Reuters Events | Pharma

Thought leadership and innovation for the Pharmaceutical Industry

A series of case studies showcasing critical success factors of developing value-added services, shows that long-term investment is the key to getting it right.

By David Laws on Jul 11, 2014

Pharma is waking up to the fact that the industry needs significant change to its business model if it is to remain relevant in the healthcare system of the future.  Small, incremental changes will unlikely be enough. These changes will impact every aspect of pharma’s current business model; nothing will escape: R&D, clinical trials, medical legal, sales and marketing, training, manufacturing, recruitment – the whole organisation will be affected.

Right now though, the industry seems reluctant to jump into large-scale change, preferring instead to focus on specific aspects of model change, such as patient centricity, delivering value, customer focus, transparency, Value-Added services and the like. But in reality, they are each a component part of the same significant business model change, and one project cannot flourish without other changes taking place.

This siloed approach can be useful in piloting and testing but it is very difficult to scale up innovation in one area while the rest of the business stays locked into ‘old world thinking’. And so it is with Value-Added Services. This is a critical aspect of any new business model, and the long-term success of the industry hinges on its ability to integrate services into its value offering to provide differentiated value. Change in healthcare requires the ideation, co creation and execution of multidisciplinary solutions which requires a new mindset and a long-term focus.

Here is a series of case studies that will demonstrate the challenges in forging a way forward with Value-Added Services: from addressing the needs of payers', to coming up with the right teams to drive innovation, to the establishment and piloting of projects. We can learn from each of these case studies; they contain valuable lessons and insights, but when taken together they showcase not only the mindset change required but also how important too is the reinvention of the broader business model.

These case studies were developed in conjunction with the Value-Added Services Conference 2014. Click here for more information.