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Why Millennials Care About Purpose-Driven Business

Sam Yeoman

Today’s tumultuous economy makes running any successful business seem like a herculean task. Yet a new wave of purpose-driven businesses are not simply surviving, they are thriving despite a fickle economy.

So who’s helping some of the most purpose-driven enterprises become wildly successful while others have shriveled up and withered away? Who cares about purpose-driven business and why? Who should businesses target in order to engage the most potential consumers in 2017?

One of the answers lies with the generation that recently passed the Baby Boomers as the most populous one on the planet: millennials.

The coveted consumer

I am a millennial. My generation is also known as Generation Y, Echo Boomer, or Generation ME. The world likes to describe me as an easily distracted, politically correct, civic-minded, creative narcissistic who wants a trophy just for showing up. I am supposedly a seeker of the authentic and an entitled “adult” who was born between the years of 1981-1997.

These labels are often slapped on anyone who looks relatively young, and they distract from what my generation really is all about and our unique position in the today’s economy. The reality is that millennials are currently the largest generation in the world’s workforce, and with the New Year looming, we are projected to have the most spending power of any generation in 2017.

So where are millennials spending all their hard-earned money and why? Millennials support companies that commit to a higher purpose and are more inclined to buy from a brand that stands on a foundation of corporate responsibility. For instance, 87% of millennials say that they base their purchasing decisions on whether or not a company makes positive social efforts.

Therefore, we are more likely to shop at natural or organic grocery stores like Whole Foods than at supermarkets or wholesale warehouses. We prefer to choose a transparent farm-to-table restaurant to chains like Sizzler or Houlihan’s. We train for months and pay for entry into grueling marathons, but only if there is a just cause attached. (Why would we subject ourselves to something that requires anti-chaffing nipple tape unless it was for a good cause?)

Here’s our “why”

To truly understand why we are the way we are you need to know what we fear, what we love, and what stokes the coals that fuel our motivations and ignite our passions.

First, we grew up watching our parents hang up on countless telemarketers, so we quickly became wary of anyone trying to sell us something. Our aversion to being scammed transformed us into wannabe rent-a-sleuths, fact-checking every word until our collective thumbs tired out.

Second, we are the first generation to be raised with portals to unlimited information in our pockets, able to Google anything dubious on a whim. We’ve been programmed to seek out sources of truth and spend our days seeking transparency above all else.

And finally, we watched our parents’ savings and retirement funds crumble during the worst economic collapse in U.S. history since the Great Depression. And we nervously bit our nails, trying to comprehend how we could feasibly dig ourselves out of student loan debt as we walked the plank of graduation, diving headfirst into a struggling job market. Watching the hit our parents took while transitioning into the workforce during the Great Recession trained our generation to be frugal with our money and made us question our spending habits. 

All of these experiences are universally millennial as well as crucially formative to shaping the psyche of our generation. 

Finding our purpose

Above all, I must say that we are a generation that was taught to question our world, and man, if our teachers could see us now. And although it might make my generation seem difficult to deal with, we can only shrug and respond that we are simply products of our respective environments, experiences, and upbringings.

The constant search for authenticity and truth is one of the fundamental reasons why I believe we gravitate – both personally and professionally – toward purpose-driven businesses. While many of us are still searching for our purpose in this wild world, we support and respect any enterprise that pursues a purpose as relentlessly and as passionately as we do each and every day.

We are attracted to businesses that have the audacity to puff their chests out and show their true positive purpose for all to see. Fortunately, companies like SAP are already flexing their purpose muscles – and millennials like me are taking notice.

This blog is part of our Millennials on Purpose series. To learn more about SAP’s higher purpose to help the world run better and improve people’s lives, visit sap.com/purpose.

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Sam Yeoman

About Sam Yeoman

Sam Yeoman is a millennial who engages in purpose-driven marketing for SAP. He is an overall wordsmith with a background in journalism and digital advertising. Sam does everything from curating the purpose and vision section of the SAP Web site to creating engaging Web content with unique perspectives.

Be The Change: Promoting Corporate Social Responsibility

Meghan M. Biro

I’m sure you’ve heard all about the millennial generation. Those 20- to 36-year-olds, pampered throughout their lives by their baby-boomer parents, have grown up to be self-absorbed, entitled narcissists, right?

Actually, this isn’t an accurate picture of millennials—and since they now represent the largest share of the American workforce, that’s good to know. Despite widely held perceptions about their supposedly “me-first” ways, these younger workers rank social responsibility as an important tenet of life and are looking to work for companies that share their sense of social responsibility.

