As the life sciences industry becomes increasingly competitive, companies are being disrupted by big data, analytics and other digital technologies. At the same time, these disruptions can also be catalysts for new capabilities and business models. In this environment, Accenture recommends three important actions to improve the flexibility and responsiveness with which life sciences companies compete.
Companies need to:
Be value-driven. Companies need to be relentless about driving value for the broader healthcare system through their drugs and associated services. They are no longer just competing against other drugs or types of treatment, they are competing for all the healthcare dollars out there. Demonstrating improved patient outcomes including the safety, efficacy, tolerability and economic value of a therapy is increasingly essential for market success.
Extend brainpower. Applying analytics and big data is increasingly becoming the standard to compete. According to an Accenture-report, the average top-25 pharmaceutical company is looking at commercial value of $170 million in revenue upside and $190 million in cost reduction to be gained over the next five years in the US by digitizing its current operational and customer experience models.
Reshape business models. An important factor to succeed is a fundamental transformation in business models that is anchored to evidence and outcomes, achieved by rethinking the corporate strategy and the appropriate core operational capabilities.