普华永道：20th CEO Survey Key findings from the healthcare industry.pdf(1).pdf
new treatment?:Healthcare findings from the 20th Annual Global CEO Survey20th CEO Survey:Healthcare industry key findingsGlobalisation:Underway but under siege?/The short term:Prospects for growth/Further out:Addressing new challenges/The best of times,the worst of times56healthcare CEOs interviewed in 27 countries80%of healthcare CEOs are worried about geopolitical uncertainty86%of healthcare CEOs see technology reshaping their industry in the next five yearsIn 20 years inside the mind of the CEO.Whats next?,we explore what 1,379 CEOs in 79 countries in 2017 think about three imperatives:managing man and machine to create a workforce thats fit for the digital age;preserving organisational trust in a world of increasingly virtual interactions;and making globalisation work for everyone by ensuring the benefits are distributed more fairly.The challenge common to all three imperatives is leadership.In a time of heightened anxieties juxtaposed with the highest levels of transparency we have experienced,how leaders engage with employees and stakeholders(both public and private)has never been more important.The world has changed more in the last 20 years than in any other previous two decades in its history.Globalisation and technological advances have transformed how and where we live and work,the balance of global political power has shifted,more people than ever are living in cities,and the world is facing the enormous challenge of combatting climate change.The business world has also been confronted by these same megatrendssome have created new risks;others have led to significant opportunities.No organisation has been immune.About the 20th Annual Global CEO SurveyThe ascendancy of corporations around the globe has boosted prosperity:its created jobs,raised living standards and delivered pioneering products and services that have improved peoples lives.Now,however,the world is at a crossroads,and CEOs recognise that.The momentum behind globalisation and technological change shows no sign of slowing,but the direction of travel is no longer as clear as it was.We could be moving towards a more inclusive society,or we could be facing a more dangerous and divergent world,with a much greater risk of conflict.Specifically for CEOs,it is time to raise the role of business in society and engage more broadly to help government and the public.It is time to step forward with their own solutions and collaborate with multiple players in society to boost trust and build the world we need for the futurebecause if executed properly,business is a force for good.In this years Survey we canvassed the views of 56 Healthcare CEOs from 27 countries about where we are now,what the future may hold,and what business can do to make a positive difference.Healthcare CEOs fromcountries about where we are now,what the future may hold,and what business can do to make a positive difference.56272Healthcare industry key findingsIn this years Survey we canvassed the views of Globalisation:Underway but under siege?Business has unquestionably benefited from globalisationnot just trade,more connectivity and greater productivity,but lower barriers to entry mean that agile start-ups can compete effectively with multinationals.In our survey,64%of Healthcare CEOs think globalisation has facilitated greater connectivity,and 59%see a greater flow of goods and trade as a result,both broadly in line with the global results.Companies,therefore,have been one of globalisations big winners.But CEOs across all sectors have not been blind to the challenges;in fact ever since the financial crisis,CEOs have been warning that despite the fact that nearly a billion people have been lifted out of poverty,the gap between rich and poor was growing.Only 14%of Healthcare respondents believe globalisation is helping to close this gap,and only 32%believe its creating a more skilled and educated workforce.Likewise only 11%say its promoted the development of fairer tax systems versus 14%globally.Healthcare CEOs are even more pessimistic on climate changeonly 7%believe globalisation is helping there,compared with a global average of 15%.CEOs long-held scepticism has been amply borne out by recent events.Greater international competition has led to job losses in some countries,and increased migration has put pressure on public services.In emerging economies,the middle class is growing and doing well,but many millions of people have not seen the same improvement in their living standards.2016 was characterised by political upheavals that went against most expectations,and the rise of a populist sentiment which is leading to significant political instability,and could also impact economic prosperity by forcing governments to become more protectionist.No wonder Healthcare CEOs are so concerned about uncertain economic growth:82%are worried about this,but they are more concerned than their peers about geopolitical uncertainty80%versus 