How to Enhance Predictive Power in Pharmaceutical Competitive Intelligence for Better Decision-Making
The pharmaceutical industry routinely uses competitive intelligence (CI) to monitor competitors, the market and the broader macro environment. However, the predictive power in a vast majority of pharmaceutical competitor analysis ventures is lacking. In this article, we describe various levels of competitive intelligence that exist in the industry and how predictive pharma competitive intelligence can be enabled in competitive intelligence pursuits. There are three hierarchies of competitive intelligence activities that are used by the pharmaceutical industry and conversely, provided by pharma competitive intelligence suppliers.
Bog-Standard Pharma Competitive Intelligence
At the basic level of competitive intelligence, information is compiled for a pharmaceutical client. This kind of activity is often seen in monitoring programs where CI vendors gather information covering key intelligence topics and questions, which are either devised by the client or vendors or a combination of both. The output is characterized by the following:
- Unstrategic in content.
- Shallow in implications and recommendations.
- Negligible in the forward-looking perspective.
The content focuses more on the collation of information and the aesthetics of the output i.e., the PowerPoint deck.
Enhanced Pharma Competitive Intelligence
Enhanced level of activities builds on the core competitive intelligence activities of the bog-standard pharma competitive intelligence. Under these activities:
- ‘So what’ and ‘now what’ type analysis is performed; however, such analyses tend to be very rudimentary.
- Such analyses are mostly one-dimensional – akin to sensitivity analysis of a single variable.
- Analyses do not assume that other competitors or players will be conducting similar CI activities and will adjust their strategy and tactics appropriately. It would be naïve to assume that competitors are not instituting active CI programs because CI is neither a scarce nor an expensive resource.
- At this level of activities, analyses do not go beyond a static scenario and fail to incorporate the reactional aspects (‘game theory’ for strategy purists), thereby making the ‘so what’ and ‘now what’ analyses of limited utility.
Predictive Pharma Competitive Intelligence
In the realm of pharmaceutical competitive intelligence, the ability to anticipate and predict competitor actions is paramount. This advanced level of foresight is achieved through a superior intelligence collection and analysis. Here’s how predictive pharmaceutical competitive intelligence is enabled:
- Implementing thorough secondary research and targeted forward-looking primary research.
- The analysis goes beyond the core and enhanced levels and assesses the implications better and meaningfully.
- The analysis incorporates a dynamic approach to the world and thus considers the scenarios and the games played by the competitors in the market, i.e., it considers the fact that your competitors will react, respond, and refine their strategies.
- At the front end, for example, structured collection and superior analysis of sales force and field force pharmaceutical competitive intelligence help to predict competitors’ activities and imparts foresights to the brand teams.
- Similarly, collecting competitive intelligence across the asset’s path-to-market is a powerful tool that provides predictive capabilities.
- Using a competitive intelligence service provider that has extensive knowledge of various frameworks of decision-making brings the capability to join the dots and decipher the underlying strategy of a competitor instead of simply collating the information.
- When one is cognizant of the strategic frameworks that competitors are using along with the idiosyncrasies of the pharma sector, it is easy to predict their future course of action. If CI activities (where appropriate) do not mention the underlying strategy frameworks, then it is likely that competitive intelligence activities will lack predictive power.
- Designing and executing competitive intelligence activities with a predictive intent not only provides foresight but also helps to maximize the ROI of pharmaceutical competitive intelligence engagements.
BiopharmaVantage is a consulting firm that specializes in providing premium quality pharmaceutical competitive intelligence services. If you would like to discuss how we can assist you, then please contact us.