Recently, in order to seize the major national strategic opportunities in the critical stage of medical reform in China and establish a new ecosystem of service capabilities in the pharmaceutical circulation industry, the 2017 Forum on Intelligent Application in Pharmaceutical Circulation Industry of China with the theme of "Integration, Innovation and Overturn", sponsored by the China Association of Pharmaceutical Commerce and organized by the BAHEAL Pharmaceutical Group, was held in Qingdao. The forum focused on the new technologies driving the innovation and development of the pharmaceutical circulation industry including mobile internet, big data, internet of things, artificial intelligence, and blockchain and explored how a series of intelligent applications including smart medical service, mobile medical service, integration of end and cloud and the medical equipment with man-machine coordination overturn the business model and development path of future pharmaceutical circulation industry.

Wen Zaixing, former Counsel of the Department of Market Supervision of the Ministry of Commerce and the expert of the China Association of Pharmaceutical Commerce, Qian Juncheng, Director of the Statistical Information Center of the National Health and Family Planning Commission, Bai Jianchao, Deputy Director of Qingdao Food and Drug Administration, Fu Mingzhong, Executive Chairman of the China Association of Pharmaceutical Commerce and Fu Gang, Vice-Chairman of the China Association of Pharmaceutical Commerce, the representatives from the pharmaceutical circulation related units and pharmaceutical manufacturers as well as large informatization companies including IBM, Oracle and Philips, a total of about 300 persons, are invited to attend the meeting. In the forum, industry experts and scholars interpreted artificial intelligence and smart medical service from the perspective of policy, and a number of representatives from leading enterprises of the industry shared their opinions on the application of the construction of traceability system, blockchain technology, PBM model and machine learning in the medical field.

Address by Bai Jianchao, Deputy Director of Qingdao Food and Drug Administration

Address by Qian Juncheng, Director of the Statistical Information Center of the National Health and Family Planning Commission

Pharmaceutical circulation industry has been steady in the first half of the year

At present, the pharmaceutical circulation industry of China is facing a rare historic opportunity. However, at the same time, the industry itself is still in its infancy and has huge space for horizontal and vertical integration. In the "Thirteenth Five-Year Plan" Period, the medical reform has entered a crucial period, and the prospect of the pharmaceutical circulation industry is still promising. However, in order to adapt to the new series of policies promulgated by the government and the industry transformation brought by the "Internet + Medicine", transformation and upgrading has become the urgent need of the pharmaceutical enterprises.

Fu Mingzhong, Chairman of China Association of Pharmaceutical Commerce said in the forum that "the industry will be developed into the health service industry characterized by smart and intelligent pharmaceutical circulation in the future, will shift from a low-technology-intensive industry to a high-tech-intensive industry, using the integration of informatization, systemization, standardization, automation, engineering and intelligence to drive the intelligent pace of the industry. The application of the Internet of Things and blockchain technology in the pharmaceutical traceability system and the application of the service technologies and modes of cloud and end in the industry will achieve breakthroughs. The intelligent medical service model and the intelligent medical supply chain application will all push the medical service system to the smart medical system rapidly."

Address by Fu Mingzhong, Chairman of China Association of Pharmaceutical Commerce

Fu Gang, Vice-Chairman of China Association of Pharmaceutical Commerce and Chairman of Intelligent Application Branch believes that, pharmaceutical circulation is now in a period of huge change. Firstly, the overall reform in China has entered the post-reform era, and the rough development is no longer in line with China's national conditions. The most prominent manifestation is the standardization of all walks of life, including the "Two-Invoice System", which is the product of standardization; Secondly, there shall be a global perspective. New technologies all over the world will enter China, and China's products will also go out; finally, the health industry is in rapid development, but the pharmaceutical circulation industry is still in the initial stage. The emergence of new technologies will be introduced to bring new opportunities and challenges for the development of the industry.

Address by Fu Gang, Vice Chairman of the China Association of Pharmaceutical Commerce and Chairman of Intelligent Application Branch

Qingdao Consensus on Intelligent Application in Pharmaceutical Circulation Industry was released

For pharmaceutical circulation enterprises in the future, intelligence level will become the core competitiveness, and the value brought about by intelligent application will be further highlighted. In the forum, the Qingdao Consensus on Intelligent Application in Pharmaceutical Circulation Industry was officially released, the Association and all the Council Members reached consensus on three aspects: industrial trends, technological development and organizational collaboration.

It was pointed out in the "Consensus" that the pharmaceutical circulation industry of China has great space for integration. The sound integration of the pharmaceutical circulation industry in China cannot rely solely on the merger and reorganization of capital, but shall be realized through optimization of service function by continuously improving the overall operational efficiency and standards of the industry as driven by technological innovation. The entire pharmaceutical circulation industry in China will show the trend of integration of wholesale and retail, online and offline integration, integration of e-commerce information, and integration of self-support and cooperation.

