Pharmaceutical Commerce - July/August 2010 - (Page 1)

2010 PDM SHARINGA CONFERE NCE Coverag Business Strategies for Pharma/Bio Success ge on page 25 www.PharmaceuticalCommerce.com JULY/AUGUST 2010 Business & Finance Information Technology The Five Things We Need to Do to Re-invent Commercial Operations By running Commercial Operations like a stand-alone business, executives can sharpen their focus on strategy, tactics and overall performance By Stephen E. Gerard and V. James Mercante, Partners, TGaS Advisors The Path Ahead for Enterprise Computing As IT vendors leap into cloud computing, clients in life sciences struggle to keep the data flowing through the organizations By Nicholas Basta Contemplating changes in enterprise computing systems is never a casual task for pharma CIOs, regardless of how many new bells and whistles new enterprise systems might have. But these days, the tasks are even more daunting, even while the need for up-to-date computer systems has never been more critical. Consider: • The major mergers of the past year—plus new multibillion-dollar acquisitions currently being contemplated—necessitate wrenching continued on page 22 > A fundamental shift is under way throughout the pharmaceutical industry – we can all agree on that. What used to take decades to change and years to measure now seems to happen at the speed of light. Every functional area in almost every pharmaceutical company is reexamining the way it does business and making changes to meet the demands of the industry’s “new normal.” Some groups will thrive in this environment, others will just survive. Operations executives of the past became somewhat accustomed to being able to do the same thing year after year. It may sound trite, but it was always OK. Each year we became adept at running a little faster, doing more with a little less, and in the process started overloading our Operations organization with more of the same. Annual plans were mistaken for strategic plans and budgets were a fixed and finite way of getting the job done. Traditionally, Commercial Operations executives have focused on Sales Operations and Marketing Sciences/Research. This domain has grown, however, as Marketing Operations functions, particularly Medical/ Regulatory/Legal support, Speaker Logistics, Agency Management, Meetings and Conventions, have become more centralized for reasons of cost efficiency, compliance and consistency. The explosion in digital promotions and focus on promotional compliance has also changed the landscape. TGaS Advisors has seen a growing recognition of the importance of a Commercial Operations organization that can effectively manage the increasing range of promotional activities. Many factors have sparked this change, including the “new commercial model” across 1. Be the CEO of Commercial Operations 2. Set a multi-year strategy 3. Select a few things where you want to be best-in-class 4. Embrace Managed Markets 5. Make performance metrics matter continued on page 12 > Supply Chain | Logistics Reverse Logistics Providers Upgrade Their Service Capabilities Even while cutting the costs of recalls and returns, providers offer new marketing tools to industry By Suzanne Shelley Unlike forward distribution in biopharma products, where exacting controls are maintained on shipping processes, purchase orders and inventories, reverse logistics tends to be a messy affair, with unpredictable lots of prescription and OTC products from countless retail pharmacies, chain stores, hospitals and other institutional pharmacies being sent back through a variety of intermediary partners in the reverse supply chain. These third-party agents must then arrange for both the destruction of the product and for all cash or credit reimbursements for unsalable products to be paid by the drug manufacturers. While the volumes returned (consisting of expired product, overstocks, and voluntary or mandated product recalls) are low—around 1-2% of the forward continued on page 20 > STERICYCLE all segments and sizes of pharmaceutical companies as well as the growing importance of managed care. In addition, companies saw the need for a broader promotional portfolio efficiently executed with rapid cycle times and a focus on performance-based metrics and measurements. Another factor requiring a stronger Commercial Operations organization is the growing importance of a consolidated view of increasingly complex compliance regulations, which differ by state, across business units and geographies as well as attention to detail in meeting oversight and reporting requirements. In many pharmaceutical organizations, Commercial Operations reports to the head of Pharmaceutical Business Operations and is strategically positioned to provide comprehensive operational support and leadership across all business units and related staff organizations, including IT, Regulatory, Advocacy and Finance. In that vein, we propose that heads of Commercial Operations begin to view their mission from a fundamentally different perspective, seeing themselves as leaders of their own commercial enterprise and becoming the CEOs of “Comm Ops, Inc.” We believe there are five keys that will enable CEOs of Commercial Operations groups to transition from a high-performing service bureau to a strategic business partner: Fig. 1. Manual processing at Stericycle. PRSRT STD US POSTAGE MENDOTA, IL PERMIT 200 PAID http://www.PharmaceuticalCommerce.com

Table of Contents for the Digital Edition of Pharmaceutical Commerce - July/August 2010

Pharmaceutical Commerce - July/August 2010
Contents
Editorial
Op-Ed
Top News
Business & Finance
Brand Marketing | Communications
Supply Chain | Logistics
Information Technology
2010 PDMA Sharing Conference
Legal | Regulatory
Executive Training & Development
Meetings & Editorial Index

Pharmaceutical Commerce - July/August 2010

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