The commercial operating model traditionally used by the pharmaceutical industry is under growing strain. Financial pressure, regulatory changes and increasing number of decision-makers in the healthcare sector are among the factors calling into question the industry’s current approach. Companies must now look towards ‘commercial excellence’ if they want to succeed in these turbulent times. In light of challenges in the healthcare environment, 72% of managers believe that their companies will introduce a fundamentally new business model in the next two years.
Selecting the appropriate focus lays the foundations for the new business model. For each of the following six focuses, the company (or entity) must first decide how it wants to position itself. This depends on its products, customers and competitive situation; the subsequent decision lays the foundation for a company’s new business model:
● from individual products to product bundles/portfolios
● from product to healthcare services
● from direct to indirect influence on prescribers
● from physicians to accounts
● from full in-house control to flexibility/externalization
● from a focus on sales channel to an emphasis on other channels
By favouring one dimension over another, the company defines the characteristic attributes of its new business model. For instance, the company can choose to focus either on accounts or on prescribers. Similarly, it can choose between the two extremes of individual product offerings or product bundles. Each choice has a formative influence on the company’s sales approach and offerings, and thereby on the business model that is ultimately adopted.
