Capgemini 7th Annual Vision & Reality Study Diagnoses Pharmaceutical Industry's Need for New and Innovative Business Strategies.Pharmaceutical companies slow to address shifting power between physicians and patients NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Capgemini, one of the world's foremost providers of consulting, technology and outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. services, today announced its 7(th) Annual Vision & Reality Study, Customer Value Integration - How to Re-Tune Pharma's Commercial Model in Light of Changing Stakeholder stakeholder n. a person having in his/her possession (holding) money or property in which he/she has no interest, right or title, awaiting the outcome of a dispute between two or more claimants to the money or property. Influence, which reveals that pharmaceutical companies can remain profitable and maximize customer value in today's market by aligning a·lign v. a·ligned, a·lign·ing, a·ligns v.tr. 1. To arrange in a line or so as to be parallel: align the tops of a row of pictures; aligned the car with the curb. their efforts to address the shifting power between physicians and patients through better collaboration with industry stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. and influencers such as physicians, payers, insurance companies and government bodies. Capgemini surveyed more than 100 pharmaceutical and payer executives from Health Management Organizations (HMOs), insurance companies and government bodies worldwide, facilitated an advisory board session with leading physicians, and conducted research to assess how pharmaceutical companies are responding to the changing stakeholder landscape. While business transformation in the industry is inherent to adapt to this shift, responses to survey questions suggested a perception gap between how executives view the market evolution and how they respond to it. The study suggests that the power of the physician has declined in comparison to the increasing influence of patients and payers over the last decade. Today's prescription decision-making decision-making, n the process of coming to a conclusion or making a judgment. decision-making, evidence-based, n a type of informal decision-making that combines clinical expertise, patient concerns, and evidence gathered from process involves a complex set of interactions between stakeholders and influencers that the pharmaceutical industry needs to address. The combination of these stakeholders varies significantly depending on the therapeutic area and product lifecycle Product lifecycle or product life cycle is the course of a product's sales and profits over time. The five stages of each product lifecycle are product development, introduction, growth, maturity and decline. maturity of a drug and the previous "one size fits all" model is too slow and inefficient to address this shift. While traditional stakeholder,, such as physicians, still exert an influence and assume an important role for prescription decisions, new and influential stakeholders are beginning to re-shape how prescriptions are made. "While pharmaceuticals are finding it difficult to adapt to this fundamental shift in stakeholder influence, customer value integration - that is to say identifying customer needs and expected value Expected value The weighted average of a probability distribution. Also known as the mean value. then aligning a company's core competencies A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
The study includes insights into the degree of change in the pharmaceutical industry and the barriers to effectively deal with this change: * 51% of participants viewed the changes in the pharmaceutical marketplace as structural, while 38% found them incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. , and nearly 11% described them as temporary. * 79% of participants suggested more payer / pricing pressure as one of the top three market forces driving the change in the industry. The other market forces most commonly cited include more government influence (55%), and increasing regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. (47%). * 63% of participants named organizational adaptation as one of the most important capabilities pharmaceutical companies need to develop to respond to new market challenges. The wish-list of capabilities also included market analytics and segmentation capabilities (47%) and customer needs assessment know-how (43%). The Vision & Reality Series Each year since 2001, Capgemini's Life Sciences practice examines a specific topic that is both timely and urgent for the life sciences industry. The 7th Annual Vision & Reality Study is a result of interviews with pharmaceutical executives from around the world, payer executives in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Europe, an independent physician panel and supplementary research performed by Capgemini's Strategic Research Group. To review the full results from the 2007 Vision & Reality Study, please visit: www.capgemini.com. About Capgemini Capgemini, one of the world's foremost providers of consulting, technology and outsourcing services, enables its clients to transform and perform through technologies. Capgemini provides its clients with insights and capabilities that boost their freedom to achieve superior results through a unique way of working - the Collaborative Business Experience - and through a global delivery model called Rightshore[R], which aims to offer the right resources in the right location at competitive cost. Present in 36 countries, Capgemini reported 2007 global revenues of EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 8.7 billion and employs over 83,000 people worldwide. More information is available at www.capgemini.com. |
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