In case you doubt the desire of millennials to align themselves with socially responsible companies, look no further than the Horizon Media’s Finger on the Pulse study, which found that 81 percent of this younger generation expect companies to make a public commitment to good corporate citizenship. Millennials also put their money where their mouth is: According to the 2015 Cone Communications Millennial CSR Study, 62 percent are willing to take a pay cut to work for a socially responsible company—a full six percentage points higher than the average response of all age groups surveyed.

The need for a CSR plan

Obviously, then, companies need to do more than just offer perks like free snacks to recruit and retain this valuable workforce segment. Having a formal corporate social responsibility (CSR) program is the key way for companies to demonstrate their commitment to the positive ideals their employees espouse. And here’s a PR bonus for you: By promoting corporate social responsibility, you’re also conveying to your customers that you care about the world outside your company’s walls.

At most companies, the HR department falls into the organizational sweet spot for managing the CSR program. As Angela Schettino of Think People Consulting observes, a company’s HR strategy links to the four components of any successful CSR initiative. First, of course, are employees, in keeping with HR’s focus on their rights and well-being, but the three other components—environment, community, and marketplace—also fall under HR’s domain.

Bottom of form

HR’s most appropriate role in managing a CSR plan would be to monitor its adoption and then document its successes throughout the company. In the area of energy conservation, for instance, the HR department could start by implementing a company-wide recycling program and promote earth-friendly practices like subsidizing public transit costs or encouraging employees to shut off the lights, computers, printers, and copiers during non-work hours.

Try these CSR initiatives

Here are some other ideas for HR departments and companies to consider as they implement and manage their CSR program.

  • Create a company culture compatible with CSR. As Strategic HR Inc. describes, this can start with your job advertisements and interview process. Use corporate social responsibility as a recruitment tactic, which will attract the socially responsible employees who will support and sustain your program. Perhaps even consider adding a position—chief sustainability officer—whose role would be consistent with your company’s focus on CSR.
  • Pick a cause. Look at what other successful companies are doing and see if your organization can model a similar CSR program. Starbucks, for instance, has several programs in place to promote environmental sustainability. Toms has a program called “Giving Shoes,” in which the company donates a pair of shoes to a child in need for every pair of shoes purchased. To date, the company has given away more than 70 million new pairs of shoes.
  • Allow time off for volunteering. As part of your employee engagement program, give employees a few days of volunteer time off (VTO) per fiscal year to do something meaningful in their communities.
  • Donate to a good cause.Take a cue from companies like Jersey Mike’s Subs, which has raised more than $20 million since 2010 by donating 100 percent of its sales nationwide on its annual Day of Giving. Or consider the corporate goodwill generated by Patagonia, a sustainable clothing brand that gave all $10 million from its Black Friday 2016 sales to hundreds of grassroots environmental organizations.
  • Match employee contributions. Convey to employees that “we’re all in this together” by matching their contributions to a charity of their choice. It’s a way for them to stretch their giving dollars—and for you to demonstrate firsthand that the causes they value are causes that you value as well.

Demonstrating your company’s commitment to the communities and environment in which you work isn’t just the right ethical decision, it’s good business. As Patti Dunham, MA, MBA, SPHR, SHRM-SCP, states, “…becoming socially aware and responsible helps the company’s bottom line. The impact on the organization’s public image and becoming an “employer of choice” because of these initiatives is immeasurable.”

If you haven’t already done so, consider empowering your HR department to implement and manage a corporate social responsibility program this year.

For more on the importance of bringing purpose into the workplace, see Why Companies Of The Future Need Purpose.

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Meghan M. Biro

About Meghan M. Biro

Meghan Biro is talent management and HR tech brand strategist, analyst, digital catalyst, author and speaker. I am the founder and CEO of TalentCulture and host of the #WorkTrends live podcast and Twitter Chat. Over my career, I have worked with early-stage ventures and global brands like Microsoft, IBM and Google, helping them recruit and empower stellar talent. I have been a guest on numerous radio shows and online forums, and has been a featured speaker at global conferences. I am the co-author of The Character-Based Leader: Instigating a Revolution of Leadership One Person at a Time, and a regular contributor at Forbes, Huffington Post, Entrepreneur and several other media outlets. I also serve on advisory boards for leading HR and technology brands.

