
55
Enterprise grade AI

Getting Started

To take these ideas from concept to

“Enterprise-grade,” organizations
first need to

• Define an AI strategy to drive

change (e.g., creating the right
governance, operating model and
roadmap)
• Create a Cognitive Enterprise
“innovation platform” to drive
innovation, and
• Develop a Cognitive Enterprise
“factory” to industrialize and
scale – all underpinned by an
enterprise-wide AI platform

56
Enterprise grade AI

Key Questions

Focus: Which functions are your priority areas for AI and do they support
efficiency, profitable growth and/or customer satisfaction and retention?

Value: What are the top value drivers for your organization, and how do you
plan to measure AI benefits?

Data: Who owns and maintains your data, and how strong is your
organization’s data expertise?

57
Enterprise grade AI

Authors

Brian C. Goehring
Associate Partner, Cognitive Lead
IBM Institute for Business Value
goehring@us.ibm.com

Heather Fraser
Global Healthcare and Life Sciences Lead
IBM Institute for Business Value
hfraser@uk.ibm.com

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