20thCEOSurvey:Healthcareindustrykeyfindings

Globalisation:Underwaybutundersiege?/Theshortterm:Prospectsforgrowth/Furtherout:Addressingnewchallenges/Thebestoftimes,theworstoftimes

Anewtreatment?:

Healthcarefindingsfromthe

20thAnnualGlobalCEOSurvey

56

healthcareCEOsinterviewedin

27countries

80%

ofhealthcareCEOsareworried

aboutgeopoliticaluncertainty

86%

ofhealthcareCEOsseetechnology

reshapingtheirindustryinthenextfiveyears

Aboutthe20thAnnual

GlobalCEOSurvey

Inthisyear’sSurveywecanvassedtheviewsof

56

HealthcareCEOsfrom

27

countriesaboutwherewearenow,whatthefuturemayhold,andwhatbusinesscandotomakeapositivedifference.

In20yearsinsidethemindoftheCEO...What’snext?,weexplorewhat1,379CEOsin79countriesin2017thinkaboutthreeimperatives:managingmanandmachinetocreateaworkforcethat’sfitforthedigitalage;preservingorganisationaltrustinaworldofincreasinglyvirtualinteractions;andmakingglobalisationworkforeveryonebyensuringthebenefitsaredistributedmorefairly.

Thechallengecommontoallthreeimperativesisleadership.Inatimeofheightenedanxietiesjuxtaposedwiththehighestlevelsoftransparencywehaveexperienced,howleadersengagewithemployeesandstakeholders(bothpublicandprivate)hasneverbeenmoreimportant.

Theworldhaschangedmoreinthelast20yearsthaninanyotherprevioustwodecadesinitshistory.Globalisationandtechnologicaladvanceshavetransformedhowandwhereweliveandwork,thebalanceofglobalpoliticalpowerhasshifted,morepeoplethaneverarelivingincities,andtheworldisfacingtheenormouschallengeofcombattingclimatechange.Thebusinessworldhasalsobeenconfrontedbythesesamemegatrends—somehavecreatednewrisks;othershaveledtosignificantopportunities.Noorganisationhasbeenimmune.

Theascendancyofcorporationsaroundtheglobehasboostedprosperity:it’screatedjobs,raisedlivingstandardsanddeliveredpioneeringproductsandservicesthathaveimprovedpeople’slives.Now,however,theworldisatacrossroads,andCEOsrecognisethat.Themomentumbehindglobalisationandtechnologicalchangeshowsnosignofslowing,butthedirectionoftravelisnolongerasclearasitwas.Wecouldbemovingtowardsamoreinclusivesociety,orwecouldbefacingamoredangerousanddivergentworld,withamuchgreaterriskofconflict.SpecificallyforCEOs,itistimetoraisetheroleofbusinessinsocietyandengagemorebroadlytohelpgovernmentandthepublic.Itistimetostepforwardwiththeirownsolutionsandcollaboratewithmultipleplayersinsocietytoboosttrustandbuildtheworldweneedforthefuture—becauseifexecutedproperly,businessisaforceforgood.

Inthisyear’sSurveywecanvassedtheviewsof56HealthcareCEOsfrom27countriesaboutwherewearenow,whatthefuturemayhold,andwhatbusinesscandotomakeapositivedifference.

Globalisation:Underwaybutundersiege?

Businesshasunquestionablybenefitedfromglobalisation—notjusttrade,moreconnectivityandgreaterproductivity,butlowerbarrierstoentrymeanthatagile

start-upscancompeteeffectivelywithmultinationals.Inoursurvey,64%ofHealthcareCEOsthinkglobalisationhasfacilitatedgreaterconnectivity,and59%seeagreaterflowofgoodsandtradeasaresult,

bothbroadlyinlinewiththeglobalresults.

