1.
1
REDEFINING BOUNDARIES
Insights from the Global C-suite Study
Figure 1. Life Sciences CxOs believe convergence is by far the top trend
Life Sciences Industry
REDEFINING BOUNDARIES
Insights from the Global C-suite Study
We surveyed 143 top executives from the Life Sciences industry for our
latest C-suite Study. So how do they differ from CxOs in other sectors?
Twin forces
CxOs say industry convergence is the key
trend reshaping the business landscape –
and Life Sciences CxOs are utterly
convinced that’s the case. They think the
shift in consumer purchasing power will
also have a major impact, as patients get a
greater say in how they’re treated and
outcomes-based pricing takes hold (see
Figure 1).
Industry
convergence
66%
83%
50%
50%
46%
30%
43%
53%
32%
22%
25%
26%
24%
15%
The
“anywhere”
workplace
Rising
cyber risk
The
redistribution
of consumer
purchasing
power
The
sustainability
imperative
Alternative
finance and
financing
mechanisms
The sharing
economy
Global
Life Sciences

2.
2
REDEFINING BOUNDARIES | Insights from the Global C-suite Study
Life Sciences – Industry Point of View
Yet, even though they’re acutely aware of the extent to which the boundaries
between different sectors are blurring, Life Sciences CxOs still expect most of
the competition to come from the pharma and healthcare ecosystem. While
CxOs in other sectors are steeling themselves to deal with new rivals from
unexpected quarters, Life Sciences CxOs seem relatively unfazed about
invaders entering their patch (see Figure 2).
Figure 2. Life Sciences CxOs aren’t looking out for rivals from ‘left field’
They’re also much more relaxed about regulation, market pressures and
macro-economic factors than they were two years ago. Technology, they told
us, is now the main game-changer – and that’s the first time they’ve ever put it
ahead of regulatory concerns (see Figure 3).
Global
Life Sciences51% 34%
other industries
29% 54%
More competition expected from…
within the same industry
2015 Life Sciences
2013 Life Sciences
69%
87%
62%
81%
41%
54%
40%
47%
Figure 3. Life Sciences CxOs say tech has now
become a bigger influence than regulation
72%
68%
Technology factors
Regulatory concerns
Market factors
People skills
Socio-economic factors

3.
3
REDEFINING BOUNDARIES | Insights from the Global C-suite Study
Life Sciences – Industry Point of View
Star techs
Predictably, Life Sciences CxOs are far more excited about the potential of
bioengineering than their peers in other industries. They’re also interested in
cloud computing, new manufacturing technologies and mobile solutions as a
means of delivering digital care (see Figure 4).
Figure 4. Life Sciences CxOs are betting on bioengineering
They plan to review their offerings and partnerships in light of the
technological advances they envisage. But they’re less likely to revisit
their delivery channels or the customer segments they target, be these
patients, physicians or payers (see Figure 5).
Cloud
computing
and
services
63%
50%
61%
42%
57%
39%
37%
26%
28%
43%
23%
8%
12%
71%
10%
12%
Mobile
solutions
Internet of
Things (IoT)
Cognitive
computing
Advanced
manufac-
turing
technologies
New energy
sources and
solutions
Bio-
engineering
Man-
machine
hybrids
Global
Life Sciences
68%
56%
61%
67%
60%
44%
57%
55%
Figure 5. Life Sciences CxOs are focusing
on reassessing their offerings
73%
81%
Product/service portfolio
Operating model
Partnerships
Delivery channels
Revenue model
52%
52%
Customer types or segments

4.
4
14%
less
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REDEFINING BOUNDARIES | Insights from the Global C-suite Study
Life Sciences – Industry Point of View
They also realize new technologies bring new risks. Like Healthcare CxOs,
they’re especially concerned about regulatory compliance violations. But
loss of intellectual property and financial risks also prey on their minds.
That said, Life Sciences CxOs are much bolder than their peers in many
other industries. We identified a small group of highly successful
enterprises in our overall sample. Torchbearers, as we call them, are
particularly comfortable leading the way, when they’re launching new
business models or new offerings. Most Life Sciences CxOs also aspire
to be market pioneers (see Figure 6).
Figure 6. Most Life Sciences CxOs aim to reach the market first
Global Torchbearers
Life Sciences
80%
69%
You can see the various installments of our latest Global C-suite Study
at ibm.com/csuitestudy