Devices for the Digital Economy: Frugal Innovation

Danielle Beurteaux

Basic Utilities

Millions of people around the world still lack consistent access to the basics of modern life. They also lack resources to build conventional infrastructure in order to obtain essentials such as water and a consistent supply of electricity. Enter frugal innovation—a process for simplifying complex technologies so they are less expensive to produce and operate. Two startups have devised affordable systems that give people access to essential utilities.

Waterpoint Data Transmitter

About 780 million people, mainly in rural locations, don’t have indoor plumbing. Instead, they rely on hand pumps to access groundwater. Sooner or later, these hand pumps break and often aren’t fixed due to lack of parts and know-how. By some estimates, one-third of pumps aren’t functioning at any given time.

OxWater, a startup launched from Oxford University, has a solution that incorporates basic cell phone technology. The Waterpoint Data Transmitter is a monitoring device that communities deploy to track pump usage. If a pump stops working, a local, trained repair team receives a notification to fix it. The device also provides predictions of which pumps are likely to break and reports low water levels. A pilot project in Kenya showed a dramatic reduction in repair times, from an average of 37 days down to just two.

Quad

Solar power has become an important technology for people living in off-the-grid rural environments. But once the sun goes down, or during spells of cloudy days, the solar panels may not generate enough electricity. That often means a return to inefficient and unsafe solutions, such as kerosene lamps for lighting.

Azuri Technologies has developed a simple, independent system that enables solar users to adapt the amount of power they use according to the amount of energy they generate. The Quad is a small wall-mounted unit that’s wired to a solar panel that comes with a USB port for mobile phone charging. The system uses the company’s HomeSmart technology to monitor local weather patterns and learn consumers’ energy usage. Then, based on available energy, it automatically regulates the amount of power used for lighting (by, for example, adjusting brightness) and battery charging.

A 5-watt system costs about US$156, which users can pay off weekly using a mobile money account. Once they own the unit, they can generate power at no cost. Since its launch in Kenya in 2011, 90,000 Quads have been purchased in 12 African countries.

Digital Rescue

Preventing disasters and delivering aid when they do hit are difficult in isolated locations, where there aren’t enough services that enable quick reaction. Complexity and cost can also keep aid from reaching its targets. These startups are using frugal technology in imaginative ways to issue alerts of impending problems and deliver help to people in need.

Pouncer

Disaster relief is an uphill race against the clock. Whether responding to a natural disaster, war, or famine, aid workers must assemble and deliver supplies, navigate around natural obstacles, avoid thieves, and stay safe. Windhorse Aerospace has developed POUNCER, a disposable drone, to address these problems.

Designed for takeoff from a C-130 Hercules military transport plane and guided using a built-in GPS, POUNCER can be launched from up to 40 kilometers from its destination, with a landing accuracy of within 7 meters. The drone can carry enough food and water rations for 50 people. What’s more, every part is reusable and disposable. For example, the frame, which has a 3-meter wingspan, can be used for shelter or burned for fuel (Windhorse is meanwhile looking to develop an edible frame). Because the entire unit is designed for on-site use, there’s also no cost or peril involved in recovering it from the disaster area.

Lumkani

Many of the world’s poor live in shacks that are built very close together, and they lack electricity. As a result, they rely heavily on open flames for light, heat, and cooking, creating a high risk of fire. But conventional smoke detectors can’t be relied on in places that are already smoky. One devastating fire in Cape Town, South Africa, prompted a group of local university students to design a fire detection device specifically for these environments.

The Lumkani detector is a small wall-mounted unit that runs on batteries and, instead of being triggered by smoke, detects fires by monitoring temperature increases. The detectors use basic radio frequency technology to link all units within a 60-meter radius to a mesh network, which enables early warning alerts for the surrounding inhabitants. The $7 device also stores GPS coordinates, sends warning texts to residents, and can self-monitor the operating health of the whole linked system. Lumkani is working on a way to send real-time data to local emergency response units.

Data at the Digital Frontier

Do you own the land you’re farming? When will the next rainstorm hit? These are basic questions, but for some people living in emerging economies, they’re not so easy to answer. Startups are using clever designs and simple interfaces to provide the information that rural communities need to thrive.

FarmSeal

For millions of small landowners around the world, verifying a legal claim to their land is a complex, expensive, and practically insurmountable process. And without documentation that proves that they own their land, protecting their property rights is nearly impossible, as is getting loans to expand their land holdings and businesses.

