More than one in four companies expect large-scale transformation in the next three years – but talent and strategy are still in question
Washington Crossing, PA—April 13, 2018—There are a number of market factors impacting life-sciences companies today. CEOs and other C-Suite executives must manage pressures being driven by a changing customer landscape (patients, providers, payers), heightened focus on pricing and value, and increasing competition not only from traditional peers but from new entrants looking to disrupt the industry.
Because of these external pressures, as well as internally driven factors such as the need to be more cost-effective without losing efficiency, many Life Sciences organizations are engaging in or considering moderate to large-scale transformation in the next three years. The primary areas companies are considering transformative changes are in Marketing, Sales, R&D, and Technology and IT.
In mid-September 2017, TayganPoint Consulting Group and PharmaVoice conducted a follow-on research study to gather data around business transformation — the challenges, pressures, motivations, resources — and the needs of companies as they progress through the transformation process.
Almost 30% of pharma companies stated they will undergo a large transformation. This represented a slight drop from 2016, but more interestingly, companies are split on their transformation strategies — half are holding steady, while the other half say the strategy has changed in the past year.
The most frequently quoted reasons for the shift in strategy are attributed to greater digital focus, adoption of new technology, and new organizational structure due to acquisition or merger.
“The adoption of technology is simply a requirement — not an option. Pharma organizations have no choice but to have a stronger digital focus — it’s how humans find data and communicate, said John Cassimatis, Co-Founder and President of TayganPoint Consulting Group. “Organizations have to meet the patient where they are-online. Today, digital HITS is the score keeper of success. We are seeing organizations implement more enterprise-wide technology platforms rather than in functional silos. These new operating models and technologies enable companies to be more agile and flexible to take advantage of new marketplace opportunities.”
The other major area impacting an organization’s transformational strategy is talent, with 74% of organizations saying they are concerned about having the right talent in place to transform successfully.
“While we believe many organizations have now made the investment to educate, train and prepare for transformation, the big question is do they have the leadership, teams and stamina it takes to see a vision through to the end,” said Joy Taylor, Co-Founder and CEO of TayganPoint Consulting Group. “It’s a rigorous journey that requires staying the course and building for long-term sustainment of the transformation while you strive to avoid distraction from flashy, new, competitive differentiators.”
Other driving forces behind transformation include:
- Increased profitability (74.5 %)
- Increased efficiency (71.8%)
- Better collaboration (57.3%)
- Competition (56.5%)
- Expansion into new markets (49.1%)
Implementation of large scale transformation is more complex than ever. Most transformation efforts are both global and cross-functional and they impact just about every employee. The real change happens once the new processes, systems, and organizational structures are put in place — not before. Once project teams disband, there is often a lack of structure in place to manage post-implementation challenges as well as benefits realization. Bottom line, organizations must prepare people before transformation and continue to engage and support them as new processes and systems are being implemented and adopted. Focusing on the necessary resources to support change management and training, post-implementation, is key.
An award-winning management consulting firm, TayganPoint specializes in business transformation from strategy through execution. Deep industry knowledge blended with years of functional expertise enables TayganPoint consultants to successfully tackle their client’s most mission-critical issues. They understand that designing the strongest solution requires a fine combination of tools, methodologies and strategies that match the unique needs of the company – and its culture.
Through a collaborative and hands-on approach, TayganPoint helps clients realize business benefits sooner than with traditional consulting methods, creating advantage in today’s globally competitive, fast-moving world. Learn more about us: http://tayganpoint.com/about-us/
Connect with us: @TayganPoint
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