Patients or Patents? New Andersen Survey Reveals What Matters Most To The 21st Century Healthcare Community

Apr 24, 2001, 01:00 ET from Andersen

    CHICAGO, April 24 /PRNewswire Interactive News Release/ -- The most
 critical challenges facing pharmaceutical, biotechnology and medical products
 companies over the next two to three years are intellectual property and
 patent protection, enterprise technology, e-commerce, and the astronomic
 growth of biotechnology and genomics, according to a recent Andersen survey
 that captured the insights and expectations of senior executives from across
 these healthcare industry sectors.
     Recognizing that healthcare is no longer "business as usual," Andersen's
 Pharmaceutical, Biomedical and Health Services practice sought insights on the
 issues and challenges facing an industry that is in a state of accelerated
 transformation.  The survey -- conducted by Knowledge Systems & Research,
 Inc., (KS&R) -- asked 272 senior industry executives from across North America
 to identify trends and challenges that are driving priority changes in their
 organizations' business strategies.
     "As technology and science converge to revolutionize the industry,
 competition has intensified and financial pressures are increasing," said Ed
 Giniat, managing partner of Andersen's Pharmaceutical, Biomedical and Health
 Services practice, (formerly known as the firm's Healthcare Industry group).
 "This research identifies the key strategic concerns of healthcare leaders in
 key parts of the world, and suggests that the industry is preparing for even
 further change as technology and information sciences continue to transform
 healthcare delivery."
     According to the survey results, the development and protection of
 intellectual property is seen as the most critical area, as nearly all the
 senior executives surveyed identified an urgent need to address issues such as
 protecting proprietary research, valuing intellectual property and extending
 patent protection.
     Ranking closely behind is the need to respond to growing technological
 influences, as executives cited challenges such as maintaining a knowledge
 base, automating procurement systems and enabling greater automation of
 manufacturing, distribution, sales and marketing.  The respondents also
 identified an imperative need to address issues such as industry convergence
 and consolidation, and enhancing customer/patient service.
     Overall, the industry is expected to invest a total of nearly half a
 billion dollars over the next two to three years into the development of
 systems capabilities to address these strategic concerns.
     "Each of these areas presents unique challenges to an industry that is
 already undergoing rapid change as a result of major patent expirations,
 pricing pressures, and the impact of biomedicine on traditional R&D," said
 Giniat.  "As companies rise to meet these challenges, we'll see an
 acceleration of new business models and significant changes in the way value
 is created.  While we recognize that there are challenges unique to each
 sector, there were a few core issues that seem to have the attention of
 executives in every part of the industry."
 
     Key findings from the Andersen survey include:
     -- The intellectual property issues that matter: 94 percent of respondents
        cited protecting proprietary research as a critical challenge, followed
        by patent control (92%), patent infringement (90%), valuing
        intellectual property for mergers and acquisitions (88%), extending
        patent protection (86%), and protecting information databases (74%).
 
     -- Senior executives recognize the influence of enterprise technology.
        Across all industry segments, respondents placed significant emphasis
        on the need to use technology to enhance customer service (81%),
        contain cost and increase profitability (79%), automate manufacturing,
        distribution, sales and marketing (76%), maintain a knowledge base
        (75%), and improve billing processes (62%).
 
     -- Companies are likely to rapidly accelerate e-commerce preparation
        beyond currently moderate levels.  Respondents identified a need to
        leverage e-commerce capabilities to improve online information services
        (94%), create efficient operational systems (92%) facilitate marketing
        and sales collaboration (88%) and reduce costs (88%).
 
     -- Competitive consolidation is active, and industry convergence is a
        strong priority area.  Respondents predicted increased merger and
        acquisition activity (80%) and a proliferation of joint ventures (63%),
        and identified challenges relating to improved positioning in a global
        marketplace (75%), a greater number of alliances for co-marketing and
        co-production (73%), increased international activity (73%) and pooled
        resources for research & development (72%).  Significantly, 83% of
        pharmaceutical companies plan to seek a joint venture with a
        biotechnology firm, and 62% predict increased buyouts of biotech
        companies.
 
