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Competitive Intelligence: A
Powerful Tool for Biotech Business Planning by Rebecca
J. Kuprowicz, President, Business Success Strategists ™, p 3. |
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As this relates to the Biotech
industry, the dynamics of a particular market will certainly change upon the entry of a
new compound. For example: A researcher discovers a new chemical inhibitor that blocks
virus replication in AIDS infected cells. Also, the new inhibitor’s toxicity is lower
than that of the all other available compounds. You can easily see how such a discovery
will impact all of the current products on the market. How will R&D manufacturers
react? Since all of the current products are multimillion-dollar franchises for their
respective companies, you know they will react…but how? What other industries may be
effected, such as related diagnostic testing? How will this extended-market need impact
your company? These are only a few of the many questions you would explore through a
CI-based market analysis. Manage Intellectual Capital
CI facilitates Biotech firms in carefully and strategically managing their Intellectual
Capital. For example: SmallBiotechCo has developed a new chemical compound for use as an
anticancer agent– an angiostatin analog – which may have superior properties to
the original version of the chemical. How does SmallBiotechCo best capitalize on this
discovery? Two large PharmCos are interested in either forming a strategic alliance/joint
venture to co-develop the compound, or alternatively, in-licensing the compound. How does
the CEO of SmallBiotechCo determine with whom to join forces, if at all?
These questions may be answered utilizing the CI process. The effective use of a
variety of CI sources is needed to make a sound business decision on how best to proceed.
First, determine whether it would be preferable to license or partner. If partnering was
selected as the most viable option, then evaluate which company would offer an optimal
situation for partnering. Among other things, SmallBiotechCo should evaluate each
company’s resources, culture, past alliances, corporate direction, history of
long-term or short-term commitment to drug development, and their collective experiences.
CI Conclusions
Due to the time and resources involved in bringing products to market at Biotech firms
and Pharmaceutical companies, CI is an essential tool providing that competitive edge and
therefore success in achieving your desired market position. It is the agile and prepared
companies who will be able to adapt and respond to rapid changes in the competitive
environment. However, be aware that your competition may be doing their CI homework as
well. Be careful not to send smoke signals on your strategy and initiatives to
competitors.
This article examines a few key aspects regarding the value ongoing CI can bring to
various strategic business situations faced by Biotech firms in today’s competitive
environment. After first defining CI, this article examines how CI effects the strategic
initiative planning process, impacts the forces of competitive influence, and facilitates
intellectual capital management. There are many other aspects of practicing good CI. In an
upcoming edition of BioTactics in
Action, I will address methods and sources for
researching, collecting, managing and mining CI related information. Look for the article
discussing Competitive Intelligence with regard to Data Mining.
Rebecca J. Kuprowicz is President of
Business Success Strategists™, a business planning consulting firm. She has 19 years
experience working within the areas of Strategic/Marketing Planning and Implementation,
primarily within the Pharmaceutical and Software industries. Ms. Kuprowicz is affiliated
with the Society of Competitive Intelligence Professionals, the American Marketing
Association, and The Data Warehousing Institute, as well as many other professional
organizations. She is located in Madison, Wisconsin and can be contacted by phone at
608.278.8285, via fax at 608.278.0709, or by email at: bbloom@chorus.net. |
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