Skip to main content

Cloud Edge and IoT will Improve Pharma Manufacturing

The global COVID-19 pandemic has accelerated changes in many industries. One of the most impacted was the pharmaceutical sector that had to reimagine business processes and rapidly adopt new technologies. It's yet another example where applying cloud computing had become a strategic imperative.

Today, next-generation pharma concepts are fueling ongoing innovation. In particular, the industry’s unique characteristics are driving investments in Digital Transformation by forward-looking pharmaceutical manufacturers. 

According to the latest worldwide market study by ABI Research, digital factory revenue will top $4.5 billion in 2030 with spending by pharma manufacturers on data analytics forecast to grow by a 27 percent CAGR and reach $1.2 billion in 2030, as these companies evolve to boost productivity.

Pharma Digital Transformation Market Development

That said, the industry’s competitive dynamics require pharmaceutical firms to optimize their production lines to maximize yield for the time a drug has patent protection. After patents expire, generics companies will produce similar products.

According to the ABI assessment, the utilization of data analytics can support each type of effort to increase yield. Moving from manufacturing drugs and vaccines in batches, to optimizing the manufacturing process with 'continuous production' can dramatically increase yields.

"But the active pharmaceutical ingredients are susceptible to changes in their immediate environment. The batch must be scrapped if the condition of the ingredients or formulation falls outside accepted parameters," says Michael Larner, principal analyst at ABI Research.

Therefore, pharma manufacturers can choose to invest in analytics that aid in the development of 'digital twins' of their operations, so that they can prepare their production lines for more predictable continuous manufacturing.

Another digitization focus for pharmaceutical firms is to remove paper recordkeeping. "Collecting and storing data via paper-based processes risks reducing productivity and increases the likelihood that errors happen on the production line due to administrative errors," Larner points out.

FDA 21 CFR Part 11 is one way the U.S. Food and Drug Administration is encouraging the adoption of digital technologies by publishing the criteria for submitting electronic records to the organization and the treatment of electronic signatures.

The prevalence of paper records illustrates the progress yet to be made by pharmaceutical firms regarding digital transformation. ABI Research has offered a five-stage 'digital maturity' model, outlining the progress made and steps required by drug manufacturers to optimize their operations.

Larner explains, "Currently, pharmaceutical manufacturers are at Stage 2 in that they have modern factory but lack foresight and struggle to adjust production, or Stage 3 where they have started to implement digital transformation but lack expertise reconfiguring production lines."

In the coming decade, many firms will upgrade their existing facilities or build new 'greenfield' manufacturing sites, and their operations will be digitally transformed (Stage 4) or operate without humans on-site (Stage 5).

A notable example of advanced manufacturing facilities is Sanofi’s digitally-enabled, continuous manufacturing facility in Framingham, Massachusetts where all processes are paperless with plant operators using digital collaboration tools, data analytics, and Augmented Reality (AR) solutions so they can make decisions and adjustments in real-time.

Outlook for Digital Transformation in Pharma

ABI analysts say that there is already a myriad of suppliers helping the pharma industry to digitize and optimize processes by moving from the pre-digital stage (Stage 1) to connecting their manufacturing plants (Stage 3).

Moreover, I believe that the introduction of advances within the Internet of Things (IoT) arena -- and the introduction of fifth-generation (5G) wireless infrastructure and cloud edge computing solutions -- will enable the development of automated production processes and eventually new business models.

It's estimated that the COVID-19 pandemic has already fast-forwarded the digital transformation of the pharma industry by more than five years. Cloud computing and cloud-based IT security solutions helped CIOs and CTOs to adopt 'remote working' and perform decentralized clinical trials of vaccines.

Indeed, the path ahead for continued progress looks bright. And, I'm encouraged by these latest research findings. I'll share more insights on this topic as they're announced by the leading industry analysts.

Popular posts from this blog

Digital Talent Demand Exceeds Supply in Asia-Pac

Even the savviest CEO's desire for a digital transformation advantage has to face the global market reality -- there simply isn't enough skilled and experienced talent available to meet demand. According to the latest market study by IDC, around 60-80 percent of Asia-Pacific (AP) organizations find it "difficult" or "extremely difficult" to fill many IT roles -- including cybersecurity, software development, and data insight professionals. Major consequences of the skills shortage are increased workload on remaining digital business and IT employees, increased security risks, and loss of "hard-to-replace" critical transformation knowledge. Digital Business Talent Market Development Although big tech companies' layoffs are making headlines, they are not representative of the overall global marketplace. Ongoing difficulty to fill key practitioner vacancies is still among the top issues faced by leaders across industries. "Skills are difficul

Mobile Device Market Still Awaiting Recovery

The mobile devices market has experienced three years of unpredictable demand. The global pandemic, geopolitical pressures, supply chain issues, and macroeconomic headwinds have hindered the sector's consistent growth potential. This extremely challenging environment has dramatically affected both demand and supply chains. It has led to subsequent inflationary pressures, leading to a worsening global cost of living crisis suppressing growth and confidence in the sector. In tandem, mobile device industry stakeholders have become more cautious triggering market uncertainties. Mobile Device Market Development Operating under such a backdrop, the development of mobile device ecosystems and vendor landscapes have been impacted severely. Many of these market pressures persisted throughout 2022 and now into 2023, borne chiefly by the smartphone market. According to the latest worldwide market study by ABI Research, worldwide smartphone shipments in 2022 declined 9.6 percent Year-over-Year

Open Banking Usage to Grow by 470 Percent

The Open Banking business model has been advantageous for Third-Party Providers (TPPs), helping them to extend their offerings into other areas of financial services with new capabilities. Open Banking is also advantageous for traditional banking institutions, despite the perceived loss of custodianship over their data, by providing greater accessibility to more bank services. Furthermore, Open Banking can help serve Mobile Internet providers that are able to leverage it to create tailored services according to customers’ preferences and/or economic limitations. Open Banking Market Development Since traditional banking services are made more convenient by TPPs via greater data access, customers can proactively manage their finances and shape the development of new financial offerings. This is particularly noticeable in the realm of Digital Payments, where retail merchants and customers transact through eCommerce, which has the greatest number of use cases for Open Banking. These includ