64%

ofHealthcareCEOsthinkglobalisationhasfacilitatedgreaterconnectivity

CEOs’long-heldscepticismhasbeenamplyborneoutbyrecentevents.Greaterinternationalcompetitionhasledtojoblossesinsomecountries,andincreasedmigrationhasputpressureonpublicservices.Inemergingeconomies,themiddleclassisgrowinganddoingwell,butmanymillionsofpeoplehavenotseenthesameimprovementintheirlivingstandards.2016wascharacterisedbypoliticalupheavalsthatwentagainstmostexpectations,andtheriseofapopulistsentimentwhichisleadingtosignificantpoliticalinstability,andcouldalsoimpacteconomicprosperityby

Companies,therefore,havebeenoneofglobalisation’sbigwinners.ButCEOsacrossallsectorshavenotbeenblindtothechallenges;infacteversincethefinancialcrisis,CEOshavebeenwarningthatdespitethefactthatnearlyabillionpeoplehavebeenliftedoutofpoverty,thegapbetweenrichandpoorwasgrowing.

Only14%ofHealthcarerespondentsbelieveglobalisationishelpingtoclosethisgap,andonly32%believeit’screatingamoreskilledandeducatedworkforce.Likewiseonly11%sayit’spromotedthedevelopmentoffairertaxsystemsversus14%globally.HealthcareCEOsareevenmorepessimisticonclimatechange—only7%believeglobalisationishelpingthere,comparedwithaglobalaverageof15%.

forcinggovernmentstobecomemore

protectionist.NowonderHealthcareCEOsaresoconcernedaboutuncertaineconomicgrowth:82%areworriedaboutthis,buttheyaremoreconcernedthantheirpeersaboutgeopoliticaluncertainty—80%versus74%—andmarkedlymoresoaboutsocialinstability:79%comparedwith68%(seeFigure1).Butattheverytopoftheirlistisover-regulation,whichishardlysurprising,giventhenatureofthehealthcaremarket(84%asagainstanaverageof80%).Theyagreewiththeirpeersinseeingmoreclosednationalpoliciesasdetrimentaltogrowth(57%).

Cyberthreats 75%

Figure1:Over-regulationanduncertaineconomicgrowtharetopconcernsforHealthcareCEOs

Q:Howconcernedareyouaboutthefollowingeconomic,policy,social,environmentalandbusinessthreatstoyourorganisation’sgrowthprospects?

Inadequatebasicinfrastructure

64

2017

56

54

2016

2015

79

Socialinstability

2017

67

62

2016

2015

Uncertaineconomicgrowth

82%

Geopoliticaluncertainty

80%

Socialinstability

79%

Availabilityofkeyskills 77%

Over-regulation 84%

Toptenthreats Topfourriserssince2015

Speedoftechnologicalchange 71%

Changingcustomerbehaviour

70%

Readinesstorespondtoacrisis

68%

Inadequatebasicinfrastructure

64%

Speedoftechnologicalchange

71

64

2017

60

2016

2015

Cyberthreats

75

69

71

2017

2016

2015

Source:PwC,20thAnnualGlobalCEOSurvey

Base:Allrespondents(Healthcare,2017=56,2016=70,2015=68)

Healthcareindustrykeyfindings

PAGE

4

Theshortterm:Prospectsforgrowth

CEOsmaybemoreworriedaboutthebigpicture,buttheyremainsanguineabouttheprospectsfortheirownbusinesses.Fifty-twopercentofHealthcareCEOsareveryconfidentaboutrevenuegrowthoverthenextthreeyears,upfrom37%lastyear,and46%areequallypositiveaboutthenext12months,whichisnoticeablyhigherthantheglobalaverageof38%.ThemostoptimisticsectorofallisPharmaceuticalandLifeSciences,at63%forthenext12monthsand61%forthe

three-yearhorizon.

Thelatterhasbeenastrengtheningtrendforsometime,reflectingtheevolutionofnewbusinessmodelsandmoreflexiblewaysofworking.AsAlexGorsky,CEOofJohnson&Johnson,says,“AtJohnson&Johnson,ourR&Dmodelisnotonlyresearchanddevelopment—it’salsosearchanddevelopment.Webuildrelationshipsandconnectionswithacademiccentres,withtheventureworld,withotherentrepreneurswhoarecreatingnewtechnologiesbutwhomaynothavetheclinicaldevelopment,theregulatorycapabilities,thecommercialcapabilitiesthatJ&Jpossessestoscaleonaglobalbasis.Byfindingpartnerswhoneedourskillsasmuchasweneedtheirknowledge,we

52%

ofHealthcareCEOsare

veryconfidentaboutrevenuegrowthoverthenextthreeyears

59%

ofHealthcareCEOsare

focusedonnewstrategicalliances.

