innovation and excellence drive life science technology
TRANSCRIPT
Innovation and Excellence Drive Life Science Technology InvestmentsScott Lundstrom, VP ResearchHealth Industry Insights – an IDC [email protected]
Health Industry Insights
An IDC Company
Premier global research and advisory firm in the health industryproviding integrated coverage of the life sciences, healthcare providers, and health plan payers.
Focus on the convergence of IT, business and science
Staff of life science and healthcare specialized analysts, researchers & consultants
Target audience includes:– Pharmaceutical & Biotech companies– Healthcare Providers– Payers– Health Industry Vendors– Technology Vendors
MarketAssessment
TechnologyDirections &
Trends
Outsourcing Strategies
Best Practices &
Benchmarking
BusinessPlanning &
Strategy
Health Industry Insights Portfolio
ClinicalDevelopment
Strategy& Technology
Healthcare Provider
IT Strategies
Healthcare Payer
IT Strategies
R&D Approval Mfg / SC DistributionSafety
CareDelivery
Care Management
ClinicalManagement
PopulationHealth Mgmt
Life ScienceBusinessSystems Strategy
WW Healthcare IT Spending Guide
IT Opportunity: Healthcare
WW LS IT Spending Guide
IT Opportunity: Life Science
Personalized Health
Worldwide Healthcare RFID OpportunityWorldwide Life Science RFID Opportunity
Life Science Leading Indicators Healthcare Leading Indicators
CIS MCS Future Products
Life Science IT Spending by Category
$0.0
$2,000.0
$4,000.0
$6,000.0
$8,000.0
$10,000.0
$12,000.0
$14,000.0
$16,000.0
2003 2004 2005 2006 2007 2008
SoftwareHardwareIT Services
$ M
illio
ns, U
SD
Total 2006 Life Science IT Spend$33,916,400,000
Source: Health Industry Insights, 2005 2nd Half, Worldwide Life Science IT Spending Guide
Life Science IT Spending by Region
0.0
5,000.0
10,000.0
15,000.0
20,000.0
25,000.0
30,000.0
35,000.0
40,000.0
2003 2004 2005 2006 2007 2008
Rest of WorldAP excluding JapanJapanWestern EuropeUnited States$
Mill
ions
, US
D
Source: Health Industry Insights, 2005 2nd Half, Worldwide Life Science IT Spending Guide
IT Budgets are GrowingExpected Change in Organizational IT Budget over the Next 12 Months by Segment
0
10
20
30
40
50
60
Overall IT Hardware Software Services
IncreaseStay the sameDecrease
Source: Health Industry Insights' 1Q06 Leading Indicators in Life Science IT Spending Survey
Budget Growth Drivers
0
10
20
30
40
50
60
70
80
1Q06 3Q05 1Q05
Replacing old technology
New projects
Company growth
Expanding installed base
Keeping pace with industry
Regulatory requirements
Company financialperformanceIndustry/economicperformance
Reasons for Expected Functional Area Budget Increase
Source: Health Industry Insights' 1Q06 Leading Indicators in Life Science IT Spending Survey
Technology Arc
Innovation Efficiency
Grid ComputingMobile ComputingService Oriented Architectures
Molecular ImagingSystems BiologyBiomarkersSafety SystemsSemantic WebRadio Frequency IdentificationProcess Analytical Technologies
Regional Health Information OrganizationsPersonal Health Record / Electronic Medical RecordRemote MedicinePay for Performance
StorageKnowledge ManagementAdvanced Analytics
Clinical Trial Management SystemsElectronic Data CaptureFDA E-SubmissionsLean Supply ChainSales and MarketingSix Sigma Manufacturing
Portals / Consumer Directed Health PlansHealth e-BusinessComputerized Physician Order EntryClinical SystemsCare ManagementPerformance Management
Business Process OutsourcingHigh Performance ComputingServer ConsolidationVirtualizationData Center Outsourcing
ERPClaims ProcessingPatient Billing
Excellence
Top Priorities
0 5 10 15 20
Research/science applications
Database/data mining
Data integration
Server and storage hardware
Clinical trials software
Security solutions
Network Equipment
Enterprise application software
Content/knowledge management
Project-oriented services
Server and storage software
Outsourcing services
Source: Health Industry Insights' 1Q06 Leading Indicators in Life Science IT Spending Survey
Basic Research: Planned Software Investment 2005 - 2006
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Datamanagementand archiving
Data miningand
visualization
Simulationand modeling
tools
Dataintegration
applications
Electronic labnotebooks
(ELN)
'Omics'analysis
LIMS None
Source: Health Industry Insights' 2Q05 Leading Indicators in Life Science IT Spending Survey
Systems Biology
Current use of computational biology/systems biology software
0 10 20 30 40
Don’t know.
