Life sciences
capgemini research instituteSoftwarization in life sciences
Measuring value in the digital shift
Life sciences companies are shifting focus from product-led initiatives to patient-centric models – and software is playing a key role. Digital products and services are providing new connected healthcare options and more personalized experiences.
Our report, The art of software: The new route to value creation across industries, explores how organizations are adapting their businesses for software-driven transformation, and how companies can overcome challenges to take advantage of new revenue streams, more efficient operations, and better customer experiences.
1. Life sciences companies are still in the early stages of
software-led transformation
Our report found that nearly one-fifth of life sciences leaders view their company as a software-driven organization today. While life sciences organizations may lag compared to other industries, they are more ambitious about accelerating their transformation, with 40 percent believing they will become a software-led company within the next three-to-five years.
Percent of organizations agreeing with the statements below
Life sciences companies are optimistic about the future of software
believe software is critical to their future product and/or service roadmap
believe software will provide a greater competitive advantage than hardware
believe the organization will lose market share without investing in software skills and technology today
Creating a roadmap
The majority of life sciences companies (67%) are still in the “experimentation phase” of their transformation journey – meaning they may have identified use cases or are pursuing pilots.
Only 37 percent of life sciences companies say they have a comprehensive software-driven transformation strategy that incorporates timelines and roadmaps, and have dedicated resources and funding in place.
Maturity of software-driven transformation in products/services
2. Life sciences companies expect new value from
software investments
Life sciences leaders recognize the potential software has for creating new value for their organizations. Life sciences companies anticipate that 31 percent of total revenue will come from software products and services by 2030.
Software and digital solutions revenue as a
percentage of
total revenue
While life sciences companies are investing in system modernization and long-term strategy, 41 percent of current software investments are focused on maintaining daily operations of legacy systems. Life sciences companies invest 17 percent of their R&D budgets in software, which is slightly lower than leading industries like high-tech manufacturing (21%), industrial and capital goods (20%), and automotive (19%).
Current software investments
Software investments by functional area
Life sciences companies are already seeing direct benefits from their investments in functional areas, primarily through new revenue streams, faster R&D, and improved customer experience that can help increase competitive advantage in the market.
Life sciences organizations are already benefitting from software
New revenue streams from software-based products and services
Faster R&D for existing products and services
Competitive advantages, like increased market share
Improved customer experience
Becoming a software-driven organization
Software-driven transformation requires consumer products companies to redesign their business models, software organization, and engineering processes to meet the needs of digital-first consumers.
At Capgemini, we’ve identified six key pillars organizations should follow to achieve a successful software transformation – combining strategy, design, operations, sustainability, and technology – to propel life sciences companies forward.
Download The art of software: The new route to value creation across industries to learn more about our approach,
and how organizations can achieve software-driven transformation.
