Digital Reality TM changes everything

F E B R U A R Y 2 0 1 8 Digital Reality TM changes everything Step into the future

What are we talking about? Virtual Reality VR is an entirely digital world that completely immerses the user in an environment to see objects or places, or perform actions that would otherwise be cost-prohibitive or impossible. Augmented Reality AR is the overlay of digital information on the real world, such as objects projected into the environment of the user, allowing physical interaction with digital data. 2 Copyright 2018 Deloitte Consulting LLP. All rights reserved.

Expectations The hype is waning, and real opportunities are here IoT Platform Smart Robots Machine Learning Autonomous Vehicles Blockchain VR AR 412% growth in sales 55.71% CAGR AR in 2016 VS 43% A.I. 23% IoT 19% Cloud Natural-Language Question Answering Augmented Reality Virtual Reality INNOVATION TRIGGER PEAK OF INFLATED EXPECTATIONS TROUGH OF DISILLUSIONMENT SLOPE OF ENLIGHTENMENT PLATEAU OF PRODUCTIVITY Gartner Hype Curve, 2017 Time AR/VR spending is expected to accelerate over the next several years, achieving a compound annual growth rate (CAGR) of 198.0% over the 2015-2020 forecast period and totaling $143.3 billion in 2020. 3 Copyright 2018 Deloitte Consulting LLP. All rights reserved.

How is the Life Science/Healthcare industry using AR/VR? Care providers use AR headsets to reduce EHR charting burden by 80% via a remote scribe Patients are using VR as a new way to address mental health with immersive experiences Nurses improve ability to cannulate by 81% with AR vein detection Pharma manufacturers are using AR to reduce mistakes in production and increase compliance along the supply chain 4 Copyright 2018 Deloitte Consulting LLP. All rights reserved.

A few success stories VR for Stroke Rehabilitation In a pilot study published in the Journal of NeuroEngineering and Rehabilitation, researchers in Switzerland investigated the potential use of a VR-based stroke rehabilitation training targeted to the upper motor limbs. Overall, this pilot study demonstrated the ability of VR-based treatment to provide efficient training sessions, as the efficiency rate (relation between time of therapy session and time in active therapy) was 86.3%. VR is Transforming Pain Therapy University of Washington researchers partnered with various burn clinics to create VR simulations of soothing environments for patients who were too young to receive morphine treatments for 3 rd degree burns. In clinical trials, all but one patient reported reduced pain by up to 60-75%, while morphine-prescribed patients typically report a 30-50% reduction in pain. AR in Surgery / VR for Education Lucile Packard Children s Hospital is using AR to combine images from MRIs and CT scans into a 3D model that surgeons can see and manipulate. 3D aspect aids surgeons planning and improves surgical accuracy, with the aim of producing safer procedures and enhanced choreography. The Virtual Heart program is helping train residents, assist surgeons in planning cardiac procedures, and educate patients & families on congenital and other heart defects. AR for Electronic Health Records Augmedix simplifies how physicians work with their EHR by utilizing remote scribes to complete patient notes in real-time. Allows doctors to interact with patient s medical records hands-free using voice commands and Google Glass. Physicians can populate notes, forms, fields, and dropdowns in the EHR without being in front of a computer as well as have patient information delivered right to the device. This service can save doctors more than 10 hours per week, enabling them to focus more time on care with more patients. 5 Copyright 2018 Deloitte Consulting LLP. All rights reserved.

What are the core value drivers of the technology? Physician/Clinician Assistance New Treatments Patient Experience Smarter Supply Chain Educational Breakthroughs AR technology augments the physician workflow with additional capabilities that may result in: Improved care delivery and patient outcomes Lower physician burnout Increased patient throughput Enhanced workforce connectivity Reduced administrative burden Experiential VR content opens new doors for scalable, low cost: Exposure therapy for mental health Pain therapy PTSD intervention Amputee phantom limb treatment Opioid Addiction therapy AR unlocks new inroads to patient-centric care by: Creating an immersive medium for in-hospital physician/patient interaction New abilities to deliver virtual health HUD capabilities for the caregiver allow for more tailored patient visits New capabilities for education / compliance AR/VR provides solutions for bio/pharma manufacturers with: HUD work instruction to prevent production errors VR training for sensitive material production and transport AR/IOT enabled logistics for reduced supply chain cost AR/VR education is transformative because of its ability to: Introduce realistic 3D simulations of complex surgical environments Replace the reliance on labbased or cadaver-based learning Create VR recordings of surgical procedures that can be used for training Offer asynchronous and geographically separated learning opportunities 6 Copyright 2018 Deloitte Consulting LLP. All rights reserved.

We re already driving real-world impact 1 Data Visualization Use a 3D image to visualize anatomy and view MRI, CT, EEG, and Tractography data 2 Gesture Control Use hand gestures to manipulate image via translation, rotation and resizing 3 Density and Transparency Making critical information available to surgeons when it matters most in the operating room. Thoroughly investigate datasets with density and transparency controls With this technological advantage, surgeons and residents can display images with previously unapparent anatomical details and visually plan their surgical intervention, explore the patient-specific anatomy, and refine their procedural choices while in the procedure, without risking contamination. 7 Copyright 2018 Deloitte Consulting LLP. All rights reserved.

What are the challenges facing Healthcare AR/VR? The CMO vs CFO ` Smart Design and Real Utility Cross-Party Collaboration Core Technology Maturity 2015-2018 identified key barriers to adoption that 2018-2020 will focus on solving unlocking more use cases and adoption across the Life Science and Healthcare industry 8 Copyright 2018 Deloitte Consulting LLP. All rights reserved.

AR implementation will require some key considerations Role in Communications How will AR change communications with stakeholders? 1 What are the Opportunities? What is the range of AR applications and in what sequence should they be pursued? Talent and Resources Should the organization make AR design and deployment a core strength or will outsourcing or partnering be sufficient? 5 4 3 2 Product Differentiation How will AR reinforce an organization s product differentiation? Cost Effectiveness Where will AR have the greatest impact on cost reduction? 9 Copyright 2018 Deloitte Consulting LLP. All rights reserved.

Further Materials Deloitte Holographic Medical Imaging Accuvein AR Augmedix Overview Deloitte VR Training Link: vimeo.com/243242473/password Password: Greendot1 Link: https://goo.gl/gkhxl9 Link: https://goo.gl/5bjajd Link: https://vimeo.com/252901729 Password: Greendot1 12 Copyright 2018 Deloitte Consulting LLP. All rights reserved.