Pharmaceutical Industry Challenges and Trends

0 Running head: OPERATIONS MANAGEMENT
Operations Management
Name of the student
Name of the University
Author note

1
OPERATIONS MANAGEMENT
Table of Contents
Part 1................................................................................................................................................2
Part 2................................................................................................................................................6
References and bibliography.........................................................................................................14

2
OPERATIONS MANAGEMENT
Part 1
Inside the pharmaceutical industry, competitive and technological changes like any
powerful new drug or any innovative R&D partnerships and marketing plans are remodeling the
business strategies that are existing inside the industry and several biotechnology companies.
Today, many of the organizations are looking for fresh and new ways for increasing productivity,
developing treatment modalities and decreases costs that would ultimately help better
profitability. Technologies are transforming the business models inside the pharmaceutical
industries. Many companies yet have not been able to formulate strategies to include these
technological changes, but they are expected to be doing so by the next decade. These latest
technologies would be able to help new business segments get activated, and along with them
their competitive advantage would get significantly improved. Most of the senior managers and
executive have comprehended the importance and business potential that lies within the latest
technologies and their inbuilt concepts. The successful implementation of the latest technologies
within the business processes of the pharmaceutical companies would end in a modification
across four key areas – customer focus, organizational prioritization, uncertainty of revenue
streams and enlargement of capabilities (Gereffi 2017).
Globalisation is a factor that has influenced all the aspects of the human life on this earth.
The pharmaceutical industry is of no exception. Borders are blurring, and along with it is
blurring the division of labour. R& D has started gaining traction in the present emerging
pharmaceutical markets. Many generic companies are looking to flirt with an increased risky
proposal of innovation. This novel venture inside the drug development process is piquing the
attention of multinational companies that are swooping in as soon the drug had passed the initial
stage of testing, and have added their expertise inside marketing, commercialisation and later-

3
OPERATIONS MANAGEMENT
stage development. In the context of regulation, increased harmonisation is the biggest prominent
result of blurring border. Globalisation is slowly bringing in increased collaboration among
countries in the context of drug approvals. With time, the introduction of globalisation regulatory
procedures would transform into something more unified all across the world. It is important that
the drugs developed receive the global value and has application in any context virtually. It is
absolutely vital for any drug to do complete optimisation of the value in each market, at least
with the help of open communication lines between head office and regional subsidiaries.
Pharmaceutical industries must react to this transformation paradigm immediately to acquire
complete benefit from the market (Jungmittag, Reger and Reiss 2013).
The pharmaceutical industry is a bit different than the other existing industries. The
whole industry is focused upon bettering the lives and health of the patients, all the while
generating benefits for satisfying the requirements of the customers and securing funding for
research. With time, ideologies of the corporations shifted towards believing that only social
responsibility can help increase profits and develop investor returns. Customer value of
management in pharmaceutical industries also needs consideration with regards to the shifting
attitudes of customers. Following suit of the changing customer needs and preferences,
pharmaceutical industry has been a bit slow in following suit. The payment systems and
competition has become a factor in patient experience. Economic complications of the customer
behaviour in this industry has become more complex. Consumers might have a limited veto
power in choosing and pricing the prescriptions, but they have strong opinions regarding the
industry, the products and the expectations existing for a constructive customer expectation. At
present drug makers are increasingly attempting to prove that their product value crosses across
established safety and efficacy measures. In doing so, they would require assistance from