Busting the innovation myth | Market Insights™
May 8, 2017
Most executives believe innovation is important and measurable, so why aren’t companies innovating?
Most executives believe innovation is important and measurable, so why aren’t companies innovating?
Did you know that global funding for startups dipped more than 20 percent in 2015-16? But that life sciences startups were a rare breed that continued to find favor with those who hold the purse strings? Do you want to know who these startups are? Read on.
First, the context: while life sciences firms make extremely fat margins and sit on huge piles of investment dollars that focus on research, increasing regulatory interventions, slowing growth rates, and growing consumerism have become their new normal. To chart out a new growth path in the face of these challenges, life sciences firms are increasingly looking at tapping the innovation ecosystem that exists outside their legacy environments.
Startups are playing an important role in this transformation journey. By introducing technology solutions that address CXOs’ key imperatives, startups are bringing innovation right to life sciences firms’ doorsteps.
To understand the dynamics of this trend, Everest Group analyzed over 150 start-ups in the life sciences industry. The results of our analysis are encapsulated in our recently published report, “Hot Life Sciences Startups: Friends, Foes, and Frenemies in the Innovation Ecosystem.”
While funds are drying up globally for start-ups, life sciences start-ups continue to find favor with venture capitalists. Niche therapeutics within life sciences such as cancer therapies and medical devices are attracting investments like never before.
The majority of the focus is on biopharmaceutical start-ups that are aligned to three value chain functions: drug discovery/product development, clinical and pre-clinical trials, and sales and marketing. The start-ups leverage analytics, cloud computing, social media, mobility, and automation to create significant impact in the three life sciences segments.
Everest Group assessed the startups against three key criteria – level of business disruption, level of technology disruption, and market buzz. Our scoring methodology led us to select the following as the top 20 “Hot Life Sciences Startups” for 2017.
These start-ups provide enterprises with enhanced access to bleeding edge innovation. This is evident with various life sciences firms investing actively in start-ups through corporate venture arms. For service providers, the startups provide an attractive channel to catalyze their innovation journey with a view towards partnership or acquisition. They also help providers move away from their cost-sensitive business model to focus on growth and capability development.
What’s your take on the life sciences innovation ecosystem and seminal role of start-ups? Do you have direct experience with any of them? We’d love to hear your story!
Startups build coherent CRM solutions that leverage machine learning and predictive analytics to improve outcomes and IoT and mobile technologies to combat counterfeit drugs
Startups leverage Natural Language Processing (NLP), analytics, social-media, and IoT technologies to deliver patient-centricity and solve data standardization and real-time data capture and processing issues
Startups leverage analytics, cloud-computing, and automation principles to help life sciences companies overcome innovation challenges
The life sciences industry is facing challenges, and technology is a critical tool in addressing them. Alliances with startups can fuel innovation.
Enterprises’ technology investment priorities largely focused on innovation
Accenture, Atos, HCL Technologies and IBM are named Leaders in Everest Group inaugural PEAK Matrix™ list of top Internet of Things service providers
Given the huge potential of the Internet of Things (IoT)—most of which is yet to be realized—enterprises are making significant investments in partnership with key service providers to explore new growth areas. As a result, Everest Group expects that the IoT services market will more than double in the next three years, reaching US$18 billion by 2020.
Enterprises are exploring ways that IoT can be used to achieve higher efficiency, enable data-driven decision-making and develop new revenue opportunities through customer-centric products and services.
**Read more about how enterprises are “Seizing the IoT Opportunity”**
With enterprises and service providers considering IoT as their next big opportunity, Everest Group has identified intriguing trends that are emerging from the current adoption pattern:
“Enterprises are increasingly adopting IoT to improve operational efficiency and create disruptive business models,” said Chirajeet Sengupta, vice president at Everest Group. “A number of players across the IoT stack are making huge investments to grab a larger share of the pie, but most fall short on expectations of a transformation partner. Service providers can use this opportunity to draw on their engineering and services expertise and embrace new engagement models to help enterprises with long-term innovation.”
