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Pharmaceutical Industry Capability Model

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The Pharmaceutical Industry Capability Model is a customizable, comprehensive, and in-depth set of business capabilities that capture the essence of what a pharmaceutical company does. It will help companies gain a holistic perspective of their business at a foundational level and provide a business blueprint for many valuable purposes.

The Pharmaceutical Industry Capability Model comprises about 325 capabilities across three levels.

(Note: As the Pharmaceutical Industry Capability Model is a digital deliverable, we do not accept returns or issue refunds. So, please read the product description and the terms carefully before purchasing.)

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The  Pharmaceutical Capability Model is a set of multilevel and granular business capabilities primarily focusing on the core industry-specific value chain but also decomposes the horizontal shared services.

A capabilities model is a must-have tool for business architects, enterprise architects, business and technology leaders, and project teams to fathom the nuances of the industry’s core, context, and commodity capabilities.

Pharmaceutical Industry Transformation:

The pharmaceutical industry has experienced significant transformation driven by various factors reshaping its landscape. One key driver is the rapid advancement in biotechnology and genomics. The growing understanding of genetics and the development of new techniques, such as CRISPR gene editing, have opened up new possibilities for personalized medicine and targeted therapies. This has shifted the focus from traditional small-molecule drugs to more complex, biologic-based treatments.

Another driver is the increasing prevalence of chronic diseases and an aging global population. This has led to a higher demand for innovative treatments and therapies, continually placing pressure on pharmaceutical companies to develop new solutions. In response, the industry has invested in research and development (R&D) to bring new drugs to market faster.

Furthermore, technological innovation and digitalization have played a critical role in the industry’s transformation. For example, implementing artificial intelligence, machine learning, and data analytics has improved drug discovery processes and accelerated the development of new therapeutics. Additionally, digital health solutions, such as telemedicine and remote patient monitoring, have influenced how patients access care and interact with healthcare providers.

Increasing regulatory scrutiny and the need for cost containment are also influencing the pharmaceutical sector. Government policies and pricing pressures have driven pharmaceutical companies to adopt new business models and focus on efficiency and collaboration, including outsourcing non-core functions, pursuing mergers and acquisitions, and forming strategic partnerships.

Lastly, the importance of patient-centricity has grown, emphasizing understanding patient needs and preferences. This has led to a shift in the industry’s approach, integrating patient perspectives into drug development and commercialization to ensure more targeted and effective treatments that resonate with patients and healthcare providers.

Business Capabilities are a Cornerstone for Transformation

For a Pharmaceutical company to transform successfully, it is essential to establish a structurally strong foundation to support change and innovation over time. This is where business architecture and business capabilities come into play. Business architecture is creating a structured model, including an abstraction of its operations, functions, systems, and resources. This model can help enterprises understand how their business operates, identify inefficiencies, and develop a plan to optimize and streamline operations. In addition, by creating a clear picture of their business architecture, companies can better understand how different business units and functions interact and how changes in one business area can impact other areas.

Business capabilities encapsulate and abstract the functions, skills, and resources a company needs to execute its business strategy successfully. By defining and organizing their business capabilities, companies can identify gaps and redundancies and develop a roadmap to address them. This helps ensure the firm has the necessary resources to execute its strategy and drive innovation over time.

Business architecture and capabilities provide firms with a framework to assess and optimize their operations, reduce costs, and drive innovation. By taking a structured approach to transformation, enterprises can build a foundation capable of supporting ongoing change and adaptation and position themselves for success in a rapidly evolving industry.

(NOTE: The current product provides a comprehensive business capability model. It does not include other business architecture artifacts.)

Pharmaceutical Capability Model Deliverables:

The Pharmaceutical business capabilities model comprises ~325 capabilities across three levels and includes the following editable artifacts:

  • An Excel spreadsheet with the grouping of capabilities.
  • A PowerPoint format with the top three levels presented in a nested visualization.
  • A Word document with capabilities in a multilevel list format.
  • High Tech Capability Definitions (at Level 3)
  • Capability KPIs (Key Performance Indicators) (at Level 2)

How to Use the Pharmaceutical Industry Capability Model?

A business capabilities model is a fundamental and foundational deliverable in the business architecture continuum. For example, the Pharmaceutical capabilities model encapsulates end-to-end aspects of the business with a detailed, multilevel capabilities list.

There are several benefits from business capabilities, including, among others:

  • Foster alignment between business and IT using capabilities as an everyday language.
  • Capabilities are a structurally sound and internally coherent abstraction of business functions.
  • A capability-based roadmap eliminates redundancy and replication and focuses on capability evolution.
  • Juxtaposing capabilities and systems/applications provide a footprint analysis and can lead to better application portfolio rationalization decisions.

