Essential to future growth, but executives lack confidence in current models’ agility
Pharmaceutical executives recognize that their operating models can enable growth, but few have strong confidence that their current models can support the change needed to respond to the new healthcare environment at the enterprise level, i.e., moving beyond a traditional product focus. As the marketplace continues to shift to an outcomes focus, new business models, operating model efficiency and agility will likely be even more critical.
80% of pharma respondents
“somewhat” or “strongly” agree that advanced operating models are an enabler of strategic growth (similar to all industries).
Less than ¼ strongly believe
or have the highest confidence that their company’s operating model is aligned to fuel strategic growth initiatives and can support these activities across the enterprise (compared to 22% in all industries).
Only 10% have complete confidence
that their operating model is able to rapidly respond to changing market conditions (compared to 19% in all industries).
Digital is critical to advancing operating models but highly underutilized
Many pharmaceutical companies are more apt to incorporate digital in the front office, e.g., in commercializing therapies and exploring wearable devices. However, most companies are slow to take full advantage of digital to increase flexibility and reduce operating costs, despite acknowledging its critical role in doing so. From our experience, this holds particularly true in the middle and back-offices.
Many life sciences companies are still challenged with being agile and responsive. Pursuing integrated operating models can help fuel growth and provide the flexibility needed to respond to fluctuating market conditions. Externally, look to partners who can provide non-core capabilities and a broader ecosystem to help efficiently and effectively deliver patient outcomes. Internally, seek leaders experienced in data transparency, analytics and insight-generation to facilitate decision-making and decision quality.
Misalignment among leaders negatively impacts the organization’s ability to be agile and responsive. Consider journey management efforts to help executives collaborate toward in-common priorities. Relook at the talent required to operate in the future, and ensure you have the right skills, engagement and incentives to delivery on the agility requirements.
Digital is the game changer in the move to outcomes based operating and business models. It is simply not possible to move to these new models without fully embracing digital as a strategy to drive both revenue and cost efficiencies. Bolting on digital capabilities is insufficient. Digital should be infused in your entire business strategy to help reduce operating costs and increase agility.
C-suite executives and analysts in 9 geographies and 13 industries surveyed
Accenture conducted quantitative and qualitative research across 13 industries and 9 geographies to analyze the challenges and opportunities associated with creating cost-competitive operating models and reinvesting in growth. Fifty-four percent of respondents were C-suite executives or CEOs of business units. In parallel, Accenture interviewed 65 industry analysts across these industries to understand what external stakeholders measure, value and expect from the companies they cover.
Industries included: Automotive, Banking, Chemicals, Communications, Consumer Goods, Energy, Health, Hospitality, Industrial Equipment, Pharmaceuticals, Medical Technology, Retail and Utilities.