Landmapp, based in Amsterdam and operating in Ghana, has developed a mobile platform to make mapping and filing claims accessible to small landowners. The company educates farmers about property rights and then, for a small fee, uses its own platform to record and legally validate land ownership. Landmapp uses geospatial technology and cloud data on a tablet, meaning they don’t need fancy and expensive surveying equipment. FarmSeal, Landmapp’s first product, serves farmers; the company is also launching HomeSeal, for homeowners, and CropSeal, for sharecroppers and landowners. The startup’s platform incorporates local government, legal, and traditional community agreements, and is customizable for different locales.

3D-Printed Weather Stations

Weather data drives numerous economic and public safety decisions. But in many countries, a scarcity of weather stations means no data about vast geographic areas. Unfortunately, conventional weather stations are expensive, costing upwards of $20,000 per unit. In emerging economies, governments and rural communities don’t have the resources or training to buy and maintain them.

At the nonprofit university consortium University Corporation for Academic Research, researchers are leveraging 3D printing to fill the weather gap. They’ve devised a weather station that local government agencies can install in rural communities. The units use off-the-shelf, basic sensors, store data on a small computer, and run on energy generated by a single solar panel. The local agencies have 3D printers to create other parts, including the frame and wind gauges, which can be easily customized or replaced.

The cost? About $300. And beyond letting communities know when, for example, rain is on the horizon, the unit can also be a first alert for natural disasters, like floods.

Read more thought provoking articles in the latest issue of the Digitalist Magazine, Executive Quarterly.

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Heroes in the Race to Save Antibiotics

Dr. David Delaney, Joseph Miles, Walt Ellenberger, Saravana Chandran, and Stephanie Overby

Last August, a woman arrived at a Reno, Nevada, hospital and told the attending doctors that she had recently returned from an extended trip to India, where she had broken her right thighbone two years ago. The woman, who was in her 70s, had subsequently developed an infection in her thigh and hip for which she was hospitalized in India several times. The Reno doctors recognized that the infection was serious—and the visit to India, where antibiotic-resistant bacteria runs rampant, raised red flags.

When none of the 14 antibiotics the physicians used to treat the woman worked, they sent a sample of the bacterium to the U.S. Centers for Disease Control (CDC) for testing. The CDC confirmed the doctors’ worst fears: the woman had a class of microbe called carbapenem-resistant Enterobacteriaceae (CRE). Carbapenems are a powerful class of antibiotics used as last-resort treatment for multidrug-resistant infections. The CDC further found that, in this patient’s case, the pathogen was impervious to all 26 antibiotics approved by the U.S. Food and Drug Administration (FDA).

In other words, there was no cure.

This is just the latest alarming development signaling the end of the road for antibiotics as we know them. In September, the woman died from septic shock, in which an infection takes over and shuts down the body’s systems, according to the CDC’s Morbidity and Mortality Weekly Report.

Other antibiotic options, had they been available, might have saved the Nevada woman. But the solution to the larger problem won’t be a new drug. It will have to be an entirely new approach to the diagnosis of infectious disease, to the use of antibiotics, and to the monitoring of antimicrobial resistance (AMR)—all enabled by new technology.

But that new technology is not being implemented fast enough to prevent what former CDC director Tom Frieden has nicknamed nightmare bacteria. And the nightmare is becoming scarier by the year. A 2014 British study calculated that 700,000 people die globally each year because of AMR. By 2050, the global cost of antibiotic resistance could grow to 10 million deaths and US$100 trillion a year, according to a 2014 estimate. And the rate of AMR is growing exponentially, thanks to the speed with which humans serving as hosts for these nasty bugs can move among healthcare facilities—or countries. In the United States, for example, CRE had been seen only in North Carolina in 2000; today it’s nationwide.

Abuse and overuse of antibiotics in healthcare and livestock production have enabled bacteria to both mutate and acquire resistant genes from other organisms, resulting in truly pan-drug resistant organisms. As ever-more powerful superbugs continue to proliferate, we are potentially facing the deadliest and most costly human-made catastrophe in modern times.

“Without urgent, coordinated action by many stakeholders, the world is headed for a post-antibiotic era, in which common infections and minor injuries which have been treatable for decades can once again kill,” said Dr. Keiji Fukuda, assistant director-general for health security for the World Health Organization (WHO).

Even if new antibiotics could solve the problem, there are obstacles to their development. For one thing, antibiotics have complex molecular structures, which slows the discovery process. Further, they aren’t terribly lucrative for pharmaceutical manufacturers: public health concerns call for new antimicrobials to be financially accessible to patients and used conservatively precisely because of the AMR issue, which reduces the financial incentives to create new compounds. The last entirely new class of antibiotic was introduced 30 year ago. Finally, bacteria will develop resistance to new antibiotics as well if we don’t adopt new approaches to using them.