The Pharmaceutical Capability Model decomposes components up to three levels. Created by business architects and industry domain experts, the capabilities list is detailed, in-depth, and conforms to the construct of MECE (mutually exclusive and collectively exhaustive).

Who should use the Pharmaceutical Map?

The Pharmaceutical Industry Capability Model is a generic model; hence, it is a starting point, not the final product. (Please note that a generic map covering multiple areas will not be specific to your specific company or business model; that is where our professional services can help customize and detail the capability model. Or you can modify and tailor it to your needs internally.) The primary users encompass:

  • Business architects and enterprise architects.
  • Leaders focused on business transformation.
  • Product and program managers enabling capabilities.

The pharmaceutical industry is diverse and consists of several subsectors. By customizing the core capabilities in the Pharma capability model, enterprise business architecture teams can get a headstart in creating a subsector-specific capabilities matrix. Some of the critical subsectors which could benefit from the pharmaceutical capability model include:

  1. Prescription (Rx) Pharmaceuticals: This subsector involves the development, manufacturing, marketing, and distribution of prescription drugs, which require a medical prescription to be dispensed.
  2. Over-the-counter (OTC) Pharmaceuticals: These are non-prescription drugs that can be purchased without a prescription, including medications for pain relief, cold and flu symptoms, and other minor ailments.
  3. Biopharmaceuticals: This subsector includes the research, development, and manufacturing of biologic drugs derived from living organisms, such as proteins, antibodies, and nucleic acids.
  4. Generics: Generic pharmaceuticals are bioequivalent versions of brand-name drugs that have lost their patent protection. They offer a more cost-effective alternative to the original drugs and are typically manufactured by multiple companies.
  5. Biosimilars: Biosimilars are highly similar to, but not identical copies of, original biopharmaceuticals whose patents have expired. They undergo a stringent approval process to ensure comparable quality, safety, and efficacy as the reference biologic.
  6. Specialty Pharmaceuticals: Specialty drugs are high-cost medications that treat complex or rare chronic conditions, such as cancer, multiple sclerosis, or rare genetic disorders. These drugs often require specialized handling, administration, or monitoring.
  7. Contract Research Organizations (CROs): CROs provide research and development support services to pharmaceutical and biotech companies, such as preclinical studies, clinical trial management, regulatory consulting, and data management.
  8. Contract Manufacturing Organizations (CMOs): CMOs offer manufacturing and packaging services to pharmaceutical companies on a contractual basis, helping them streamline production processes and reduce costs.
  9. Active Pharmaceutical Ingredients (API) Manufacturers: This subsector involves the production of the active ingredients used in the formulation of finished pharmaceutical products.

Why Purchase a Business Capabilities Map?

Defining business capabilities from a blank slate takes time and effort and delays time to value. Instead, a pre-built and customizable business capability map helps provide 60-80% of capabilities allowing internal teams to focus on what is missing or unique to their companies.

And the cost is less than an inexpensive team dinner or the loaded cost of 4-5 team members brainstorming for an hour.

And far less than the deliverables consulting firms produce at over $100,000 or more, and compared to that number, the cost of our capabilities models is a fraction (a rounding error.)

Even if you already have a capability map, you could use our version to compare, validate, and potentially include missing capabilities.

A Note About the Artifacts:

  • Business Capabilities Matrix: A functional area occupies one box in many business capability maps. Some may wonder why we decomposed the capabilities into 100X or more capabilities. We humbly submit that one box or entry in a one-page diagram is Wall Art, not an implementation tool. Decomposing capabilities into a nested list of granular items will help understand a capability’s depth, breadth, scope, and importance. It is also possible that some capabilities in our matrix may not be relevant to you. Similarly, we may have captured and documented some relevant and essential capabilities of your firm.
  • Capability Definitions: We include capability definitions at Level 3. Please feel free to modify it to your company’s needs.
  • Capability KPIs (Key Performance Indicators): We added a few KPIs for capabilities (mostly at Level 2) to get you started. You may not measure these KPIs in your company and have an entirely different set of metrics. Again, use them as a springboard, and not debate the applicability to your firm.

Fine Print:

  • We sell digital products, so there are no returns, refunds, or replacements. Therefore, please read the product description carefully before making a purchasing decision.
  • A generic set of deliverables and templates may or may not fit your needs, or the content relevance will vary substantially.
  • Sold on an as-is basis and without any implied or explicit warranties
  • Consultants and firms wanting to use it for their clients have a different pricing model.
  • The sale is for digital products only and does not include customization or implementation help.
  • Please review our standard terms of service.

Pharmaceutical Industry Capability Model

U.S. $999U.S. $2,999

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