IBM's five weapons in the Huaxiu layout

At the 2016 IBM Forum held on March 1st, Chen Liming, chairman of IBM Greater China, announced that IBM's "Cognitive Business" strategy was officially launched in China. The deepening of the layout in the medical industry is one of the priorities of this strategy. According to Xie Guofan, director of cognitive medical research at IBM China Research Institute, IBM has spent $4 billion to consolidate medical treatment through mergers and acquisitions.

IBM's five weapons in the Huaxiu layout

At the end of last year, IBM has begun to practice. It cooperated with Novo Nordisk and hoped to develop a “virtual doctor” for patients with diabetes, providing patients with treatment recommendations such as insulin dosage.

IBM, a traditional IT elephant, has been trying to get out of the downturn in performance for several years. As of the fourth quarter of 2015, IBM's revenue has declined for 15 consecutive quarters, and its share price has experienced a continuous decline. IBM hopes that the “cognitive business” it is trying to build can reverse the downward trend, and layout medical care is one of the strategic priorities. So can it dance in the medical industry? IBM is full of confidence.

The first is Watson's computer system, which has laid the foundation for the layout of big data processing in the medical industry. IBM believes that Watson can praise the human brain, understand the complexity of natural language, and learn from interactive behavior.

A popular story about Watson's robot is that in 2011, it participated in an American famous television quiz, "Dangerous Edge", which defeated two human intelligence champions.

Second, IBM is strategically focused on its layout in the medical industry. In 2015, IBM established Watson Health, a new company with thousands of employees, all devoted to the mining and application of medical data.

The key to completing the strategic layout is to have massive medical data. In this regard, IBM has accumulated history, but it is obviously not enough. There are two ways in which IBM can enrich the database: collaborate with other companies to collect health-related data, such as partnerships with companies such as Apple, Johnson & Johnson, and Medtronic.

The other is mergers and acquisitions, direct access to medical data. Since 2015, IBM has acquired four medical data companies: Phytel, Explorys, Merge Healthcare and Truven HealthAnalytics, with the latter at a price of $2.6 billion.

The five areas IBM focused on in medical data processing were built on the basis of the companies they acquired.

Xie Guozhen said that at present, IBM focuses on the following five areas of medical data processing: medical imaging, real-world medical data, health management data, incurable diseases data and data analysis related to medical insurance payment.

The $1 billion acquisition of Merge Healthcare enhances IBM's ability to collect and disseminate images. Merge Healthcare is a Chicago-based global medical imaging pioneer with billions of medical images and its technology platform used by 7,500 US hospitals and numerous clinical and pharmaceutical companies.

The two companies, Phytel and Explorys, have brought data and health-related data for massive patient electronic medical records to IBM. Phytel and Explorys, on the one hand, are data processing companies that combine several types of health data for business decision making and predictive analysis. On the other hand, they are also data companies. According to Xie Guozhen, Explorys has 60 million electronic medical records.

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