Technology can play the lead role in heading off this disaster. Vast amounts of data from multiple sources are required for better decision making at all points in the process, from tracking or predicting antibiotic-resistant disease outbreaks to speeding the potential discovery of new antibiotic compounds. However, microbes will quickly adapt and resist new medications, too, if we don’t also employ systems that help doctors diagnose and treat infection in a more targeted and judicious way.

Indeed, digital tools can help in all four actions that the CDC recommends for combating AMR: preventing infections and their spread, tracking resistance patterns, improving antibiotic use, and developing new diagnostics and treatment.

Meanwhile, individuals who understand both the complexities of AMR and the value of technologies like machine learning, human-computer interaction (HCI), and mobile applications are working to develop and advocate for solutions that could save millions of lives.

Keeping an Eye Out for Outbreaks

Like others who are leading the fight against AMR, Dr. Steven Solomon has no illusions about the difficulty of the challenge. “It is the single most complex problem in all of medicine and public health—far outpacing the complexity and the difficulty of any other problem that we face,” says Solomon, who is a global health consultant and former director of the CDC’s Office of Antimicrobial Resistance.

Solomon wants to take the battle against AMR beyond the laboratory. In his view, surveillance—tracking and analyzing various data on AMR—is critical, particularly given how quickly and widely it spreads. But surveillance efforts are currently fraught with shortcomings. The available data is fragmented and often not comparable. Hospitals fail to collect the representative samples necessary for surveillance analytics, collecting data only on those patients who experience resistance and not on those who get better. Laboratories use a wide variety of testing methods, and reporting is not always consistent or complete.

Surveillance can serve as an early warning system. But weaknesses in these systems have caused public health officials to consistently underestimate the impact of AMR in loss of lives and financial costs. That’s why improving surveillance must be a top priority, says Solomon, who previously served as chair of the U.S. Federal Interagency Task Force on AMR and has been tracking the advance of AMR since he joined the U.S. Public Health Service in 1981.

A Collaborative Diagnosis

Ineffective surveillance has also contributed to huge growth in the use of antibiotics when they aren’t warranted. Strong patient demand and financial incentives for prescribing physicians are blamed for antibiotics abuse in China. India has become the largest consumer of antibiotics on the planet, in part because they are prescribed or sold for diarrheal diseases and upper respiratory infections for which they have limited value. And many countries allow individuals to purchase antibiotics over the counter, exacerbating misuse and overuse.

In the United States, antibiotics are improperly prescribed 50% of the time, according to CDC estimates. One study of adult patients visiting U.S. doctors to treat respiratory problems found that more than two-thirds of antibiotics were prescribed for conditions that were not infections at all or for infections caused by viruses—for which an antibiotic would do nothing. That’s 27 million courses of antibiotics wasted a year—just for respiratory problems—in the United States alone.

And even in countries where there are national guidelines for prescribing antibiotics, those guidelines aren’t always followed. A study published in medical journal Family Practice showed that Swedish doctors, both those trained in Sweden and those trained abroad, inconsistently followed rules for prescribing antibiotics.

Solomon strongly believes that, worldwide, doctors need to expand their use of technology in their offices or at the bedside to guide them through a more rational approach to antibiotic use. Doctors have traditionally been reluctant to adopt digital technologies, but Solomon thinks that the AMR crisis could change that. New digital tools could help doctors and hospitals integrate guidelines for optimal antibiotic prescribing into their everyday treatment routines.

“Human-computer interactions are critical, as the amount of information available on antibiotic resistance far exceeds the ability of humans to process it,” says Solomon. “It offers the possibility of greatly enhancing the utility of computer-assisted physician order entry (CPOE), combined with clinical decision support.” Healthcare facilities could embed relevant information and protocols at the point of care, guiding the physician through diagnosis and prescription and, as a byproduct, facilitating the collection and reporting of antibiotic use.

Cincinnati Children’s Hospital’s antibiotic stewardship division has deployed a software program that gathers information from electronic medical records, order entries, computerized laboratory and pathology reports, and more. The system measures baseline antimicrobial use, dosing, duration, costs, and use patterns. It also analyzes bacteria and trends in their susceptibilities and helps with clinical decision making and prescription choices. The goal, says Dr. David Haslam, who heads the program, is to decrease the use of “big gun” super antibiotics in favor of more targeted treatment.

