the health technology leader’s agenda for the next decade
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August 9, 2021
HIMSS CIO Summit
The health technology leader’s agenda for the next decade
McKinsey & Company#HIMSS21 2
Karl KellnerSenior Partner & Leader of
healthcare technology and digital practice across providers, payors
and health services,McKinsey & Company
Venkat InumellaPartner & Leader of provider
technology, analytics and innovation practices,
McKinsey & Company
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How much change have we seen over the past decade?
What change might the new decade bring?
How can we best prepare for this change?
Contents
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Change over the past decade: the impact of tech
85%20%
Enterprises Industries
Smart phone penetration Data created annuallyZettabytes
Airbnb market capitalization ($)
259
85B
70Mvs.
2011 2021
2010
2020
2010 2020
Consumers
Source: Pew Research; IDC; Company financials
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Enterprises IndustriesConsumers
Change over the past decade: in healthcare
>95%16% vs.
2010 2020
>150
2020
<12010
25%of US population
~4~3
2010 2020
Change in life expectancy at birth: ~0%
Health wearable adoptionUnits shipped, Millions
EHR adoption among hospitals%
US national health expenditure $ Trillion
Source: National Center for Health Statistics; KFF.org; CDC;
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Traditional industries
What has driven these changes?
Tech advances
as catalysts for change(e.g., processing, cloud, AI, automation)
Shifting customer expectations
set through experience with digital natives
Enabling regulation
new laws, cost pressures, political factors
Competition & innovation
new & non-traditional competitors, business
model innovation
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Tech advances have driven the most important shifts; the financial markets reflect this
Technology companies dominate the stock marketShare of total market cap, %
Source: S&P; Bloomberg; company financial reports
8/10of the largest corporations globally now are tech firms
20080
25
1610 1412
10
18 2020
5
15
20
30InformationTechnology
Health & Life Sciences
Real Estate
Energy
Materials
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How much change have we seen over the past decade?
What change might the new decade bring?
How can we best prepare for this change?
Contents
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The next decade: a new industrial revolution is underway
Source: Maddison Project database ; OECD; UBS Asset Mgmt.
Global economic development has always been driven by technology-driven revolutions (GDP per capita, indexed to 1 in 1000 AD)
2nd industrialrevolution
1st industrialrevolution
Technological advancements
Efficient steam engine
Electricity, IC engine, telephone
Silicon chips, Internet
3rd industrialrevolution
195016501000 1700 1750 1800 1850 19001
2000
10
2050
100 World
4th industrial revolution accelerated 10x by technological advancements
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The next decade: some technologies likely to drive 10x shifts
>50% Up to 80% 2030
>75%
>75%of today’s work activities could be automated by 2030
of global population will have 5G coverage by 2030 to enable pervasive IoT
Year by which Google expects to have a 1 million qubit Quantum Computer
of all digital service touch points (e.g. voice assistants) will have embedded AI
of enterprise generated data will be processed at edge
Automation1 Connectivity2 Computing4
Applied AI5
Edge infrastructure3
~30x >10% 45xreduction in the workforce required for software development and analytics
of global GDP could be associated with blockchain by 2030
reduction in cost to sequence the human genome in the last 10 years
Future of work6 Trust architectures7 Biotech8
Source: McKinsey research
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The next decade in healthcare: the opportunity is massive
Source: Bureau of labor statistics (2017-18); McKinsey analysis
Ratio of support staff to core staff is US services industries
0.813%
3.6
87%
52%
Education 58% 1.1
Legal services
42%
48%
Securities and commodities
56% 1.944%
Healthcare delivery
Industry-agnosticIndustry-specific
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Elements of a 2030 healthcare vision:The consumer view
Engaging with and through a patient’s family, community, and social networks
Enabling Life-Health integration
Intelligent orchestration, enabled by 3600 understanding of patients
Remote and continuous monitoring (e.g., after acute care episodes, for chronic conditions)
Higher acuity care in traditional settings (e.g., procedures, intensive care)
Financial assistance for high-value therapies
Homeand
self-care
Social care
Financial support
Data
Consumer
Daily lifeactivities
Traditionalcare
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Elements of a 2030 healthcare vision: The health system view
Physical assets
Digital assets
Intelligent operations
Care management & decision support
Care providers Orchestration, concierge
Consumers
Pervasive AI
Business models
Workforce
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How much change have we seen over the past decade?
What change might the new decade bring?
How can we best prepare for this change?
Contents
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Building blocks of a readiness plan
Talent Operating Model Value OrientationCore TechnologyScalable infrastructure
Fluid data
AI factory
Connectivity
Security
Translators
Engineering
Product
Design
AI
Multi-disciplinary teams
Agile, distributed
Digital fluency
Funding models
Partnerships
Care outcomes
Consumer experience
Staff experience
New business models
Growth & efficiency
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What is on the CIO agenda today?
37
36
31
30
26
23
22
17
15
12
Transforming talent strategy
Changing IT’s delivery model
Redesigning tech org
Transforming cybersecurity practices
Modernizing infrastructure
Redesigning the IT operating model
Digitizing of end-user experience
Enhancing IT architecture
Transforming vendor management
Scaling data and analytics
Source: McKinsey global survey on IT and the business 2020
Focus of most transformations over next 2 – 3 years1
Over halfof the organizations that have made large scale and purposeful investments in technology transformations see positive impact
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What else should be on the agenda?
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No-regret moves Set a long term aspiration
Invest in the building blocks
Build digital talent and fluency
Mind the data
Learn to form productive partnerships
Big, bold bets Products, not projects
Automation in everything
AI factories, not AI pilots
Core business, not back office
Engineering, not IT support, culture
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KarlKellnerSenior PartnerMcKinsey & Company
Venkat InumellaPartnerMcKinsey & Company
Get in touch by emailing [email protected] by scanning the QR code:
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