Commercial Model Challenge (CMC)
a Novartis experience
Giovanny León
Immunology and Infectious Diseases & Market Access He...
What is your mother tongue?
1) Español
2) English
2 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE La...
Do you think commercial strategies of the last
decade are losing effectiveness?
1) Agree
2) Partially Agree
3 | Commercial...
Do you think the sales model is often overly
focused on the primary-care physician?
1) Agree
2) Partially Agree
4 | Commer...
Does pharmaceutical companies need a closer
approach to the customer and focused on the disease?
1) Agree
2) Partially Agr...
The Commercial Model Challenge need
6 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21t...
The Commercial Model Challenge need
Our ability to stay in
tune with a fast-
changing environment
is key to sustainable
su...
One-year horizon
2-5 year outlook, informed by evolving
market dynamics and customer needs
Physician-focused Stakeholders ...
CMC desired outcome is a significant evolution of your
commercial model with high mid-/long-term business impact
Optimizat...
CMC: A structured approach to support senior
leaders develop New Commercial Models
Senior Leader Sponsorship
New
Commercia...
Patient Centricity & Customer Focus
is the anchor for the CMC
Patients and customers at the
heart of projecting a stretch
...
CMC Process and Timing at a Glance
3
4
12 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami...
The CMC is supported by an online toolkit
An online toolkit will help
you plan and track your
progress in the CMC
13 | Com...
The CMC online toolkit consists of three elements
Learn about the CMC CMC Library Do the CMC
Homepage
14 | Commercial Mode...
The online CMC Library provide inspiration “in
context” and useful tools
The online toolkit includes the CMC Library
The L...
The CMC Library Sparks New Ideas
Patients
How can we
enable
superior patient
outcomes?
Personalized compliance
card to acc...
Going through the CMC in a structured four-phase
approach that can be tailored to the country needs
New
Commercial
Model
D...
Each of the four Phases of the CMC process is
organized in several sub-steps
Set aspiration for New
Commercial Model 2-5
y...
Set aspiration for
New Commercial
Model 2-5 years
from now
Develop stretch
market, customer &
patient scenario,
2-5 years ...
20 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010
How many of these new Social Media tools do you
use?
1) None
2) One or Two
21 | Commercial Model Challenge (CMC) | Giovann...
22 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010
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The Commercial Model Challenge: securing resources and management focus

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Find out a methodology to map the current commercial situation and expected evolution by taking into consideration key stake holders within the process.
Alternative action evaluation (experimental): securing resources and management focus required to capitalize on the learning and developing in our current models in the face of future needs

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The Commercial Model Challenge: securing resources and management focus