While this approach is not yet widespread, there is consensus that incorporating such clinical-decision support into electronic health records will help improve quality of care, contain costs, and reduce overtreatment in healthcare overall—not just in AMR. A 2013 randomized clinical trial finds that doctors who used decision-support tools were significantly less likely to order antibiotics than those in the control group and prescribed 50% fewer broad-spectrum antibiotics.

Putting mobile devices into doctors’ hands could also help them accept decision support, believes Solomon. Last summer, Scotland’s National Health Service developed an antimicrobial companion app to give practitioners nationwide mobile access to clinical guidance, as well as an audit tool to support boards in gathering data for local and national use.

“The immediacy and the consistency of the input to physicians at the time of ordering antibiotics may significantly help address the problem of overprescribing in ways that less-immediate interventions have failed to do,” Solomon says. In addition, handheld devices with so-called lab-on-a-chip  technology could be used to test clinical specimens at the bedside and transmit the data across cellular or satellite networks in areas where infrastructure is more limited.

Artificial intelligence (AI) and machine learning can also become invaluable technology collaborators to help doctors more precisely diagnose and treat infection. In such a system, “the physician and the AI program are really ‘co-prescribing,’” says Solomon. “The AI can handle so much more information than the physician and make recommendations that can incorporate more input on the type of infection, the patient’s physiologic status and history, and resistance patterns of recent isolates in that ward, in that hospital, and in the community.”

Speed Is Everything

Growing bacteria in a dish has never appealed to Dr. James Davis, a computational biologist with joint appointments at Argonne National Laboratory and the University of Chicago Computation Institute. The first of a growing breed of computational biologists, Davis chose a PhD advisor in 2004 who was steeped in bioinformatics technology “because you could see that things were starting to change,” he says. He was one of the first in his microbiology department to submit a completely “dry” dissertation—that is, one that was all digital with nothing grown in a lab.

Upon graduation, Davis wanted to see if it was possible to predict whether an organism would be susceptible or resistant to a given antibiotic, leading him to explore the potential of machine learning to predict AMR.

As the availability of cheap computing power has gone up and the cost of genome sequencing has gone down, it has become possible to sequence a pathogen sample in order to detect its AMR resistance mechanisms. This could allow doctors to identify the nature of an infection in minutes instead of hours or days, says Davis.

Davis is part of a team creating a giant database of bacterial genomes with AMR metadata for the Pathosystems Resource Integration Center (PATRIC), funded by the U.S. National Institute of Allergy and Infectious Diseases to collect data on priority pathogens, such as tuberculosis and gonorrhea.

Because the current inability to identify microbes quickly is one of the biggest roadblocks to making an accurate diagnosis, the team’s work is critically important. The standard method for identifying drug resistance is to take a sample from a wound, blood, or urine and expose the resident bacteria to various antibiotics. If the bacterial colony continues to divide and thrive despite the presence of a normally effective drug, it indicates resistance. The process typically takes between 16 and 20 hours, itself an inordinate amount of time in matters of life and death. For certain strains of antibiotic-resistant tuberculosis, though, such testing can take a week. While physicians are waiting for test results, they often prescribe broad-spectrum antibiotics or make a best guess about what drug will work based on their knowledge of what’s happening in their hospital, “and in the meantime, you either get better,” says Davis, “or you don’t.”

At PATRIC, researchers are using machine-learning classifiers to identify regions of the genome involved in antibiotic resistance that could form the foundation for a “laboratory free” process for predicting resistance. Being able to identify the genetic mechanisms of AMR and predict the behavior of bacterial pathogens without petri dishes could inform clinical decision making and improve reaction time. Thus far, the researchers have developed machine-learning classifiers for identifying antibiotic resistance in Acinetobacter baumannii (a big player in hospital-acquired infection), methicillin-resistant Staphylococcus aureus (a.k.a. MRSA, a worldwide problem), and Streptococcus pneumoniae (a leading cause of bacterial meningitis), with accuracies ranging from 88% to 99%.

Houston Methodist Hospital, which uses the PATRIC database, is researching multidrug-resistant bacteria, specifically MRSA. Not only does resistance increase the cost of care, but people with MRSA are 64% more likely to die than people with a nonresistant form of the infection, according to WHO. Houston Methodist is investigating the molecular genetic causes of drug resistance in MRSA in order to identify new treatment approaches and help develop novel antimicrobial agents.

The Hunt for a New Class of Antibiotics

There are antibiotic-resistant bacteria, and then there’s Clostridium difficile—a.k.a. C. difficile—a bacterium that attacks the intestines even in young and healthy patients in hospitals after the use of antibiotics.

