Part 2 of my blog will be focusing on the impact of the different elements of the life sciences value chain.
Pharma must deliver much more than drugs on the way to a more consumer-oriented industry.
Attention on continuous R&D innovation
M&A activities often are only one element of pharma companies to maintain or strengthen their position in changing markets. Given the number of changes and challenges life sciences companies must also pay close attention to continuous R&D innovation. Driving and sustaining clinical innovation remains a life sciences business priority. Continuous R&D innovation has a direct positive effect for the pharma company and can help improve operational effectiveness of research organizations
Collaborative product development
Collaborative product development can also be essential for better results in R&D. This can comprise the spectrum of openness and potential partners can be found in academia, government, traditional pharma and new industry entrants. Life sciences thus can fill in-house capability gaps and overcome R&D challenges by externally sourcing innovative ideas, skills and technologies. Another industry trend is the increasing importance of analytics. Pharma companies have started to realize real benefits from the evolving data ecosystem, using new methods for rapid acquisition, analysis and visualization of large, diverse data sets in cloud-based storage and distributed computing power platforms.
Changes in Pharma Supply Chains
Although one of the most complex supply chains in the world, it has been historically been resistant to transformation. Today, there is more pressure than ever before on the supply chain to be redesigned. The task for supply chains will be to start driving real revenue for business instead of just supporting revenue-generating operations. Future-thinking life sciences companies are transforming their traditional, linear supply chain into a dynamic, interconnected system that can more readily incorporate ecosystem partners and evolve to a more optimal state over time.
Connecting with customers and consumers
Today payers and consumers are the most important stakeholders for pharma companies. More and more engaged and empowered health-care consumers are demanding services and solutions that are convenient and customized including a growing consumer appetite for using technology-enabled care. Social networks have become customer engagement tools and offer a more personal and open dialogue than traditional marketing channels like advertisements and commercials. One of the most interesting consumer engagement challenges facing life sciences companies is how to increase consumer trust and improve the overall reputational perception of the industry. Companies are increasingly trying to help patients to navigate the complexities involved in receiving a diagnose, deciding on treatment, securing financial assistance, connecting with other patients and experts, and adding clinical education.
End to end evidence
Finally, the question of pricing is also essential for pharma companies. Pharma companies need to find new ways to define value that resonate with stakeholders. Patients are becoming much more active in making their voice heard thanks in part due to social media and advocacy groups. Pharma companies will have to become more proactive with larger communities of patients and go beyond lip services in meeting the needs of a large amount of consumers. In the New Health Economy, pharma companies should not only focus on sales but also have to concentrate on delivering positive results like health, well-being and optimal management of disease among targeted populations.