ibm institute for business value healthcare cognitive future

©2015 IBM Corporation 1

Your Cognitive Future Executive Perspective: Healthcare

July, 2015


Six disruptive forces are forcing healthcare industry to focus on three key areas

Rapid

digitization

Increasing

digitization is

creating new

modes of

interaction, which

increases

unstructured data

from disparate

sources

Patients are

expecting

personalized

treatment,

transparency,

quality of service,

cheapest cost

and integration

Rising regulatory

complexity

Rapidly changing

regulatory

environment is

forcing

healthcare

providers to

reinvent their

business models

Increasing

demand

Increasing

pressure on the

system due to

growing world

population, more

lifestyle disease

and new type of

epidemics

Shortage of

skilled resources

High levels of

retirement,

attrition from

work pressure

and new

requirements is

creating a

chronic shortage

of resources with

the right skills

Provide better collaboration between

patients, providers and payers to

deliver effective care

Engage

Decide

Discover

Provide ability to digest vast amounts

of data to identify new avenues and

implement new ideas

Provide personalized, contextual,

evidence-backed recommendations at

the point of care

Increasing cost

pressure

Increasing cost

of treatments as

a result of

specialty and

preventive drugs,

new

technologies, etc.

Changing

consumer

expectations

Source: IBM Institute for Business Value Analysis 2015


Consumers are demanding more personalized care but healthcare executives are challenged on how to deliver this

of the Healthcare CXOs believe personalized care is most

important consumer expectation1

Engage

Industry need

Source: [1], [2]: IBM Institute for Business Value Cognitive Computing Survey 2015

Percentage of healthcare executives with reasons why they

are not competitive enough in delivering consumer service2

Achievement gap

54%

54%

63% Self Service

Issue resolution with speed

Personalized care

How can healthcare organizations provide better personalized care to its consumers?

The key question

64%


The healthcare industry is actively pursuing innovation but is challenged by insufficient skills and tools as well as complacency

of the healthcare CXOs are actively pursuing

product and service innovation1

Discover

Industry need Achievement Gap

Source: [1],[2],[3]: IBM Institute for Business Value Cognitive Computing Survey 2015

49%

49%

56%

56% Insufficient skills

Organizational

complacency

Lack of business case

Lack of analytical tools

Percentage of healthcare CXOs on what are the key

challenges to pursue disruptive innovation2

How can healthcare organizations free themselves from constraints of traditional capabilities and foster innovation?

66%

The key question


Effective decision making is important but healthcare executives lack confidence in making strategic and cost reduction decisions

in USA is preventable medical error in 20131

#3 Killer

Decide

Industry need

Sources: [1]:Forbes, Stunning News On Preventable Deaths In Hospitals, Sept. 2013, [2],[3]: IBM Institute for Business Value Cognitive Computing Survey 2015

Achievement gap

of the healthcare

executives are not

confident in taking cost

reduction decisions2

⅔

of the healthcare CXOs are not

confident in taking decisions for

spending, strategy, delegation, &

resolution of consumer issues3

53%

How can healthcare organizations build capability of efficient decision at right time?

The key question


One way of answering these questions is through cognitive computing which…

Engage Decide Discover

Acts as a tireless agent

providing expert assistance

to human users

Makes the conversation in natural means, such as -human language

Understands consumers from past history and brings the context and evidence based reasoning in the interaction

Helps people discover insights that perhaps could not be done by even the most brilliant human beings

Finds insights and

connections, understands the vast amounts of information available

Visualizes possibilities and

validates theories like experts

Acts as a tireless agent

providing expert assistance

to human users

Makes the conversation in natural means, such as -human language

Understands consumers from past history and brings the context and evidence based reasoning in the interaction

Source: IBM Institute for Business Value Analysis 2015


Healthcare executives believe cognitive computing will play a disruptive role in the industry and plan to invest in this capability soon

Most of the executives are somewhat familiar with cognitive computing1

They also believe cognitive computing will

play a disruptive role in the healthcare

industry 2

95% executives indicated that they are likely

to invest in cognitive computing in future

with the majority doing so in the next 4

years 3

83%

Source: IBM Institute for Business Value Cognitive Computing 2015.

84%

21%

46%

28%

0%

10%

20%

30%

40%

50%

1-2 yrs 2-4 yrs >=5 yrs


To learn how your organization can use cognitive computing to open up opportunities in the healthcare ecosystem, please contact:

Heather Fraser

Global Life Sciences and Healthcare Lead

IBM Institute for Business Value

[email protected]

David Zaharchuk

Research Lead,


[email protected]

Sandipan Sarkar

Cognitive Computing Leader,


[email protected]

Visit our website in late summer to read full

report on this topic:

https://ibm.biz/congitivefuture

Contact study authors

mailto:[email protected]




