The document discusses the status and future of competitive intelligence (CI) in the Asia region. It summarizes the results of a survey of 50 regional pharma stakeholders on CI. The survey found that while most companies have centralized CI functions in the US and EU, the Asia region would benefit from more localized CI resources and tools. Budgets and headcount for CI are also generally lower in Asia. Going forward, the document suggests CI in Asia will need to provide insights beyond just supporting brands to areas like corporate strategies and portfolios. Regional CI functions may evolve from just monitoring competitors to helping inform more strategic decisions across a company's lifecycle and value chain in the complex Asia markets.

1. Status and Value of CI in the Asia Region
And where is the industry heading?
Singapore, 10th June 2014
Carole Brückler, PhD
Partner, Head of Asia Pacific

2. 2
Today’s discussion
Status and Value of CI in the Asia Region

3. 3
Today’s discussion
Status and Value of CI in the Asia Region
Status of CI in Asia
Value of CI in Asia
Future evolution of the Industry

4. 4
Status of CI in Asia
Value of CI in Asia
Future evolution of the Industry

5. 5
Methodology
Regional Industry Assessment – Status Today
50 regional pharma stakeholders
Users & producers
10 questions
May 2014
Not perfect, but pragmatic
Global CI Industry Assessment
Contrasting for discussion
Highlighting potential futures

6. 6
How “far” can HQ CI teams really be
stretched?
“Most companies adopt
a centralized CI function located
in the US and EU, but we need
more tools (and resources)
catering to APAC needs.” —
Strategic Planning Professional,
Top 10 Global Pharma
“Most companies adopt
a centralized CI function located
in the US and EU, but we need
more tools (and resources)
catering to APAC needs.” —
Strategic Planning Professional,
Top 10 Global Pharma

7. 7
Education of CI and the definition of CI is already established
How do you personally perceive the term Competitive Intelligence?
2%
4%
20%
74%
0% 20% 40% 60% 80%
Not familiar with this terminology
Essentially same concept as Market Research
An integral part of Market Insights where we gather information
about the external market including competitors
The process of ethically gathering and analyzing information
about the competitive environment so that it can be used to
make a strategic business decision
% Respondents
Perceptions of the term "Competitive Intelligence" in APAC
Not familiar with this terminology
Essentially same concept as Market Research
An integral part of Market Insights where we gather
information about the external market including
competitors
The process of ethically gathering and analysing
information about the competitive environment so that
it can be used to make a strategic business decision

8. 8
Regional teams can rely “sometimes” on Global CI support
To what extent does a Global Competitive Intelligence team support
your local market efforts?
4%
33%
41%
15%
7%
0% 20% 40% 60%
Not at all
Seldom
Sometimes
Frequently but not consistently
Consistently
% Respondents
Extent to which HQ CI team supports local
market efforts – APAC perspective
Not at all
Seldom
Sometimes
Frequently but not
consistently
Consistently

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Global HQ CI teams agree
There are not enough resources to contribute to every decision in every
region; the regional focus differs according to the origin of the MNC
15%
85%
% Total
number
of Big
Pharma
companies
Companies
that have HQ CI
team with no
regional/
local reach
EU-originating Big Pharma
Have HQ CI team with no
regional/local reach
Have HQ CI team with
regional/local reach
US-originating Big Pharma
62%
38%
60%
40%
Share of Big Pharma companies with HQ CI teams that support
regional/local needs – Global HQ perspective
Companies
that have
HQ CI team
with
regional/
local reach

10. 10
There is always the $ issue
“There are typically limited budgets
available with local affiliates,
because of their relatively smaller
market sizes that are deemed
to make operations unprofitable.” —
Analytics and Commercial
Excellence
Executive, Global Top 10 Pharma
“There are typically limited budgets
available with local affiliates,
because of their relatively smaller
market sizes that are deemed
to make operations unprofitable.” —
Analytics and Commercial
Excellence
Executive, Global Top 10 Pharma