The current use cases of IoT are dominated by the need of enterprises to drive operational efficiency. However, we do expect enterprises to leverage IoT to fundamentally transform their business going forward. In fact, Everest Group has identified four distinct classifications of enterprises based upon the business objectives they hope to accomplish through their IoT initiatives:
“Enterprises should adopt IoT across all categories, which will lead to new revenue streams and adoption of new business models,” added Sengupta.
Announcing the IoT Services Market Leaders
In its inaugural Internet of Things PEAK Matrix assessment, Everest Group explores the vision, services suite, scale of operations and domain investments of 16 IoT service providers. Everest Group has identified the following Leaders, Major Contenders and Aspirants:
***Download Complimentary 4-page PEAK Matrix™ Preview Here***
Trends in the IoT services market as well as detailed insights into each of the 16 providers listed above are provided in the 92-page report, “Internet of Things Services — PEAK Matrix™ Assessment and Market Trends — IoT: Bigger Than the Hype.” A preview report is available for complimentary download here.
*** Download Publication-Quality Graphics ***
High-resolution graphics illustrating key takeaways from this report can be included in news coverage, with attribution to Everest Group. Graphics include:
About the PEAK Matrix™
The Everest Group PEAK Matrix is a proprietary framework for assessing the relative market success and overall capability of service providers based on Performance, Experiences, Ability and Knowledge. Each service provider is comparatively assessed on two dimensions: market success and delivery capabilities. The resulting matrix categorizes service providers as Leaders, Major Contenders, and Aspirants. Companies that demonstrate strong upward movement in successive reports are recognized as Star Performers. Everest Group recently announced a recalibrated methodology, in which innovation, intellectual property and technology take center stage.
Design studios leverage design thinking concepts to fuel innovation and collaborate with client teams to solve their pressing problems
Customer-centric innovation is ‘do or die’ proposition for retail banks; Everest Group reveals what’s working and who’s winning from a digital strategy perspective.
Banks are aggressively investing in digital technology to boost customer loyalty and gain a competitive advantage. In which technology strategies are they investing, and what is paying off? Everest Group answers these questions in recently published research that identifies the digital banking leaders in the United States and Europe.
“Digital innovation and customer experience is the only way forward for retail banks—it is a matter of do or die,” said Jimit Arora, partner at Everest Group. “They need to innovate consistently and add functionalities across the customer touchpoints to offer best-in-class user experience as well as defend their business against neobanks.
“At the same time, retail banks are facing increased pressure to invest across ‘run-the-business’ initiatives—updating outdated, legacy systems; implementing stronger cybersecurity; observing stringent compliance and reporting requirements; and operating an extensive branch network, just to name a few! This is why retail banks are aggressively investing in digital technology. They must leverage technology quickly and wisely, or they will be left behind.”
Using its proprietary Ability | Performance | Experience (APEX) Matrix™, Everest Group has analyzed the digital banking functionalities of 26 large retail banks in the United States and 18 large retail banks in Europe.
According to Everest Group, the current technology priorities for retail banks include:
“We use the APEX Matrix to assess the extent to which investments by retail banks in these digital functionalities are yielding business results,” said Sarah Burnett, vice president at Everest Group. “This assessment is particularly vital to the retail banking industry today, as competitors in a mature industry seek to differentiate themselves among the consumer base by leveraging digital technology. The APEX Matrix reveals what the leading banks are doing from a digital perspective, and what’s paying off. These reports also assist senior stakeholders to understand the difference in adoption of digital technologies across different geographies.”
The following institutions have been identified by Everest Group as Digital Banking Leaders in their respective geographies:
United States:
Europe:
The complete results of this research are published in two reports available at everestgrp.com:
About Everest Group’s APEX Matrix™
The APEX Matrix is a first of its kind ‘open-source’ evaluation of the digital effectiveness of the largest retail banking operations. The research methodology for the APEX Matrix—designed to spotlight consumer engagement and experience—relies solely on publicly available information and takes into account only those aspects of digital functionality that a customer could evaluate.
The X-axis of the APEX Matrix measures digital functionality across mobility, social, online and branch/ATMs from the vantage point of a consumer. The Y-axis measures the business impact by assessing adoption levels, customer experience scores, brand perception and financial impact. Across the two axes, Everest Group evaluates more than 70 parameters to identify the leaders, innovators, optimizers and aspirants for digital banking capabilities.
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