     Andersen believes that these statistics provide a clear perspective from
 which to view the future of the healthcare industry.  "The relationship
 between doctor and patient is one of the most sacred relationships we have,"
 said Giniat.  "While these results provide an excellent compass for healthcare
 leaders, the real challenge for providers will be to leverage advances in
 technology and information to improve and reinforce the relationship with the
 healthcare consumer."
     To focus the firm's resources in this industry, Andersen has renamed and
 restructured its Healthcare-related solutions as the Pharmaceutical,
 Biomedical and Health Services (PBH) practice.  This new structure will align
 all of Andersen's market solutions under a global framework designed to
 deliver optimal value to Andersen clients around the world.
     "Andersen has always been a leading service provider in these sectors, and
 we will leverage our past success to drive continuous innovation," said
 Giniat.  "It is our intention to achieve global leadership across the
 pharmaceutical, biomedical and health services industry sectors."
     Giniat is co-author of Value Rx: It's Time to Manage and Measure What
 Matters in Healthcare, a book that presents a compelling perspective on the
 future of the healthcare industry.  Based on extensive Andersen research,
 Value Rx discusses how healthcare industry leaders can identify, for the first
 time, all of the sources of value at their disposal.  The book presents a
 detailed plan for using this new understanding to revolutionize a company's
 value-creating potential.  Value Rx will be published by HarperCollins in
 August 2001.
 
     About Andersen
     Andersen is a global leader in professional services. It provides
 integrated solutions that draw on diverse and deep competencies in consulting,
 assurance, tax, corporate finance, and in some countries, legal services.
 Andersen employs 85,000 people in 84 countries.  Andersen is frequently rated
 among the best places to work by leading publications around the world.  It is
 also consistently ranked first in client satisfaction in independent surveys.
 Andersen has enjoyed uninterrupted growth since its founding in 1913.  Its
 2000 revenues totaled US$8.4 billion.   Learn more at www.andersen.com .
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X61522281
 
 

SOURCE Andersen
    CHICAGO, April 24 /PRNewswire Interactive News Release/ -- The most
 critical challenges facing pharmaceutical, biotechnology and medical products
 companies over the next two to three years are intellectual property and
 patent protection, enterprise technology, e-commerce, and the astronomic
 growth of biotechnology and genomics, according to a recent Andersen survey
 that captured the insights and expectations of senior executives from across
 these healthcare industry sectors.
     Recognizing that healthcare is no longer "business as usual," Andersen's
 Pharmaceutical, Biomedical and Health Services practice sought insights on the
 issues and challenges facing an industry that is in a state of accelerated
 transformation.  The survey -- conducted by Knowledge Systems & Research,
 Inc., (KS&R) -- asked 272 senior industry executives from across North America
 to identify trends and challenges that are driving priority changes in their
 organizations' business strategies.
     "As technology and science converge to revolutionize the industry,
 competition has intensified and financial pressures are increasing," said Ed
 Giniat, managing partner of Andersen's Pharmaceutical, Biomedical and Health
 Services practice, (formerly known as the firm's Healthcare Industry group).
 "This research identifies the key strategic concerns of healthcare leaders in
 key parts of the world, and suggests that the industry is preparing for even
 further change as technology and information sciences continue to transform
 healthcare delivery."
     According to the survey results, the development and protection of
 intellectual property is seen as the most critical area, as nearly all the
 senior executives surveyed identified an urgent need to address issues such as
 protecting proprietary research, valuing intellectual property and extending
 patent protection.
     Ranking closely behind is the need to respond to growing technological
 influences, as executives cited challenges such as maintaining a knowledge
 base, automating procurement systems and enabling greater automation of
 manufacturing, distribution, sales and marketing.  The respondents also
 identified an imperative need to address issues such as industry convergence
 and consolidation, and enhancing customer/patient service.
     Overall, the industry is expected to invest a total of nearly half a
 billion dollars over the next two to three years into the development of
 systems capabilities to address these strategic concerns.
     "Each of these areas presents unique challenges to an industry that is
 already undergoing rapid change as a result of major patent expirations,
 pricing pressures, and the impact of biomedicine on traditional R&D," said
 Giniat.  "As companies rise to meet these challenges, we'll see an
 acceleration of new business models and significant changes in the way value
 is created.  While we recognize that there are challenges unique to each
 sector, there were a few core issues that seem to have the attention of
 executives in every part of the industry."
 
