Navigating Digital Transformation in Regulated Industries

Leveraging Data, AI, and Secure Cloud

Digital transformation is reshaping organisations across the board, but it presents unique challenges in regulated industries such as pharmaceuticals, healthcare, and fintech.

In our recent webinar, UpCloud’s Head of Business Development, Mafalda Johannsen  sat down with Sampsa Somerma, Director of Digitalisation, Data, and AI at Nordic pharmaceutical distributor Oriola, to delve into these unique challenges.

Watch the recording here!

Here’s what we learned: 

Evolving regulatory landscape

One of the primary challenges in regulated industries is the ever-changing regulatory landscape. Companies must navigate a complex web of legislation, including GDPR, AI Act, and GxP regulations. According to Somerma, regulatory bodies frequently introduce new requirements, making it an ongoing challenge to ensure compliance. This necessitates agility and the ability to quickly adapt to changes, often with tight deadlines.  

With the current geopolitical situation, particularly US dataflow policy uncertainty, European businesses must also prioritise data sovereignty. Given the fragility of current frameworks, proactive risk mitigation is essential. 

Oriola’s digital transformation journey

Oriola is a real-world example of how businesses subject to European regulation can successfully transform operations whilst ensuring compliance. Somerma highlighted several key elements of their approach:  

• Governing the transformation: This involves setting a clear direction and ensuring that changes are implemented at the right pace and time.  
• Prioritising iterative changes: Oriola favors an agile approach, focusing on small, incremental changes rather than large, complex projects.  
• Building a strong foundation: For Oriola, this means having robust core systems, particularly their SAP infrastructure, to support digital initiatives.  

AI and automation

Automation, both physical (in warehouses) and software-based (RPA), plays a significant role in improving efficiency. However, AI implementation presents unique challenges. Somerma emphasised the importance of focusing on solving specific problems rather than simply adopting AI for the sake of it. 

To ensure transparency and compliance, Oriola employs strategies such as human oversight, using AI agents to check each other’s work. The corporation also adopts explainable AI, a set of processes and methods that allows human users to comprehend and trust the results and output created by machine learning algorithms.

The importance of a robust data strategy

A strong data strategy is fundamental for digital transformation. Somerma highlighted data governance and data quality as the two key components. This includes defining data ownership, ensuring data accuracy, and understanding how data is created within processes. He also stressed that implementing effective data governance is a gradual process that requires patience and a focus on people and process change.  

Emerging Technologies and the Future

Looking ahead, Somerma identified several emerging technologies with the potential to impact healthcare logistics, including IoT and digital twins for optimising warehouse operations. He also emphasised the growing importance of ESG reporting and the need for efficient data collection methods.  

Conclusion

Digital transformation in regulated industries is a complex undertaking. The insights from Oriola highlight the importance of a well-defined strategy, a focus on data governance, and a pragmatic approach to AI implementation. 

By prioritising these elements and embracing emerging technologies, organisations can navigate the challenges and unlock the transformative potential of digital technologies.

Looking to reassess your cloud strategy? Talk to our team today to learn more on how UpCloud is equipping businesses to securely scale and tackle digital transformation.