E-Folder - Business

Growth – real growth – depends on innovation. Oh, sure, a big acquisition can inflate a company's top line, but it's hardly fair to call this growth; agglomeratio

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

n would be a better word. Deal making of the sort that was used to jack up revenues at companies such as Tyco, Vivendi, HealthSouth, and DaimlerChrysler is unlike

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

ly to produce above-average growth for more than a few years at a time. Study a company that has delivered strong revenue growth over a decade or more, and you're

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

likely to find evidence of world-class innovation. Maybe the company invented a new industry structure, like Microsoft did when it "de-verticalized" the computer

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

industry. Maybe the firm pioneered a bold new business model, like Costco did with its upscale warehouse stores. Or maybe it hatched a bountiful brood of sleek

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

new products, like Nokia did. Put simply, innovation is the fuel for growth. When a company runs out of innovation, it runs out of growth.

And there's the rub.

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

We live in an age of austerity. Every line of every budget in every company is under perpetual scrutiny. Innovation budgets are no exception. Increasingly, R&D

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

units are required to negotiate their budgets directly with key operating divisions, in hopes of tying their research spending to real-world customer problems. C

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

ompanies like IBM are sending their R&D professionals into the field to interact directly with customers. Organizations are subjecting nascent development program

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

s to ever more rigorous screening with the goal of focusing their resources on a few big-win projects. Additionally, companies are training their R&D staffs to th

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

ink in business terms so the researchers will be better able to decide whether an idea is worth pursuing in the first place.

These efficiency measures are commend

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

able, but they don't go far enough. A company can't outgrow its competitors unless it can out-innovate them. And in these austere times, that is only going to ha

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

ppen if a company is capable of substantially raising the yield on its innovation investments. Achieving such a step function improvement requires more than just

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

a bit of R&D belt tightening. It demands a fundamentally new way of thinking about innovation productivity, as well as a set of strategies that have the power to

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

deliver a whole lot more bang for every innovation buck.

To dramatically improve innovation yields, companies must believe that innovation outputs (new processes,

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

products, services, and business models) are less than perfectly correlated with innovation inputs (cash and talent). This assumption is more unorthodox than it

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

first appears. When we recently asked more than 500 senior and midlevel managers in large U.S. companies to identify the biggest barriers to innovation in their r

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

espective organizations, the number one response was "short-term focus" followed by "lack of time and resources." In this view, innovation is highly dependent on

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

investment, and it is senior management's presumed obsession with near-term earnings that most limits a company's innovation productivity. We think this view is w

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

rong.

"Funding Growth in an Age of Austerity", Gary Hamel and Gary Getz, Harvard Business Review, July-August 2004. Visit CJPS-Enterprises for more information.

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.e-folder.org.ua/article/44398/e-folder-Business-Growth--Funding-Growth-In-An-Age-Of-Austerity.html">Business Growth - Funding Growth In An Age Of Austerity</a>

BB link (for phorums):
[url=http://www.e-folder.org.ua/article/44398/e-folder-Business-Growth--Funding-Growth-In-An-Age-Of-Austerity.html]Business Growth - Funding Growth In An Age Of Austerity[/url]

In the world of franchising it is imperative to have a cohesive marketing plan throughout all regions and all franchised outlets. Without a comprehensive and cohesive marketing plan, with each franchisee doing their own thing the overall message to the consumer can become so diluted that synergies which are of supreme benefit to franchise systems are lost.

Creating loyal customers is important in business, but creating new customers is essential. Focus on attaining new clients continually and your business will have breakthrough growth.

Reviewing a hotel contract during the meeting planning process can be time-consuming, confusing, and frustrating. As a meeting planning manager, you are seeking a fair agreement that accurately and comprehensively covers your meeting arrangements. Yet the contract you receive from the hotel may be one-sided in favor of the hotel, vague in many places, and missing essential language.

Tags

Links

E-Folder - Business Growth - Funding Growth In An Age Of Austerity

Related Articles: