R&D Productivity in the Pharmaceutical Industry

2017 ◽  
pp. 302-320
Author(s):  
F.W. (Ward) van Vierssen Trip ◽  
Nam C. Nguyen ◽  
Ockie J.H. Bosch

The pharmaceutical industry is in a R&D productivity crisis. Rapidly increasing development costs, decreasing profitability of new medical entities and missing breakthrough innovations are negatively affecting the future of the pharmaceutical industry. This complex problem requires a systems thinking approach to find effective solutions. In this study, a general pharmaceutical R&D productivity system has been modeled as a Bayesian Belief Network (BBN). This model is based on a literature review and the mental model of experts in the pharmaceutical field. The model does not only support users to understand the system but is also able to simulate different future scenarios. A blockbuster drug scenario, a generic drug scenario, and a personalized drug scenario has been modeled with three different corresponding outcomes. These simulations enables decision makers to identify the leverage points of the pharmaceutical R&D productivity system. These leverage points could be the foundation of any further strategy development. The R&D productivity system archetype is potentially applicable for other R&D intensive industries.

2015 ◽  
Vol 6 (1) ◽  
pp. 1-16
Author(s):  
F.W. (Ward) van Vierssen Trip ◽  
Nam C. Nguyen ◽  
Ockie J.H. Bosch

The pharmaceutical industry is in a R&D productivity crisis. Rapidly increasing development costs, decreasing profitability of new medical entities and missing breakthrough innovations are negatively affecting the future of the pharmaceutical industry. This complex problem requires a systems thinking approach to find effective solutions. In this study, a general pharmaceutical R&D productivity system has been modeled as a Bayesian Belief Network (BBN). This model is based on a literature review and the mental model of experts in the pharmaceutical field. The model does not only support users to understand the system but is also able to simulate different future scenarios. A blockbuster drug scenario, a generic drug scenario, and a personalized drug scenario has been modeled with three different corresponding outcomes. These simulations enables decision makers to identify the leverage points of the pharmaceutical R&D productivity system. These leverage points could be the foundation of any further strategy development. The R&D productivity system archetype is potentially applicable for other R&D intensive industries.


Author(s):  
Leanne SOBEL ◽  
Katrina SKELLERN ◽  
Kat PEREIRA

Design thinking and human-centred design is often discussed and utilised by teams and organisations seeking to develop more optimal, effective or innovative solutions for better customer outcomes. In the healthcare sector the opportunity presented by the practice of human-centred design and design thinking in the pursuit of better patient outcomes is a natural alignment. However, healthcare challenges often involve complex problem sets, many stakeholders, large systems and actors that resist change. High-levels of investment and risk aversion results in the status quo of traditional technology-led processes and analytical decision-making dominating product and strategy development. In this case study we present the opportunities, challenges and benefits that including a design-led approach in developing complex healthcare technology can bring. Drawing on interviews with participants and reflections from the project team, we explore and articulate the key learning from using a design-led approach. In particular we discuss how design-led practices that place patients at the heart of technology development facilitated the project team in aligning key stakeholders, unearthing critical system considerations, and identifying product and sector-wide opportunities.


2017 ◽  
Vol 2017 ◽  
pp. 1-10 ◽  
Author(s):  
Junkang He ◽  
Chenpeng Feng ◽  
Dan Hu ◽  
Liang Liang

China is one of the disaster-prone countries in the world. Constructing a rapid and effective relief logistic system is important for disaster-responding at country level. Strategic prepositioning of emergency items, especially the decision of appropriate emergency warehouses location, has significant impacts on rapid disaster response to ensure sufficient relief supplies. The emergency warehouse location decision is a complex problem, where a wide variety of criteria need to be considered and the preference information of decision makers (DMs) may be imprecise or even absent. In this paper, we identify key effectiveness-oriented criteria used to evaluate the alternative emergency warehouse locations and make an attempt to propose a new multicriteria ranking method to solve the problem of inaccurate or uncertain weight information based on stochastic pairwise dominant relations and the pruning procedure of ELECTRE-II method. The proposed method extends the conventional ELECTRE-II method by incorporating inaccurate information and broadens its application to emergency warehouse location field. The feasibility and applicability of the proposed method are illustrated with a simulated example.