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11%
24%
15%
30%
20%
0% 5% 10% 15% 20% 25% 30% 35%
All of the above
Based on existing in-house knowledge of the market within the
regional and global team
By asking local affiliates or other relevant stakeholders based in
the target regions or markets
Through broader Market Insights or Business Insights research
that also covers research on the Competitive Environment
Through independently commissioned research focusing on the
Competitive Environment
% Respondents
How are Insights regarding the Competitive Environment gathered in APAC?
In the absence of global driven CI – we bundle or we scramble
How are Insights regarding the Competitive Environment currently
gathered in your company?
Through independently commissioned research
focusing on the Competitive Environment
Through broader Market Insights or Business
Insights research that also covers research on the
Competitive Environment
By asking local affiliates or other relevant
stakeholders based in the target regions or
markets
Based on existing in-house knowledge of the
market within the regional and global team
All of the above

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There is always the $ issue
Budgets are a stretch for the majority of companies
Budgets dedicated for gathering Insights regarding the Competitive Environment
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Global HQ-Low Global HQ-Medium Global HQ-High
%CI-supportedAssets
Global HQ Budgets
≤ 100K USD > 100K to ≤ 300K USD > 300K USD
(per asset per annum)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Regional-Low Regional-Medium Regional-High
%APACrespondents
APAC Budgets
≤ 50K USD > 50K to ≤ 150K USD > 150K USD
(per asset per annum)

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1 bil
2 bil
3 bil
Where are CI budgets heading?
On a Global level, higher sales forecasts allow for bigger CI budgets.
Will this also apply in Asia?
CI Budget per asset per annum/ USD
Peak Global Sales
per annum/
USD
100K 200K 300K 400K 500K
Assets of < 3 bil USD peak
global sales or forecasted
peak global sales
Assets of > 1 bil USD peak
global sales or forecasted
peak global sales
Global HQ-
Low
Global HQ-
Medium
Global HQ-
High
Typical CI Budget Ranges for Assets with different Peak Global Sales

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There is always the $ issue
…and also the manpower issue
“Limitation (for CI to mature
in APAC) is that, in a bid to cut
cost, CI personnel are often
not retained in the country
as (this function) is treated
as a redundancy.” — Strategic
Project Manager, Top 10
Global Pharma
“Limitation (for CI to mature
in APAC) is that, in a bid to cut
cost, CI personnel are often
not retained in the country
as (this function) is treated
as a redundancy.” — Strategic
Project Manager, Top 10
Global Pharma

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In Asia, CI support is currently not (rarely) run as dedicated
teams
25%
50%
25%
0% 10% 20% 30% 40% 50% 60%
0.1 to < 0.5
≥ 0.5 to < 1
≥ 1
% CI-supported Assets
CIFTE/asset
CI FTE per asset (Global HQ)
This provides a capability gap in most companies.

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Different tools for different purposes
“CI is more and more important
especially during the patent cliff
period to defend (ourselves) against
generics and biosimilar; we have to
bear in mind that APAC’s situation is
quite different from global.”
— Commercial Excellence
Executive, Top 10 Global Pharma
“CI is more and more important
especially during the patent cliff
period to defend (ourselves) against
generics and biosimilar; we have to
bear in mind that APAC’s situation is
quite different from global.”
— Commercial Excellence
Executive, Top 10 Global Pharma

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Global CI teams commit a large share of their budgets to
ongoing monitoring
This responds to the needs of global teams to have global therapy
insights available when required
0 10 20 30 40 50
Strategic Workshops (e.g. Wargames)
Conference Coverage
Ad-hoc Projects
Landscape Monitoring
% CI Budgets for Product Support
CI Service Offerings for Product Support (Global HQ)

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Not all life-cycle stages are handled
the same way and rightly so
“New product launches is,
in my view, where CI can really
play a meaningful role.” —
Commercial Director, Top 10
Global Pharma
“New product launches is,
in my view, where CI can really
play a meaningful role.” —
Commercial Director, Top 10
Global Pharma

