Knowledge Management in Pharmaceuticals - Myassignmenthelp.Com

Question: Discuss about the Knowledge Management in Pharmaceuticals. Answer: Introduction Hikma Pharmaceuticals PLC (Hikma) (LSE: HIK) (NASDAQ Dubai: HIK) (www.hikma.com) was founded in Jordan in 1978 and became public-shareholding company in 2005. Hikma develops, manufactures and markets a broad range of branded, non-branded generic and in-licensed products and operates in the US, Europe and across the MENA region. The group revenues through time is detailed in the below chart. Considering the below table, Hikma operates 35% of group revenues in MENA and has nearly 6000 employees in this region. In addition, it has local manufacturing plants in eight MENA countries and sales marketing teams across 18 markets. The current strategic priorities of the group are detailed below Business Challenges There are certain key challenges that Hikma need to consider in its strategy: Cost pressures on the industry arising from less number of new molecules/products in addition to several new economical/political and social factors in MENA. Rising customers expectations: Health care payers are expecting new treatments that economically and clinically optimal leading to better healthcare outcomes. The need for more responsive supply chain to accommodate the increasing complexity and in adaptation to changing patients and healthcare providers expectations. Information and visibility as Hikma needs to change from black-box system to information highway New and frequent regulatory guidelines Brand loyalty is weak, and the sales is achieved through relationships in addition to providing discounts and bonuses. These challenges require amendments on the strategy and business model by zooming in towards patients and payers expectations and increasing the agility of the organization towards adaptation and more importantly to lead the clinical transformation in MENA. Business Model Analysis Current Status Similar to other generic pharma (GX), Hikma business model is characterized by the production and selling generic drugs that are comparable to branded drug product in dosage form, strength, route of administration, performance and intended use. This is achieved through reverse engineering of the drugs invented by the big Pharmaceutical companies and sold at lower costs. GX companies sell these products primarily to drug wholesalers and retailers, hospitals and government entities (Source) The current business model of Hikma Pharma is based on FIPCO model (Fully Integrated Pharmaceutical Company) in which the company is active at all points of the value chain (RD, manufacturing up to commercialization). In addition, Hikma has alliance agreements with different global partners to manufacture, market and sell licensed drugs in MENA region. Hikmas business, similar to other competitors, is mainly built on relationships and competitive prices. Hikma sales force approach key physicians, health care organizations and key consultants to introduce the drugs with continuous follow up visits on these parties to encourage writing prescriptions containing Hikma drugs. Below figure explains the industry value chain. As the company needs to react to the business challenges mentioned above (1.1), the healthcare industry is also challenged with new business trends with emphasis on digital transformation and the patients/customers are becoming smarter in choosing their treatments. Thus, Hikma needs to leverage such new trend through a new business model that enables knowledge management and collaboration as a way to differentiate its value from others. Suggested Business Model The move in the global healthcare industry is towards value and quality rather than quantity and volume. The value/quality is anticipated as outcomes per cost and there is tremendous focus on this direction being witnessed in several global countries. The new business model needs to capture value through adopting patient-centric strategy in which the patients are in the middle of the healthcare value chain and this would lead to the necessity of increase in the collaboration between industry healthcare organizations in addition to payers, universities, government agencies along with the software providers. Hikma and other healthcare providers need to collaborate and achieve their objectives together. Such model can be facilitated through incorporating of knowledge management strategy into the business strategy (Source) This suggestion requires more emphasis on the patients health data and information and thus collaboration between different healthcare organizations is necessary in this regard to be able to build the necessary knowledge to increase the value and outcome effectiveness and reduce the overall healthcare costs. To achieve this model, Pharma companies such as Hikma needs to start learning about their patients/customers and this would require more steps than just delivery of medicine to them as this would also require more engagement with patients data and information to understand their exact needs and behaviors in order to provide solutions that achieve healthier outcomes. Hikma in this context, and through its sharing of data and information with other healthcare organizations, need to start building new knowledge and disseminate it within itself and outside to other collaborators to achieve the common objectives of healthier results. Such complexity requires increased agility in responding to changing needs