3. Failing to plan is planning to fail
Alan Lakein, author of How to Get Control of
Your Time and Your Life
4. A goal without a plan is just a
wish
Antoine de Saint-Exupery
French writer (1900 - 1944)
5. In preparing for battle I have
always found that plans are
useless, but planning is
indispensable
Dwight D. Eisenhower, 34th
President of the United States
6. Learning Objectives
Describe the strategic planning process for services &
products
Discuss business models used in pharmacy practice
Compare business models & business plans
Contrast goals, strategies, objectives, and tactics
Define terminology associated with strategic planning
including mission statement, business model, business
model canvas, business plan, SWOT analysis, customer
value proposition, commodity
Identify major elements of business plans
6
7. SETTING ORGANIZATIONAL
STRATEGIES
Mission Statement:
โbroad yet specific statement of an
organizationโs purpose for existence and
its future direction.โ
โAll planning and strategies for future action
originate (or should) from the mission of the
organizationโ
7
9. Every Part of a Business Plan Derives
from the Mission
Mission
Business
Plan
Marketing
Plan
Financial
Plan
Human
Resources
Plan
Distribution
&
Supply
Mission
Business
Plan
Marketing
Plan
Financial
Plan
Human
Resources
Plan
Distribution
&
Supply
Personalized
Services
Sufficient $โs To
Support
Personalized Services
Competent,
Service Friendly
Employees
Convenient
products
& Services9
13. Strategic planning occurs at
various levels in large health care
organizations:
corporate
division
strategic business unit (SBU)
product Diabetes Management
Program At
Store #1989
13
14. WHAT IS THE DIFFERENCE
BETWEEN A BUSINESS MODEL
AND A BUSINESS PLAN?
15. BUSINESS MODELS
AND BUSINESS PLANS BOTH
DESCRIBE HOW A BUSINESS
HOPES TO ACHIEVE THE
MISSION IN A SUSTAINABLE
WAY
16. BUSINESS MODELS ARE
GENERAL, LARGE PICTURE VIEWS
OF THE BUSINESS &
TYPICALLY GLOSS OVER
THE OPERATIONAL DETAILS
OF THE BUSINESS
19. Organization's
Operation - Specific
background about
the organization
where the
product/service will
be provided
Strengths,
Weaknesses - Your
capabilities to serve
targeted customers
Service/Product โ Features and details about
your program or service
Secondary
Customers - all
other people you
may serve
Partners - People or
businesses who can
help you serve
customers
Value Proposition - The case you make to
customers
Opportunities,
Threats - Potential
for success or failure
in the market
Competitors โ
Alternatives for your
value proposition
Primary Customers - People or businesses you
want to serve
Costs - Financial and nonfinancial inputs
needed to serve customers
Pricing & Reimbursement - Sources of revenue
to sustain your value proposition
Communication Plan - How value
proposition is communicated
Implementation - Details about critical factors for success of business
Source: (adapted) Osterwalder A, Pigneur Y. Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Hoboken, NJ.: John Wiley and Sons; 2010.
Business Model Canvas for Pharmacy Services
20. Organization's
Operation - Specific
background about
the organization
where the
product/service will
be provided
Strengths,
Weaknesses - Your
capabilities to serve
targeted customers
Service/Product โ Features and details about
your program or service
Secondary
Customers - all
other people you
may serve
Partners - People or
businesses who can
help you serve
customers
Value Proposition - The case you make to
customers
Opportunities,
Threats - Potential
for success or failure
in the market
Competitors โ
Alternatives for your
value proposition
Primary Customers - People or businesses you
want to serve
Costs - Financial and nonfinancial inputs
needed to serve customers
Pricing & Reimbursement - Sources of revenue
to sustain your value proposition
Communication Plan - How value
proposition is communicated
Implementation - Details about critical factors for success of business
Source: (adapted) Osterwalder A, Pigneur Y. Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Hoboken, NJ.: John Wiley and Sons; 2010.