     Key findings from the Andersen survey include:
     -- The intellectual property issues that matter: 94 percent of respondents
        cited protecting proprietary research as a critical challenge, followed
        by patent control (92%), patent infringement (90%), valuing
        intellectual property for mergers and acquisitions (88%), extending
        patent protection (86%), and protecting information databases (74%).
 
     -- Senior executives recognize the influence of enterprise technology.
        Across all industry segments, respondents placed significant emphasis
        on the need to use technology to enhance customer service (81%),
        contain cost and increase profitability (79%), automate manufacturing,
        distribution, sales and marketing (76%), maintain a knowledge base
        (75%), and improve billing processes (62%).
 
     -- Companies are likely to rapidly accelerate e-commerce preparation
        beyond currently moderate levels.  Respondents identified a need to
        leverage e-commerce capabilities to improve online information services
        (94%), create efficient operational systems (92%) facilitate marketing
        and sales collaboration (88%) and reduce costs (88%).
 
     -- Competitive consolidation is active, and industry convergence is a
        strong priority area.  Respondents predicted increased merger and
        acquisition activity (80%) and a proliferation of joint ventures (63%),
        and identified challenges relating to improved positioning in a global
        marketplace (75%), a greater number of alliances for co-marketing and
        co-production (73%), increased international activity (73%) and pooled
        resources for research & development (72%).  Significantly, 83% of
        pharmaceutical companies plan to seek a joint venture with a
        biotechnology firm, and 62% predict increased buyouts of biotech
        companies.
 
     Andersen believes that these statistics provide a clear perspective from
 which to view the future of the healthcare industry.  "The relationship
 between doctor and patient is one of the most sacred relationships we have,"
 said Giniat.  "While these results provide an excellent compass for healthcare
 leaders, the real challenge for providers will be to leverage advances in
 technology and information to improve and reinforce the relationship with the
 healthcare consumer."
     To focus the firm's resources in this industry, Andersen has renamed and
 restructured its Healthcare-related solutions as the Pharmaceutical,
 Biomedical and Health Services (PBH) practice.  This new structure will align
 all of Andersen's market solutions under a global framework designed to
 deliver optimal value to Andersen clients around the world.
     "Andersen has always been a leading service provider in these sectors, and
 we will leverage our past success to drive continuous innovation," said
 Giniat.  "It is our intention to achieve global leadership across the
 pharmaceutical, biomedical and health services industry sectors."
     Giniat is co-author of Value Rx: It's Time to Manage and Measure What
 Matters in Healthcare, a book that presents a compelling perspective on the
 future of the healthcare industry.  Based on extensive Andersen research,
 Value Rx discusses how healthcare industry leaders can identify, for the first
 time, all of the sources of value at their disposal.  The book presents a
 detailed plan for using this new understanding to revolutionize a company's
 value-creating potential.  Value Rx will be published by HarperCollins in
 August 2001.
 
     About Andersen
     Andersen is a global leader in professional services. It provides
 integrated solutions that draw on diverse and deep competencies in consulting,
 assurance, tax, corporate finance, and in some countries, legal services.
 Andersen employs 85,000 people in 84 countries.  Andersen is frequently rated
 among the best places to work by leading publications around the world.  It is
 also consistently ranked first in client satisfaction in independent surveys.
 Andersen has enjoyed uninterrupted growth since its founding in 1913.  Its
 2000 revenues totaled US$8.4 billion.   Learn more at www.andersen.com .
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X61522281
 
 SOURCE  Andersen