and with the new business model, its expected companys data and information will be dramatically increased and knowledge management is needed in this case to structure the information and data in a traceable way and utilize them to gain competitive advantage. Knowledge management and collaboration need to be part of business strategy for Hikma to achieve its patient-centric strategy. Knowledge management and collaboration reside in the core of the business model and require the internal functions to deploy and manage knowledge management systems and more importantly to instill a new culture that is characterized with learning, innovation, continuous improvement, data-driven and efficiencies. Knowledge Management can be defined as the process of creating, sharing, using and managing theknowledgeand information of an organization.It refers to a multidisciplinary approach to achieving organizational objectives by making the best use of knowledge[2] Hikma needs to capitalize on Knowledge Management throughout its business model and value chain in fulfilment of the mission of achieving patients centricity. Knowledge Management Strategy To achieve integrating Knowledge Management into the business strategy, Hikma needs to consider the following dimensions: People, culture and leadership Processes Technology People and Culture Knowledge management strategy is a people strategy as people is the key to implement it; processes and technologies are the tools for the effective implementation. Hikma needs to have the buy-in from its people towards adoption, participation, sharing and utilizing knowledge. In order to gain the buy-in, Hikma needs to manage this knowledge management project as transformation/chain management project which and its suggested to follow the Knowledge Management Strategy Implementation Plan (Point #5). People in Hikma are talented and have very good understanding for the need of learning and sharing; these people are coming from diverse cultures and backgrounds which will enable achieving greater results and solutions once the knowledge management strategy has been enabled. Currently these people are using their functional systems to manage their own processes in their own departments. In order to activate the collaboration and sharing mode; Hikma needs to start encouraging cross functional and cross-country projects to enable processes and data standardization in addition to solving common business problems. Motivation and incentives are key in this part and Hikma needs to redesign its objectives and incentives to reward the good results of cross functional/geographical sharing of work. Leadership As knowledge management dimensions need to be integrated within Hikma strategy and business model and because such new strategy requires hands-on and high-level empowerment, its imperative Hikma creates a Chief Knowledge Officer role (reporting to Group CEO) (Exhibit 1) to effectively implement the integration strategy and govern the continuous sustainability of the knowledge management effectiveness. The Chief Knowledge Officer (CKO) role is important to lead the strategic change and provide enough time to make sure the change is happening, and the benefits are realized. Of course, as much as this role is important, also, the head of departments roles are important as well and much of the CKO time needs to be with the head of departments to get their buy in and implement the necessary process/technology changes in these departments. Processes and Technology The following is explanation for the processes and technology dimensions in each of key functions that need to be transformed in order to achieve the knowledge management strategy: Research and Development The research and development department need to manage data and information captured from clinical trials and patients to better understand their current and future needs. Such information and data need to be shared with concerned departments/employees with a purpose of creating new knowledge to support speeding up the research and development process in developing more personalized drugs. In order to implement this and with the use of available technology, the research and development can benefit from digitalizing its processes through utilizing the available technological platforms and increase its information and data sharing with all in-house and contractors facilities which can increase the research and development efficiencies leading to increase in new and personalized drugs. Supply Chain Operations Supply chain department need to start acquiring data in relation to inventory data at pharmacies and distributors (below figure). With such data, Hikma can use data analytics to improve sales forecasts and advise on changing marketing strategies to improve sales growth. Also, Hikma can benefit in reducing the cost of expired goods which is currently costing Hikma a lot and thus to improve its profitability. Such idea would require new processes to be in place in terms of demand management, monitoring market trends and data analytics. In order for Hikma to implement this inventory strategy, Hikma can develop or acquire inventory and ordering management solution that can optimize the inventories which can be offered to pharmacies and distributors at no cost which will benefit them in optimizing their working capital and improve their sales forecasts in addition to increase in revenue generation. On the operations side, currently there are variances in the