Globally, the healthcare and life sciences industries are witnessing a fresh wave of developments and innovations. Mergers, acquisitions, and deals in the life sciences space were the “buzz” in the previous decade – which plummeted in 2021 following the global pandemic.
Now, business deals in this industry have seen an upswing in 2023 – and continue to encourage in 2024. In the face of mounting challenges like high interest rates and regulatory constraints, both these sectors are demonstrating intense competition for valuable assets. According to the 2024 Bain report, these industries have a cash reserve of $171 billion in 2023. The war chests are huge and the leaders are not afraid of spending money to inorganically drive forward their growth agenda.
This is driving the upswing in dealmaking in 2023. According to McKinsey, the value of business deals in life sciences jumped by 23% in the year 2023. Besides, 80% of healthcare executives are expecting more deals in 2024.
One exciting trend is that healthcare and life sciences companies are actively looking for technology-driven assets that can redefine their operations. From a technologist’s perspective, let’s examine the recent developments in the healthcare and life sciences space.
How is technology driving innovation in these industries?
According to the World Health Organization, “innovation in the digital sphere is taking place at an unprecedented scale.” Data-driven technologies are driving innovations in both these industries. As per estimates, the healthcare industry generates 30% of the overall data volume globally.
By harnessing healthcare data, life sciences companies now have the potential to develop new therapies and elevate patient outcomes. Among the latest developments, AI-driven algorithms are enabling the early detection of lung cancer. As compared to conventional systems, AI-powered healthcare systems are 17% more effective at detecting cancers by analyzing the patient’s chest X-rays.
With the massive data being generated, cloud-driven technologies are essential for storing and analyzing data in a cost-effective mode. Healthcare companies are driving the shift to cloud platforms – with 81% reported to have started their cloud transformation. Besides cost-efficient data storage, cloud platforms are enabling collaboration among stakeholders in the healthcare and life sciences domain. A Google Cloud survey found that cloud-enabled patient overview impacts medical interactions in the form of improved patient outcomes and diagnosis.
In 2024 and beyond, Business Intelligence (BI) is set to transform data-driven decision-making in these industry sectors. By applying BI-powered analytics, healthcare companies are creating innovations such as:
- Accelerated drug discoveries by using data from clinical trials and genomics.
- Predictive analytics to identify “high-risk” patients and recommend preemptive treatments.
- Self-service tools for patients to monitor and control their health data.
Additionally, immersive technologies like Augmented reality (AR) and Virtual reality (VR) are being deployed across healthcare applications. For instance, VR-enabled simulations are advancing precision surgeries and treatments for mental ailments. Enabled by VR technology, surgical robots can immerse in the patient’s body and replicate the human surgeon’s physical movements.
Similarly, AR in healthcare is transforming medical education. Medical students can learn by visualizing and interacting with 3D models of human body anatomy.
With the explosion of patient data, real-world data (RWD) is improving the patient experience by accessing data from electronic health records, smart wearables, and insurance claims. A Deloitte Insights survey reported that 90% of participants used RWD to make informed decisions. Besides, RWD creates a common data model, thus eliminating data silos and integrating various data sources.
Why do companies need to work with technology partners?
As new technologies emerge, there’s an immediate need for digital transformation in the healthcare and life sciences industries. Before the global pandemic, companies in these industry sectors had realized they could not continue with “traditional” systems. The pandemic only accelerated this transition.
In the post-pandemic phase, tech-enabled innovations like telemedicine, electronic health records, and precision medicine emerged as “necessities.” While technologies do present companies with new avenues of opportunity, they also raise important concerns such as:
- How to build affordable innovations.
- How to find the right talent to onboard next-gen technology.
- How to build a technology environment that provides both agility and reliability.
In recent years, managed service providers (MSPs) have provided companies with reliable and cost-effective technology solutions. However, traditional MSPs suffer from many limitations such as:
- Lack of industry-specific expertise
- Lack of flexibility in customer service
- “One-size-fits-all” approach
However, MSPs with industry-specific expertise can deliver value with their:
- Strategic relationship with technology experts
- Customized adaptable industry-specific technology solutions
- Centers of Excellence (COE) aligned with industry best practices
- Easier augmentation of technology skills
In a constantly changing technology landscape, an expert partner can help companies navigate industry-specific challenges and provide the right solution based on their needs.
Conclusion
From a technology perspective, both healthcare and life sciences are “ripe” for the next wave of digital transformation. Technologies like business intelligence, cloud computing, and data management are key to digital transformation in these sectors.
As an established technology provider, Trinus can help you in your digital journey. With our extensive industry experience, we have helped our healthcare and life sciences customers gain a competitive advantage.
Looking for the right technology partner? We can help you. Contact us now.