In today’s healthcare market, generating the greatest return on investment from a commercialization effort is increasingly complex but as vital as ever to both short-term profitability and long-term portfolio success.
But achieving increased value
isn’t as simple as cutting incremental costs and overhead. If companies want to effectively predict returns and maximize profitability, they need to think more strategically about their commercialization strategies
, and be willing to analyze results and adapt their approach accordingly.
One way to do this is to factor the following measures into every commercialization plan in order to determine the best possible allocation of resources.
Strategic value uses analytics to assess the potential outcome resulting from an investment, to determine which strategy will delivers the greatest benefit. For example, a commercialization team may use sales and prescription data to determine the best possible distribution of a treatment to prescribers in a market based on their potential to recommend that product. By identifying which prescribers see the highest number of patients in a population within a defined disease area, companies can determine where to invest their time and marketing resources to generate the best results. Geographic boundaries can then be designed so that each territory contains approximately even prescribing potential.
Workload is a compound metric that determines how easy it is to access the prescribing potential, and the overall number of prescribers who must be accessed in a specific geography. For example, a large territory with a higher number of prescribers will, with all else being equal, take a greater amount of work to drive the same brand sales as a more tightly defined geographic territory with a smaller number of higher value prescribers. Understanding the workload requirements will enable you to make the most of limited resources by distributing them accurately based on market need.
Disruption recognizes that any realignment of operational structures can have a detrimental effect if the impact of the disruption is not factored into predicted outcomes. Such disruptions can present themselves both internally and externally, each of which comes with a cost:
- Internal disruption affects the lifestyles of personnel. For example, relocation to a new geography will drive lifestyle changes that can be detrimental to their effectiveness. Relocation costs may also need to be covered and, in some cases, expensive redundancy packages included.
- External disruption. Customers who have built strong relationships with specific representatives from a company may not be comfortable working with new personnel. This can add delays to the sales cycle, impact the profitability of the client over time, and potentially result in the loss of valuable customer insight.
By calculating the strategic value, workload and disruption related to a project, biopharmaceutical companies can reduce new market risks and add additional accountability and predictability to their commercialization efforts. Such approaches have proven effective at reducing wastage of underutilized resources, and to reduce the stress and inefficiency that results from insufficient resources.
This increases the chance of accessing the most high value customers, which serves to improve overall morale within organizations by ensuring local teams are operating on an even playing field.