Critical business challenges of pharmaceutical industry
Innovation and global regulations
R&D innovation plays a key role in developing safe, economical and efficacious medicine in pharmaceutical industry. As the industry adapts towards digitalization, companies need to create new models like “Virtual R&D” which involves computer simulations on virtual cells, organs and animals.
As the markets are becoming global, regulations have become more rigid. Production process, patents, selling and marketing have come under more scrutiny than before. Industry leaders need to plan activities to stay competitive in the market.
Agile and efficient supply chain
New product types, licensing process, growing importance of emerging markets and new modes of healthcare delivery are causing a distortion in the existing supply chain of pharmaceutical industry. There is a need for companies to integrate the supply chains for designing, manufacturing, distributing pharmaceuticals, medical devices and service management. This will allow the companies to have a holistic picture and plan accordingly.
Sales and marketing
Sales and marketing functions of pharmaceutical industry are undergoing revolution as the role of traditional sales representative is becoming increasingly obsolete. Pharmaceutical companies will have to look for new agile strategies to market and sell healthcare products. On the other hand, industry will be in need of experts in the area of brand management, network alliances, negotiation and to communicate with patients.
Companies need to improve the organizational agility and operational performance. Trade-offs are being made by the companies between the investment in R&D and investment in competitiveness via discounts, rebates and other value exchanges. To improve performance and get optimized results, companies need to integrate people, process and technology.