e-Business in pharmaceutical industry

e-Commerce Thesis

Strategy in building a Web Site (更詳細之內容請e-mail索取)

e-Business in pharmaceutical industry

 (Presentation slides for POMC-"Pharma Outstanding Managers Club" on 22/02/2001 )

e-CRM 成功的方法

 

 

 

 

 

 

e-Business in Pharmaceutical Industry 

1.Three mega trends are transforming pharmaceutical industry

2.Challenges & opportunities in pharmaceutical industry

3.Mega trend consequences

4.Short term outlook of pharma marketers 

5.Mid-term financial goals of pharma marketers

6.Connectivity throughout the Value Chain

7.Revolution in biogenetics - Gene & Genome therapy

8.Revolution in biogenetics - Exploiting the human genome

9.Identification & validation of Drugable targets

10.The drug innovation & approval Value Net

11.World economy evolves to Information economy

12.Definition of e-business & e-Commerce

13.WWW functions

14.Growth of the net

15.World population on Internet

16.Internet population distribution by age

17.Type of information sought by US Internet users

18.Internet impact on rules of game

19.Lag behind other industry in e-Business

20.How to start e-Business

21.Examples of various e-initiatives

22.e-CRM

23.Digital revolution creates opportunities & threats to the entire

 pharmaceutical value chain

24.Conclusions

1.Three mega trends are transforming pharmaceutical industry

The digital revolution

Revolution in biogenetics

The tensions between the rising costs of healthcare 

  (availability of new treatments & increasing demand) and 

  the ability & willingness of the society to cover these costs.

2.Challenges & Opportunities for pharmaceutical industry

Competitive Pressure   

Merger & acquisition

Globalization

Shorter patent exclusivity

e-Technology

Genomics

Cost explosion

Shareholder value

Changing regulatory & political environment 

Pharma Healthcare

Scientific & technical breakthrough

Pharmacogenomics

Internet

Partnering 

       Opportunities

Integrated disease management

Faster & more precise therapies

Better informed patients

Increased cost efficiency

Expanded business options

New quality in communication

3.Mega trend consequences

Accelerated pace of discovery

Shorter product life cycle

Complications / changes in patent law

Creation of near perfect information market and effect on relative roles of 

patients, doctors, payer, opinion leaders , etc.

Control of information flow and content by government

Dramatic changes in physical distribution

Increased importance of effect of pharmaceuticals on total healthcare costs

Multiplication of industry alliance

Accelerated industry consolidation

4.Short term outlook of pharma marketers

    • Want to become more competitive

    • Want to increase market share

    • Generate resources to invest in future

5.Mid-term financial goals of pharma marketers

Exceed industry growth rate

Match industry gross margin

Operating expense growth slower than sales growth

Operating ratio at least at industry average 

 

6.Connectivity throughout the Value Chain

Seamless communication along product supply chain

e-Purchasing

Collection, processing, and dissemination of information

e-Based human resources management system

Internal & external partnering & alliance

Knowledge management 

7.Revolution in biogenetics - Gene & Genome therapy

Gene Therapy : Transfer of selected genes into a host with the hope  of ameliorating or curing the disease state

Cell Therapy (Genome Therapy) : Transfer of entire cell, that have not been genetically modified, into a host with the hope that the transferred cells will engraft into and improve host functions

8.Revolution in biogenetics - Exploiting the human genome   

Strategic elements

    • Integrating informatics

    • Partnering

    • Knowledge management

    • Human genome data

Challenges / Bottlenecks

    • Drugable targets

    • Drug-like compounds

    • Relevant patient population

      Disciplines

    • Functional genomic

    • Chemistry & biological profiles

    • Pharmacogenomics

9.Identification & validation of Drugable targets  

External collaboration & network  Oncology, Metabolism, Cardiovascular, Anti-invectives, RA/OA, Immunology , etc. Disease biology platforms

 

External collaboration & network Internal Genomic control disease groups Genomics technology platforms

                                                                            

              Develop multiple targets per family of genes / proteins

                                                 

                                Utilize common mechanisms

                                                 

                                Develop multiple candidates

10.The drug innovation & approval Value Net

Target

identification

Lead

identification

Candidate

identification

Pre-

Clinical

Clinical

Approval

10-

15

Years

Partnering              

Genomics

Informatics

Knowledge 

management

Target identification 

Lead identification

Candidate identification

Pre-clinical

Clinical

Approval

6-9

Years

11.World economy evolves to Information economy

       World Economy evolves through 3 major eras, and now resides in "Information age "

Agricultural economy : 1850 - 1900

Industrial economy :  1900 - 2005

Information economy :1975 onward

12.Definition of e-business & e-Commerce

E-Business 電子商業

企業經由Internet ,引領客戶進行一種全然不同的商業模式,

並藉此來改善企業的整體效率。

目的:為了提昇服務品質、降低成本及開拓新的銷售管道。

E-Commerce 電子商務

Ø行銷

Ø銷售行為

Ø透過Internet 來進行商品與資訊的買賣與服務

 E-Business = EC (E-Commerce )+ CRM (Customer Relationship Management ) + ERP ( Enterprise Resources Planning ) + SCM ( Supply Chain Management )

