Find out a methodology to map the current commercial situation and expected evolution by taking into consideration key stake holders within the process.
Alternative action evaluation (experimental): securing resources and management focus required to capitalize on the learning and developing in our current models in the face of future needs
Unveiling the Soundscape Music for Psychedelic Experiences
The Commercial Model Challenge: securing resources and management focus
1. Commercial Model Challenge (CMC)
a Novartis experience
Giovanny León
Immunology and Infectious Diseases & Market Access Head Venezuela
4th Annual SFE LatAm, Miami 21,22 October 2010
2. What is your mother tongue?
1) Español
2) English
2 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010
2) English
3) Português
3. Do you think commercial strategies of the last
decade are losing effectiveness?
1) Agree
2) Partially Agree
3 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010
2) Partially Agree
3) Disagree
4. Do you think the sales model is often overly
focused on the primary-care physician?
1) Agree
2) Partially Agree
4 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010
2) Partially Agree
3) Disagree
5. Does pharmaceutical companies need a closer
approach to the customer and focused on the disease?
1) Agree
2) Partially Agree
5 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010
2) Partially Agree
3) Disagree
6. The Commercial Model Challenge need
6 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010
7. The Commercial Model Challenge need
Our ability to stay in
tune with a fast-
changing environment
is key to sustainable
success.
We should
7 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010
We should
continuously anticipate
market evolution and
develop New
Commercial Models
that address emerging
customer needs and
enable superior patient
outcomes.
8. One-year horizon
2-5 year outlook, informed by evolving
market dynamics and customer needs
Physician-focused Stakeholders BEYOND physicians
Brand-centric Patient-centric, customer-focused
CMC is designed to promote a mindset shift
From… … To
8 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010
Low risk activities
with short-term
results
Portfolio of initiatives with:
• Varying degrees of innovation and risk
• Significant impact mid- to long-term
Individuals and silos Broad input encouraged from customers,
colleagues, other divisions and CPOs
Physician-focused
Single-channel
Stakeholders BEYOND physicians
Multi-channel
9. CMC desired outcome is a significant evolution of your
commercial model with high mid-/long-term business impact
Optimization of
existing models
Optimization of
existing models
New Commercial
Models
Optimizes serving of existing
customers’ known needs
NEWNESS
Focused on new customer(s) or
unmet customer needs
Focused only on singular levers
& elements of the commercial
model
SCOPE
Comprehensive new go-to-market
approach combining all customer-
facing functions
9 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010
model facing functions
Relatively minor
organizational
changes required
IMPLICATIONS
Major adjustments to
organization: structure, roles,
capability building, systems
In most cases only short-term
business impact
BUSINESS
IMPACT
Significant mid- to long-term
business impact
Acceptable only if
significant business
impact mid-term
Significant evolution &
mid-/long-term impact
as target outcome
10. CMC: A structured approach to support senior
leaders develop New Commercial Models
Senior Leader Sponsorship
New
Commercial
Model
Diagnose
Market &
Set
Aspiration
Design
New
Comme
rcial
Model &
Develop
Roadm
ap
Plan
for
Roll-
Out
of
NCM
(incl.
ex-
perime
nts)
Roll-
Out &
Sustai
n NCM
1 2 3 4
Detailed, step-by-step processRegion/CPO
Champions
10 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010
Support from
online toolkit
Inspiration from
online Library
Validation with
customers and patients
11. Patient Centricity & Customer Focus
is the anchor for the CMC
Patients and customers at the
heart of projecting a stretch
market scenario for the future
The challenge lies in evolving
the commercial model to
address those emerging &
11 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010
address those emerging &
unmet customer needs
You are encouraged to validate
your ideas with patients and
customers
12. CMC Process and Timing at a Glance
3
4
12 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010
Diagnose Market &
Set Aspiration
Design New
Commercial Model
and Develop
Roadmap
Plan for Roll-Out
including
Experiments
1
2
Roll-out and
Sustain New
Commercial Model
13. The CMC is supported by an online toolkit
An online toolkit will help
you plan and track your
progress in the CMC
13 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010
You can access it at
www.cmc.novartis.intra
The online toolkit is self-
explanatory due to
comprehensive, step-by-
step instructions
14. The CMC online toolkit consists of three elements
Learn about the CMC CMC Library Do the CMC
Homepage
14 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010
All Novartis employees
with access to the
intranet can get
information on the
CMC process
Learn about the CMC CMC Library
All Novartis employees
with access to the
intranet can browse the
CMC Library to get
inspiration on New
Commercial Models
Do the CMC
CPO Champion &
Team Leaders capture
the results of their work
and track their
progress
Work team members
can view the results
captured by their Team
Leader
15. The online CMC Library provide inspiration “in
context” and useful tools
The online toolkit includes the CMC Library
The Library provides you with “content in
context” related to your market situation
The CMC Library contents include:
• Examples of New Commercial Models,
15 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010
• Examples of New Commercial Models,
elements, and experiments
• Best of BEST
• Non-pharma case examples
• Additional external content (articles, tools)
• Organization Reference Guide
The CMC Library will evolve over time
based on your own experiments and input
16. The CMC Library Sparks New Ideas
Patients
How can we
enable
superior patient
outcomes?
