Outsourcing in a Changing Environment

Transcription

1 Outsourcing in a Changing Environment Commercial Solutions from Quintiles Copyright 2013 Quintiles

2 Objectives Discuss the evolution of outsourcing Do cost efficiencies, i i flexibility and productivity it exist? How to maintain i morale while outsourcing Where outsourcing has succeeded d and failed 2

3 Benefits of Variable Resourcing Companies can achieve added value by using sales force outsourcing strategically Since variable costs can be adjusted more easily than fixed costs, companies can respond more quickly and efficiently to changes in circumstances without being constrained by investments that have been made in-house. Datamonitor The Future of Outsourcing 3

4 Three Macro-level Imperatives Driving the industry transformation Challenges and Risks Imperatives P&L pressure, development bandwidth constraints and Market Access limit ability to push assets to market to fill exclusivity expiry from revenue cliff Optimize Portfolio Value & Risk Approval timing, access and capacity issues are becoming inconsistent with the less profitable business model Improve Productivity Comprehensive provision of all drug development / commercialization functions too cumbersome to react to rapidly changing g market Reduce Fixed Cost Risk 4

5 Outsourcing is Evolving Around Key Business Imperatives Imperatives How Quintiles can help Optimize Portfolio Value & Hedge Risk Robust, quantitative decision analytics to de-risk portfolio, release latent value locked in assets and provide more shots on goal. Potential Product / Brand solutions Provide geographic reach to maximize portfolio or product value Enable corporate therapeutic decision making Improve Productivity Allow for regional or national decision making Allows for greater reach for single product companies Reduce Fixed Cost Risk Provide position offerings headcount transfers to allow for product/marketing based decision making to maximize product potential 5

6 Greater Flexibility to Respond to Fluctuating Resource Demands Outsource (Variable Cost) Traditional Model Limited scope of flexibility Strategic Outsourcing Network Pharma Model: Greater scope of flexibility In-house (Fixed Cost) Sale es Force Res source Demand (% %) In-house In-house Traditional Model Variable Costs Fixed Costs Network Pharma Model Variable Costs Fixed Costs Time Forward thinking companies are making their value chains more elastic and their organizations more flexible. Harvard Business Review Source: Datamonitor 6

7 Benefits of Variable Resourcing Converting fixed costs to variable costs allows for Strategic Flexibility (over time) Managing the peaks and valleys associated with new product launches, competitive campaigns and impact of product patent expiration Quicker recovery time from unexpected market events Consideration of more aggressive and/or innovative strategies Tactical Flexibility (over execution) Apply the precise level of resources based on the product lifecycle and any changing market conditions Rapid decision making and implementation Pilots, pilots, pilots Risk Management Benefit from outsourced experience and best practice solutions Potential for shared financial risk Co-employment risk mitigation 7

8 Tactical Outsourcing Pre-1995 Shared Cos st Efficie encies Direct Head count Recruitment Clinical / Nurse Educators Fee-Based Sales Vacancy Mgt Strategic Value 8

9 Tactical Outsourcing Era Shared Cos st Efficie encies Direct Head count Recruitment Geographic Pilots Fee-Based Sales Risk Sharing Fee-Based Specialty Sales Virtual Sales Force Builds Clinical / Nurse Educators MSL s Vacancy Mgt General Pilots Strategic Value 9

10 Strategic Outsourcing The current & future landscape Merchandisers & Sample Reps Sales Force Change Agents Shared Cos st Efficie encies Direct Head count Recruitment Geographic Pilots Fee-Based Sales Hybrid Risk Sharing Fee-Based Specialty Sales Virtual Sales Force Builds Clinical / Nurse Educators MSL s Vacancy Mgt General Pilots Strategic Value 10

11 Strategic Outsourcing The current & future landscape Merchandisers & Sample Reps Sales Force Change Agents Shared Hybrid Cos st Efficie encies Direct Head count Recruitment Geographic Pilots Fee-Based Sales Risk Sharing Fee-Based Specialty Sales Virtual Sales Force Builds Clinical / Nurse Educators MSL s Clinical Trial Educators Multi-Channel Patient Coaching Vacancy Mgt General Pilots Closed-Loop Marketing teams New Commercial Model Pilots Strategic Value 11

12 Strategic Outsourcing The current & future landscape Cos st Efficie encies Direct Head count Recruitment Leave of Absence Merchandisers & Sample Reps Rep Profile Optimization/ Sales Force Change Agents Geographic Pilots Fee-Based Sales Risk Sharing Fee-Based Specialty Sales Shared Lifecycle Management Strike Force General Pilots MSL s Virtual Sales Force Builds Clinical /Nurse Educators Closed-Loop Marketing teams Resource Transition Reimbursement Specialist Acquisition Expansions Clinical Trial Educators Brand Solutions Revenue Sharing Multi-Channel Virtual Company Builds Vacancy Management Patient Coaching Proof of Concept/ New Commercial Model Geographic Expansion Patient Adherence Communities Strategic Value 12

13 Maintaining Morale While Outsourcing Fully integrate or create a stand-alone entity Integrated Full Communication strategy is needed with the internal team > Including WIFM Integrate resources (Sales Force Automation, VM, , etc) Create Common Goals & align Incentives Create an Escalation plan: driven by across, before up Create shared and common teams > Partnership Champions, Product Champions, Data champions Shared Meetings Lead by Example (Corporate level governance) Share Success together Allow for Cross Pollination Eliminate the poison Stand Alone Full Communication Strategy is needed > Including WIFM > Including Strategic reason for outsourcing > Periodic Updates Allow for Cross Pollination 13

14 Making Outsourcing Successful Putting in place the right strategy to ensure long-term success Long-term Success Can drive both Strategy and Tactical Success Partner can hire headcount after proving-time Allows for strategic rightsizing of partners infrastructure (field and dhome office) Can increase Market Capitalization Can increase societal goodwill Allows for flexibility Allows for non-strategic investments and assets Allows for creativity (POC/Pilots) Permits maximization of nonstrategic assets Disruptive Partner treatment (Disposable Assets) One Product Field Forces & unrealistic forecasts Co-employment and often transferred internal support Non-Compliance (generally smaller organizations) Bulge Deals and procurement power plays Failure Treating the partner as a vendor (an A and a B team) Creating demands in excess of internal team Primarily Tail Products and low decile physicians Lack of a POA for an outsourced initiative 14

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