Widespread adoption
Limited adoption
Evaluated, but not adopting
Evaluating
Aware of this technology, but isnot evaluating itNot aware of this technology
Source: Life Science Insights' 3Q05 Leading Indicators in Life Science IT Spending Survey
Molecular Imaging
Current use of molecular imaging technology in clinical trials
0 10 20 30 40 50
Widespread adoption
Limited adoption
Evaluated, but not adopting
Evaluating
Aware, but not evaluating
Not aware of this technology
Don’t know.
Source: Life Science Insights' 3Q05 Leading Indicators in Life Science IT Spending Survey
Data Integration Project Objectives
0%
5%
10%
15%
20%
25%
30%
35%
40%
Informationavailability for
enhanceddecision-making
Increasedcollaboration
Regulatorycompliance
requirements
Reduced timefor one or more
process(es)
Reduced costfor one or more
process(es)
Long-Term Storage and Data Archiving Strategy: Basic Research Sector
Rearchitect storage strategy to take advantage of new technologies
(50.2%)
Continue to add capacity to our existing source
solution (43.4%)
Increase outsourcing of our
storage (2.6%)
Not applicable (3.8%)
Compliance Drivers of IT Spending
0 5 10 15 20 25 30 35
Other/don't know
CDISC, SDTM, andother data standards
EMEA regulations
E2B compliance (AEs)
Sarbanes-Oxley
International regulations
Adverse event reporting
eSubmissions
Standardizing platformsand processes
Pharmacovigilanceand drug safety
Data integrity
New FDA regulations
21 CFR 11 compliance/data security
GMP, GCP, or GLP
(% of respondents)Source: Health Industry Insights' 2Q05 Leading Indicators in Life Science IT Spending Survey
Infrastructure Areas Planned for Investment in 2005 - 2006
0 10 20 30 40 50 60 70
Don't know
Other
Security
Networking
Server
Storage
(% of respondents)
Source: Health Industry Insights‘3Q05 Leading Indicators in Life Science IT Spending Survey
Use of Web Services Currently and in 12 Months
0 10 20 30 40 50 60 70 80
Don't know
No
Yes
(% of respondents)
CurrentlyIn 12 months
Source: Health Industry Insights' 3Q05 Leading Indicators in Life Science IT Spending Survey
Clinical Trials: EDC Use Now / In 12 Mos.Percentage of your organization's clinical trials that use electronic data capture (EDC)
0%
5%
10%
15%
20%
25%
30%
35%
40%
None less than25%
25% -49%
50% -74%
75% -90%
Essentiallyall
CurrentlyIn 12 Months
Source: Health Industry Insights' 2Q05 Leading Indicators in Life Science IT Spending Survey
RFID AwarenessPlease indicate your company's current use of RFID
Source: Health Industry Insights' 1Q06 Leading Indicators in Life Science IT Spending Survey
0 5 10 15 20 25 30 35 40
Don’t know.
My company has widespread adoption
My company has limited adoption
My company has evaluated it forpossible adoption, but not adopting
My company is evaluation it
My company is aware of thistechnology, but is not evaluating it
My company was not aware of thistechnology
%
RFID Planned Usage
05
101520253035404550 Biospecimen tracking
HTS experimentmonitoringHazardous wastetrackingRestricted materialmonitoringSample inventorycontrolCritical reagentmonitoringChain of custodysample managementNone of the above
%
Source: Health Industry Insights' 1Q06 Leading Indicators in Life Science IT Spending Survey
RFID Adoption Timing
00.5
11.5
22.5
33.5
44.5
5
ContainerPalletCaseUnit
How many years will it be before your company tags all products at the following levels?
Source: Health Industry Insights' 1Q06 Leading Indicators in Life Science IT Spending Survey
Top 10 IT Vendors in Life Sciences
$0
$500
$1,000
$1,500
$2,000
$2,500
Total Life Sciences Revenue
IBMHewlett-PackardCanonDell Microsoft FujitsuSun MicrosystemsCisco Systems Inc.NECSiemens
Source: Health Industry Insights
Questions?
For additional inquiry or to discuss research cited in this study, please call or email:
Scott [email protected]