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  • White Paper - The Call for Collaboration in the Consumer Packaged Goods Industry | Archstone Consulting
    level account leads that have a vertically and cross functionally aligned team around them This type of arrangements facilitates joint decision making and problem solving between the manufacturer and retailer Professional relationships are important We are often surprised to find manufacturers who effectively have 85 of their volume with 15 retailer trade accounts but do not have dedicated cross functional teams empowered to support those accounts Innovation was highlighted as vital to successful collaboration This can be used as a means to differentiate oneself against Wal Mart s low price strategy as well as provide additional value to consumers Manufacturers that develop leading innovations for retailers are well positioned to be a leading collaborative partner Traditionally manufacturers have been poor at this Retailers that are potential strategic partners don t want the same idea to be shopped around to their competitors Manufacturers whose account teams can bring in well thought out innovative and non generic insights and ideas to grow the business can both expect to collaborate more effectively with the retailer as well as differentiate themselves vs their competition Retailers may even be willing to sign NDA s to facilitate this Innovation does not start and end with new products Innovative ideas might also occur around promotion packaging category growth merchandising channel development supply chain strategy cost management or any other areas that will be of benefit to profitably growing the business with the retailer Communication is of prime importance Breakdowns in this are common as commitments from senior management are misaligned with execution at the division and local levels for both manufacturers and retailers Gaps between the goals of upper and middle level management impede a consistent approach to strategic thinking We consistently heard about flavor of the moment direction given by senior management That is to say if focus on margin is the flavor of the moment vs inventory or merchandising or promotions that is where middle management will focus their energy This approach pulls middle management away from the overall business objectives in favor of making the quarterly numbers This is an important gap given the stated focus of several retailers around centralized planning and management Manufacturers have become frustrated by the lack of coordination between central and local planning or purchasing groups As various levels of management continue to work at cross purposes resources become misaligned creating the perception that upper level management is not committing the resources needed to execute on the strategy Another communication gap is between operations and merchandising All too often when trade promotions are implemented or ad campaigns are run the product is unavailable to the consumer due to an out of stock In fast selling or promoted products a recent study found that retail out of stocks regularly exceed 10 and can cost a grocery retailer about 4 of total sales It is estimated that over the course of one year out of stocks puts 6 billion in retail sales into play Clearly not communicating has significant impact on

    Original URL path: http://www.archstoneconsulting.com/industries/consumer-products/white-papers/call-for-collaboration.jsp (2016-04-24)
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  • Case Study - Active Online Listening Global Strategy for Global European-Based Pharmaceutical Company | Archstone Consulting
    challenges facing Archstone included creating a standard to cover a wide variety of online marketing needs enabling adoption of the protocol across countries and regions and facilitating a large global group of clients including marketing medical legal and others The Solution Archstone facilitated a collaborative working approach to provide input and feedback across functions and geographies Medical Marketing Regulatory Legal and Pharma co vigilance were engaged across world wide markets

    Original URL path: http://www.archstoneconsulting.com/industries/life-sciences/case-studies/active-online-listening.jsp (2016-04-24)
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  • Case Study - Study of the Economic Impact of the Biopharmaceutical Sector on the US Economy | Archstone Consulting
    the US economy at the national state and MSA levels The Client Trade group representing the pharmaceutical research and biotechnology companies in the United States In 2009 members invested more than 40B in discovering and developing new medicines The Challenge Understanding the impact at various government levels e g federal state metropolitan for a range of policy areas including Employment and Human Capital Direct and Indirect Economic Output R D Public Private Partnership Delivering the information in an attractive easy to read report for the organization s members The Solution In joint effort with an academic advisor from the Wharton School Archstone examined the economic activity generated and supported by biotech and pharmaceutical research companies with respect to employment output and contribution to GDP The team derived impact for the research intensive sector at the federal state and metropolitan area levels using highly credible approaches to address a range of policy questions In addition to Employment and Human Capital Direct and Indirect Economic Output R D Public Private Partnerships Archstone reviewed a wide array of sector contributions to determine the unique benefits associated with biopharmaceuticals The Results Report on the economic impact of the biopharmaceutical sector in the U S