Intermsofinternalpriorities,Healthcarehasthesametopthreeprioritiesastheglobalaverage,andbroadlytracksthataverageonorganicgrowth(77%versus79%),andcostreductions(68%versus62%)butissignificantlymorefocusedonnewstrategicalliances(59%versus48%).

bringthosetwothingstogetherrapidly,allowing ustodeliversafe,effectiveproductstoconsumersandpatientsaroundtheworld.”

Intermsofthekeymarketsforthefuture,HealthcareistargetingtheUS(43%),China(23%),andtheUK(20%).Only5%arefocusingonIndiaorJapan,andGermanyisnoticeablylowerthanitisglobally(9%versus17%).

Healthcareindustrykeyfindings

PAGE

5

Furtherout:Addressingnewchallenges

Thethemeswediscussedherewerethreefold:Technology,Talent,andTrust.

Technology

Figure2MoreHealthcareCEOsbelievetechnologywillhaveagreaterimpactonthecompetitionoverthenext5yearsthantheglobalaverage

Q:Towhatextentdoyouthinktechnologywillchangecompetitioninyourindustryoverthenext5years?

MostCEOsbelievetechnologyhaschangedtheshapeofcompetitionintheirindustry:inHealthcare,54%sayithasdonesoeithersignificantlyorcompletelyinthelasttwodecades.

Andthespeedofchangeisaccelerating:ahuge86%ofHealthcareCEOsseetechnologyreshapingcompetitioninthenextfiveyears(seeFigure2).AlexGorskyofJohnson&Johnsonputsitthisway:“HowcanwebetteruseBigData?Howcanwebetteruseartificialintelligencetoidentifythenextbreakthroughcompoundortounderstandalltheclinicalevidenceavailableinaparticularmolecule?Howcanwetakesensing,visioningtechnologyandembeditinourexistingmetal

Itwillcompletelyreshapecompetitioninmyindustry

Itwillhaveasignificantimpactoncompetition

inmyindustry

Itwillhaveamoderateimpactoncompetitioninmyindustry

Itwillhavenoimpactoncompetitioninmyindustry

25%

23%

61%

52%

13%

23%

2%

2%

technologytocreatethenextapproachtomanaginghip,knee,orspinalreplacements?Lastbutnotleast,howcanwebettercommunicatewithourcustomers?Whenyouthinkaboutallthewayswehavetoengagewithcustomers—thephysicians,thenurses,andtheconsumerswhoareusingourproducts—incrediblyexcitingopportunitiesopenup.”

Thisnewrealityisreflectedinthefactthat71%ofHealthcarerespondentsareconcernedaboutthespeedoftechnologicalchange,and70%worryaboutshiftsincustomerbehaviour.However,theyaremarkedlymoreconcernedaboutcyberthreats(75%versus61%).Giventhesensitivityofhealthcaredata,thiscomesasnosurprise,andaccordingtoPwC’sTheGlobalStateofInformation

Security?Survey,2016sawsomeofthebiggesthealthcaredatabreachesinhistory.1InnovationwasthesecondmostimportantstrategicpriorityforHealthcare(20%),withdigitalandtechnologicalcapabilitiesscoring13%,andhumancapitaltoppingthelist

Healthcare Global

Source:PwC,20thAnnualGlobalCEOSurvey

Base:Allrespondents(Global=1379;Healthcare=56)

at21%.AsGorskystates:“Innovationisourlifeblood.Ican’tthinkofamoreexcitingtimetobelivingthannow,justintermsofscientificbreakthroughs.We’renotonlyfocusingontheproductsthatwe’reinnovatingon,we’reinnovatinghowweinnovate.”

CEOsarealsomeetingthesechallengesbyenhancingtheirpersonaldigitalskills.

HealthcareCEOsareextremelyconfidentaboutthoseskills(73%believetheyarestronghereversus55%globally),55%areonsocialmedia,and73%usedigitalmediamorethanprint.