It is because of C. difficile that Dr. L. Clifford McDonald jumped into the AMR fight. The epidemiologist was finishing his work analyzing the spread of SARS in Toronto hospitals in 2004 when he turned his attention to C. difficile, convinced that the bacteria would become more common and more deadly. He was right, and today he’s at the forefront of treating the infection and preventing the spread of AMR as senior advisor for science and integrity in the CDC’s Division of Healthcare Quality Promotion. “[AMR] is an area that we’re funding heavily…insofar as the CDC budget can fund anything heavily,” says McDonald, whose group has awarded $14 million in contracts for innovative anti-AMR approaches.

Developing new antibiotics is a major part of the AMR battle. The majority of new antibiotics developed in recent years have been variations of existing drug classes. It’s been three decades since the last new class of antibiotics was introduced. Less than 5% of venture capital in pharmaceutical R&D is focused on antimicrobial development. A 2008 study found that less than 10% of the 167 antibiotics in development at the time had a new “mechanism of action” to deal with multidrug resistance. “The low-hanging fruit [of antibiotic development] has been picked,” noted a WHO report.

Researchers will have to dig much deeper to develop novel medicines. Machine learning could help drug developers sort through much larger data sets and go about the capital-intensive drug development process in a more prescriptive fashion, synthesizing those molecules most likely to have an impact.

McDonald believes that it will become easier to find new antibiotics if we gain a better understanding of the communities of bacteria living in each of us—as many as 1,000 different types of microbes live in our intestines, for example. Disruption to those microbial communities—our “microbiome”—can herald AMR. McDonald says that Big Data and machine learning will be needed to unlock our microbiomes, and that’s where much of the medical community’s investment is going.

He predicts that within five years, hospitals will take fecal samples or skin swabs and sequence the microorganisms in them as a kind of pulse check on antibiotic resistance. “Just doing the bioinformatics to sort out what’s there and the types of antibiotic resistance that might be in that microbiome is a Big Data challenge,” McDonald says. “The only way to make sense of it, going forward, will be advanced analytic techniques, which will no doubt include machine learning.”

Reducing Resistance on the Farm

Bringing information closer to where it’s needed could also help reduce agriculture’s contribution to the antibiotic resistance problem. Antibiotics are widely given to livestock to promote growth or prevent disease. In the United States, more kilograms of antibiotics are administered to animals than to people, according to data from the FDA.

One company has developed a rapid, on-farm diagnostics tool to provide livestock producers with more accurate disease detection to make more informed management and treatment decisions, which it says has demonstrated a 47% to 59% reduction in antibiotic usage. Such systems, combined with pressure or regulations to reduce antibiotic use in meat production, could also help turn the AMR tide.

Breaking Down Data Silos Is the First Step

Adding to the complexity of the fight against AMR is the structure and culture of the global healthcare system itself. Historically, healthcare has been a siloed industry, notorious for its scattered approach focused on transactions rather than healthy outcomes or the true value of treatment. There’s no definitive data on the impact of AMR worldwide; the best we can do is infer estimates from the information that does exist.

The biggest issue is the availability of good data to share through mobile solutions, to drive HCI clinical-decision support tools, and to feed supercomputers and machine-learning platforms. “We have a fragmented healthcare delivery system and therefore we have fragmented information. Getting these sources of data all into one place and then enabling them all to talk to each other has been problematic,” McDonald says.

Collecting, integrating, and sharing AMR-related data on a national and ultimately global scale will be necessary to better understand the issue. HCI and mobile tools can help doctors, hospitals, and public health authorities collect more information while advanced analytics, machine learning, and in-memory computing can enable them to analyze that data in close to real time. As a result, we’ll better understand patterns of resistance from the bedside to the community and up to national and international levels, says Solomon. The good news is that new technology capabilities like AI and new potential streams of data are coming online as an era of data sharing in healthcare is beginning to dawn, adds McDonald.

The ideal goal is a digitally enabled virtuous cycle of information and treatment that could save millions of dollars, lives, and perhaps even civilization if we can get there. D!

Read more thought provoking articles in the latest issue of the Digitalist Magazine, Executive Quarterly.


About the Authors:

Dr. David Delaney is Chief Medical Officer for SAP.

Joseph Miles is Global Vice President, Life Sciences, for SAP.

Walt Ellenberger is Senior Director Business Development, Healthcare Transformation and Innovation, for SAP.

Saravana Chandran is Senior Director, Advanced Analytics, for SAP.

Stephanie Overby is an independent writer and editor focused on the intersection of business and technology.