13.WWW functions

    World Wide Web can provide :

  Content:       information, personalized to needs
Connectivity:  enabling communication via a different media (email)
Commerce:    buying and selling. Company size is not important,   no shop required
Community: like minded surfers (chat rooms, support groups, common  problems shared)
Ø Ø           Ø Ø  

14.Growth of the net

Traffic doubles every 100 days

413 m users by 2003

350% increase by 2003 in EU , and ROW, US 150%

US e-commerce $48bn in 1998

  forecast to $1.25 trillion by 2003

Impact by country depends on

  penetration of the internet

US often leads .. other markets surely follow

15.World population on Internet

 

16.Internet population distribution by age (Taiwan)

(Source: SINA market survey in Jan 2000 )

17.Type of information sought by US Internet users

18.Internet impact on rules of game

ØShifts in traditional balance of power

     - Patient finally at the center of Health Care

     - New set of influencers (e.g., broad-based portals, disease specific sites)

     - New tools/vehicles to influence decision making (e-detailing, e-prescription)

ØSubstantially increased market efficiency

      - Sales/distribution (e.g., e-auctions)

      - Manufacturing (e.g., e-supply chain, e-procurement)

      - R&D (e.g., clinical trial management)

ØIncreased connectivity of Health Care stakeholders, leading to :

      - Improved efficiency (e.g., paperless transactions, electronic medical records)

      - Eased access to behavioral and outcomes data

19.Pharma lag behind other industry in e-Business

          

20.How to start e-Business

  Clear sponsorship & commitment from CEO

Objectives 

     - Re-engineer company web site

     - Create e-company by rethinking value chain

     - Increase PC and net literacy company wide

     - Global project team to energize the above

     - Global consistency (local adaptations)

 Organization  

     - E-business council

-     - Project team

-     - Dedicated staffs

-     - Sub-project teams

-     - Drug Innovation, Finance, IS involved

21.Examples of various e-initiatives

Company.COM + Disease Programs:  Patient and doctor information

Intranets: Common platform / site design for Intranet sites by brand / specific to  countries

E-Clinical Trials:  Execute clinical trials more efficiently

E- Patient / Physician Connectivity:  Improve efficiency and effectiveness of interactions between physicians and patients

E-CRE (Customer Relationship Enhancement):  Connect ETMS / call center / CRAs to achieve one view of the customer

E-Prescribing: Mobile hand-held devices to help physicians select appropriate drug treatment

E-Detailing:  Link with physicians for selling interaction at time convenient for customer

22.e-CRM

  

23.Digital revolution creates opportunities & threats to the entire pharmaceutical Value Chain

Research 

Purchasing of supplies : www.sciquest.com 

Virtual Communities :  South West Oncology Group , www.healthgate.com ,

 www.docguide.com  ,  www.webmd.com , www.eortc.be 

Research Database Integration :  www.netgenics.com 

R&D News : www.drugdiscoveryonline.com 

Development

Enrollment : www.drkoop.com 

Data Tracking & Submission : www.phaseforeward.com , www.monster.com 

Manufacturing

Procurement : www.chemdex.com , www.chemconnect.com 

Marketing

Web integration of ETMS : www.eyeforpharma.com 

Interactive DTC : www.spotlighthealth.com , Search Allergy in Yahoo 

Physician Support System : www.vasona.com , www.ephysician.com

                                                         www.iprescribe.com , www.hon.ch 

Participation in disease treatment program : www.diabeteswell.com 

Medical information : National Library of Medicine , www.medscape.com , www.healthgate.com 

Sales 

ECRM in healthcare : www.softwatch.com  , www.cyberdialogue.com 

ETMS : www.synavant.com , www.medicheck.com , ETMS Attitude Survey , www.datamailcorp.com , www.info-newt.com , www.dnai.com 

Sales Management Automation : www.ockhamtech.com 

Selling skills : www.salesdoctors.com , www.salesdoctor.com 

Distribution 

Direct to consumer distribution : www.drugstore.com , www.cvs.com 

Online prescription : www.planetrx.com 

e-Business solutions

 www.ebiztechnet.com , www.siebel.com , www.lawson.com , www.ibm.com 

24.Conclusions  

Clear mandate and investment from EXECOM

US dominance of internet usage is decreasing, rest of world growing rapidly

Half billion users by 2003

New business models for pharma across the value chain

  • Trials

  • Procurement

  • Marketing mix (resource allocation)

  • Segmentation

  • Communication

  •  

       ••

    Need to plan even if penetration is just starting – competitive opportunities exist !