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Lifecycle Management in The Pharmaceutical Industry
Lifecycle Management in The Pharmaceutical Industry
“ There is no
doubt that, in the interim
between now and capitalizing
on the new science of genetics and
genomics, we’re going to be more
dependent on existing product pipe-
lines. The smart companies will look to
wring everything they can out of their
”
existing products.
In contrast to the perceived impor- We compared the current status of at all times, and almost no one in the
tance of LCM now and in the future, LCM practices of major and mid-sized study had developed a comprehensive
pharmaceutical companies still con- pharmaceutical companies to identify performance measurement system to
sider themselves to be lacking in emerging best practices. In our study track the effectiveness of its LCM
important areas: we identified four critical areas of operations.
• Limited commercial input in early LCM capabilities within the pharma-
stages ceutical industry: One key differentiator for the leading
• Activities not started early enough 1.LCM organization and governance implementers of LCM is the degree to
• Too much focus on revenue rather 2.Core LCM processes which they focus on building genuine
than profitability 3.Knowledge and skills necessary to market insights into their LCM strate-
support the LCM processes gies. Another is how they engage
• Lack of leadership/unclear responsi-
themselves to continuously innovate
bilities and a limited cross-func- 4.Information and performance indi-
and improve their LCM practices.
tional alignment cators needed to track and manage
• Despite pockets of excellence, LCM LCM effectiveness
Some of the smaller pharmaceutical
implementation is inconsistent, Although none of the major pharma- companies show more innovation in
lacking in rigor ceutical companies excel in all capa- their practices – varying from taking a
bility areas, some have taken a clear much longer perspective on planning
Only a small number of success sto- lead in specific areas. to organizing their company com-
ries in the pharmaceutical industry pletely around project teams rather
show that effective LCM implementa- Governance of Lifecycle Management than functions.
tion can be highly profitable, such as varies between those companies that
AstraZeneca’s Losec/Nexium, Bayer’s see themselves as marketing-led and
Adalat and Pfizer’s Procardia. those that see themselves as develop-
ment-led. However, the results suggest
Lifecycle Management Bench- that the key to success is not which
marking Study method is selected, but rather whether
the method is supported with effective
In addition, Capgemini recently con- “balances”, such as ensuring clear
ducted a Lifecycle Management commercial review and sign-off of stra-
Benchmarking Study to identify major tegies for companies that lead LCM
LCM practices in the pharmaceutical from development.
industry and learnings from other
LCM experienced industries. Most companies now have defined
processes for developing LCM strate-
gies and reviewing progress. However,
few apply these processes rigorously
Life Sciences the way we do it
1.LCM organization and governance: We further investigated how other facilitating workflow simulation and
• Organizational balance between LCM-experienced industries – fast- modelling with multiple stakeholders
development and commercial moving consumer goods/fashion, inside and outside the company.
• Formal vs. informal control of automotive and aerospace sectors –
LCM scored on these LCM capabilities. The Based on Capgemini’s experience in
• Use of dedicated LCM unit results suggest the LCM practices of LCM, our adaptive Lifecycle Manage-
these selected non-pharmaceutical ment Quick-Scan methodology
2.Core LCM processes:
industries could be a role model for would support you in:
• LCM strategy and planning the pharmaceutical industry. Best-in- • Understanding the implementation
process class market-insight generation comes status of your current LCM capabili-
• LCM decision-making and from close proximity to customers, ties and practices.
progress review processes which is achieved through the right • Identifying both strengths as well as
3.Knowledge and skills necessary to organizational structure, processes, areas for improvement to enhance
support the LCM processes: technology and culture. A rich cross- LCM implementation and its respec-
• Sophisticated market insight to functional and inter-organizational tive initiatives.
identify needs/wants of changing collaboration is achieved by stringent • Developing a feasible and practical
customer landscape LCM orientation at each step of the implementation plan for prioritized
product planning. This needs to be LCM topics.
• Rich cross-functional and inter-
supported by formalized processes/ • Accelerating further institutionaliza-
organizational collaboration to
contracts, by professionally managing tion of LCM practices and capabili-
overcome increased complexity
product data/information, and by ties in your organization.
in organization and processes
• Continuous innovation of LCM
approaches to be armed for tough- Capgemini’s Lifecycle Management Quick-Scan Methodology
ening healthcare environment
Step 1: Step 2:
4.Information and performance Steps
LCM status quo analysis LCM implementation preparation
indicators needed to track and
Objectives • Understand status of • Get commitment from key
manage LCM effectiveness: LCM implementation LCM stakeholders
• Rigorous and interlinked key Key Activities • Identify strengths and weaknesses of • Present findings from focus interviews
LCM implementation based on Capgemini • Prioritize key LCM topics for
performance indicators aligning expertise implementation
• Identify and prioritize key topics of LCM • Develop implementation plans for
all functions behind LCM objec- implementation prioritized topics
tives • Identify needs to further enhance the
implementation of LCM and its respective
• Information for decision-making initiatives
© 2006 Capgemini. No part of this document may be modified, deleted or expanded by any process or means without prior written permission from Capgemini 05-0056
About Capgemini
and the Collaborative Business Experience
Monika Hespe
Life Sciences Marketing
monika.hespe@capgemini.com
phone: +49 (30) 88703 175
www.capgemini.com/lifesciences