    Original URL path: http://www.archstoneconsulting.com/industries/life-sciences/case-studies/economic-impact-biopharmaceutical-sector.jsp (2016-04-24)
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  • White Paper - Health Care Reform and the Pharmaceutical Industry: A Global Discussion | Archstone Consulting
    faster than the rate of inflation but do not always consider that pharmaceuticals represent only 11 of total US health care costs Pharmaceuticals support cost savings in other parts of the health care system that constitute a greater share of health care spend by reducing the need for surgery or lengthy hospitalizations for many conditions including childhood infections diabetes heart disease and mental illness These benefits result from the continuing development of new drugs addressing both chronic diseases such as diabetes cancer and depression and acute conditions such as infection flu heart attacks and strokes Cancer is a profound example of the benefits produced by investing in research and innovation The passage of the National Cancer Act of 1971 produced a critical wave of scientific research funding that lead to the launch of breakthrough cancer drug Taxol in 1987 The cost implications of drug therapy taking the place or delaying some costly surgeries are easy to see in a single cancer survivor What is harder to quantify is the quality of life benefits such as increased years of a productive and healthy life and a reduction of disease complications We believe an ideal reform program which includes the biopharma industry should therefore balance cost control important for increasing access to health care and innovation important for improving the quality of health care While innovation and cost control are not mutually exclusive they require thoughtful consideration and a spirit of compromise In the health care reform efforts the dual considerations are obscured by a tendency to separate support for these objectives In the US an increase in funding for basic research supported by the National Institutes of Health was a part of the Economic Stimulus package while separate Health Care Reform legislation focused on improved drug costs for Medicare Part D recipients In Europe the Institute for Medical Innovation IMI operates to spur biopharma industry investment as individual governments seek more aggressive drug contracting and pricing terms As a result the critical balance between innovation and cost control is yet to be determined at the policy level and more importantly within the boardrooms of pharmaceutical companies See Figure 2 for a global sampling of these initiatives Implications for the Industry Like the overall health care system that it supplies major biopharma organizations will be challenged to find the right mix of investment in innovation while continuing to emphasize cost control Complicated by the flurry of global activity the emerging industry environment will demand improvements in three 3 main areas 1 Knowledge Management 2 Resource Management and 3 Information Management Each component is discussed separately below but it is important to note that they may overlap in execution Knowledge Management Knowledge Management refers to the ability of an organization to quickly acquire and integrate new knowledge into its business and organizational strategy When executed well a formal knowledge infrastructure supports organizational learning Key competitive and consumer events are gathered and woven into agile development plans Alliance agreements and acquisitions start with a

    Original URL path: http://www.archstoneconsulting.com/industries/life-sciences/white-papers/health-care-reform-pharmaceutical-industry.jsp (2016-04-24)
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  • White Paper - Launching New Products in the Post-Blockbuster Era | Archstone Consulting
    role in leading the launch such as having responsibility for the day to day management of the launch In these situations the PMO will be actively driving the progress reporting setting certain corrective actions and maintaining accountability for components of the launch management framework As rule of thumb the more complex the launch which can be defined as the deviation of the product and market strategy from the company s experience such as entering a new therapeutic area managing a sequence of multiple indications or entering a new geography and or the less rigorous the organization is on communicating and resolving cross functional issues the greater the role of the PMO Figure 1 Defining The Scope Of The PMO Provides additional guidance on the key factors to consider when defining the scope of the PMO s role PMO Role Description Of Role Factors Increasing Importance Of Role Organization Governance Establishing the working style of the team defining roles responsibilities and stewarding the decision making process Low level of involvement of senior management in launch Communication Change Acting as the primary point of contact between the product launch team and senior management Setting and managing the rules of engagement for team members and stakeholders Identifying and executing action plans to gain the necessary level of stakeholder buy in Organizations with a strong propensity towards functional siloing Organizations that have experienced difficulties in the past with cross functional teams and projects Planning Monitoring Setting standard planning processes and tools followed by consistent monitoring practices Challenging functional leads Complexity of product launch defined as the deviation from previous product and or market strategy experience Extent of external third party involvement in the launch process Issue Risk Management Timely identification monitoring escalation and resolution of project issues and risks Organizations with a strong propensity towards functional siloing Corporate culture that does not promote efficient issue escalation typically found in command and control organizational cultures Quality Assurance Setting a quality assurance through senior management defined performance metrics deliverable audits and tollgate checkpoints Functional team members with limited experience in product launch scenarios and or engaging senior management team Knowledge Management Capturing lessons learned best practices in a standard manner enabling team members and the organization to further develop their capabilities Company with a pipeline consisting of similar products and or expected go to market strategies Limited tools templates and or resources with experience in managing the end to end product launch process It is very difficult to have a PMO that is accountable for the launch since the PMO is highly process as opposed to content focused The accountability for the launch is often retained by the product director It is the level of support provided to the product director that will vary Filling The Resource Gap The PMO lead and support staff can be resourced internally from an external party or a combination of both There are benefits and concerns with each approach The decision typically rests on whether the resources with the necessary

