"Using IT to solve scientific problems is extremely challenging and requires an in-depth knowledge of living systems, an all round understanding of structural, functional and regulatory processes in living systems as well as familiarity with advanced computational power," observes Frost & Sullivan (http://www.healthcare&lifesciencesIT.com)
Research Analyst Sumitha Kannan. "The bioinformatics market is positioned to achieve its maximum potential over the next three to seven years because biotechnology companies with bioinformatics operations, software firms in bioinformatics as well as core computer hardware, peripherals and IT companies will diversify into this area and make concerted efforts in order to realise its full value."
Informatics-based solutions that help solve biological puzzles will rationalise and streamline the drug discovery process more than was previously possible. This will reduce the cost and time required to bring a medicine from research stage to real world application.
"Strong growth is projected for bioinformatics, which is the key to tackling long-standing problems in the life sciences arena," notes Ms.Kannan. "However, as competition intensifies, strategic partnerships and outsourcing will be the business models that will ensure success."
One of the major challenges in the market will be to achieve cost competitiveness, while simultaneously providing customised solutions. Developing higher flexibility and ease of use in software tools involves longer and more expensive development life cycles. Moreover, product customisation typically implies proportionate pricing increases, which reduce affordability resulting in a restricted client base. At the same time, simple, attractively priced solutions often do not offer full value to customers.
"Realising cost-effective, tailored solutions will necessitate rethinking conventional business methodologies while making outsourcing a promising strategy," advises Ms, Kannan. "Meeting customer expectations on all counts and promoting customer confidence are challenges that will require participants to plan product and project pipelines only after a thorough examination of current needs."
To overcome competition from new entrants, incumbents need to introduce new technologies or improve existing products to meet evolving needs. Providing more product features will also help market participants make competitive gains.
"Constant monitoring of new products enteringthe market and of changing customer preferences will be central to acquiring a leadership position in the bioinformatics market, which is increasingly becoming service driven," adds Ms. Kannan. "With rising demand for complete solutions encompassing training, installation, maintenance and upgrades, participants should aim at providing clients comprehensive services."