2017 ◽  
Author(s):  
◽  
Umeoniso Joshua Osah

E-Government deployments by stakeholders within the South African water service sector, provide certain benefits for the sector. While deemed beneficial and of considerable value, e-Government deployments and implementations in the water sector of local governments of South Africa have not always been successful. One important reason for e-Government failures, among several others, is the lack of coherent strategies, informed by key representing stakeholder views, to guide implementation and deployment of e-Government tools. Without strategies, it is highly likely that ICT integration will be conducted haphazardly. As a point of note, more than the deliverable (strategy document) that represents the output of the strategy development process, it serves more purpose to understand the process that results in the strategy. Importantly, understanding the process helps to account for the formed relationships between the various stakeholders that need to buy into the strategy. The research study develops an e-Government strategy formulation framework based on a systems thinking approach, intended to support the strategy formulation process of e-Government strategies – to underpin the effective integration, deployment and sustained use of ICT solutions for water service delivery at the local government level. A systems thinking approach is considered due to its emphasis on the strategy being informed by a holistic assessment. Where there is some knowledge about the processes by which a strategy is formulated – over time ideas may be derived on the types of processes that may produce efficient e-Government strategies. The research is conducted using the Design Science research paradigm. The Design Science paradigm is comprised of two processes – build and evaluate (Hevner et al., 2004). The build process, as related to this research concentrates on the progression through which the theoretical e-Government strategy formulation framework is derived. Weick’s (1989) theorizing approach is ascribed, supporting the design of the theoretical framework. In applying Weick’s theorizing approach, firstly, the lack of knowledge on how e-Government strategies should be formulated in South African local municipalities – is explicated in an intelligible manner. Once the problem is properly articulated, a trial and error selection process is undertaken of existing approaches on strategy formulation – thought to possess the potential to contribute to the development of an e-Government strategy formulation framework, suited to local governments in South Africa. With good reason, 10 (ten) strategy approaches are selected from, e-Government programmes in developed countries, Non-Governmental organizational strategy approaches, and business related strategy formulation approaches. Lastly, as all possible approaches that may contribute to the framework development process cannot be selected, criteria is specified to limit the number of possible selections. Furthermore, in deriving the framework, foundations for systematically dealing with unstructured problems, such as, strategy formulation are consulted. This foundation along with the research goals, informs the development of a template used to comparatively analyse the 10 selected approaches on strategy formulation. This analysis aids in revealing the components of an e-Government strategy formulation process. With the developed framework, the evaluation process of the design science research commences, seeking to determine the utility of the framework (suitability and shortcomings). The framework is applied to the procedural formulation of a strategy for a tentative e-Government project called MobiSAM, which aims to enhance citizen engagement with local government through the use of mobile phones. The strategy formulation application process in the project environment and local government reveals lessons that inform revisions to the framework. The e-Government strategy formulation framework, therefore represents a fundamental tool for e-Government strategy development in local municipalities, and may be customized to fit the requirements of varying local municipalities.


Author(s):  
Jessica Symons

This chapter argues for an ‘emergent city’ urban policy, inspired by organisers of civic parade in Manchester which involved over 1,800 participants from 90 community groups. The analysis compares the top-down, command-and-control process of cultural strategy development in the city with the nurturing emergent approach of the organisers commissioned by the council to produce a civic parade. Drawing on parade making as a cultural trope, the chapter describes how the parade makers held back, allowing the parade shape to develop rather than over-directing it. It suggests that city decision makers can learn from this restrained approach.


