A new survey from KPMG LLP’s CEO Outlook suggests that investments into digital transformation in the life science industry may pay off slower than was once expected. While last year’s survey reported that 25 percent of life science CEOs in the U.S had significant positive return on investment in digital transformation, none have seen ROI this year.
Artificial intelligence and other emerging technologies are becoming increasingly popular in the life sciences industry, as 30 percent of CEOs have already automated their processes with 23 percent of CEOs piloting programs to implement new technologies. However, a majority of CEO do not expect to see a positive return on investment this year.
KPMG life sciences advisory leader suggests that the industry needs to take a comprehensive approach to investing in technology and strengthen the skillsets necessary to meet the future of the market. 80 percent of CEOs surveyed see technology adding jobs to the life sciences sector and while returns may not be apparent this year, many expect returns in the next three years.
“This is a reality check about investing in technology,” said Justin Hoss, KPMG’s life science technology leader. “Moving to a digital enterprise is more than treating technology as a widget. It entails a holistic approach from how people work to how to engage patients. Pockets of tech implementation is not true digital transformation. That is just bolting on technology on top of existing processes.”