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Small And Midsize Businesses Have The Capacity To Drive Europe’s Future As A Digital Superpower

Katja Mehl

Part 10 of the “Road to Digital Transformation” series

Representing 99.8% of all companies throughout Europe, small and midsize businesses have tremendous power when it comes to impacting the region’s economy. One innovation at a time, they’re transforming entire industries, propelling emerging industries forward with adjacent offerings, and even supersizing a favorite childhood toy to make living conditions better for the poor and homeless. But perhaps the greatest evolution is found in the growing adoption of technology among firms.

According to the IDC InfoBrief “The Next Steps in Digital Transformation: How Small and Midsize Companies Are Applying Technology to Meet Key Business Goals with Insights for Europe,” sponsored by SAP, 35.4% of all European firms feel that their adoption of digital technology is either advanced or well underway. Germany and France are great examples of countries that are embracing advanced business networks and automation technology – such as the Internet of Things – to boost productivity and computerize or consolidate roles left empty due to long-term labor shortages.

Despite the progress made in some countries, I am also aware of others that are still resistant to digitizing their economy and automating operations. What’s the difference between firms that are digital leaders and those that are slow to mature? From my perspective in working with a variety of businesses throughout Europe, it’s a combination of diversity and technology availability.

digital transformation self-assessment

Source: “The Next Steps in Digital Transformation: How Small and Midsize Companies Are Applying Technology to Meet Key Business Goals with Insights for Europe,” IDC InfoBrief, sponsored by SAP, 2017. 

Opportunities abound with digital transformation

European companies are hardly homogenous. Comprising 47 countries across the continent, they serve communities that speak any of 225 spoken languages. Each one is experiencing various stages of digital development, economic stability, and workforce needs.

Nevertheless, as a whole, European firms do prioritize customer acquisition as well as improving efficiency and reducing costs. Over one-third of small and midsize companies are investing in collaboration software, customer relationship management solutions, e-commerce platforms, analytics, and talent management applications. Steadily, business leaders are finding better ways to go beyond data collection by applying predictive analytics to gain real-time insight from predictive analytics and machine learning to automate processes where possible.

Small and midsize businesses have a distinct advantage in this area over their larger rivals because they can, by nature, adopt new technology and practices quickly and act on decisions with greater agility. Nearly two-thirds (64%) of European firms are embracing the early stages of digitalization and planning to mature over time. Yet, the level of adoption depends solely on the leadership team’s commitment.

For many small and midsize companies across this region, the path to digital maturity resides in the cloud, more so than on-premise software deployment. For example, the flexibility associated with cloud deployment is viewed as a top attribute, especially among U.K. firms. This brings us back to the diversity of our region. Some countries prioritize personal data security while others may be more concerned with the ability to access the information they need in even the most remote of areas.

Technology alone does not deliver digital transformation

Digital transformation is certainly worth the effort for European firms. Between 60%–90% of small and midsize European businesses say their technology investments have met or exceeded their expectations – indicative of the steady, powerhouse transitions enabled by cloud computing. Companies are now getting the same access to the latest technology, data storage, and IT resources.

However, it is also important to note that a cloud platform is only as effective as the long-term digital strategy that it enables. To invigorate transformative changes, leadership needs to go beyond technology and adopt a mindset that embraces new ideas, tests the fitness of business models and processes continuously, and allows the flexibility to evolve the company as quickly as market dynamics change. By taking a step back and integrating digital objectives throughout the business strategy, leadership can pull together the elements needed to turn technology investments into differentiating, sustainable change. For example, the best talent with the right skills is hired. Plus, partners and suppliers with a complementary or shared digital vision and capability are onboarded.

The IDC Infobrief confirms what I have known all along: Small and midsize businesses are beginning to digitally mature and maintain a strategy that is relevant to their end-to-end processes. And furthering their digital transformation go hand in hand with the firms’ ability to ignite a transformational force that will likely progress Europe’s culture, social structure, and economy. 

To learn how small and midsize businesses across Europe are digitally transforming themselves to advance their future success, check out the IDC InfoBrief “The Next Steps in Digital Transformation: How Small and Midsize Companies Are Applying Technology to Meet Key Business Goals with Insights for Europe,” sponsored by SAP. For more region-specific perspectives on digital transformation, be sure to check every Tuesday for new installments to our blog series “The Road to Digital Transformation.”

 

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Katja Mehl

About Katja Mehl

Katja Mehl is Head of Marketing for Europe, Middle East, and Africa at SAP.