74%and markedly more so about social instability:79%compared with 68%(see Figure 1).But at the very top of their list is over-regulation,which is hardly surprising,given the nature of the healthcare market(84%as against an average of 80%).They agree with their peers in seeing more closed national policies as detrimental to growth(57%).Figure 1:Over-regulation and uncertain economic growth are top concerns for Healthcare CEOsQ:How concerned are you about the following economic,policy,social,environmental and business threats to your organisations growth prospects?3Healthcare industry key findings64%of Healthcare CEOs think globalisation has facilitated greater connectivityOver-regulation84%Top ten threatsUncertain economic growth82%Geopolitical uncertainty80%Social instability79%Availability of key skills77%Cyber threats75%Speed of technological change71%Changing customer behaviour70%Readiness to respond to a crisis68%Inadequate basic infrastructure64%Source:PwC,20th Annual Global CEO SurveyBase:All respondents(Healthcare,2017=56,2016=70,2015=68)Top four risers since 2015Social instabilityInadequate basic infrastructureCyber threatsSpeed of technologicalchange792017672016622015642017562016542015752017692016712015712017642016602015The short term:Prospects for growthCEOs may be more worried about the big picture,but they remain sanguine about the prospects for their own businesses.Fifty-two percent of Healthcare CEOs are very confident about revenue growth over the next three years,up from 37%last year,and 46%are equally positive about the next 12 months,which is noticeably higher than the global average of 38%.The most optimistic sector of all is Pharmaceutical and Life Sciences,at 63%for the next 12 months and 61%for the three-year horizon.In terms of internal priorities,Healthcare has the same top three priorities as the global average,and broadly tracks that average on organic growth(77%versus 79%),and cost reductions(68%versus 62%)but is significantly more focused on new strategic alliances(59%versus 48%).The latter has been a strengthening trend for some time,reflecting the evolution of new business models and more flexible ways of working.As Alex Gorsky,CEO of Johnson&Johnson,says,“At Johnson&Johnson,our R&D model is not only research and developmentits also search and development.We build relationships and connections with academic centres,with the venture world,with other entrepreneurs who are creating new technologies but who may not have the clinical development,the regulatory capabilities,the commercial capabilities that J&J possesses to scale on a global basis.By finding partners who need our skills as much as we need their knowledge,we bring those two things together rapidly,allowing us to deliver safe,effective products to consumers and patients around the world.”In terms of the key markets for the future,Healthcare is targeting the US(43%),China(23%),and the UK(20%).Only 5%are focusing on India or Japan,and Germany is noticeably lower than it is globally(9%versus 17%).of Healthcare CEOs are very confident about revenue growth over the next three yearsof Healthcare CEOs are focused on new strategic alliances.52%59%4Healthcare industry key findingsFigure 2 More Healthcare CEOs believe technology will have a greater impact on the competition over the next 5 years than the global averageQ:To what extent do you think technology will change competition in your industry over the next 5 years?Source:PwC,20th Annual Global CEO SurveyBase:All respondents(Global=1379;Healthcare=56)It will completely reshape competition in my industryIt will have a significant impact on competition in my industryIt will have a moderate impact on competition in my industryIt will have noimpact on competition in my industry23%25%52%61%23%13%2%2%HealthcareGlobalFurther out:Addressing new challengesThe themes we discussed here were threefold:Technology,Talent,and Trust.TechnologyMost CEOs believe technology has changed the shape of competition in their industry:in Healthcare,54%say it has done so either significantly or completely in the last two decades.And the speed of change is accelerating:a huge 86%of Healthcare CEOs see technology reshaping competition in the next five years(see Figure 2).Alex Gorsky of Johnson&Johnson puts it this way:“How can we better use Big Data?How can we better use artificial intelligence to identify the next breakthrough compound or to understand all the clinical evidence available in a particular molecule?How can we take sensing,visioning technology and embed it in our existing metal technology to create the next approach to managing hip,knee,or spinal replacements?Last but not least,how can we better communicate with our customers?When you think about all the ways we have to engage with customersthe physicians,the nurses,and the consumers who are using our productsincredibly exciting opportunities open up.”This new reality is reflected in the fact that 71%of Healthcare respondents are concerned about the speed of