    Original URL path: http://www.archstoneconsulting.com/industries/life-sciences/white-papers/launching-new-products-post-blockbuster-era.jsp (2016-04-24)
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  • White Paper - Launching New Products in the Post-Blockbuster Era - Three Practices from the Industry's Best | Archstone Consulting
    plans Doing so mobilizes the organization behind the launch plan and creates the support and commitment necessary for success In particular areas that require special attention are the evaluation of regulatory constraints and timings market knowledge reimbursement and formulary requirements product positioning and investment linked to expected sales With pharmaceutical companies increasingly looking outside the molecular based product categories launch plans first constructed to address traditional business models may already be obsolete Launch teams will need to develop a deep understanding of the impact the new business models can have on their product launch including reimbursement distribution and supply strategies and proactively develop alternative approaches to bring these products to the market While J J s reimbursement strategy for drug coated stents was in itself an innovated approach that reaped many benefits for the brand team equally impressive was the launch team s foresight in ensuring the activities leading to the reimbursement scheme approval coincided with the overall launch plan A solid launch plan will include the following All activities required for understanding the market preparing the product and mobilizing the organization An assessment of key assumptions and existing business models using such techniques as scenario planning and war gaming to identify high risk areas Contingency plans for high risk areas that could derail the launch plan Involvement of launch team members throughout the planning and execution of the above Challenging Existing Business Models For years IBM was focused on keeping it hardware specifications secret never publishing them and servicing its equipment with an internal force This business model worked well in their traditional mainframes business Initially the business wanted to apply the same business model for its new PC line However IBM decided to use retail channels to sell the equipment for them However retailers make a larger portion of their income from maintenance than from selling the equipment themselves thus requiring access to hardware specifications During the rollout of the first IBM PC the product launch team worked hard to change this strategy in the organization IBM PC was the first product IBM sold not using its own internal sales force and its success was a direct result of the successful distribution of the PC through the retail channels with the subsequent change of the business model Best Practice 2 Deploy a Governance Model That Works A successful launch requires seamless coordination across geographic and functional boundaries including medical pricing and reimbursement managed care regulatory legal finance supply chain sales and marketing Typically this will involve coordinating both internal and external partners as more and more launch teams look to leverage 3rd party service providers Getting this to work in an efficient manner requires a strong governance model Slow decision making lack of accountability and constant fire fighting are all signs of a weak or missing governance structure While it may be difficult to place a value on a proper governance structure a robust launch governance model will drive quicker decisions and clear accountability Furthermore it will be

    Original URL path: http://www.archstoneconsulting.com/industries/life-sciences/white-papers/launching-new-products-three-practices.jsp (2016-04-24)
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  • Case Study - An Industrial Equipment Manufacturer Extends its Supply Chain Overseas, Reducing Costs Significantly | Archstone Consulting
    costs The Client A Leading Telecom and Utilities Maintenance Equipment Manufacturer The Challenge Reduce costs and improve operational management of supply chain of this leading manufacturer of aerial devices digger derricks and specialty equipment for the electric utility telecom and tree care industries The Solution Archstone Consulting sourced or renegotiated contracts for 21 categories of spend In addition the team developed improved materials management process restructured procurement organization building internal

    Original URL path: http://www.archstoneconsulting.com/industries/manufacturing/case-studies/manufacturer-extends-supply-chain-overseas.jsp (2016-04-24)
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  • White Paper - Active Carbon Management - A More Systematic Approach to Energy Consumption and Cost Management | Archstone Consulting
    can mean the difference between a painful adjustment period in which they may lag behind the competition or the possibility of leading the transition to a new business model and competitive advantage Globalization versus Localization While Globalization is a rough term at best to describe the connectedness of the world economy it is clear that this connectedness is driven by the availability and rapid movement of both information and goods The free movement of goods worldwide has given rise to the trend of moving manufacturing from high labor cost locations to lower cost alternatives also known as off shoring The relatively low cost of oil has until recently been described as the lubricant of quick inexpensive transportation links across the world Companies are already beginning to reevaluate prior decisions to locate manufacturing sites or source suppliers One recent example is the decision by Tesla Motors the new electric vehicle designer to shrink their supply lines from a Thailand to Britain to USA movement of a major battery pack subassembly to a single move from one location in California to another California site Obviously these decisions are driven by a number of factors but many products particularly those that require less investment in infrastructure will show a much higher degree of mobility in their location of manufacture Likewise there are a number of other business decisions that will need to be rethought based on energy cost increases and their associated impact on the business enterprise A New Perspective Active Carbon Management In order to deal with this harsh reality businesses must carefully and thoughtfully reexamine their relationship with energy For all businesses energy inputs are a necessity that s simply a fact But energy inputs must also be carefully accounted for and inefficiencies in manufacturing or operational practices must then be identified and removed from systems and processes We call this evaluation and process of energy use and efficiency Active Carbon Management Through the implementation of both capital and operational changes it is estimated that industry can achieve energy savings of approximately 20 or about 19B in 2004 dollars It is estimated that a full 30 of these savings can in turn be realized simply through behavioral and procedural modifications There are a series of pertinent questions that need to be asked of all participants in a company s value chain suppliers customers internal groups etc For example how will I source materials and how will I deal with price increases caused by energy pricing How can I partner with suppliers to mitigate oil driven cost impacts How can I work with suppliers for mutual advantage and gain How can I get employees to understand and embrace these new requirements for business operations How will consumers respond to pass through price increases If a price must increase how can I protect demand for my products and services As an industry can organizations work together to leverage common interests yet still remain competitive These are just a few questions that must be

    Original URL path: http://www.archstoneconsulting.com/industries/manufacturing/white-papers/active-carbon-management.jsp (2016-04-24)
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