57%areusinghomeautomation.

PwC,Transformationandturnaroundincybersecurity:Healthcarepayersandproviders;KeyfindingsfromtheGlobalStateofInformationSecurity?Survey,2016

TalentOnethemethat’sbeenemergingoverthelastfewyearsoftheSurveyisthegradualconvergenceofthetechnologyandtalentagendas.Asmoreandmoretaskscanbeautomatedortakenonbymachines,companiesarereshapingtheirworkforcesandindividualrolesarechanging.Thisyear,79%ofHealthcarerespondentstoldustheyhavechangedtheirpeoplestrategytoreflecttheskillsandemploymentstructurestheyneedforthefuture,whichisinlinewiththeglobalaverage.

However,themajorityofglobalCEOsareactuallyplanningtohiremorepeoplethisyear,notfewer,andHealthcareisnoticeablyaheadoftheaverage:64%intendingtoincreaserecruitmentoverthenext12months,comparedto52%ingeneral,andtheequalhighestofanysector.Thatsaid,59%ofthesector’sCEOsareexploringthebenefitsofhumansandmachinesworkingtogether(comparedtoanaverageof52%)and52%areconsideringtheimpactofartificialintelligenceonfutureskillsneeds,whichismuchhigherthanthe39%averagefigure(seeFigure3).

Likewise,ofthe13%ofHealthcarerespondentswhoplantocuttheirheadcount,57%citeautomationandothertechnologiesasafactortoatleastsomeextent(see‘Technologyinhealthcare:Thenandnow’box-outformoredetail).

Figure3HealthcareCEOsareusingtechnologytoenhancetheirworkforcetraining,retentionandrecruitment

Q:Towhatextentdoyouagreeordisagreewiththefollowingstatementsaboutyourorganisation’stalentactivities?

Wepromotetalentdiversityandinclusiveness

91%

87%

Wehaveaddeddigitaltrainingtoourlearningprogrammes

82%

65%

We’vechangedourpeoplestrategytoreflecttheskillsandemploymentstructuresweneedforthefuture

79%

78%

Weusetechnologytoimproveourpeople’swellbeing

77%

63%

Wemovetalenttowhereweneedit

77%

76%

Weseekoutthebesttalentregardlessofdemographicsorgeography

73%

74%

We’rerethinkingourhumanresourcefunction

61%

60%

We’reexploringthebenefitsofhumansandmachinesworkingtogether

59%

52%

Weusedataanalyticstofind,developandkeeppeople

59%

50%

We’reconsideringtheimpactofartificialintelligenceonfutureskillsneeds

52%

39%

Werelymoreoncontractors,freelancersandoutsourcing

21%

28%

Healthcare Global

Source:PwC,20thAnnualGlobalCEOSurvey

Base:Allrespondents(Global=1379;Healthcare=56)

Healthcareindustrykeyfindings 7

Technologyinhealthcare:Thenandnow

Twentyyearsago,muchofthetechnologynowroutinelyemployedinhealthcarewasstillthestuffofsciencefiction:telemedicine;phoneappstoimprovefitnessandmonitorchronicconditionslikediabetes;websitesandcommunitiesforspecificdiseaseareas;wearablesthatmonitorspecificbiometricsorsymptomsandrelaythatinformationtoadoctor;andhandheldtricorderscannersthatcancapture,analyse,andreportkeyhealthdata.AsDr.PeterFitzGerald,FounderandManagingDirectorofRandoxLaboratories,observes,“Inthenext20yearstheroleofdoctorwillseriouslychange,andthepatient/doctorbalancewillchangeinfavourofthepatient.That’saverygoodthing—liveswillbesavedandinmanycases,costswillalsocomedown.”

