Problems and Solutions in Pharmaceutical Industry

Business Systems Problems in Today's World

Introduction

Companies would not survive in today’s highly competitive business environments without continuous change of their business processes. New and emerging conditions in the marketplace have continuously provided special types of stimulus to modeling business processes over the last decade. Some of such stimuli are product expansion, better informed and served customers, competitive sales conditions, improvement of global networks of product and services distribution, and orientation of the businesses processes towards satisfaction of individual customer needs. Most organizations have often employed business process reengineering where information technology is becoming the frequently used approach to improve and enhance business processes.

Information is the tissue that connects business because it helps to connect various business system sectors, different business organizations, various business functions and processes thereby enabling efficient coordination and control of overall business activities and operations. Information is a valuable and intangible business resource. Therefore, it is neither inexpensive nor simple to create information. Creation of information requires the integration of transaction data and the engagement of certain business techniques, knowledge, and business resources.

Pharmaceutical Industry

Problem

The future test and challenge of the modern pharmaceutical companies are manufacturing drugs that can forestall or cure most of the ailments that have plagued people. On the other hand, the current test and challenge are getting to manufacture such drugs. This is proving a difficult task for the companies already. It is worth noting that the biggest issue in the pharmaceutical business is the desires of the clients. The pharmaceutical business environment is becoming harsher than before because social insurance payers force new cost requirements for the services rendered to human and suppliers. They also investigate carefully the quality prescriptions offer considerably more precise than the previous era. However, the client is demanding new treatments that are clinically and financially better and more superior to the currently available options. According to their demands, the new treatments should be accompanied by hard and certifiable results data and information to back any cases that may surface around the prevalence of medication (Bandow, 1994).

Patients have been applying more noteworthy control over their social insurance and from what they seem to have invested, they would like the experience they derive from the medicine to be powerful, customized, and eventually significantly important to the healing process. On the off chance that the desires of the patients and insurance payers are met, there are likelihoods that the insurance payers will take the best possible course of disease treatment and stay with connected with the clients for long.

Drug producers and manufacturers that are used to taking advantage of the basic data and information about clients and their practices all together modify business procedures will be situated to show high esteem in the new wellbeing drug economy. Organizations that manufacture drugs have been corresponding with the needs of the patients. They are doing this by center gatherings and publicizing. Because of this problem and any other that may be there in the future, there is a need for a more complex client division methodology. Pharmaceutical clients expect the same spotlight of their medical necessities that their involvement in different commercial enterprises, for instance, retail, managing their accounts and travel. At that point when drug manufacturers receive a more client-driven methodology, the results will be drawn in the patients who possess their treatment have the capability to arrange and deal with their conditions in a better way. Pharmaceutical customers would like and are, therefore; looking for the kind of accommodation they get from different business environmental settings.

Most drug buyers are more than willing to pay 19 percent more of the total cost of the drug for a no hold up time cure. A large group of the wealthy people born after the Second World War and the Generation X with interminable medical conditions are willing to 52 percent more of the cost. The high costs of treatment and related expenses are the major reasons most people quit taking MEDs. The United States lost expects to lose at least $213 billion every year because of the inefficient or superfluous treatment linked to the absence of adherence and bungling of the drug.

Children born after the war in the United States with numerous constant conditions have less drug prescription adherence than normal. However, they are ready and willing to make a move. Close to 41 percent of them should do it without being helped by anyone from the drug store and wellbeing screenings. On the other hand, 37 percent of them require the versatile application to screening vitals and give logical and detailed of the solutions to the problem. All the respondents said that pharmaceutical companies did not take a proper assumption in the part of their findings and choices of treatment. Therefore, they recommended that present pharmaceutical training and correspondence had a constrained effect (PwC's Health Research Institute, 2016).

Solution

One of the solutions that pharmaceutical companies should think of to counter the above challenge is the implementation of ERP systems. Implementation of such systems will enable the companies to aggregate virtually all forms of transaction data as well as those of their business partners. This will enable them to create high-quality information support and pre-conditions for a completely modified way of conducting business. The implementation of a new ERP should also be accompanied by a change in the way human behave in the pharmaceuticals as well as a change in the organizational regulations. Furthermore, upon implementation of the ERP, the organization should stop using its old and inefficient ways. Pharmaceuticals should accompany the implementation of ERP with a thorough re-engineering of the business and changes to the previous ways of doing business and adaptations of the solutions of the organization to the intensive flow of data and information among various functions and business processes (Arora & Kumar, 2000).

Another meaningful and holistic approach to the previously discussed problem in the pharmaceuticals is to implement and focus on the Product Lifecycle Management (PLM). PLM is a business functions and operations transformation approach that helps in the management products and some of the related information across the drug manufacturing enterprise. PLM is known to have provided various pharmaceutical organizations around the world with the ability to improve their ability to get their products to the market quickly in the recent years. This has therefore ensured there is growth in the regulatory compliance and efficiency while it also helps to reduce the costs of development (Chenn, 2001).

Previous descriptions also pointed to the instances of the complexity of programs of individual drug development. The process is further complicated because there are multiple programs having simultaneous occurrence in the research and development (R&D) pipeline at any given time. The traditional drug development program management focused on the metrics of the general program like the schedule and cost performance among others. For the purpose of improving execution of drug development, program management that cut across functional collaboration and archiving of the essential programs deliverables is a requirement. Integration of decisions and systematic approvals of the expected deliverables will provide the regulatory evidence required to advance the process of developing drug confidently through each of the phases. Efficient management of each of the programs and the expected deliverable evident in one system can also go as far as enabling standardization of the pharmaceutical’s best practices thereby improving pipeline performance (Chang, 2000).

Conclusion

Increasingly, pharmaceutical organizations are seeking to unify the view of their activities and drug products development lifecycle. They are also after the ability to view and trace every detail of the process throughout. Besides the development process, the organizations should also trace the usage of the products and how they affect health and financial status of the user. During the processes, there are several problems that are likely. This paper has looked and evaluated one such problem and provided solutions. However, there are other problems that are likely to impact on the pharmaceuticals more than the above problem. Therefore, there is a necessity for further research on other problems and solutions through which they will be solved.

References

Arora, S., & Kumar, S. (2000). Reengineering: A focus on enterprise integration. Interfaces, 30 (5), 54-71.

Bandow, D. (1994, February 1). The pharmaceutical industry: Problem or solution.

Chang, S. L. (2000). Information technology in business processes. Business Process Management Journal, 6 (3), 224-237.

Changing consumer expectations and behaviors reshaping Pharmaceutical Industry, according to PwC's Health Research Institute. (n.d.).

Chenn, J. (2001). Planning for ERP systems: Analysis and future trend. Business Process Management Journal, 7 (5), 374-386.

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