Business Model Canvas for Pharmacy Services
21. BUSINESS PLANS CAN BE
CONSIDERED MORE DETAILED
VERSIONS OF BUSINESS MODELS
THAT PROVIDE SPECIFIC
DETAILS ABOUT PLANS
FOR SUCCESS
22. MAJOR ELEMENTS OF
BUSINESS PLANS
Executive Summary
Product or Service Description
The Pharmacy's Operation
SWOT Analysis
Primary Targeted Segments/Markets
Partners
Competitors
Revenue, Pricing, and Costs
Promotional Plan
Implementation Plan
Appendices
23. THE REMAINING PORTION OF
THIS PRESENTATION WILL
DISCUSS WHAT GOES INTO
A BUSINESS MODEL CANVAS
24. Organization's
Operation - Specific
background about
the organization
where the
product/service will
be provided
Strengths,
Weaknesses - Your
capabilities to serve
targeted customers
Service/Product โ Features and details about
your program or service
Secondary
Customers - all
other people you
may serve
Partners - People or
businesses who can
help you serve
customers
Value Proposition - The case you make to
customers
Opportunities,
Threats - Potential
for success or failure
in the market
Competitors โ
Alternatives for your
value proposition
Primary Customers - People or businesses you
want to serve
Costs - Financial and nonfinancial inputs
needed to serve customers
Pricing & Reimbursement - Sources of revenue
to sustain your value proposition
Communication Plan - How value
proposition is communicated
Implementation - Details about critical factors for success of business
Source: (adapted) Osterwalder A, Pigneur Y. Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Hoboken, NJ.: John Wiley and Sons; 2010.
Business Model Canvas for Pharmacy Services
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25. Organization's
Operation - Specific
background about
the organization
where the
product/service will
be provided
Strengths,
Weaknesses - Your
capabilities to serve
targeted customers
Service/Product โ Features and details about
your program or service
Secondary
Customers - all
other people you
may serve
Partners - People or
businesses who can
help you serve
customers
Value Proposition - The case you make to
customers
Opportunities,
Threats - Potential
for success or failure
in the market
Competitors โ
Alternatives for your
value proposition
Primary Customers - People or businesses you
want to serve
Costs - Financial and nonfinancial inputs
needed to serve customers
Pricing & Reimbursement - Sources of revenue
to sustain your value proposition
Communication Plan - How value
proposition is communicated
Implementation - Details about critical factors for success of business
Source: (adapted) Osterwalder A, Pigneur Y. Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Hoboken, NJ.: John Wiley and Sons; 2010.
Business Model Canvas for Pharmacy Services
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27. 2. PRIMARY CUSTOMERS
Primary customers are the
most important group of
individuals served by what
is being offered?
28. 3. VALUE PROPOSITION
This is the promise to customers of the value
to be delivered by your service (or product)
It explains in a compelling & clear manner why
customers should choose you over competing
options
29. Value Propositions in Retail
Business Models
1. Economic - argues that marginal benefits (i.e., utility) offered
(compared to competitors) is greater than the costs and
sacrifices paid
2. Functional - offers convenience by finding the right products
with as little time and as little physical and cognitive effort as
possible
3. Emotional โ offers arousal of feelings associated with the act
of shopping itself, e.g., enjoying shopping with others, the
hunt-for-a-bargain, relaxation
4. Symbolic - attaches positive consumption meanings to
shopping itself e.g., shopping local, shopping that supports
environment
29
30. Organization's
Operation - Specific
background about
the organization
where the
product/service will
be provided
Strengths,
Weaknesses - Your
capabilities to serve
targeted customers
Service/Product โ Features and details about
your program or service
Secondary
Customers - all
other people you
may serve
Partners - People or
businesses who can
help you serve
customers
Value Proposition - The case you make to
customers
Opportunities,
Threats - Potential
for success or failure
in the market
Competitors โ
Alternatives for your
value proposition
Primary Customers - People or businesses you
want to serve
Costs - Financial and nonfinancial inputs
needed to serve customers
Pricing & Reimbursement - Sources of revenue
to sustain your value proposition
Communication Plan - How value
proposition is communicated
Implementation - Details about critical factors for success of business
Source: (adapted) Osterwalder A, Pigneur Y. Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Hoboken, NJ.: John Wiley and Sons; 2010.
Business Model Canvas for Pharmacy Services
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31. 4. SECONDARY CUSTOMERS
These are the other customers served by
what you offer
They may be
Internal to your organization and/or
External to your organization
32. 5. PARTNERS
With whom will you partner to serve customers?
Will you work with other health care professionals,
local businesses, insurers?
Inside the organization
Outside of the organization
33. 6. COMPETITORS
Who is competing with your value proposition?
If they aren't partnering with you, individuals and
organizations may be competing with you.
34. Organization's
Operation - Specific
background about
the organization
where the
product/service will
be provided
Strengths,
Weaknesses - Your
capabilities to serve
targeted customers
Service/Product โ Features and details about
your program or service
Secondary
Customers - all
other people you
may serve
Partners - People or
businesses who can
help you serve
customers
Value Proposition - The case you make to
customers
Opportunities,
Threats - Potential
for success or failure
in the market
Competitors โ
Alternatives for your
value proposition
Primary Customers - People or businesses you
want to serve
Costs - Financial and nonfinancial inputs
needed to serve customers
Pricing & Reimbursement - Sources of revenue
to sustain your value proposition
Communication Plan - How value
proposition is communicated
Implementation - Details about critical factors for success of business
Source: (adapted) Osterwalder A, Pigneur Y. Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Hoboken, NJ.: John Wiley and Sons; 2010.
