GENERAL OVERVIEW OF BUSINESS MODELS

Transcription

1 GENERAL OVERVIEW OF BUSINESS MODELS Fundamental Principles of Sustainability Lisa Beth Ferstenberg, M.D. Director, Consulting Services Technical Resources International, Inc.

2 Products and Markets: The Value Equation The value of a product is determined by how well it satisfies the needs of a market Market needs are broad and their relative importance to customers create market niches Safety and efficacy Quality Availability Efficiency Secondary benefits

3 First Principle: Creation of Value for all Stakeholders Identify what is of value for each stakeholder Integrate Needs Assets Capabilities Synthesis should create the maximum value for each stakeholder

4 Business Models Business models evolve to accommodate gaps in the standard transactional exchange VENDOR (PRODUCT) CUSTOMER ($$$)

5 The Vaccine Value Chain Discoverer Procurer Provider Developer Distributor Patient Regulator Manufacturer Community

6 Who Are You in the Value Chain? Every supplier is also a procurer Of goods Of services Of a market Of know-how Of skilled and unskilled labor Procurers who can provide something needed by a supplier can create a value commodity with which to negotiate

7 Examples Patients who can offer transportation to others without it offer a service to the provider of vaccine services Providers who can travel to patients to vaccinate offer a distribution mechanism Basic skills personnel that can package and label cost effectively offer a service that can be remunerated by cost of vaccine

8 Who are the procurers and what are they procuring? Patients Frequently do not pay directly for vaccines Third Party Payers then become the customer Governments with health and welfare responsibilities May be the proxy customer for its citizens NGOs with missions and mandates Vendor is now negotiating with a different customer

9 What is of Value to the Customer? C U S T O M E R Patient Govt; NGO VENDOR -Health is less expensive than illness -A healthy population is economically more productive than an ill population

10 What is of Value to the Vendor? VENDOR - Money - New product development opportunity - Clinical proof of efficacy - Regulatory Approval - New market opportunity - Preferred vendor status - Access to services IT NEEDS at a favorable price A BALANCE OF THESE RETURNS WILL BE SATISFACTORY

11 The Vendor as Customer Gov t Regulatory Authority Gov t Health Services Skilled Services VENDOR In addition to money, other benefits can satisfy the Vendor as a Customer

12 Business is Sustained when Value is Created for all Stakeholders VENDOR New and growing markets Access to services at favorable pricing Proof of concept Competitive advantages Profitability Positive public image CUSTOMERS Patients: disease prevention Governments: healthy population NGO: Mission accomplishments PPP: All of the above GOB: Return on Investment

13 First Principle: Creation of Value for all Stakeholders Identify what is of value for each stakeholder Integrate Needs (Healthy population) Assets Vaccine Money Benefits Capabilities What capabilities can customers offer to create value for other stakeholders?

14 Stakeholders as Both Consumers and Producers Gov t Large Purchase Regulatory Approval VENDOR NGO Funding Access Distribution Mkt Patients Capabilities

15 Revised Business Models Business models evolve to accommodate gaps in the standard transactional exchange PROVIDER VENDOR (VALUE) CUSTOMER (VALUE) CUSTOMERS CAN IDENTIFY VALUE TO OFFER IN EXCHANGE FOR VALUE RECEIVED

16 What Business Models Can We Apply?

17 Passive Recipient Model Supplier Gov t Patients NGO Clinicians Patients have no role in generating value in the business model

18 Vaccine Recipients Are Consumers and Producers workforce voters Population of Patients Vaccine consumers Service providers

19 NGO as Purveyor and Coordinator Vaccine Supplier Gov t NGO Funders Patients Cooperative, but Stakeholders have limited ability to negotiate value offered or received

20 Vaccine Sponsor as Customer AND Vendor Community/ Services & Workforce Gov t/ Regulatory NGO/ $$$ & multi-ctr trials Vaccine Sponsor Each stakeholder identifies the value they can exchange for receipt of value

21 Government Owned Corporation Purchases Materials Vaccine from pharma Glassware from supplier Etc. GOC Invests in Builds pkg facility Process Employs locally Hospitals Distributes Product Pharmacies Local clinics

22 Public Private Partnerships Prod dev Mkt risks Epidemic R&D Manuf Healthcare RISKS COSTS BENEFIT OPPORT UNITIES Sales Regulatory ROI New Mkt R&D Wellness

23 Summary Global healthcare challenges confront Regional limitations and opportunities A creative approach to business models can stimulate new solutions to value exchange Resource challenged nations can assess their ability to contribute based on local skills and know-how Healthier individuals and healthier economies can result