73% think AI will revolutionize life sciences industry practices, creating new business models: KPMG global tech report

New Delhi: Globally, the life sciences sector is working on improving operations and creating new value by transforming digitally. In a highly regulated sector where companies are often fragmented and siloed, transforming at scale can be difficult. For these reasons, it can be helpful for tech function leaders to compare their decision making against their peers in the sector and other industries.

To better understand how life sciences organizations are navigating the complexities of digital transformation, balancing speed, security, and deriving value from their tech investments, KPMG International has unveiled a report titled – ‘KPMG global tech report: Life sciences insights’. The insights in this report were derived from the KPMG global tech report 2024, a survey of 2,450 technology leaders, including 123 senior life sciences technology function leaders from 26 countries across 8 industries. This report examines the views of the life sciences technology function leaders from around the world that include chief digital officers, CIOs, CTOs, CISOs, chief AI officers and others. This report contains valuable insights into how life sciences organizations are navigating the complexities of digital transformation and covers topics that include technology investment decision making, data, AI and cyber security.

Key findings: What is on the minds of life sciences technology function leaders?

• 63 percent say that risk aversion by their organizations’ senior leadership teams is delaying digital transformation journeys — making life sciences the sector most likely to cite this concern.

• Only 59 per cent say their tech investment decision-making processes usually result in sound decisions that lead to valuable outcomes.

• 73 per cent think AI will revolutionize industry practices, significantly enhancing efficiency and creating new business models.

• 40 per cent of life sciences tech leaders are planning to balance legacy systems and new tech, which is 14 percentage points higher than the cross-sector average.

• Life sciences leads all industries surveyed in prioritizing and investing in edge and quantum computing, VR/AR/XR, spatial computing, XaaS technology and modern delivery.

Vijay Chawla, Partner and Head – Life sciences, KPMG in India said, “Many companies in the life science sector are embracing Digital transformation to accelerate innovation and bring products to market faster. However, transformation initiatives come at a cost and organizations are increasingly mindful of their impact on margins. A key insight is that a siloed and fragmented approach to transformation often results in higher costs and inefficiencies. This report provides guidance to help companies make more strategic and cohesive investments in critical areas such as data, Ai and cyber security ultimately enabling more effective and sustainable digital transformation.”

This report also offers actionable recommendations for life sciences organizations aimed at helping them to address their technology challenges.

• To help support transformation at scale in fragmented and siloed organizations, life sciences companies should:

• • Examine their existing technology capabilities by conducting comprehensive assessments to identify strengths and weaknesses and determine future state capabilities.

  • Develop enterprise-wide digital transformation strategies that seamlessly integrate technology aimed at capturing more value, improving business performance and increasing enterprise flexibility and agility.

• To help improve technology investment decision-making, life sciences companies should:

• • Put a value stream-based lens on transformation strategies to identify technology solutions that help to increase the flow of value along the end-to-end value stream.

  • Improve their data maturity by developing the data strategies and governance models needed to translate large, complex data landscapes into real, actionable insights

• To help fill in cyber risk gaps, life science companies should:

• • Reframe the way cyber security is viewed, rather than a factor that slows down transformation

  • Adopt more comprehensive approaches to protecting infrastructure, data and ecosystems

  • Integrate AI and machine learning into cyber security solutions to enhance system efficiency and enable predictive analysis

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