Personalized compliance
card to access discounts,
information and value-
added services
CVM disease offering for
VMS
Card
16 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010
Payers
Govern-
ments/
Regulators
How can we help
payers to better
manage diseases?
How can we most
effectively manage
our relationship with
decision-makers?
CVM disease offering for
payers (incl. capitated
pricing for patient
population)
Integrated stakeholder
action plans incl. tool to
map & profile key
deciders
UK
pilot
Italy
pilot
17. Going through the CMC in a structured four-phase
approach that can be tailored to the country needs
New
Commercial
Model
Diagnose
Market &
Set Aspiration
Design
New
Commerci
al Model
& Develop
Roadmap
Plan for
Roll-Out
of New
Commerci
al Model
(incl.
experiments
on key
elements)
Roll-Out &
Sustain
New
Commerci
al Model
1 2 3 4
17 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010
The process is organized and leads you through the CMC
in a structured way
You can fit-for-purpose individual steps to best meet your
local organization’s situation and needs
There are no “right” answers; your answers will fit your
market environment, your patients, and your customers
Senior Leader Sponsorship
elements)
18. Each of the four Phases of the CMC process is
organized in several sub-steps
Set aspiration for New
Commercial Model 2-5
years from now
Develop stretch
market, customer &
patient scenario,
2-5 years from now
Local PEC
Specify priority target
customers/ patients
and their needs
Prioritize and endorse
key elements of New
Commercial Model
Brainstorm key
elements of New
Commercial Model
Develop roadmap to
New Commercial
Model and scope
experiments
1-3 senior work teams* Local PEC
Diagnose Market &
Set Aspiration
Design New Commercial
Model & Develop Roadmap
1
2
Specify priority target
customers/ patients
and their needs
Prioritize and endorse
key elements of New
Commercial Model
Brainstorm key
elements of New
Commercial Model
18 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010
*E.g. specialty vs. mass market
experiments
Create detailed roll-out
plan
Align on gaps,
deployment decisions
& case for change
Establish
organizational
readiness
Local PEC Deployment champion(s) & line leaders
Model & Develop Roadmap
Plan for Roll-Out of New
Commercial Model
(incl. experiments on key
elements)
Roll-Out & Sustain New
Commercial Model
Local PECDeployment champion(s) & line leaders
3
4
Monitor results and
resolve issues
Go live and support
key performers
Ensure
sustainability
19. Set aspiration for
New Commercial
Model 2-5 years
from now
Develop stretch
market, customer &
patient scenario,
2-5 years from now
Specify priority
target customers/
patients and their
needs
Prioritize and
endorse key
elements of New
Commercial Model
Brainstorm key
elements of New
Commercial Model
Develop roadmap to
New Commercial
Model and scope
experiments
Local PEC 1-3 senior work teams* Local PEC
How will your
market evolve,
including
Given your
market and
customer
Specify your
target
customers/
Design key
elements of New
Commercial
Diagnose Market
& Set Aspiration
Design New Commercial Model
& Develop Roadmap
Brainstorm key
elements of New
Commercial
CMC processCMC: Recommended sequence of 3
workshops over 4-8 weeks to complete Phases 1&2
1 2
Develop 2-5
year roadmap
towards New
19 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010
Market
Scenario
NCM
Aspiration
&
Workshop 2A
Target customers & needs
Brainstorm NCM elements
Workshop 1 Workshop 2B
Endorse NCM elements
Develop roadmap
including
competition and
regulatory?
Which customer
groups will be
most important?
What are the key
patient trends?
How will your
product portfolio
evolve (high-
level)?
Develop stretch
scenario 2-5
years from now
customer
scenario, what
New
Commercial
Model are you
aspiring to 2-5
years from now?
What key
changes will be
required
between your
current and the
target
commercial
model?
customers/
patients in 2-5
years in detail
(for each work
team)
Specify the
anticipated most
pressing needs
of your target
customers/
patients (for
each work team)
and how those
needs will evolve
in the coming 2-
5 years
Commercial
Model based on
prioritized ideas
of new
commercial
approaches from
senior work-
teams
Commercial
Model that can
address the most
pressing future
needs of your
target customers/
patients
towards New
Commercial
Model outlining
- Commercial
model
milestones to
achieve
- Experiments
to pilot NCM
elements
- Organizational
impact /
capabilities to
build
20. 20 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010
21. How many of these new Social Media tools do you
use?
1) None
2) One or Two
21 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010
2) One or Two
3) Three or four
22. 22 | Commercial Model Challenge (CMC) | Giovanny León | 4th Annual SFE LatAm, Miami 21th October 2010