Author(s):  
Sandeep Kumar Dhiman ◽  
Vikram Gummadi ◽  
Harish Dureja

Background: The healthcare is a highly regulated sector as it serves billions of population globally. The two imperative pillars of this sector are pharmaceutical industry and health regulatory authorities. While the industry acts as a supplier in this sector, regulators provide governance to ensure quality, safety and efficacy of the healthcare products. Even though organizational objectives of these two stakeholders are different, the by and large goal is to improve health outcomes for populations. Both these entities are confronted by an assortment of challenges. Objectives: This study aims to draw attention towards such pain points and the potential of collaboration and coordination efforts between these entities to mitigate these challenges. The industry faces challenges that are driven by business needs and regulations. The major challenges faced by the regulators are driven by the needs to ensure the safety, quality and efficacy of health care products. Some of these challenges may have an overlap. Market scenario, patent/ exclusivities/return on investment issues, development costs, cost containment, quality and GMP, scientific discovery productivity, novel therapies and technology, regulatory framework, counterfeiting, supply chain challenges, Product life cycle management (PLM), patient centricity approach, resources and financial constraints, process issues, protection of the public health, contemporizing and growth of regulatory framework, political scenario in the country/region, unethical clinical trials and research, healthcare policies, citizen participation, pharmacovigilance and safety measures comprise a non-exhaustive list of challenges that confront industry and regulators. Health authorities need to partner amongst them and with Pharmaceutical industry and continue to innovate for novel ways of working to conquer these challenges. Organizations of international/ regional repute are known for their unique contribution in regulating the healthcare sector. These bodies have helped to improve access to safe medicines more widely by harmonization of drug quality, safety, and efficacy standards. These coordinated efforts have the potential to reduce the numbers of challenges that confront the healthcare sector. Conclusion: The pharmaceutical industry and health regulators need to partner to achieve common goal of healthcare. There is a growing need for these parties to come together on common platforms and collaborate. The success of the strategies and approaches intended to deal with these challenges depends upon strategic-level leadership and new ways of collaborative working, which creates a room for potential synergies.


Author(s):  
Julie Sin

This chapter is a succinct stop for orientation to the concept of complex situations, as the latter are an inherent part of working in health systems. Knowing whether you are in a simple or a complex problem territory and adjusting your approach accordingly is important for decision-makers. The important thing is to be able to recognize these situations. Drawing from the classic literature on the topic, the main features of simple, complicated, and complex situations are described. It is acknowledged that commissioners in health services are often dealing with, or contributing to dealing with complex situations. Addressing this complexity will need to draw on the different perspectives, skills, and experiences that may come from many disciplines and there are often no quick solutions as such. Some practical tips are offered.


Author(s):  
Patricia M. Danzon

This article summarizes the literature, and considers the issue of paying for research and development. It reviews research and development costs, regulation, productivity and incentives for innovation. It discusses market demand and pricing, effects of insurance, reimbursement regulation, alternatives to patents, and generics. Further, it reviews trends in promotion, regulation of promotion and its effects. It discusses global issues, including differential pricing and R&D for neglected diseases. The focus is on the US, as the home of the largest number of multinational pharmaceutical and smaller biotech companies. This article notes the important differences in regulatory and reimbursement systems in other countries. Finally it suggests that although there is large and growing literature on the pharmaceutical industry that has produced valuable information, important issues remain for future research.


2018 ◽  
Vol 32 (5) ◽  
pp. 302-311 ◽  
Author(s):  
Elizabeth K. McClain ◽  
Yolanda Johnson-Moton ◽  
Bryan Larsen ◽  
Rebecca J. Bartlett Ellis ◽  
Eric Niederhoffer

The approach to building innovative partnerships between academia and the pharmaceutical industry has expanded to investigate collaborations that offer meaningful outcomes beyond discovery and increased productivity. This case study uses a systems thinking approach to guide the process and analyse the outcome of a partnership undertaken by one pharmaceutical company and academia. The collaborative process established three tiers of evolution over a 3-year period. The outcome was an online module–based course, entitled ‘Making Medicines: The Process of Drug Development’, that provides information about the drug discovery and development process. Both the course development and the final product serve as a useful case study of how collaboration between academia and industry might be achieved. The development process itself is proposed as an appropriate approach for building educational partnerships.


Systems ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 52
Author(s):  
Michael C. Jackson

Many authors have sought to summarize what they regard as the key features of “complexity”. Some concentrate on the complexity they see as existing in the world—on “ontological complexity”. Others highlight “cognitive complexity”—the complexity they see arising from the different interpretations of the world held by observers. Others recognize the added difficulties flowing from the interactions between “ontological” and “cognitive” complexity. Using the example of the Covid-19 pandemic in the UK, and the responses to it, the purpose of this paper is to show that the way we understand complexity makes a huge difference to how we respond to crises of this type. Inadequate conceptualizations of complexity lead to poor responses that can make matters worse. Different understandings of complexity are discussed and related to strategies proposed for combatting the pandemic. It is argued that a “critical systems thinking” approach to complexity provides the most appropriate understanding of the phenomenon and, at the same time, suggests which systems methodologies are best employed by decision makers in preparing for, and responding to, such crises.


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