Health Industry Insights Predicts Mega IT Investment in Business Intelligence in 2008
Growth predicted at more than 13% over the next 12-18 months
FRAMINGHAM, Mass. -- Leading independent research and advisory firm, Health Industry Insights, an IDC company, today announced the release of its series of Top 10 Predictions reports that identify the major trends expected to impact the health industry in 2008, transforming business and technology.
The overarching themes for Health Industry Insightâ€™s predictions have expanded from 2007 to include the need for improved organizational effectiveness and increased globalization. Data integration and interoperability will continue to drive major shifts in IT spending. These initiatives will be sharpened by an industry focus on cost containment, process improvements, and improved patient outcomes. Listed below are key highlights from each of the Top 10 reports.
1. U.S. Life Science 2008 Top 10 Predictions (Doc #HI210238) predicts 2008 will be a year of continued turbulence for life science companies. While M&A activity, continued cost cutting (including layoffs and offshoring), and a limited number of new drug approvals will highlight 2008 news, several more profound organic changes will occur that should strongly impact the industry over the long term. Many of these changes have IT components and will require both high-level organizational buy-in as well as bench-level behavioral change to succeed. And the use of business intelligence/analytics tools to more efficiently manage the life science industry will increase rapidly in 2008.
2. U.S. Payer 2008 Top 10 Predictions reflect a volatile and changing business and technology environment, with investment planned in multiple traditional areas and new initiatives, rather than the more single-themed focus of some previous years (e.g., HIPAA, consumerism, the collaborative business model). Business intelligence, prioritized investment on consumer information management and transaction tools, as well as "extra-enterprise" technology investment emerge as overarching themes and areas of the greatest investment in the next 12-18 months. Fragmentation and high technology costs will continue as the U.S. healthcare payer market technology investment encompasses over 50% of the total worldwide healthcare payer IT spend.
3. U.S. Provider 2008 Top 10 Predictions identifies major trends that will impact the provider IT landscape in 2008. The industry is approaching a critical turning point whereby delivery models and applications are increasingly accessible and easier to use providing much needed data exchange and interoperability. Providers need to examine opportunities to expand EMR investments as this is becoming a key requirement in the inpatient and ambulatory care setting. Health Industry Insights also predicts that providers should keep an eye on Health 2.0 as it is changing the way consumers interact with healthcare information.
"We predict there will be accelerated investment in 2008 in the Business Intelligence segment with spending growing more than 13% over the next 12-18 months," said Scott Lundstrom, vice president of Research, Health Industry Insights. "In addition, the healthcare industry should anticipate more innovative use of Web 2.0 technologies in healthcare by mainstream technology vendors and niche companies over the next 12-24 months."
Health Industry Insightsâ€™ Top 10 predictions across the industry sectors include:
Business intelligence and related information management are leading categories of technology spending increases in 2008 across all segments
Outsourcing seen as instrumental as the focus on cost reduction continues to increase
Drug safety will remain front and center as a primary concern in 2008
SaaS (software as a service) will spur adoption of EMR's for small providers
Healthcare/financial services interface and competition will heat up in 2008 as healthcare payers shift costs and payment responsibilities to consumers
"Extra-enterprise" investments become mainstream as over 40% of healthcare payers report technology investments for use by consumers and providers
Retail clinics and their technology will proliferate, increasingly disrupting healthcare delivery
To assist healthcare organizations and the vendors that serve this market, Health Industry Insights annually identifies the top trends that will heavily influence the direction and magnitude of IT investment, management, and technology evaluation. Health Industry Insights hosted a complimentary webcast on January 9, 2008 discussing all segments. For more information on obtaining or purchasing the report series, or reviewing the slides /recording from the Webcast, please contact [email protected].
To arrange a one-on-one briefing with Scott Lundstrom of Health Industry Insights, please contact Sarah Murray at 781-794-3214 or [email protected]. Mr. Lundstrom and his team of analysts will also be available for one-on-one briefings at the following upcoming events: Health IT Insight, January 13-15, 2008, Westin Savannah Golf Resort & Spa, Florida, and the HIMSS08 Annual Conference and Exhibition, February 24-28, 2008 in Orlando, Florida.
About Health Industry Insights, an IDC Company
Health Industry Insights, an IDC company, provides health and life sciences industry executives, and the suppliers who serve them, with market research and advisory services. The company's integrated coverage spans the entire health industry value chain and closely follows the payer, provider and life sciences markets with special emphasis on developing and employing strategies that leverage IT investments to maximize organizational performance. Staffed by expert analysts and consultants with extensive industry experience, Health Industry Insights delivers a portfolio of offerings that are relevant to both IT and business needs. IDC is a subsidiary of IDG, the world's leading technology media, research and events company. For more information, go to www.healthindustry-insights.com.