The life sciences industry, like many others, faces broad disruption and challenges on fronts ranging from technology to regulation to product resourcing. Traditionally, innovation has been a key driver of success for life sciences organizations, and it will continue to play a critical role for an industry that seeks to sustain this momentum.This report, the third of the Innovating Life Sciences series, identifies five strategies that differentiate the more successful academic life sciences institutions from the rest.

1. Five effective innovation approaches for academia
The evolution of life science ecosystem

2. ©2016 IBM Corporation2
Two recent IBV reports, Reinventing Life Sciences and New and
Necessary, outline a new approach to structuring innovation
 77% of life sciences executives agree that their
research is not aligned with their business
strategy
 70% of industry executives told us their
organizational culture makes it difficult to be
innovative
 64% of life sciences executives said they
struggle to establish partnering relationships
Download the report at
ibm.biz/reinventls
Source: IBM Institute for Business Value “Reinventing Life Sciences ; IBM Institute for Business Value “New and Necessary”
 73% of surveyed outperformers in life sciences
used a portfolio approach to innovation, versus
just 32% of underperformers
 Life sciences outperformers were 52% more likely
than underperformers to have “meeting patient
expectations” as a top innovation goal
 63% of the life sciences outperformers told us that
open innovation plays an important role in the
innovation process.
Download the report at
ibm.biz/lifescience

3. ©2016 IBM Corporation3
Building upon their innovation heritage, the
most successful life sciences companies will
adopt a more open, collaborative approach
to innovation, expanding beyond traditional
boundaries1
Individual organizations, including academic
institutions, will be confronted with and need to
define a new role within emerging life
sciences and healthcare ecosystems
The target innovation model will help life
sciences companies pursue innovation in a
more organized, systematic ecosystem-centric
way2
The target innovation model details structures and processes that
help life sciences formalize innovation more effectively
Target
Innovation
Model
Strategy
Collaboration
&
Connectivity
Tools
&
Assets
Skills
&
Capabilities
Culture
Performance
Metrics
Organization
&
Governance
Processes
Source: IBM Institute for Business Value [1] “The New Ecosystem Model”; [2]“Reinventing Life Sciences”
Adopting an explicit model supports a more comprehensive approach to innovation
But there is more - Our research also revealed
innovation lessons for academic institutions
involved in life sciences research

4. ©2016 IBM Corporation4
…we found that five distinct innovation strategies differentiate the
most successful academic institutions from others
Source: IBM Institute for Business Value Analysis 2015
Major performance categories1
Outperformers
52%
26%
Organizations that achieved high efficiency
Organizations with average efficiency
Peer Performers
22%
Organizations that achieved low efficiency
Underperformers
 Inculcate a collaborative and
open culture
 Leverage technology to innovate
 Follow a patient-centric
approach
 Prioritize projects and embrace
agility
 Measure innovation
performance

5. ©2016 IBM Corporation5
So how are you using innovation to differentiate yourself from your
competitors?
Key questions
How open is your institution’s innovation
structures and processes?
To what extent does your institution leverage
technology in innovation processes?
To what extent is your institution’s approach to
innovation patient-centric?
How do you prioritize innovation projects & persuade
faculty to wind down unsuccessful initiatives?
Is your institution’s innovation approach outcome
oriented?

6. ©2016 IBM Corporation6
Heather Fraser
Global Life Sciences & Healthcare Lead
IBM Institute for Business Value
hfraser@uk.ibm.com
Anthony Marshall
Strategy Leader
IBM Institute for Business Value
anthony2@us.ibm.com
Teri Melese
Assistant Vice Chancellor, Industry Research Alliances
Associate Professor, Medicine and Rady School of Management
UC San Diego
tmelese@ucsd.edu
Key contacts
To download the report click here
ibm.biz/lsacademia

7. ©2016 IBM Corporation