Rapid technological advancements, such as generative AI, are reshaping the corporate landscape. Diogo Rau, chief information and digital officer at Eli Lilly and Company, who previously worked at Apple for a decade, emphasizes the need for tech leaders to be bold and innovative. He believes that tech leaders must move away from the traditional customer-supplier mindset and focus on the people at the heart of the technology puzzle.

Technology's Job: Invent and Build Things

Diogo Rau runs technology for Lilly, covering various domains like IT, digital health, cybersecurity, and AI. As a centralized organization, Lilly requires a horizontal thinking approach. The technology strategy hinges on innovation, such as building consumer technology that is unique in the industry and ensuring security. This involves continuous invention and building to meet the company's needs. 1: The importance of technology at Lilly is not just about the technology itself but about the people behind it. Rau understands that while the tech strategy is crucial, the people strategy is equally significant. He sets an example by constantly honing his technical skills, and the CEO follows suit. This shows the organization that technical excellence is a priority. 2: Another aspect is getting the right leaders in the right places. By rotating direct reports, fresh thinking is generated. People in the same role for a long time tend to follow a certain pattern, but new perspectives from different individuals can lead to the identification of new challenges and opportunities.

The Most Important Thing About Tech: The People

Technology talent is critical for realizing digital and AI objectives. Rau emphasizes that it's not the technology but the people who make a difference. He spends a significant amount of time thinking about the people strategy. 1: Starting with leadership, Rau himself is constantly working on keeping tech skills sharp. He did an AI course with the CEO, who coded in Amazon's SageMaker Python SDK notebook and built a Hugging Face machine learning model. This sets an example for the entire organization, putting pressure on everyone to do the same. 2: Another important aspect is growing the talent base and hiring people with real hands-on technical skills. About 90 percent of recent technology hires at Lilly can code and develop. Rau looks for curiosity in engineers as it leads to a deeper understanding of how things work and the ability to automate processes using generative AI.

Going Their Own Way to Build a New Consumer Business

Diogo Rau made a big impact by introducing the first direct-to-consumer platform, LillyDirect. His motivation was to address the poor patient experience in getting medicine. 1: Before coming to Lilly, Rau noticed the difficulties patients face in obtaining and staying on their medications. He realized that if no one else was going to fix the system, Lilly needed to take action. The initial attempt to build LillyDirect by hiring an outside firm was not successful. 2: So, they brought the development in-house and built the real version in two six-week sprints. In this industry where things are usually done in 12 months, achieving this in 12 weeks was a significant accomplishment. It showed that when they do things themselves, they can enhance and improve the platform quickly.

Jumping into AI

Lilly is leveraging AI to accelerate growth and help more patients. From the start of the generative AI revolution, the company encouraged everyone to use it. 1: While ChatGPT and other products are useful, specialized AI solutions are needed for different aspects of medicine development. For oral medicines, data of existing chemical molecules can be used to train models and propose new molecules. In contrast, large molecules like antibodies and proteins present different challenges in designing new things from scratch. 2: Genetic medicine is another area where AI is making a difference. Even within the discovery space, there are multiple types of AI needed. On the commercial side, there are opportunities in areas like next best action and engagement with consumers. AI is being used in various aspects of the enterprise, and it's hard to find areas where it's not being utilized.

Saying Goodbye to 'IT'

Diogo Rau is breaking down the traditional silos between IT and the business. Changing the name of the team from IT to "tech at Lilly" or "the tech team" is the first step. 1: The customer-supplier mindset is a trap in the way the tech team works with the business. Instead, they should work together as partners, where the success of the partner is as important as their own. Rau encourages teams to call out when partners do stupid things and be great partners. 2: Technology roles should evolve to focus more on capabilities rather than verticals. Organizing technology as vertical functions leads to wasted energy in aligning with organizational models. By focusing on capabilities that run across the organization, better results can be achieved.

The Make-or-Break Role of Technology for the Future of Life Sciences Companies

Over the next decade, the role of technology in the life sciences industry is set to change significantly. 1: Many big companies in the industry will face challenges, and not all will survive. The use of AI will be a crucial factor. Companies that don't invest enough in technology and AI may struggle to come up with new medicines or reach consumers effectively. 2: Looking at where the head of technology reports can give an indication of a company's technology-forwardness. If the head of technology is part of the executive leadership team, it's likely that the company will do well.