Typically, companies gather their own data and then analyze it. This is a time-consuming process and so most people rely on gut instincts to make business decisions. However, the Pharma industry is a highly data-driven one due to the presence of third party data vendors such as IMS that make it easy for every company to obtain clean, structured data.
Pharma companies use business intelligence at every step to transform data into actionable insights and make informed decisions – whether it is to develop new drug, or market existing ones, or improve business operations.
They also face growing competition from the generic market. This forces them to constantly mine their data to discover new growth opportunities and gain competitive advantage. That’s where Business Solutions come in. Here are 4 Ways Pharma Companies leverage BI to make the most of their data.
1. To Develop New Drugs
It takes an average of 12 years for a Drug to move from the research lab to being approved for patients. Moreover, only 1 in 5000 drugs ever make it to human testing. So pharma companies are under a lot of pressure to bring new products to the market while keeping the costs down.
To do this, they monitor and analyze clinical data. Clinical trials provide a large amount of data that can be used to improve the drug and reduce risks. Business Intelligence Tools have the capability of tracking all this data, identifying the areas of improvement and optimizing resource distribution. By monitoring data from various sources, BI tools can help companies identify & mitigate risks early on during product development and launch.
Once a drug is patented, pharma companies spend a huge amount of money to market it. So they must closely monitor marketing campaigns and their impact on sales performance to target customers better and improve product distribution. BI tools enable companies to identify & track relevant KPIs using customer segmentation, campaign analysis and market share analysis. This enables them to identify the most profitable products, understand patient behavior, measure campaign performance, and analyze profitability for each product, channel, customer demographic.
3. Financial Analysis
To keep the costs low, pharma companies have to monitor and manage budgets at every stage of the business – whether it is to develop new drug or pay out sales reps. Business Intelligence Solutions enable companies to monitor financial data from various sources across the organization – revenue, sales, payroll, budget, risk, compliance and more. They enable companies to budget expenses for every financial year. Companies can forecast product sales from national level all the way down to individual sales rep’s quota, and distribute quota reports to each sales manager so they know their goals. Accordingly, they can tie the budgeted expenses to actual performance.
BI tools also allow companies to generate various financial reports for compliance. They also enable companies to calculate each rep’s salary based on various incentive compensation plans, aggregate this information to generate payroll reports so that finance department can allocate required funds to be paid out to employees.
4. Operational Excellence
Pharma companies need to monitor a lot of data sources and turn this data into useful information that can improve their profits and drive more revenues. Business intelligence tools simplify this task by enabling companies to monitor operational efficiency in real-time, and improve processes.
BI tools are used to improve every aspect of business operations – analyzing sales performance to design territories, grouping territories into bigger units (such as district, region, area), optimally allocating sales reps & managers to each territory, creating call plan for each rep, setting sales goals for each rep, monitoring sales performance, generating sales reports, building and managing an entire sales team.
Some of the big pharma companies even use BI tools to power their company portal which allows each rep, out of the thousands in their sales force, to access critical information anywhere, anytime, on any device – whether they’re in the field or at office.
Increased competition has forced pharma companies to look for new ways to stay ahead and BI tools are helping them exactly do that. Business Intelligence provides pharma companies with in-depth analytics, actionable business insights, real-time interactive dashboards and a scalable system capable of handling thousands of users.