New Oracle Report Shows that Life Sciences Organizations are Accumulating Data at Unprecedented Rates, but are Falling Short on Turning Data into Revenue
Life Sciences Executives Indicate They May Be Losing On Average an Incremental 20 Percent of Revenue per Year by Not Fully Leveraging Collected Information
Redwood Shores, Calif. – July 17, 2012
Today Oracle announced the results of its “From Overload to Impact: An Industry Scorecard on Big Data Business Challenges” report, which surveyed 333 U.S. and Canadian C-level executives from the life sciences industry and 10 other industries to determine the pain points they face regarding managing the deluge of data coming into their organizations and how well they are using that information to drive profit and growth.
Overall Key Findings
data deluge is here.
Ninety-three percent of C-level life sciences executives surveyed say their organization is collecting and managing more business information today than two years ago, by an average of 78 percent more.
For all industries collectively, 94 percent of C-level executives say their organization is collecting and managing more business information today than two years ago, by an average of 86 percent more. Executives note they see the biggest data growth areas coming from customer information (48 percent), operations (34 percent) and sales and marketing (33 percent).
for improvement. Life sciences executives say they are not prepared to handle the increasing amount of data they face.
Twenty-nine percent of life sciences executives give their organization a “D” or “F” in preparedness to manage the data deluge. Forty-seven percent give their organization a “C” or lower. Only 10 percent of executives give their organization an “A” in preparedness.
Life sciences respondents say they are unable to realize, on average, 20 percent of additional revenue per year, translating to an average of $98.5 million per year (figure based on the average revenue of organizations surveyed) – by not being able to fully leverage the information they collect.
For all industries collectively, 60 percent of executives surveyed give their organization a “C” or lower in preparedness to manage the data deluge, and 93 percent believe their organization is losing revenue opportunities – representing on average, 14 percent of revenue per year. On average, private-sector organizations with revenues of $1 billion or more say they are losing approximately 13 percent of their annual revenue as a result of not being able to fully leverage their information. That translates to $130 million each year for a $1 billion organization. Only 8 percent of executives give their organization an “A” in preparedness.
do not have or cannot get to the timely information they need. Life sciences executives are frustrated with their organization’s data gathering and distribution capabilities.
Respondents from the life sciences industry note they are most frustrated with their inability to give business managers access to the information they need without relying on the IT team, with 30 percent citing this as a key issue.
Rounding out the top data management frustrations, 27 percent say the information is no longer timely when it gets to business managers and 27 percent say their current systems are not designed to meet the specific needs of the industry.
applications are important.
Seventy-three percent of life sciences organizations use industry-specific applications or software to help leverage information to make strategic decisions.
Life sciences executives, however, still see room for improvement in their industry-specific applications, with 30 percent looking for industry-tailored applications to enhance research and development, 27 percent seeking for more industry-specific project management solutions and 20 percent looking for workforce and asset management platforms more specific to their industry needs.
Data is hard at work in some areas; still facing challenges in others.
Life sciences executives note that they are making the best use of their data to move the business forward in the areas of research and development (33 percent), regulatory submissions/compliance (27 percent) sales/marketing (23 percent) and customer service (23 percent).
Life sciences respondents call out supply chain management (37 percent), regulatory submissions/compliance (37 percent), clinical trial management (33 percent) and research and development (30 percent) as areas in which their organizations could benefit most from additional business intelligence and analytical solutions.
a path forward. Life sciences industry respondents note their organizations must improve information optimization.
Top priorities include improved training to help make sense of information (50 percent), more skilled business analysts to help manage the volume of information (50 percent) and improved tools to collect more accurate information (47 percent).
access the full report – which delves extensively into how prepared organizations within each industry are for the data deluge and the resources they need to enhance their ability to leverage incoming data – visit here.
“Life science is a data-intensive industry ‒ from discovery to regulatory compliance to sales and marketing. Pharmaceutical companies as well as biotechnology firms are struggling to make the most of their data and translate it into innovation and new revenue. This study underscores these challenges and identifies executives’ strategies and priorities to put big data to work for their organizations, including deploying industry-specific solutions and analytical applications that deliver timely information when and where it is needed,” said Neil de Crescenzo, senior vice president and general manager, Oracle Health Sciences Global Business Unit.
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