In recent years, the healthcare industry has experienced a significant surge in data volume, positioning it among the top sectors contributing to the world’s data volume. By 2025, it is expected to account for approximately 30% of the world’s data, with a projected annual growth rate of 36%. This growth has created increasing demand for the use of healthcare data in various aspects, including medical research, pharmaceutical development, AI algorithms, and operational enhancements for healthcare providers.
Launching data-driven healthcare offerings presents several advantages for providers. It not only opens up a profitable business area but also fuels innovations in drug discovery, medtech, and AI development. Furthermore, it can lead to improved patient outcomes in the long run.
The surge in healthcare data availability also brings the promise of enhanced operational productivity and efficiency for healthcare providers, leading to the creation of new revenue streams for both data contributors and users. Research conducted by L.E.K. Consulting indicates that healthcare data sets can contribute to quicker drug or device development, as well as faster patient recruitment for clinical trials.
The demand for data-led offerings is substantial, provided that the data pool is compelling. Utilizing this opportunity necessitates careful consideration of the right technology platform and route-to-market strategy. Healthcare providers can opt for direct-to-end users, data intermediaries, or a mixed approach, each with its own implications on prices, dataset sizes, and launch timelines.
Moreover, successful harnessing of this opportunity requires significant investment in data expertise, technology platforms, and specialized business development and data commercialization teams. Selecting the appropriate route-to-market strategy necessitates thorough analysis of implementation costs and monetization profiles.
Crucially, the data set must comply with privacy and security regulations and be standardized to a format transferable across data originators and geographies. This involves ensuring patient consent, anonymization, and adherence to regulations, which is essential when dealing with large healthcare data sets.
While data-driven offerings present lucrative opportunities, they also come with challenges. Healthcare providers need to address concerns regarding data privacy and security, data quality and completeness, as well as standardization and scope. Overcoming these challenges is crucial for the successful launch and expansion of data-driven offerings in the healthcare industry.
Our Perspective
The advancement of data-driven healthcare offerings presents promising opportunities for improved patient treatments, expedited development of new drugs, medtech solutions, and AI applications. It also emphasizes the need for careful planning, business development investment, and compliance with privacy and security regulations to successfully launch and expand data-driven offerings.
Pinnacle Digital Advisors