manufacturing processes between Hikma plants and this is leading to loss of opportunities in sharing efficiencies and synergy. Also, the key performance indicators are not standardized which can lead to inconsistency in decision making. In this regard, Hikma can utilize its current ERP system (SAP) to standardize the processes and the key performance indicators. Cross functional teams can be formed to lead this project and all information and data can be stored in the ERP. Its also important to create a process of continuous improvement through incentivizing people for ideas they come up with. A database of these ideas can also be shared between sites through the SharePoint platform leading to sharing experiences and opening up communication channels between plants in different countries to collaborate on solving problems and continuous improvement. Knowledge visibility is the key to let people improve on the current proces ses and attain higher levels of business improvements. Marketing and Sales As Hikma needs to be closer to understanding the complete healthcare process in addition to payers and patients expectations, the marketing and sales departments and through adopting the knowledge management strategy can consider the following suggestions: Management of Microbial Program: Its estimated that 30%-50% of the antibiotics drugs prescribed in the region are either inappropriate or unnecessary and this is affecting Hikma brand as patients would not be thinking highly of Hikma if its prescribed drugs are not effective. In developing this program, Hikma can advise healthcare providers with the best use of drugs based on their microbial resistance in each country. This of course would require collaboration between Hikma and other healthcare providers, laboratories and insurance providers to gather data into one place to detect the microbial resistance trends in which information and knowledge can be built in Hikma to be utilized in forecasting the effective drugs along with marketing and communicating them in the right and ethical manner. Physicians knowledge and learning: Hikma needs to be closer to physicians and provide them with up to date clinical data and information along with drug benefits and continuous updated information about drug interactions and adverse effects to support their treatment options. Also, Hikma can benefit from the physicians feedback on the use and efficacy of these drugs through simple mobile application which can be updated by the marketing and medical affairs departments. This would bring competitive advantages to Hikma by leveraging on the intangible differentiation to gain the emotional branding. Moreover, and through the feedback received, the sales and marketing department can learn clinical insights into the best methodologies to use the drugs in the most efficient way. Patients feedback: Hikma needs to start capturing patients feedback on its products and nowadays Hikma can easily utilize the mobile application technology in this regard. Patients feedback is important to be shared with marketing and medical affairs departments which can be considered in continuous product development and in the communication with the physicians. Also, Hikma can utilize the inventory data to help the patient find the needed drug in a near-by pharmacy as per the patient location. Hikma can collaborate with Electronic health records organizations which are responsible on digitizing all patients treatments, medications and tests information and data. Such information and data especially the ones related to Hikma products can be provided to Hikma in an anonymous trending which can be used in understanding patients preferences in each area and in each healthcare provider. This would help the marketing people in developing and optimizing their communication messages to the right providers in addition to better anticipating the needed future products. Regulatory Information Management System This information system is a repository for all information and documentation necessary for products, patents, quality and regulatory checks and approvals. This information need to be shared with all regulatory departments in the region and continuously updated reflecting the new regulations in each country. Such information can help to compare the different regulations between different countries which will help in lobbying the needed regulatory changes to streamline the product registration approval cycle. Human Capital Information System (People Connect) Hikma can utilize this system to connect people (employees) together. People would be able to search for any necessary information about their peers in other departments and countries and find the best way to communicate with them to share the tacit knowledge and experiences. Learning Management System Hikma can also utilize this system to publish learning and experiences necessary to increase people effectiveness and productivity. Such learning can be targeted and linked with the performance management system to make sure the right people get the right learning experiences at the right time. How Hikma can gain competitive advantages through the Knowledge Management Strategy? In this section, we explain how key stakeholders will benefit from this strategy which would reflect back to Hikma as competitive advantages that will be differentiated with: Patients Through being patient centric company, patients would be recognizing Hikma as their partner in their healthcare