Arjun Juneja, Chief Operating Officer, Mankind Pharma Ltd
In the past couple of years, the pharmaceutical industry has witnessed a rapid adoption of Generative Artificial Intelligence (GenAI) and advanced analytics, driven by the potential of these technologies to revolutionize various aspects of the sector. These cutting-edge tools offer pharma companies a plethora of opportunities to spur innovation, boost productivity, enhance customer experiences, and drive tangible business outcomes. According to McKinsey, the integration of advanced analytics could potentially enhance pharmaceutical companies’ earnings before interest, tax, depreciation, and amortization (EBITDA) by a substantial margin of 45-75% in the next decade.
The transformative impact of these technologies extends across the entire pharmaceutical value chain. From research and early development stages to manufacturing, supply chain management, commercial functions, and medical operations, the application of advanced analytics and AI is already yielding significant benefits. For instance, predictive modeling is aiding in the selection of lead molecule candidates, optimizing clinical trial parameters, and improving patient enrollment rates, ultimately increasing the success rate of new medical assets by 10-20%.
Moreover, in the realm of clinical trials, AI-driven tools are facilitating faster patient selection, reducing trial costs, and enhancing success rates by up to 10% in certain scenarios. On the manufacturing and supply chain front, advanced analytics are optimizing procurement processes, improving yield at production sites, and enhancing supply chain efficiency. In commercial and medical domains, analytics and AI are driving targeted customer engagement strategies, resulting in notable net revenue gains ranging from 5-10%.
Despite the vast potential of these technologies, many pharmaceutical companies have only begun to explore the possibilities of scaling up their analytics and AI initiatives enterprise-wide. To fully harness the value proposition, these companies must transition to modern, outcome-centric operating models that prioritize business impact.
A key strategy to achieve this transformation involves establishing cross-functional teams empowered to align efforts with overarching patient-centric objectives. Embracing Data Operations practices and tools is crucial to ensure seamless access to high-quality data across the organization, facilitating the development and deployment of advanced analytics at scale. Standardizing processes and implementing automation further streamline these efforts.
Furthermore, industrializing AI through the adoption of Machine Learning Operations (MLOps) principles is essential for building sustainable, compliant models integrated into core business operations. Investing in talent acquisition and retention strategies tailored for digital, analytics, and AI professionals is imperative, with innovative approaches like acqui-hiring emerging AI startups to bolster expertise.
Developing clear digital health strategies that integrate seamlessly with existing portfolios and commercial frameworks is another critical focus area. As therapies become more complex, digital solutions such as apps and sensing tools play a pivotal role in enhancing patient adherence and engagement. Companies excelling in designing and implementing digital health solutions are poised to provide superior patient support services and gain a competitive edge.
The potential impact of advanced analytics and AI on the pharmaceutical landscape is profound, promising disruptive innovations, personalized treatments, and optimized commercial operations. Embracing these technologies necessitates comprehensive organizational changes and the cultivation of new capabilities. Companies at the forefront of this transformation are positioned to lead the industry, offering tailored solutions that redefine patient care globally.
The future for these trailblazers is characterized by rapid growth, enhanced agility, and the ability to deliver unparalleled therapeutic value to patients worldwide. By leveraging the power of data and analytics, pharmaceutical leaders can drive remarkable scientific progress and usher in a new era of healthcare advancements. The imperative for action is evident, and the time to realize this vision is now.
Disclaimer: The views expressed are solely those of the author, and ETCIO does not necessarily endorse them. ETCIO disclaims any liability for any direct or indirect damages resulting from this content.
- Published On Jan 23, 2024 at 10:38 AM IST