Asthissuggests,whiletechnologicalinnovationsaretransforminghowhealthcareisdeliveredtothepatientandimprovingoutcomesforthemasindividuals,technologyisalsoreshapinghowhealthcarebusinessesoperate.Electronicrecordsmakeiteasiertotrackandanalysepatientdata(and87%ofphysiciansintheUSusethem,asof20152);workingpracticesarebecomingmorestreamlinedwhichmeansdecisionscanbemadequicker.Somesystems,forexample,combinedatafromthepatient’srecordswithclinicalexpertise,externalresearchanddata,andthenidentifiespotentialtreatmentplansforapatient.Atthesametime,onlineportalsfacilitatepatientcommunicationsandappointmentscheduling:KaiserPermanente’spatientportal,forexample,isusedby70%ofitsmembers,andemailandphonenowexceedface-to-faceconsultations.3

Digitaltechnologyisalsoenablingfarmoreconsultationstobemanagedremotely,whichallowsacompanylikeKaiserPermanentetohaveanintegrated‘careanywhere’strategy,whichisnotonlymoreefficientforthecompany,butmoreconvenientforthecustomer.AsCEOBernardTysonsays,“Ithasbeenatremendousbenefittoourmembers,andthat’s

firstandforemostwhat’scritical,butitalsohasraisedissuesabouthowdoweredesignthewholeworkprocessestoaccommodatethisnewphenomenonthatwe’relivingthrough.”Atthesametime,electronicpaymentsareimprovingcashflowmanagementacrosshealthcareandcanalsoenhancethepatientexperience,asproblemswiththispartoftheprocesscandetractfromexcellenceelsewhere.

Inemergingeconomiesanewdigitalhealthmodelisevolving.AccordingtoPwC’sreportTheDigitalHealthcareLeap,mostemergingmarketslagbehinddevelopedmarketsinpoliticalandbusinessenvironment,infrastructure,affordability,skillsandstakeholderreadinessthatinhibitstheadoptionofatraditionaldigitalhealthmodel.Asaresult,emergingmarketsare‘leapfrogging’traditionalsystemsandresettingthedeliverymodelforelectronicmedicalrecords(EMR)andelectronichealthrecords(EHR)byrelyingoncloud-basedoropen-sourcedservices.Thelackoflegacyinfrastructurecanliberatehealthsystems(bothpublicandprivate)fromcapitalcostsandleadtofasterdeploymentandincreasedbenefitsforpatients.4

AccordingtoresearchbyFrost&Sullivan5we’vealreadyseentheimpactofnewtechnologyanddigitisationonmedicalequipment;whatwe’reseeingnowistheimpactofbigdataandanalyticsonmedicalservices,andinthenextdecadetherewillbeashifttowardstheuseofbreakthroughtechnologieslikeArtificialIntelligence(AI)andVirtualReality(VR).Thehealthindustryhaslaggedbehindinitsexplorationandadoptionofthesenewtechnologies,buttheirdisruptivepotentialisvast—asvastastheopportunitytheyrepresent.Thechartinthefollowingpagesetsouthowsomeofthemmightbeusedacrossthehealthcareindustry,andwearealreadyseeingthewidespreaduseofAIapps,suchastheBabylon,thephone-basedmedicaladviser.6

By2022,theglobalmarketforAIalonecouldtop$6bn.7

OfficeoftheNationalCoordinatorforHealthInformationTechnology.‘Office-basedPhysicianElectronicHealthRecordAdoption,’HealthITQuick-Stat#50./quickstats/pages/physician-ehr-adoption-trends.php,December2016.

Garrido,Terhilda,Raymond,Brian,andWheatley,Ben,“Lessonsfrommorethanadecadeinpatientportals”,HealthAffairsBlog,April7,2016,/blog/2016/04/07/lessons-from-more-than-a-decade-in-patient-portals/,Copyright?2017HealthAffairsbyProjectHOPE—ThePeople-to-PeopleHealthFoundation,Inc.

PwC,TheDigitalHealthcareLeap,August2016

Frost&Sullivan,ArtificialIntelligence&CognitiveComputingSystemsinHealthcare,2015

Murgia,Madhumita,“Howsmartphonesaretransforminghealthcare,”FTMagazine,12January2017

Frost&Sullivan,ArtificialIntelligence&CognitiveComputingSystemsinHealthcare,2015

Healthcareindustrykeyfindings 8

VirtualRealitywillbeespeciallyusefulinrelationtomedicaltraining(andthisyear’ssurveyshowsthatthesectorismoreadvancedthanothersinemployingthistechnologyintraining).TeachingsurgerythroughVR,forexample,eradicatestherisktospecificpatients,allowstheexplorationofmultiplepossiblescenarios,makesremotelearningpossible,anddrasticallyreducescostswhilespeedinguptrainingprogrammes.Thetechnologyisadvancingsorapidlyinthisfieldthattraineesurgeonswillsoonbeabletopickupavirtualbladeandfeelthesensationofusingitinreallife.

