"Faced with the need to quickly transform their businesses, pharmaceutical companies, biotech firms, medical device manufacturers, diagnostics companies, and other life sciences organizations must determine whether to focus on their core business, diversify into a broader set of products, or move into the services or solutions business to help improve profitability and enhance their role in the healthcare ecosystem," says an IBM summary of the recently released report: "Fade or Flourish? Rethinking the role of life sciences companies in the healthcare ecosystem."

Conducted by the IBM Institute for Business Value, the report examines the challenges and changes facing the industry and the choices that organizations must consider today and in the future. It also looks at four fundamental questions driving the strategic direction of life sciences companies over the next decade: 1) their role in the future healthcare ecosystem; 2) the business the company wants to be in; 3) changes to the global innovation model; and 4) how to take advantage of growth in the emerging markets.

"Unprecedented change is underway in the world of global health," says Katherine Holland, general manager, IBM Global Life Sciences Industry. "Without a doubt this is this most challenging time the life sciences industry has ever faced but change of this nature has historically provided tremendous opportunities for innovative leaders." The IBM Study indicates that:

• Life sciences companies should completely rethink how they engage with the healthcare ecosystem including individuals, governments, healthcare providers, insurers, or other life sciences companies.
• New services, in addition to their life-saving products, should be developed to help patients deal with their illnesses and reduce the need for treatment in hospitals. These companies should also take a larger role in testing and monitoring patients.
• Companies must work more efficiently with healthcare provider organizations and both government and private payers to develop a sophisticated infrastructure to serve them better.
• Collaboration is critical across both research and development, and sales and marketing, to determine the real needs of the market.
• In a highly interdependent healthcare ecosystem, it is essential to share and analyze information. Combining and mining vast quantities of data uncovers clues that would otherwise be impossible to detect across discovery, development, marketing, and the supply chain.