journey. Through Hikmas collaboration with physicians and healthcare providers, Hikma is able to provide the necessary knowledge, information and data to support optimal outcome-based process leading to effective treatment with lowest possible cost. This strategy would reflect intangible differentiation on Hikma in terms of stakeholders perception, connections, attachment and emotional branding which should help in increasing the demand and sales for Hikma products. Medical Doctors/Physicians Through providing the physicians with up to date clinical information, Physicians will have more updated knowledge towards achieving the outcome-based objectives. As patients are becoming more informed on the treatments, a good part of physicians time can be dedicated into the social element; guiding and supporting the patients and their families into the different treatment options. New clinical knowledge will be important for them for proper guidance and treatment options. Hikma can also enable data trends and reporting for the physicians with up to date patient trends and insights that can help the physician provide the best alternative treatments for the patients. Physicians would consider Hikma as their best partner for care towards their evolving patients. Medical Insurance Companies Hikmas power of information and data through its new knowledge management strategy, which is focused on sharing knowledge to optimize health outcomes, will attract medical insurance companies to collaborate with Hikma for the key purpose of reducing their costs. Medical insurance companies data can be analyzed in correlation with Hikma data to come up with better guidance to physicians towards cost effective treatments of their patients. Medical insurance companies, and due to the transformation, will be in much better position to link medical insurance guidelines with the outcome-based model to achieve increased cost effectiveness along with increased patient safety and optimal treatment options. Regulators By having information and data shared and analyzed on different regulators, Hikma can build a collaborative relationship with all regulatory bodies towards achieving knowledge and information integration strategies with the aim to improve patient treatments and health outcomes. Industry implications This new strategy has all the characteristics to differentiate Hikma from other players in the market. As the knowledge and collaboration model grows, the speed of collaboration and the intensity of knowledge sharing will increase between different health care entities and thanks to this model the lines among pharma, payers and providers will keep blurring which requires more mature and strategic collaborative mindset to keep up the trend towards more collaboration and knowledge sharing leading to more efficient health care treatments and more profits for all parties. Knowledge Management Strategy Implementation Plan In order to implement this strategy, there are several frameworks (e.g. exhibit 2 and exhibit 3) that we can adapt from. The suggested new role (CKO) would be the one to lead this strategic approach and the suggested key phases are: Awareness Creation Define and agree with top functional heads (CFO, CIO, CHROetc) on value proposition for improving the flow of knowledge within Hikma for the purpose of differentiating Hikma from its industry rivals Align knowledge strategy with department heads goals to gain the commitment from heads of departments and top management The aligned Knowledge Management strategy need to be communicated with the Board of Directors to gain commitment and momentum for implementation Strategy Development Determine current resources and capabilities to enable knowledge flow. This step is important to understand the gaps and set up the priorities Establish Knowledge Management governance steering committee consisting of top management functional leaders Develop Business case, plans and budgets required to formally implement the Knowledge Management strategy including objectives, performance measures, resources needed and expected benefits and costs along with actions and timelines with key milestones defined for necessary approvals Strategy Implementation Form design and operations multi-functional and diversified teams to design, develop and deploy the new processes. Design knowledge process flow; how knowledge will be created, captured, reviewed, shared and used Integrate IT into the implementation: Technology, applications and systems are key parts of the knowledge management strategy and IT need to be part of the design and operations teams to achieve successful implementation Develop Performance measures along with implementation roadmap: Initial measures can focus on participation and employee satisfaction. With time, these measures shift to assessments of impacts on costs, quality, delivery, safety, cycle times and other important business indicators Implement the plans and acquire feedback from different stakeholders along the process Evolvement and Sustainability Continuous evolvement of knowledge management capabilities: regular evaluation of knowledge management capabilities and the level of adoption and taking action accordingly Continuous alignment with business priorities and goals Sustain awareness and engagement through regular training, communication, sharing stories of success in addition to rewards and recognitions Linking between knowledge management participation with career advancement