The document discusses six disruptive forces affecting the healthcare industry, emphasizing the need for innovation, personalized care, and effective decision-making in response to evolving consumer expectations and regulatory challenges. It highlights the potential of cognitive computing to assist healthcare executives in overcoming barriers, such as lack of skills and tools, and improving decision-making capabilities. The majority of healthcare leaders familiar with cognitive computing plan to invest in this technology within the next four years.

1. ©2015 IBM Corporation1
A booster shot for health and wellness
Your cognitive future in the healthcare industry

2. ©2015 IBM Corporation2
Six disruptive forces are forcing healthcare industry to focus on three
key areas
Rapid
digitization
Increasing
digitization is
creating new
modes of
interaction, which
increases
unstructured data
from disparate
sources
Patients are
expecting
personalized
treatment,
transparency,
quality of service,
cheapest cost
and integration
Rising regulatory
complexity
Rapidly changing
regulatory
environment is
forcing
healthcare
providers to
reinvent their
business models
Increasing cost
and demand
Increasing
pressure on the
system due to
growing world
population, more
lifestyle and
chronic diseases
and new type of
epidemics
Shortage of
skilled resources
High levels of
retirement,
attrition from
work pressure
and new
requirements is
creating a
chronic shortage
of resources with
the right skills
Provide better collaboration between
patients, providers and payers to
deliver effective care
Engage DecideDiscover
Provide ability to digest vast amounts
of data to identify new avenues and
implement new ideas
Provide personalized, contextual,
evidence-backed recommendations at
the point of care
Increasing cost
pressure
Increasing cost
of treatments as
a result of
specialty and
preventive drugs,
new
technologies, etc.
Changing
expectations
Source: IBM Institute for Business Value Analysis 2015

3. ©2015 IBM Corporation3
Consumers are demanding more personalized care but healthcare
executives are challenged on how to deliver this
Engage
Industry need Achievement gap
54%
54%
62% Self Service
Issue resolution with speed
Personalized care
 How can healthcare organizations provide better personalized care to its consumers?
The key question
64%
of the healthcare CXOs believe personalized care is an
important consumer expectation today1
Percentage of healthcare execs that do not believe their
organizations are competent in delivering customer service2
Source: See speaker notes

4. ©2015 IBM Corporation4
The healthcare industry is actively pursuing innovation but is
challenged by insufficient skills and tools as well as complacency
of the healthcare CXOs are actively pursuing
product and service innovation1
Discover
Industry need Achievement gap
49%
49%
56%
56%
Insufficient skills
Organizational
complacency
Lack of business case
Lack of analytical tools
 How can healthcare organizations free themselves from constraints of traditional capabilities
and foster innovation?
66%
The key question
Percentage of healthcare CXOs on what are the barriers
to implement disruptive innovation2
Source: See speaker notes

5. ©2015 IBM Corporation5
Effective decision making is important but healthcare executives lack
confidence in making strategic and cost reduction decisions
in USA is preventable medical error in 20131
#3 Killer
Decide
Industry need Achievement gap
⅔ 53%
 How can healthcare organizations build capability of efficient decision at right time?
The key question
of the healthcare
executives are not
confident in taking cost
reduction decisions2
of the healthcare CXOs are not
confident in taking spending
decisions and strategic business
decisions2
Source: See speaker notes

6. ©2015 IBM Corporation6
One way of answering these questions is through cognitive
computing which…
Engage DecideDiscover
Source: IBM Institute for Business Value Analysis 2015
 Acts as a tireless agent
providing expert assistance
to human users
 Carries a conversation
naturally, e.g. in human
language
 Understands consumers
from past history and
enriches interactions with
context- and evidence-
based reasoning
 Helps people discover insights
far above human levels
 Finds insights and
connections, understands the
vast amounts of information
available
 Visualizes possibilities and
validates theories like experts
 Offers evidence-based
recommendations
 Evolves continually towards
more accuracy based on
new information, outcomes,
and actions
 Provides traceability to audit
why a particular decision is
made

7. ©2015 IBM Corporation7
Healthcare executives believe cognitive computing will play a
disruptive role in the industry and plan to invest in this capability soon
… of healthcare executives familiar with
cognitive computing believe it will have a
critical impact on the future of their
business1
… of healthcare executives familiar with
cognitive computing believe it will play a
disruptive role in the healthcare industry1
95% of healthcare leaders, who are familiar
with cognitive computing intend to invest in
cognitive computing in future with the
majority doing so in the next 4 years2
81%
Source: See speaker notes
84%
1-2
yrs
3-4
yrs
>=5
yrs
21%
46%
28%

8. ©2015 IBM Corporation8
To learn how your organization can use cognitive computing to open
up opportunities in the healthcare ecosystem, please contact:
Heather Fraser
Global Life Sciences and Healthcare Lead
IBM Institute for Business Value
hfraser@uk.ibm.com
David Zaharchuk
Research Lead,
IBM Institute for Business Value
david.zaharchuk@us.ibm.com
Sandipan Sarkar
Cognitive Computing Leader,
IBM Institute for Business Value
sandipan.sarkar@in.ibm.com
Visit our website to read full report on this
topic:
http://ibm.biz/cognitivehealth
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