2.2 Importance of Smart Healthcare Ecosystem

We are entering the era of the 4th industrial revolution with rapid convergence of big data, information communication (ICT) and AI technology along with innovative bio technology in healthcare area.

Medication, medical device and medical service are undergoing evolution into smart medication, smart diagnostic medical device and smart healthcare service, respectively through the hyperconnectivity network with big data, AI and mobile devices. Moreover, through digitalization and conversion into AI for each stage of value chain in the healthcare area, productivity and efficiency of products and services are being enhanced.

In addition, with the rapid advancement of bio technology and rapid drop in the costs of analysis of health and medical information analysis individuals including genome analysis, etc., there has been rapid increase in the health and medical information of individuals along with acceleration of ICT convergence of health management and medical services.

Suppliers of health management and medical service (hospital and health insurance company, etc.) are assertively utilizing digital technology, and healthcare big data are utilized even in the areas of R&D on new drugs and development of new medical technologies. Smart healthcare companies are developing innovative products and services for the prevention, diagnosis and management of diseases through convergence of technologies, thereby resulting in emergence of business models from diversified perspectives with disappearance of boundary between the service industries.

While the annual average growth rate of GDP of OECD countries for the next 50 years is forecasted at 2.0%, the annual average increase in medical cost is forecasted at 3.3%, thereby needing transglobal countermeasures for such increase in costs. As the burden of medical costs is increasingly rising due to aging of the population, the healthcare paradigm is undergoing changes in overall and the need to reduce medical costs through smart healthcare focused on prevention and management is being highlighted.

<Forecast for rate of increase in GDP and medical costs over the next 50 years in OECD countries>

By distributing the reduced medical costs and economic effects achieved to the interested parties (patient, insurance company and local government, etc.) in diversified formats including provision of incentives through enhance the cost efficiency, it is possible to induce the interested parties to assertively participate in smart healthcare ecosystem.