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Preparing for a great launch and defending against LoE is
where Global and regional overlap in their priorities
The business objectives at a global & regional level are the same; the
questions asked and answered do differ though
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Late-stage
Clinical
Development
Launch Peak Sales LCM
NormalizedCIBudgets
Global HQ
0
10
20
30
40
50
60
70
Late-stage
Clinical
Development
Launch Peak Sales LCM
%Respondentsindicatingspecificlife-cycle
stagesasrequiringcompetitorinsights
APAC
CI Support for Assets in different Life-cycle Stages

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Status of CI in Asia
Value of CI in Asia
Future evolution of the Industry

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Going the extra mile beyond brand support
“We need more insights into
the interdependency of various
market factors to understand
the entire end-to-end
value chain.” — Business
Development Manager, Global
Top 10 Pharma
“We need more insights into
the interdependency of various
market factors to understand
the entire end-to-end
value chain.” — Business
Development Manager, Global
Top 10 Pharma

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In Asia, there is already a high focus to use CI beyond brands
Tactical CI support of brands is a great start, but CI can do more
70 72
0
10
20
30
40
50
60
70
80
90
100
For corporate strategies For portfolio strategies
%Respondentsindicatingspecificdecisiontypes
asrequiringcompetitorinsights
APAC
Leveraging Competitor Insights beyond Brand Support
60
40
0
10
20
30
40
50
60
70
80
90
100
CI team provides
product level support
only
CI team also
provides non-
product level support
%NumberofBigPharmaCompanies
Global HQ

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Where does CI add value in Asia beyond supporting brands?
Decisions in emerging markets are complex
Threats
Higher degree of uncertainty
More and unknown competitors and intentions
Risks around IP and patent protection
Opportunities
Also, high growth
With so many opportunities – are you falling behind?
Sample business objectives that can be addressed
Does our market exist? (infrastructure, prescribers, payers, patients)
How have other companies designed their market entry strategies?
Can we improve the quality or the cost of our API supply chain?
Are there new assets for us to in-license?
Does our potential out-licensing partner share our beliefs in how to conduct a partnership?

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Status of CI in Asia
Value of CI in Asia
Future evolution of the Industry

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Future evolution of the Industry
What will Pharma CI in Asia look like?
“CI should be incorporated
into all decision-making
instead of (having people) just
looking at it as a (corporate)
function to seek assistance
from.” — Strategic Intelligence
Executive, Top 10 Global Pharma
“CI should be incorporated
into all decision-making
instead of (having people) just
looking at it as a (corporate)
function to seek assistance
from.” — Strategic Intelligence
Executive, Top 10 Global Pharma

26. 26
Today’s discussion
Future evolution of the Industry
The Future is us!
Models of interaction
Adding value beyond providing information

27. 27
Corporate Intelligence – models & reporting lines
Three models can be followed to deliver corporate intelligence needs
QC modelQC model Hybrid modelHybrid model
11 22
Choices on the model to follow need to consider company culture, company needs
and the response to a particular phase in the company growth cycle.
Choices on the model to follow need to consider company culture, company needs
and the response to a particular phase in the company growth cycle.
QA modelQA model
33

28. 28
Corporate Intelligence team models: QC model – high
objectivity
If a Board values/needs
Impartial, objective intelligence that they could use to challenge the BU's strategy
then they should have their own independent CI Group. This group can also look at
industry/macro change, and of course Corporate issues
QC modelQC model
11
Identifiers of the QC model
• Corporate Intelligence reports directly into the Board
• Can be militaristic in style
• Corporate intelligence runs its own projects
• Check the validity of recommendations from the BUs
and provide their feedback directly to the Board
Outcomes
• CEO always has access to independent insight and
knowledge
• This model places the highest premium on
objectivity
• Accuracy may suffers has Corporate intelligence
team does not access the tacit and day-to-day
market knowledge that resides inside the BUs
Identifiers of the QC model
• Corporate Intelligence reports directly into the Board
• Can be militaristic in style
• Corporate intelligence runs its own projects
• Check the validity of recommendations from the BUs
and provide their feedback directly to the Board
Outcomes
• CEO always has access to independent insight and
knowledge
• This model places the highest premium on
objectivity
• Accuracy may suffers has Corporate intelligence
team does not access the tacit and day-to-day
market knowledge that resides inside the BUs