Butalmostalltheseinnovationswillbepredicatedonrobustandresilientsystems.Patientdatasitsalongsidefinancialinformationintermsofitssensitivity,anditspotentialvaluetoahacker.Healthcarecompaniesmustthereforeensurecybersecurityisatthetopoftheiragenda,andremainsthere.Andthisisachallenge,because,thesectorhastendedtolagbehindinthematurityofitscybersecurity

programmes.However,themostforward-thinkingorganisationsarebeginningtoaddressthisbyusingtechnologiessuchascloud-basedcybersecurity,advancedauthentication,andBigDataanalytics,andpayersandprovidershaveincreasedtheirinformationsecuritybudgetsby79%overthepasttwoyears.8Consumersstilltrustthehealthcareindustrywiththeirdatamorethanmostothertypesoforganisation,butcompaniesinthesectorhavetoearnthattrusteveryday:cybersecurityisnotaone-offfix,it’sacontinuingprocess.

Likewise,thecompaniesthatwillbetherealwinnersinthesectorwillbethosethatfindwaystointegrateallthesenewtechnologies,ratherthanemployingthempiecemeal.Theywilldeliverthemostvalue—bothtothepatientandthebusiness—iftheyareappliedinacoordinatedandintegratedmanner,tosupportthecorecapabilityofthesector,whichisthecareprovidedbyhumanbeings.

HealthcareTransformationthroughRobotics,ArtificialIntelligence(AI)andVirtualReality(VR)

TheuseofVRcanimprovehealthcaretrainingbyprovidingrealisticandaccuratesimulations,thusleadingtobettercomprehensionandretention.

Training

AIandtheInternetofThingsinhealthapplications

Keeping canhelpconsumersmanagetheircareandkeep

Well themwell.VRcanbeusedasatooltoimprovepublichealthissues.

Researchhasshownthatdigitisationcanhelphealthcareprofessionalsmakefasterdecisionsanddiscoveriesthaneverbefore.Itcanalsoleadtonewandemergingjobs.

Research

EarlyDetection

AI,wearablesandotherdevicescanbeappliedtodetectandmonitordiseases,suchascancerorcardiacconditions.

Roboticsarebeingusedtocarefortheelderly,helpingthemtracktheirprogressandremainindependent.Advancementsmayevenleadtosocialinteractionsbetweenthetwo.

RoboticsAIandVR

EndofLifeCare

AIisbeingimplementedacross

Diagnosisdifferenthospitalsworldwidetohelpsolveissuesofmisdiagnoses.

Roboticsarebeingwidelyusedinhealthcareincludingsurgery,self-managementofcareforpatientswithlong-termconditions,andpsychologicaltreatments.

Treatment

Improvingpatientcarerequiresaligningbighealth

Decision datawithappropriateandtimelydecisions.

Making Innovationsinpredictiveanalyticswillalsosupport

clinicaldecision-makinganddeliveradministration

prioritiesandactions.

Source:PwCanalysis

PwC,Transformationandturnaroundincybersecurity:Healthcarepayersandproviders;KeyfindingsfromtheGlobalStateofInformationSecurity?Survey,2016

Healthcareindustrykeyfindings

PAGE

10

Itissignificant,inthiscontextthattheskillsallCEOsreallywantarethosethatmachinescannotreallyreplicate(atleastfornow).

