The life sciences industry faces continuously evolving challenges and it is becoming increasingly evident that the entire sector is operating in a time of significant change. A dynamically changing clinical, regulatory, and business landscape is requiring that pharmaceutical, biotechnology, and medical technology companies transform research and development (R&D), pricing, supply chain, and commercial models.
Let’s discuss a few of obvious examples…
Imagine a commercial business in the pharmaceutical sector, current challenges include rising development costs, declining drug discovery success rates, expiring patents, and global competition. Now imagine a pre-commercial business in the pharmaceutical sector currently focused on vendor management and clinical trial expense who overnight must make the transformation to commercial operations with a global enterprise sales and marketing engine. What is the impact on cash if we gain approval in July instead of January?
Biotech companies, while experiencing strong growth, are challenged by high merger and acquisition (M&A) activity as pharmaceutical companies buy innovations and receive pressure on research and development (R&D) efficiency from investors. How will we consolidate these entities, quickly reforecast or evaluate the effectiveness of an acquisition?
Despite these challenges, the global life sciences industry still has the potential for significant growth. Those who recognize early the need for technology assets far more dynamic and powerful than Excel will be best suited to adapt and thrive in this rapidly changing environment and leading companies are turning to corporate performance management (CPM) software to help address the challenges outlined above.
AGILE BUDGETING & PLANNING
CPM enables life sciences companies to create more dynamic budgets and rolling forecasts that can be updated in real-time based on changing business drivers.
For example, some pharmaceutical companies would like to understand the impact of outsourcing their drug discovery process. CPM software enables analysts to model different outsourcing scenarios to uncover the most cost-effective and timely outsourcing solution. Other business scenarios may include modeling the impact of closing a manufacturing plant, a major delay in drug delivery, or an immediate rise in demand.
STREAMLINING FINANCIAL CLOSE AND REPORTING
Reducing the amount of time and effort an organization spends on the month-end and quarterly financial close and reporting process can yield big benefits. Consolidation and reporting solutions found in CPM can enable finance departments to spend less time collecting data and more time analyzing results.
RSM CAN HELP
Let us show you how RSM has worked with life sciences companies to help them address the challenges of managing performance in today’s dynamic business environment. We have helped these companies address the following:
- Streamline the financial consolidation, close, and reporting process
- Eliminate manual processes
- Reduce budgeting and forecasting time
- Forecast predictable and consistent future results
- Provide a self-service reporting platform for executives and management
- Analyze and report on product sales and sales force activity
- Easily create a global sales forecast