Companies’ operations must be built upon flexibility, responsiveness, and reliability to meet dynamic business and consumer demands. With a still-sluggish economy and the unknown impact of healthcare reform, companies must respond with new strategies, new business models, and new capabilities. The difference between the industry’s winners and losers may ultimately come down to the basics of operating performance.
Increasing regulatory scrutiny and expiring patents are contributing to the growing costs of developing new drugs and medical products. Many companies have put their R&D budgets under a microscope or are experimenting with new R&D structures. With less robust product pipelines and the need explore increasingly customized therapies, today’s companies are also looking for improvement in their supply chain with the twin goals of delivering more flexible and responsive operations.
In this new environment, the traditional sales and marketing model of driving revenue with an ever larger sales force is no longer sustainable. Businesses will need to evolve to become more efficient and deliver differentiated messages tailored to the specific needs of diverse customer segments, including patients, insurers, government, and physicians.
To speed up clinical trials and reduce costs, the industry is poised to take advantage of alternative approaches.
Recently enacted Drug Quality and Security Act establishes a national track and trace program targeting counterfeit medicines.