The State of the Industry - 2022

January 12, 2023

The State of the Industry - 2022

Tags:

AI/ML
Corporate

In late 2022, we surveyed a group of life science professionals to gather a comprehensive view of the industry’s approach to IoT and Industry 4.0. With pharma, biotech, generics manufacturers, and researchers all represented, we were able to get a clearer picture of the expectations, plans, goals, and methods of the industry as a whole, providing insight into what the future holds for life science manufacturers.

Questions and Answers

Please rank-order the type of technology standard in which your company is investing over the next 12-18 months.

What we learned: Our respondents are primarily investing in SaaS-based solutions, followed by on-prem technology then managed services. Though the rankings are clear, they are close, indicating that the industry as a whole is taking a broad approach to investment.

SaaS-Based solutions/application

On-prem technology

Managed services

Which of the following statements best describes your company's progress toward digitally transforming your manufacturing?

What we learned: The broadest segment of respondents are just beginning their journey into digital transformation. Only about 1 in 3 companies have a dedicated budget for exploring digital transformation.

State of the Industry Digital Transformation & Prioritization

What are your top five concerns (in order of importance) when considering smart equipment and software systems providers for your plant operations?

What we learned: Data integrity and integration capability are the most important concerns for our respondents. These two concepts go hand-in-hand for assuring data quality, revealing the importance the industry assigns to ensuring accuracy.

The top five concerns are:

What is the main operational challenge you are experiencing when implementing Pharma 4.0 Technologies? (Pharma 4.0 is a framework for adapting digital strategies to the unique contexts of pharmaceutical manufacturing)

What We Learned: Most of our respondents are chiefly concerned about their ability to integrate new systems into old, as they don’t want to lose historical data or capabilities.

Have you applied, or do you have a plan in the near future (6-12 months from now) to apply Artificial Intelligence (AI) to GxP data to improve manufacturing performance and outcomes?

What We Learned: Respondent opinion is neatly split on the introduction of AI in the near-term. Based on previous answers regarding data quality, AI analysis is likely not fully trusted for manufacturing data.

Which of these statements reflects how far along you are in your journey towards Pharma 4.0?

What We Learned: Most of our respondents are either still managing processes using spreadsheets or lack central management capabilities. Only about 1 in 4 respondents has centralized data, and less than 1 in 10 has real-time visibility. Due to rigid regulations, new technology adoption has always been slow for pharma manufacturers. These answers demonstrate that.

How much has the pandemic changed your company's perspective on the digitization of manufacturing facilities?

What We Learned: The vast majority of respondents are investing in more digital capabilities due to the pandemic. About 1 in 10 plan to focus on externalizing to CMOs and CDMOs. For most respondents, the pandemic will have a lasting impact on their processes and will likely drive further innovation.

Please rank the areas below in order of importance. Which areas would benefit the most from increased digitization?

What We Learned: Plant floor and supply chain management are considered to be most apt for digitization. Quality control was the most popular second choice for our respondents. Equipment maintenance and packaging are considered to be less likely to benefit from digital technologies, as they are physical processes.

State of the Industry Digital Transformation & Prioritization

Would your company prefer to partner with one vendor that can offer an end-to-end solution, or with established leaders for each of the required pieces (data ingestion, analytics, predictive maintenance, etc.) to drive its transformation towards pharma 4.0?

What We Learned: Our respondents generally prefer an all-in-one approach to pharma 4.0, but there are still many that prefer specialists in each sector (data ingestion, analytics, predictive maintenance, etc.). As end-to-end solutions are still relatively rare for pharma 4.0, this preference is likely rooted in previous experience.

In order of importance, please rank the top four areas your company has been prioritizing, based on the adoption of Pharma 4.0 technologies?

What We Learned: No one answer was selected much more frequently than the rest, again demonstrating that pharmaceutical manufacturers tend to approach industry 4.0 in unique ways. In order, but with fairly equal weights, our respondents listed:

How important is it to your company to work with a vendor with an in-depth understanding of Life Science regulations / process optimization vs. broad experience across manufacturing in other industries?

What We Learned: Our respondents typically expect a broad swath of experience from their vendors, but there are still many that prioritize compliance or industry experience.

If you work in a pharma company or sponsor, which were the three most important factors when deciding which contract manufacturer (CDMO/CMO) to work with?

What We Learned: Despite the countless unique approaches to pharma 4.0, dedication to quality standards remains a common thread for pharma manufacturers. While reduced prices, reputation, and time-to-market play significant roles, standards most often take top priority. The top five are:

Parting Thoughts: In the course of the survey, our team gained a better idea of what really drives digital transformation for the life sciences. While technology adoption remains scattered across different methodologies, the answers given in this survey indicate that the mainstream adoption of Pharma 4.0 is well underway. In coming years, we expect to see a more standardized approach being developed, but in the meantime, industry leaders are showing a great deal of ambition and innovation as they introduce technology that works within the confines of GxP compliance.

Catherine Balistreri
Head of Marketing
catherine.balistreri@aizon.ai