29. 29
Corporate Intelligence team models: QA model – high
accuracy
QA modelQA model
33
Identifiers of the QA model
• Corporate Intelligence is delivered inside the BUs
• Separate teams can exist in separate BUs
• Main focus is on TA/product/franchise level projects
• Larger team that includes junior roles
• Co-develop recommendations with or for the BUs
• Coordination of existing resources (suppliers,
analytics)
• Own Process & Content
Outcomes
• Best practice for high accuracy of insights
• Places highest premium on accuracy
• Objectivity may suffer as, potential conflict of interest
if corporate and BU have different interests
Identifiers of the QA model
• Corporate Intelligence is delivered inside the BUs
• Separate teams can exist in separate BUs
• Main focus is on TA/product/franchise level projects
• Larger team that includes junior roles
• Co-develop recommendations with or for the BUs
• Coordination of existing resources (suppliers,
analytics)
• Own Process & Content
Outcomes
• Best practice for high accuracy of insights
• Places highest premium on accuracy
• Objectivity may suffer as, potential conflict of interest
if corporate and BU have different interests
If a Board values/needs
Accuracy of the assumptions underpinning the strategies of the BU’s and they want to be
perceived as supporting the BU

30. 30
Corporate Intelligence team models: Hybrid model – Medium
objectivity & accuracy
Hybrid modelHybrid model
22
Identifiers of the Hybrid model
• Corporate Intelligence sits to the side of the Board
• Matrix reporting
• Small team of experts
• Stays distinct from BUs in execution of projects
• Provides best practice on process
• BUs own and develop recommendations
Outcomes
• Offers compromise on accuracy and objectivity
Identifiers of the Hybrid model
• Corporate Intelligence sits to the side of the Board
• Matrix reporting
• Small team of experts
• Stays distinct from BUs in execution of projects
• Provides best practice on process
• BUs own and develop recommendations
Outcomes
• Offers compromise on accuracy and objectivity
If a Board values/needs
A balance between supporting and challenging the BU/TA’s which ensures that
industry and macro changes that the Board believes are unfolding, are reflected in all the
BU/TA plans and to the same extent

31. 31
Corporate Intelligence team models
On a value perspective, it is a trade-off of objectivity vs accuracy
QC modelQC model Hybrid modelHybrid model QA modelQA model
11 22 33
Objectivity Accuracy
CI in Asia today

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Building the value of CI in your organisation
What can you do?
1. Leadership: Define and drive a vision and mission for CI within the
organisation
2. Ensure collective understanding of the ‘raison d’etre’
3. Aim high in the value chain
4. Clarify, Identify and encourage cross-functional methodological activities
(involve MR and analytics)
5. Create, Measure and Incentivise Success Metrics that tie into your vision
6. Drive Uncompromising Ethical Standards

33. 33
Ensure a collective understanding of your ‘raison d’etre’ for
your core customer
Be clear on who your customer is
How to win?How to win?
What tactics and
capabilities?
Where to play?Where to play?
Key Principle
• Make clear, unequivocal choices
Key Principle
• Make clear, unequivocal choices
Corporate/Portfolio
Goals and
aspirations?
Corporate/Portfolio
Goals and
aspirations?
Key Principle
• Create a Positioning: Differentiated,
Compelling, Sustainable, Believable
Key Principle
• Create a Positioning: Differentiated,
Compelling, Sustainable, Believable

34. 34
Data &
Summaries
Conclusions
Implications
Recommendations
Decision
Drive the Output UP! the Value Spectrum
…but know where to stop!

35. 35
Understand, Respect and Embed the CI Process
Even if your customers don’t know the CI cycle, you will be more
successful if you use it
Planning and
Direction
Collection
Analysis
Dissemination

36. 36
Today’s discussion
Status and Value of CI in the Asia Region
Today – CI is a concept, an aspiration rather than a fully realised
potential
The growth in the Asia region is there – how we invest to
harness it?
The Future is us!

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