  1. 1. Commercial Model Challenge (CMC) a Novartis experience Giovanny León Immunology and Infectious Diseases & Market Access Head Venezuela 4th Annual SFE LatAm, Miami 21,22 October 2010
  2. 2. What is your mother tongue? 1) Español 2) English 2 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010 2) English 3) Português
  3. 3. Do you think commercial strategies of the last decade are losing effectiveness? 1) Agree 2) Partially Agree 3 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010 2) Partially Agree 3) Disagree
  4. 4. Do you think the sales model is often overly focused on the primary-care physician? 1) Agree 2) Partially Agree 4 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010 2) Partially Agree 3) Disagree
  5. 5. Does pharmaceutical companies need a closer approach to the customer and focused on the disease? 1) Agree 2) Partially Agree 5 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010 2) Partially Agree 3) Disagree
  6. 6. The Commercial Model Challenge need 6 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010
  7. 7. The Commercial Model Challenge need Our ability to stay in tune with a fast- changing environment is key to sustainable success. We should 7 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010 We should continuously anticipate market evolution and develop New Commercial Models that address emerging customer needs and enable superior patient outcomes.
  8. 8. One-year horizon 2-5 year outlook, informed by evolving market dynamics and customer needs Physician-focused Stakeholders BEYOND physicians Brand-centric Patient-centric, customer-focused CMC is designed to promote a mindset shift From… … To 8 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010 Low risk activities with short-term results Portfolio of initiatives with: • Varying degrees of innovation and risk • Significant impact mid- to long-term Individuals and silos Broad input encouraged from customers, colleagues, other divisions and CPOs Physician-focused Single-channel Stakeholders BEYOND physicians Multi-channel
  9. 9. CMC desired outcome is a significant evolution of your commercial model with high mid-/long-term business impact Optimization of existing models Optimization of existing models New Commercial Models Optimizes serving of existing customers’ known needs NEWNESS Focused on new customer(s) or unmet customer needs Focused only on singular levers & elements of the commercial model SCOPE Comprehensive new go-to-market approach combining all customer- facing functions 9 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010 model facing functions Relatively minor organizational changes required IMPLICATIONS Major adjustments to organization: structure, roles, capability building, systems In most cases only short-term business impact BUSINESS IMPACT Significant mid- to long-term business impact Acceptable only if significant business impact mid-term Significant evolution & mid-/long-term impact as target outcome
  10. 10. CMC: A structured approach to support senior leaders develop New Commercial Models Senior Leader Sponsorship New Commercial Model Diagnose Market & Set Aspiration Design New Comme rcial Model & Develop Roadm ap Plan for Roll- Out of NCM (incl. ex- perime nts) Roll- Out & Sustai n NCM 1 2 3 4 Detailed, step-by-step processRegion/CPO Champions 10 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010 Support from online toolkit Inspiration from online Library Validation with customers and patients
  11. 11. Patient Centricity & Customer Focus is the anchor for the CMC Patients and customers at the heart of projecting a stretch market scenario for the future The challenge lies in evolving the commercial model to address those emerging & 11 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010 address those emerging & unmet customer needs You are encouraged to validate your ideas with patients and customers
  12. 12. CMC Process and Timing at a Glance 3 4 12 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010 Diagnose Market & Set Aspiration Design New Commercial Model and Develop Roadmap Plan for Roll-Out including Experiments 1 2 Roll-out and Sustain New Commercial Model
  13. 13. The CMC is supported by an online toolkit An online toolkit will help you plan and track your progress in the CMC 13 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010 You can access it at www.cmc.novartis.intra The online toolkit is self- explanatory due to comprehensive, step-by- step instructions
  14. 14. The CMC online toolkit consists of three elements Learn about the CMC CMC Library Do the CMC Homepage 14 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010 All Novartis employees with access to the intranet can get information on the CMC process Learn about the CMC CMC Library All Novartis employees with access to the intranet can browse the CMC Library to get inspiration on New Commercial Models Do the CMC CPO Champion & Team Leaders capture the results of their work and track their progress Work team members can view the results captured by their Team Leader
  15. 15. The online CMC Library provide inspiration “in context” and useful tools The online toolkit includes the CMC Library The Library provides you with “content in context” related to your market situation The CMC Library contents include: • Examples of New Commercial Models, 15 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010 • Examples of New Commercial Models, elements, and experiments • Best of BEST • Non-pharma case examples • Additional external content (articles, tools) • Organization Reference Guide The CMC Library will evolve over time based on your own experiments and input
  16. 16. The CMC Library Sparks New Ideas Patients How can we enable superior patient outcomes? Personalized compliance card to access discounts, information and value- added services CVM disease offering for VMS Card 16 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010 Payers Govern- ments/ Regulators How can we help payers to better manage diseases? How can we most effectively manage our relationship with decision-makers? CVM disease offering for payers (incl. capitated pricing for patient population) Integrated stakeholder action plans incl. tool to map & profile key deciders UK pilot Italy pilot
  17. 17. Going through the CMC in a structured four-phase approach that can be tailored to the country needs New Commercial Model Diagnose Market & Set Aspiration Design New Commerci al Model & Develop Roadmap Plan for Roll-Out of New Commerci al Model (incl. experiments on key elements) Roll-Out & Sustain New Commerci al Model 1 2 3 4 17 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010 The process is organized and leads you through the CMC in a structured way You can fit-for-purpose individual steps to best meet your local organization’s situation and needs There are no “right” answers; your answers will fit your market environment, your patients, and your customers Senior Leader Sponsorship elements)
  18. 18. Each of the four Phases of the CMC process is organized in several sub-steps Set aspiration for New Commercial Model 2-5 years from now Develop stretch market, customer & patient scenario, 2-5 years from now Local PEC Specify priority target customers/ patients and their needs Prioritize and endorse key elements of New Commercial Model Brainstorm key elements of New Commercial Model Develop roadmap to New Commercial Model and scope experiments 1-3 senior work teams* Local PEC Diagnose Market & Set Aspiration Design New Commercial Model & Develop Roadmap 1 2 Specify priority target customers/ patients and their needs Prioritize and endorse key elements of New Commercial Model Brainstorm key elements of New Commercial Model 18 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010 *E.g. specialty vs. mass market experiments Create detailed roll-out plan Align on gaps, deployment decisions & case for change Establish organizational readiness Local PEC Deployment champion(s) & line leaders Model & Develop Roadmap Plan for Roll-Out of New Commercial Model (incl. experiments on key elements) Roll-Out & Sustain New Commercial Model Local PECDeployment champion(s) & line leaders 3 4 Monitor results and resolve issues Go live and support key performers Ensure sustainability
  19. 19. Set aspiration for New Commercial Model 2-5 years from now Develop stretch market, customer & patient scenario, 2-5 years from now Specify priority target customers/ patients and their needs Prioritize and endorse key elements of New Commercial Model Brainstorm key elements of New Commercial Model Develop roadmap to New Commercial Model and scope experiments Local PEC 1-3 senior work teams* Local PEC How will your market evolve, including Given your market and customer Specify your target customers/ Design key elements of New Commercial Diagnose Market & Set Aspiration Design New Commercial Model & Develop Roadmap Brainstorm key elements of New Commercial CMC processCMC: Recommended sequence of 3 workshops over 4-8 weeks to complete Phases 1&2 1 2 Develop 2-5 year roadmap towards New 19 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010 Market Scenario NCM Aspiration & Workshop 2A Target customers & needs Brainstorm NCM elements Workshop 1 Workshop 2B Endorse NCM elements Develop roadmap including competition and regulatory? Which customer groups will be most important? What are the key patient trends? How will your product portfolio evolve (high- level)? Develop stretch scenario 2-5 years from now customer scenario, what New Commercial Model are you aspiring to 2-5 years from now? What key changes will be required between your current and the target commercial model? customers/ patients in 2-5 years in detail (for each work team) Specify the anticipated most pressing needs of your target customers/ patients (for each work team) and how those needs will evolve in the coming 2- 5 years Commercial Model based on prioritized ideas of new commercial approaches from senior work- teams Commercial Model that can address the most pressing future needs of your target customers/ patients towards New Commercial Model outlining - Commercial model milestones to achieve - Experiments to pilot NCM elements - Organizational impact / capabilities to build
  20. 20. 20 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010
  21. 21. How many of these new Social Media tools do you use? 1) None 2) One or Two 21 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010 2) One or Two 3) Three or four
  22. 22. 22 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010

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