Global trends – seven trends that pharma companies should consider Formulate a clear globalisation strategy – exploit opportunities, avoid challenges Approach to successfully address globalisation – four key steps 1: Clear baseline – establish baseline and current globalisation footprint 2: Globalisation drivers – define the relevant drivers 3: Opportunities and challenges – identify key opportunities and challenges 4: Functional actions – turning opportunities and challenges into actions Is globalisation on your agenda?– self-assessment tool
Globalisation strategy Exploiting the opportunities while avoiding the challenges
Pharma companies are facing seven global macro trends Seven globalisation challenges
Key observations
1
Increased pressure on price and focus on cost containment
Overstretched public finances, above GDP growth in healthcare expenses and aging populations imply imminent need to contain healthcare costs
2
Increased demand for reimbursement documentation from payers
So far, cost-efficiency analyses have difficulties demonstrating sufficient proof of value to ensure future reimbursements and price points
3
Devolution of treatment in primary care
Patients are increasingly diagnosed and treated in primary and ambulant care
4
Reduced leverage with regard to choice of treatment and drug among HCPs
Strict regulation of HCPs' freedom of choice limits the impact of HCP-centred sales activities
5
Increased marketing spend
Increased marketing spend creates noise in the market and reduces efficiency of traditional "share of voice-based" sales activities
6
Enhanced focus on pharma companies' societal value creation
High prices and profits are increasingly painting a public image of pharma creating shareholder value at the expense of societal value
7
Growing patient influence
Rising out-of-pocket spending will increase patient influence on treatment
2
To cope with the seven global trends, pharma companies need to formulate a clear globalisation strategy – exploiting the opportunities while avoiding the challenges Develop a clear globalisation baseline
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2 Translate opportunities and challenges into functional actions
Define globalisation drivers
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3 Define globalisation opportunities and challenges
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Develop a clear globalisation baseline to create a common understanding of the current picture
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2
Develop a clear globalisation baseline
Identify globalisation drivers and define which ones should drive your agenda
Define globalisation drivers
Proven approach to successfully address globalisation Define globalisation opportunities and challenges
Assess impacts of globalisation drivers on the key business areas and identify key globalisation challenges
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4
Translate opportunities and challenges into functional actions
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Anchor and address challenges throughout all functional areas and define actions to be completed
ILLUSTRATIVE
Step 1 – Develop a clear globalisation baseline
What? Establish baseline and current globalisation footprint across all functions
Why? Create a common understanding of the point of departure Focus on future challenges
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ILLUSTRATIVE
Step 2 – Define globalisation drivers What? Identify gross list of globalisation drivers Define relevant drivers driving your agenda
Why? Create a shared understanding of relevant drivers affecting our company
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ILLUSTRATIVE
Step 3 – Define globalisation opportunities and challenges What? Assess impact of globalisation drivers on the key business areas Identify and describe key globalisation opportunities and challenges
Why? Ensure the right top-down opportunities and challenges are identified in order to ensure successful execution
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ILLUSTRATIVE
Step 4 – Translate opportunities and challenges into functional actions What? Translate company-wise challenges into functional actions Identify function-specific globalisation opportunities and challenges
Why? Create commitment and ensure successful execution by anchoring and addressing opportunities and challenges for each functional area
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Seven topics that influence your globalisation agenda Is globalisation on your agenda?
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Industry and competitiveness
Do you have a clear picture of how globalisation is affecting you?
Globalisation baseline
Do you have a shared understanding of the globalisation baseline?
Business portfolio
Do you have the right global business portfolio?
Cost-and-cashconsciousness
Do you have the right global cost-and-cash-conscious mindset?
Talent, insights and knowledge
Do you attract and retain global talent, insights and knowledge?
Plan and process
Do you have a plan and process for dealing with globalisation?
Leadership and governance
Do you have an agile and responsive leadership and governance model?