“The microbiome: opportunity or hype?” - My latest iPhone notification reflects the daily evolution of our industry: increased computational power, big data analytics, genomics, proteomics, the microbiome, new diagnostics, sensors, health reform and customer consolidation (I could go on). These changes are impacting all aspects of our business from our definition of customer, competitor or partner, to value creation, clinical trial design and even manufacturing.
Uncertainty can freeze us into doing nothing. Sometimes we delude ourselves that we can carry on as normal. But to develop good strategy we need to challenge ourselves about the future and what it will take to win.
The following article by @Berci reminds each of us to look to the trends of the future, to be prepared for where our industry is going. Whether that be at a macro-organization level, a therapy area, business unit, or identifying the right stategy for new assets currently in early stage development
We work alongside a variety of companies in the early stages of development. Some take a narrow view of their market, looking backwards rather than forwards for inspiration. Unfortunately many construct their commercial strategy too late, and end up trying to plug gaps in a poorly designed Phase III program.
We also work with businesses who recognize the need to incorporate foresight into their early development and commercialization plans. They use scenarios as a test bed for their strategy to inform choices about trial design, indication sequence, customer focus, capability build, brand development and service design.
Scenario learning is also hugely valuable in Phase II and early Phase III where there are many strategic questions to be answered such as what will it take to differentiate our asset given the competitive set? Do we understand what it will take to gain access and drive use? Do we have the right capabilities and/or can we build them or should we look at licensing, partnering alternatives? Should we commit to our Phase III program? What is the right sequence of indications?
So what is scenario learning and why is relevant in strategic planning for early assets?
Scenario learning is not new but it is an important planning discipline, especially in light of exponential environmental changes. Scenarios help us map out what different futures could look like. They blend art and science, past experience and future dreaming. But they need to be tangible, and work best when they describe relationships between systems, technologies, customer trends, market forces and competitor intentions. At this stage it’s not about prediction or probability but stretching ourselves to build a plan which caters for multiple future worlds.
Every project is different but there are some basic ingredients in any early commercial strategic planning project:
1. ISOLATE THE KEY DECISION
The future is an extremely big topic. Before we start it is vital that we agree the strategic decisions to be taken, the timeline and the questions we wish to explore. This will ensure the scenarios are focused and relevant. Deciding which indications to explore for a new platform technology requires a different set of scenarios to those for understanding how to differentiate a new asset.
2. RESEARCH THE FUTURE
It is likely that you will need a mixture of desk research, primary research and competitive intelligence but the goal is to determine the ingredients likely to influence your future
3. SCENARIO IDENTIFICATION
Here we prioritize the most influential and unpredictable factors and use them to form different scenarios- remembering that each scenario should be plausible, distinct and stretching
4. CHARACTERIZE SCENARIOS
To ensure the scenarios are tangible we build the ‘logic’ - a description of the whole system of events, trends, influences and influencers. It is often useful to bring scenarios to life through infographics, newspapers or even short films
5. DEVELOP PLANS AND OPTIONS
Scenarios are not the ultimate goal. They are the framework for decision making and building a solid early development and commercialization plan that works irrespective of future worlds. They also allow you to consider strategic options and contingency plans
6. TRACK AND KEEP THEM ALIVE
Finally, it’s important to define early warning signals and continue to track and learn from your market, adapting and narrowing the scenarios and assessing strategic implications
In an increasingly uncertain and rapidly transforming market, scenario is a vital tool for building robust strategy. It requires deeper understanding, greater foresight, clear strategic thinking and a degree of imagination. Done well it enables the development of a strategy that holds up in the face of even the most unpredictable changes.
Pharma companies I tell them they need to act now or they will lose business, or even be left with no business at all. What if we will spend a same amount of money, expertise and time on preventing diseases rather than treating them? It would mean we have a healthier society, and pharma lost the core of its business.