The pharmaceutical and life science industries are facing an era of rising healthcare expenses and reforms in the form of personalised medicine, expiring patents that decrease margins, as well as increased globalization, regulations, mergers and acquisitions, and competition.
In the IT and software industries there has been a convergence of online analytical and transactional processing, cloud computing, in-memory databases, data security, predictive analytics of big data in real time, incorporation of social media, internet of things, and mobile devices.
Pharmaceutical and life science organisations should be creating more accurate budgets with far less labour in order to gain a deeper understanding of the factors that drive your profitability. Budget top-down, bottom-up or a combination of both. Save each iteration. Easily analyse and review previous versions. Add collaborative comments and supporting details to budgets. Build forward looking views that incorporate historical and plan data in order to model and evaluate unlimited scenarios. Manage, protect, and analyse those scenarios using prebuilt tools to automatically compare variances between budgeted figures and actuals.
What are the main challenges facing budgets in the pharmaceutical sector?
The top challenge identified this year is the intensifying pressure from payers/managed care. Seventy three percent of healthcare professionals acknowledged feeling this pressure, making it the top concern among executives from companies big, medium, or small. Decreasing budget devoted to an area of intensifying concern does not make a lot of sense. The top challenges faced by budget holders this year are as follows:
- Payer pressure
- Beyond the pill innovations
- FDA regulations/guidelines
- Clinical development / time to market
- Internal medical and legal approval
- Smaller launch budgets
- The economy in general
- Patent expiration
- Big Data
- Social Media
- The affordable care act
- Mainstream media coverage of the industry
- Customer behavioural change
- Emerging markets
- Growth of consumerism in healthcare
- Merger & Acquisition activity
- The sunshine act
- Collaboration with third-party tech firms
- Media fragmentation
How do you plan to tackle old challenges such as the patent cliff and channel bloat with new challenges such as freshly assertive payers, genomics, UDI, patient centricity, personalised medicine, wearables, medical devices, research and development and everything that comes with it? The budgeting process has become diluted, including lots of different decision-makers in the process, such as physicians, specialists, patients, consumers, payers, managed care, nurse practitioners, physician assistants, shareholders, investors, pharmacists, NGOs, etc.
What should today’s budgeting priorities be in life sciences?
The answer to this question very much depends on which department you work in.
Collaborative Research and Development
- Analyse genomes, proteomes, real-life evidence, and other types of big data to drive personalised medicine.
- Optimise research and development, project management and service procurement to facilitate collaboration.
- Secure compliance with regulations on materials, substances, and environment, health and safety.
Demand-driven supply networks
- Get real-time global visibility on inventories, shipments and receipts.
- Collaboratively orchestrate supply, demand and inventories.
- Achieve complete visibility and traceability of drugs and medical devices across the global supply chain.
- Define recommended actions from accurate risk assessments.
Multichannel sales, marketing and service
- Analyse markets in real time and run campaigns effectively.
- Develop attractive agreements.
- Enable the field to connect customers with tailored content.
- Help ensure contextual and consistent customer experiences.
- Deliver outstanding services and complaint handling.
Strategic sourcing and procurement
- Simplify sourcing and procurement processes including on and off-boarding of third parties.
- Manage complex contracts and statements of work.
- Collaborate with contingent workforces.
- Gain full visibility into spend and supplier performance.
- Automate and simplify travel management.
- Improve plant performance across the life sciences enterprise.
- Manage numerous outsourcing partners across the globe.
- Secure compliance with good manufacturing process requirements and other regulations and maximise quality efficiently.
- Control warehouse operations and manage equipment maintenance and utilization efficiently.