HealthcareCEOs,inparticular,valueproblem-solving(98%),adaptability(98%),

collaboration(96%),leadership(91%),creativityandinnovation(86%),andemotionalintelligence(89%).Butcreative,innovativeleaderswithemotionalintelligenceareveryhardtofind,andharder—itseems—inhealthcarethanitiselsewhere:HealthcareCEOsfinditdifficultorverydifficulttorecruitpeoplewithleadershipskills(80%versus75%),andcreativityandinnovation(83%versus77%).Thereisanevengreaterdisparitywhenitcomestofindingemployeeswhoareadaptable(71%versusaglobalfigureof61%),andwithemotionalintelligence(80%versus64%).AsAlexGorskyofJohnson&Johnsonobserves:“Themostimportantcomponentofourfutureisourpeopleandmakingsurethatwe’vegottherightleadersandthatweattract,hire,develop,andretainhighlycapable,committedleaderswhoaredeeplycommittedtoourCredo.”

AllCEOswantaworkforcethat’sagileandwellrounded—betterabletoadapttothechangingworld,andfindnewopportunitiesinthosechanges.CEOsalsorecognisethatthehuman

solvingit:69%ofglobalCEOsagreethatit’sharderforbusinesstogainandkeeptrustinthenewdigitalworld,andthefigureforHealthcareCEOsisevenhigher,at75%.Breachesindatasecurityandethicsrankasthenumberonerisktostakeholders’trustforallrespondentsinthenextfiveyears,scoring55%,butHealthcareCEOsareevenmoreworried,withafigureashighas82%(seeFigure4).CybersecurityincidentsranksecondforHealthcare(61%versusandaverageof53%),followedbyrisksfromtheuseofsocialmedia(55%versus38%),andITdisruptions(38%versus47%).Giventheacutesensitivityofthedatatheyhandle,thisishardlysurprising,asnotedbyBernardTyson,CEOofKaiserPermanente:“Trustissupercritical.Itisthetrustyouneverwanttobreak,becauseHealthcareisprobablythemostintimateofrelationshipsinwhichyou’redealingwiththerealitiesandthevulnerabilityofhumanlife.”

Figure4Dataprivacy,securityandethicsarethebiggestrisktostakeholders’trust,accordingtohealthcareCEOs

Q:Towhatextentdoyouthinkthefollowingareaswillimpactnegativelyonstakeholdertrustlevelsinyourindustryinthenextfiveyears?

elementisasimportantasit’severbeen—

indeedperhapsmoreso,inanincreasingly

virtualworld.

UnlikeCEOsingeneral,HealthcareCEOsputstrengtheninghumancapitaloverinnovation,whenitcomestotheirinternalpriorities.Theyalsoputslightlymoreemphasisonpromotingtalentdiversityandinclusiveness(91%versusanaverageof87%).Theyareslightlymoreenthusiasticaboutusingdataanalyticstofind,developandkeeppeople(59%versus50%),butmuchmoreadvancedinusingdigitaltechnologyintraining(82%versus65%).Seethe‘Technologyinhealthcare:Thenandnow’

box-outformoreonthis.HealthcareCEOsarealsomorewillingtousetechnologytoimprovetheirpeople’swellbeing(77%versus63%).

Trust

Twentyyearsagotrustwasn’tevenonthetypicalCEO’sradar;infact,wedidn’taskaboutituntil2002.Backthen,only29%ofCEOsthoughtanerosioninpublictrustofthecorporatesectorposedaseriousthreatto

Breachesofdataprivacyandethics

Cybersecuritybreachesaffectingbusinessinformationorcriticalsystems

Risksfromuseofsocialmedia

IToutagesanddisruptions

Genetechnologies(e.g.,geneticallymodifiedcrops,syntheticbiology)

Uncertaintyabouthowtaxlawsapplytodigitalassets

Confusionaroundwhoownsdigitalassets

Artificialintelligenceandautomation(includingblockchain)

82%

61%

55%

38%

23%

20%

14%

13%

growth.Andthisisoneareawheredigitaltechnologyiscreatingaproblem,ratherthan

Source:PwC,20thAnnualGlobalCEOSurveyBase:Allrespondents(Healthcare=56)

Now

morethanever,allCEOswillhavetobalancethecompetinginterestsofshareholdersandsociety,thetensionsbetweenshort-andlong-termthinking,andbetweenthebenefitsandchallengesofglobalisation.

While63%ofHealthcareCEOsaretakingactionnowondata