87% of Top 300 Pharma Companies in Europe and US have a Poor Digital Culture that Inhibits Innovation 1st June 2021
87% of pharmaceutical manufacturing companies admit they have a poor digital culture and know it holds back digital transformation and undermines revenues, according to new research by Aspen Technology, a global leader in asset optimisation software.
Conducted among 300 senior pharmaceutical industry decision-makers in the UK, US, Germany, France, Spain and Sweden, the research reveals that just 13% of organisations fit the description of “digital culture leaders”, with confidence in adopting new technologies such as artificial intelligence (AI).
Two-thirds of respondents (66%) admit their company’s digital skills with cutting-edge tools such as AI and machine learning (ML) are either poor or merely adequate. This is reflected in reduced revenues. Whereas 38% of digital leader companies saw revenues increase by up to 10% over the last 12 months during the pandemic, only 12% of the digital laggards in the rest of the sample achieved similar financial results.
“The pandemic has shown how manufacturers relying on rudimentary IT such as spreadsheets cannot carry the industry forward,” said David Leitham, senior vice president and general manager pharma, AspenTech. “Companies that are unable to tap into data insights or establish predictive maintenance, along with other AI-powered technologies will not achieve the speed of development and rollout the market now demands.”
Half of all respondents (50%) admit they are hesitant or lack confidence about AI and ML adoption. Only 35% say their companies have decentralised the kind of decision-making that generates agility and innovation. A quarter (25%) admit they struggle with centralised and bureaucratic processes.
“Digital leaders have a better sense of what data can do,” added Leitham. “Data is the thread that runs through organisations’ ability to innovate, use AI and ultimately to respond to changes in demand or market disruption effectively.”