It was also pointed out in the "Consensus" that the Internet has evolved into an era of post-truth. Noises, secret leakages and resonance problems have emerged. Individuals and enterprises are easily caught in digital confusion. The rise of artificial intelligence optimizes the individualized solution centered on human beings. The medical pattern will evolve from the evidence-based medical pattern as the leading to the competition among integrated medicine, precision medicine and personalized medicine in the same stage. The economic pattern will also evolve from a boring economy to a smart economy. Pharmaceutical distribution enterprises shall take the lead in the research, promotion and innovation of artificial intelligence technology to enhance the ability of the pharmaceutical industry to use data, promote the deep integration of such technologies as cloud computing, big data and Internet of Things with the pharmaceutical industry with the intelligent subversive upgrade and improve the status and efficiency of the pharmaceutical circulation industry.

In addition, the industry associations shall continue to strengthen the communication with government authorities and strive for the necessary attention and support for intelligent application and innovation in the pharmaceutical circulation industry; need to guide and promote domestic and foreign enterprises to carry out various forms of technical exchange and cooperation so as to keep the advanced vision of the pharmaceutical circulation industry in the intelligent field; and strengthen special training for technical talents, build a vivid and vibrant ecosystems and maintain the level of advanced intelligent technology. To this end, the China Association of Pharmaceutical Circulation Industry established "Training Base for IT Technical Talents of Circulation Industry of the China Association of Pharmaceutical Commerce" in the BAHEAL Intelligent Technology, exporting professional talents for the transformation and upgrading of the industry and seeking more development of intelligent applications in the field of pharmaceutical circulation.

“Training Base for IT Technical Talents of Circulation Industry of the China Association of Pharmaceutical Commerce" was officially established

Intelligent application brings about the changes in the pharmaceutical circulation industry

Wen Zaixing, former Counsel of the Department of Market Supervision of the Ministry of Commerce and the expert of the China Association of Pharmaceutical Commerce, believed that the market size of comprehensive health industry will reach 8 trillion by 2020 and double to 16 trillion by 2030. There are great business opportunities for artificial intelligence in comprehensive health system including traditional medical services, pharmaceuticals as well as chronic disease management and aged care.

Address by Wen Zaixing, former Counsel of the Department of Market Supervision of the Ministry of Commerce and the expert of the China Association of Pharmaceutical Commerce

Fu Gang said that "The future of IT technology will make rapid breakthroughs at three application levels. The first is 'End', which is the data collection, the future of the end is the flexible sensing + neuron chip; The second is the 'Cloud', the real artificial intelligence is all realized in the form of the cloud, the artificial intelligence can manage very complicated information. Quantum computation is a more advanced algorithm. Once listed, it will be the disruptive technology; The third is 'Network', 5G has emerged, and then the next is the blockchain. Internet solved the problem of connectivity while the blockchain will solve the problem of trust. Once there is connection with the network, there is a cost of security, and network security system is also very important. The perfect integration of end, cloud and network makes it possible to extract valuable and trustworthy information from data ubiquitously collected through powerful data processing capability and ultimately serve the real economy. The BAHEAL laid out the "Three-End, Two-Cloud and One-Platform" taking the AI as breakthrough point to improve the service capability for the industry, including the Watson Decision Support End that was developed in cooperation with IBM, self-constructed Prescription Information Sharing platform-YFZ and the doctorpad.cn for skill improvement of doctors, as well as the Bodhi Medical Cloud providing informatization services to hospitals and the Spiegel Marketing Cloud, an intelligent marketing management platform created with the Oracle.

In the future, the pharmaceutical circulation industry will face large integration and the industry concentration ratio will further increase. How enterprises use intelligent technology to enhance their competitiveness and drive the innovation and development of enterprises has become an important proposition at this stage. The intelligent technologies based on cloud computing and big data and their applications can effectively integrate product development and production, circulation and use, the changes in disease spectrum as well as patient health needs and consumption habits and other data information after entering the pharmaceutical circulation industry. At the same time, based on the management, analysis and application of big data, it will also provide valuable data support for drug development institutions and manufacturers to judge the market trend and adjust product structure and for medical institutions to improve the medication selection and strengthen the rational use of drugs, and thus improve the operational efficiency of the whole drug supply chain.

Faced with the huge changes brought about by artificial intelligence to the industry, the BAHEAL proposed three attitudes embracing artificial intelligence. The first is the attitude of learning from others. One enterprise cannot develop so many new technologies of artificial intelligence by its own. Modestly introduce the advanced technology of multinational corporations, and the key point is how to really bring in good technologies to enhance our own ability; The second is the attitude of implementation. Studying technology is to solve the practical problems. We must use good technologies to solve the specific problems in our pharmaceutical circulation industry; The third is the attitude of sharing. For a new technology, it is useless if it works only for one enterprise. Only when it causes the overall progress of the industry and is accepted by all of us, can it realize the great development of the entire industry.

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