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35. 7. YOUR ORGANIZATIONโS OPERATION
1. Tangibles - Location, facilities, and brief
description of other products & services
provided
2. Mission and Values - Mission of the
organization & the values that are important in
making choices (e.g., patient-oriented, profit
driven, community-oriented)
3. Team - Key members of the team who are
planning & providing the service
36. 8. STRENGTHS AND WEAKNESSES
What unique strengths does your organization
have that gives you a competitive advantage?
What weaknesses give you a disadvantage?
37. 9. OPPORTUNITIES AND THREATS
What are opportunities that your service
could meet?
What are potential threats to your success?
38. Organization's
Operation - Specific
background about
the organization
where the
product/service will
be provided
Strengths,
Weaknesses - Your
capabilities to serve
targeted customers
Service/Product โ Features and details about
your program or service
Secondary
Customers - all
other people you
may serve
Partners - People or
businesses who can
help you serve
customers
Value Proposition - The case you make to
customers
Opportunities,
Threats - Potential
for success or failure
in the market
Competitors โ
Alternatives for your
value proposition
Primary Customers - People or businesses you
want to serve
Costs - Financial and nonfinancial inputs
needed to serve customers
Pricing & Reimbursement - Sources of revenue
to sustain your value proposition
Communication Plan - How value
proposition is communicated
Implementation - Details about critical factors for success of business
Source: (adapted) Osterwalder A, Pigneur Y. Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Hoboken, NJ.: John Wiley and Sons; 2010.
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PROFIT FORMULA
39. 10. COSTS
What are the major costs of the service being
provided?
Startup Costs
Operating Costs
Fixed
Variable
40. 11. PRICING & REIMBURSEMENT
How does the business receive revenue for the
service being provided?
What will be the price for each unit of service
provided?
Who will pay for the service?
41. Organization's
Operation - Specific
background about
the organization
where the
product/service will
be provided
Strengths,
Weaknesses - Your
capabilities to serve
targeted customers
Service/Product โ Features and details about
your program or service
Secondary
Customers - all
other people you
may serve
Partners - People or
businesses who can
help you serve
customers
Value Proposition - The case you make to
customers
Opportunities,
Threats - Potential
for success or failure
in the market
Competitors โ
Alternatives for your
value proposition
Primary Customers - People or businesses you
want to serve
Costs - Financial and nonfinancial inputs
needed to serve customers
Pricing & Reimbursement - Sources of revenue
to sustain your value proposition
Communication Plan - How value
proposition is communicated
Implementation - Details about critical factors for success of business
Source: (adapted) Osterwalder A, Pigneur Y. Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Hoboken, NJ.: John Wiley and Sons; 2010.
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42. 12. COMMUNICATION PLAN
How will you communicate your value
proposition to customers?
What messages will you communicate?
What do you want to achieve with your
communications?
43. Organization's
Operation - Specific
background about
the organization
where the
product/service will
be provided
Strengths,
Weaknesses - Your
capabilities to serve
targeted customers
Service/Product โ Features and details about
your program or service
Secondary
Customers - all
other people you
may serve
Partners - People or
businesses who can
help you serve
customers
Value Proposition - The case you make to
customers
Opportunities,
Threats - Potential
for success or failure
in the market
Competitors โ
Alternatives for your
value proposition
Primary Customers - People or businesses you
want to serve
Costs - Financial and nonfinancial inputs
needed to serve customers
Pricing & Reimbursement - Sources of revenue
to sustain your value proposition
Communication Plan - How value
proposition is communicated
Implementation - Details about critical factors for success of business
Source: (adapted) Osterwalder A, Pigneur Y. Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Hoboken, NJ.: John Wiley and Sons; 2010.
Business Model Canvas for Pharmacy Services
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44. 13. IMPLEMENTATION PLAN
What things do you, the customer, and the
payer need to do to make the service a
success?
What are the most important things your
organization needs to do to successfully
implement the program?
How will you know if you are successful or
not? What operational & performance metrics
will you collect?
45. Summary
Strategic planning is an important skill for
pharmacists who wish to market their
services
Planning requires systems thinking and an
understanding of the complexity of pharmacy
practice
45