Why Innovation Is Hard in Life Sciences, and What to Do About It | Tenthpin

The shift to patient centricity, AI, and digital ecosystems is disrupting the Life Sciences industry. What was once a product-driven innovation model is now rapidly evolving in a new direction. Innovation today goes far beyond the pipeline. It includes the intelligent use of data, digital solutions, and enterprise technology platforms.

In this new era, intelligent transformation is not optional. The use of data is a strategic imperative to stay competitive. Yet, despite this urgency, many Life Sciences companies still struggle to innovate effectively.

The innovation pressure cooker: What’s driving the need?

If we lift the lid on innovation in Life Sciences and have a peek inside, we can see a variety of gears that are churning away in the minds of CIOs and other stakeholders who are critical to implementing innovation. Right now, 80% of life science leaders see accelerating digital transformation as a key trend that impact their industry.

Rising patient expectations for personalization and speed is driving innovation. The reality is that patients expect the same tailored experiences that they find in other sectors like finance and retail. Personalized cell & gene therapies are a part of this new era of patient centric treatments; the need to guarantee that the right patient gets the right treatment at the right time and at the right quality.

Complex and evolving regulatory demands are also at the steering wheel. New frameworks for AI, biotech, and more are putting more pressure on Life Sciences stakeholders to adapt to a new landscape so they can deliver services that are compliant and of high quality.

The shift from volume to value-based care is also a driver, with patient experience, satisfaction, and reported outcomes now carrying much more weight in evaluating therapies and interventions. Quality of life metrics and patient feedback are being actively incorporated into value assessments and regulatory approvals; meaning that Life Sciences organization have to move from quantity to quality quickly to meet demands.

The need for real-time data and intelligent decision-making is a key driver for innovation too. Why? Because leveraging data & analytics capabilities radically improves products and services, creating greater business value which ultimately speeds up innovation and boosts patient outcomes.

Finally, the competitive pressure from faster, more digitally native entrants is another driver for innovation. Having a competitive edge is key to staying ahead in the Life Sciences game. Those that align their services with the digital world will be the ones to reap the benefits.

Common innovation challenges in Life Sciences

The needs driving innovation in Life Sciences are one thing. The challenges that prohibit Life Sciences from implanting innovation that achieves better outcomes are a different matter. Here are some of the main challenges:

• Too many options, too little clarity: Navigating hundreds of “innovations” without a clear view of what truly matters is never a good start. But this can’t be helped when there are too many innovations and buzzwords filling up space. Which direction is the right one? Without a clear framework, Life Sciences companies can often waste time and resources on “technology tourism” rather than applying a focused approach that fits their needs.
• Tech doesn’t match the business: Off-the-shelf solutions don’t always address Life Sciences-specific needs. The industry is, after all, highly regulated with its own requirements. Not all tech can account for complex compliance requirements, data sensitivity, or the nuances of clinical supply, manufacturing, or patient services.
• Innovation silos: Too often, innovation can happens in isolated departments. IT pushing a digital agenda while other parts of Life Sciences companies are focusing on operational continuity. Without alignment, even the best ideas struggle to gain traction. That, inevitably, leads to unfulfilled impactful change that benefits patients and business outcomes.
• Data dilemmas: Disparate systems, poor data governance, and manual workflows prevent Life Sciences companies from turning their vast amounts of data into insight. Think of all those data points that can be harnessed with the right systems and architecture put in place. Without these insights, essential innovation stalls and gaining a competitive edge falls by the wayside.
• Compliance bottlenecks: GxP and other regulatory frameworks are essential. Of that there can never be any doubt. But they can also be seen as barriers to change. This often leads to risk-averse cultures where innovation is delayed or blocked entirely. Innovation and compliance go hand-in-hand, so finding a way to balance innovation that drives positive change but abides by regulations in the Life Sciences industry is key.
• Implementation fatigue: Digital transformation is a term that has been beaten around too often. A term that used to inspire change and a new way of doing things now feels like a warning shot to “overwhelming new processes”, “failed initiatives” or “ROI goals not met”. Getting teams across Life Sciences organization excited about innovation is difficult if all they’ve seen are projects go wrong or pains not being subsided.

How to proceed with innovation

So what’s the next step? How can Life Sciences organizations, operating in a highly regulated industry, overcome the key challenges and address their needs by driving innovation? Here’s what Life Sciences organizations need to do:

Separate “the signal from the noise”

Remember, not all innovation is equal. And not all of it is relevant. With a constant flood of new technologies and ideas, it’s easy to lose focus or invest in initiatives that don’t work.

A clear business-driven innovation strategy

Real innovation starts with a clear understanding of the problem to be solved e.g. inefficiencies in batch release to blind spots in clinical supply visibility. When innovation is driven by business needs, Life Science organizations will discover many benefits.

Make the most out of your SAP investments and existing data

Most large Life Sciences companies have been running SAP for many years and already have powerful enterprise platforms. But these are often underutilized. Building on existing systems and data, Life Sciences organizations can reduce risk, improve supply chain efficiency, and increase patient outcomes.

Fill the gaps

To innovate successfully, Life Sciences companies need to identify the gaps that are present in the market, as well as in their processes and services. Quite often, the low-hanging fruit is the easiest to find and the best place to start.

Create new competitive advantages

In a rapidly evolving industry, sometimes the right solution simply doesn’t exist yet. In these cases, innovation becomes an act of creation, not just selection. Life Sciences organizations that lead the market are those willing to define new industry standards.

Want to explore these points further? Check out our next blog here.