technological change,and 70%worry about shifts in customer behaviour.However,they are markedly more concerned about cyber threats(75%versus 61%).Given the sensitivity of healthcare data,this comes as no surprise,and according to PwCs The Global State of Information Security Survey,2016 saw some of the biggest healthcare data breaches in history.1 Innovation was the second most important strategic priority for Healthcare(20%),with digital and technological capabilities scoring 13%,and human capital topping the list at 21%.As Gorsky states:“Innovation is our lifeblood.I cant think of a more exciting time to be living than now,just in terms of scientific breakthroughs.Were not only focusing on the products that were innovating on,were innovating how we innovate.”CEOs are also meeting these challenges by enhancing their personal digital skills.Healthcare CEOs are extremely confident about those skills(73%believe they are strong here versus 55%globally),55%are on social media,and 73%use digital media more than print.57%are using home automation.1 PwC,Transformation and turnaround in cybersecurity:Healthcare payers and providers;Key findings from the Global State of Information Security Survey,20165Healthcare industry key findingsFigure 3 Healthcare CEOs are using technology to enhance their workforce training,retention and recruitmentQ:To what extent do you agree or disagree with the following statements about your organisations talent activities?TalentOne theme thats been emerging over the last few years of the Survey is the gradual convergence of the technology and talent agendas.As more and more tasks can be automated or taken on by machines,companies are reshaping their workforces and individual roles are changing.This year,79%of Healthcare respondents told us they have changed their people strategy to reflect the skills and employment structures they need for the future,which is in line with the global average.However,the majority of global CEOs are actually planning to hire more people this year,not fewer,and Healthcare is noticeably ahead of the average:64%intending to increase recruitment over the next 12 months,compared to 52%in general,and the equal highest of any sector.That said,59%of the sectors CEOs are exploring the benefits of humans and machines working together(compared to an average of 52%)and 52%are considering the impact of artificial intelligence on future skills needs,which is much higher than the 39%average figure(see Figure 3).Likewise,of the 13%of Healthcare respondents who plan to cut their headcount,57%cite automation and other technologies as a factor to at least some extent(see Technology in healthcare:Then and now box-out for more detail).Source:PwC,20th Annual Global CEO SurveyBase:All respondents(Global=1379;Healthcare=56)We promote talent diversity and inclusiveness91%87%HealthcareGlobalWe have added digital training to our learning programmes82%65%Weve changed our people strategy to reflect the skills and employment structures we need for the future79%78%We use technology to improve our peoples wellbeing77%63%We move talent to where we need it77%76%We seek out the best talent regardless of demographics or geography73%74%Were rethinking our human resource function61%60%Were exploring the benefits of humans and machines working together59%52%We use data analytics to find,develop and keep people59%50%Were considering the impact of artificial intelligence on future skills needs52%39%We rely more on contractors,freelancers and outsourcing21%28%39%6Healthcare industry key findingsTechnology in healthcare:Then and nowTwenty years ago,much of the technology now routinely employed in healthcare was still the stuff of science fiction:telemedicine;phone apps to improve fitness and monitor chronic conditions like diabetes;websites and communities for specific disease areas;wearables that monitor specific biometrics or symptoms and relay that information to a doctor;and handheld tricorder scanners that can capture,analyse,and report key health data.As Dr.Peter FitzGerald,Founder and Managing Director of Randox Laboratories,observes,“In the next 20 years the role of doctor will seriously change,and the patient/doctor balance will change in favour of the patient.Thats a very good thinglives will be saved and in many cases,costs will also come down.”As this suggests,while technological innovations are transforming how healthcare is delivered to the patient and improving outcomes for them as individuals,technology is also reshaping how healthcare businesses operate.Electronic records make it easier to track and analyse patient data(and 87%of physicians in the US use them,as of 20152);working practices are becoming more streamlined which means decisions can be made quicker.Some systems,for example,combine data from the patients records with clinical expertise,external research and data,and then identifies potential treatment plans for a patient.At the same time,online portals facilitate patient communications and appoi
