New Product Development & Launch in Biotech The Intersection of Innovation and Operations Excellence
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1 New Product Development & Launch in Biotech The Intersection of Innovation and Operations Excellence October 19, AMR Research, Inc. Page 1
2 Leaders Leverage Operations & Innovation Excellence Operational Excellence (Perfect Order, Cycle Times Total Supply Chain Cost) Leader Higher cash flow, profits, etc. Winners Continuous Business Strategy translation Portfolio of Strategic Priorities Demand-driven Product Supply Strategy Building usage insights into innovation Laggard S D P Losers Laggard Innovation Excellence (Time to Value, Return on R&D) Leader 2009 AMR Research, Inc. Page 2
3 At the Intersection of Innovation & Operations Innovation-Operations Excellence Fulcrum Product / Service Innovation New and different value as perceived by the market Demand Supply Active Governance Integrated Teams Develop for Total Customer Experience Learning Organization Technology Product Manufacture Operations Excellence Profitable and consistent delivery that continually improves 2009 AMR Research, Inc. Page 3
4 Developing for Total Customer Value Astra Zeneca Design for Supply Simulate supply network at new product introduction $200M est. saved on resource and inventory placement Pfizer GETQUIT / LifeREWARDS Program Need for post-sale services to benefit total patient health Online support to patients using smoking cessation therapy McNeil Nutritionals - Consumer Learning Labs Introduced new weight-loss product based on market assumptions Labs discovered buyers not responding to weight-loss benefits Led to company emphasizing additional health benefits 2009 AMR Research, Inc. Page 4
5 Innovation & Operations Excellence Maturity I II III IV Active Governance Development isolated from the business Phase reviews integrate hand-off to the business Cross-functional steering committee monitors progress Decisive leaders actively own innovation results Integrated Teams Serial product development stages with handoff Early input from operations on product innovation Concurrent development of product & process Early customer insights drive both operation & to operations product innovation Develop for Total Customer Product innovation is internal with limited customer insight Customer input captured on needs and sought for product concepts Customer behavior observed driving product innovation to meet total needs Product, supply, and service combine to meet customer needs Experience Learning Organization Product & process requirements & specifications Single specification for prototype product or method Multiple alternative specifications and prototypes tested & Iterative improvement with knowledge capture rigidly defined early refined tradeoffs studied & sharing Technology No alignment to business needs Business adapts to commercial Value stream map to eliminate wasted Enhance business differentiation while applications information flow eliminating waste 2009 AMR Research, Inc. Page 5
6 Developing Products for Demand Driven Supply Networks Measure Market Success Growth- On-time- Reliability Demand Market Features Pricing ROI R&D-Production- Marketing Forecast Availability Validate ROA Intellectual Plant Inventory Supply Capacity Flexibility Quality Competencies Specification Requirements Voice Of the Customer Product Innovation Options Roadmap Capability Lean Supply Define Design Promote Supply Support 2009 AMR Research, Inc. Page 6
7 Fuzzy-Front-End Through Product Launch Customer Driven Input Program / Product Portfolio Management Project Dashboard & Portfolio Analytics Idea Discovery Concept Feasibility Design Launch Internal / Technology Driven Input Platform Roadmap Concept BOM s and Designs Fuzzy-Front-End of New Product Development Align Customer Needs / Product Features Requirements Management Filter Ideas Idea Management 2009 AMR Research, Inc. Page 7
8 PLM Intersects with Demand and Supply Value Chain 2009 AMR Research, Inc. Page 8
9 Panel Discussion 2009 AMR Research, Inc. Page 9
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