Introduction

Analysis of CRM in the pharmaceutical industry, giving an understanding to the market, technology and strategy.

Scope

Falling margins in Pharma increasing ROI through CRM Formulating an effective CRM strategy CRM Spending in the Pharmaceutical Industry, 2006-2012 The increasing importance of CRM in the pharma industry

Highlights

CRM is increasing in importance in pharmaceuticals as the industry seeks new technologies to help it increase its profit margins.

Reasons to Purchase

Gain a insight into market drivers and inhibitors within CRM in the Pharma Industry. View the market size of CRM in Pharmaceuticals from 2006-2012 for Europe, North America and Japan. Understand how the technological developments are going to affect your go-to-market strategies.

Overview 1
Catalyst 1
Summary 1
Executive Summary 2
Introduction 2
Falling margins in Pharma - increasing ROI through CRM (Market Focus) 2
Formulating an effective CRM strategy (Strategy Focus) 2
The increasing importance of CRM in the pharma industry (Technology Focus) 2
Future Spending of CRM Technologies, North America and Japan, 2006-2012 (Databook) 3
Future Spending of CRM Technologies, Europe, 2006-2012 (Databook) 3
Table of Contents 4
Table of figures 5
Table of tables 5
Falling margins in Pharma - increasing ROI through CRM (Market Focus) 5
Summary 5
Pharmaceutical companies are facing a multi-layered assault on their profit margins 5
The pharmaceutical industry is facing pressures from all sides 6
The end of an era for blockbuster drugs 7
Lack of drugs coming to market is only compounding the pharmaceutical industry's problems 8
Power to the people: fuelling the need for CRM in Pharmaceuticals 9
The patient is becoming an important influencer within the decision making process 9
The sales force has become less effective fuelling the need for a new strategy 11
Lack of ROI to date is holding pharmaceutical companies back from investing in CRM 12
Pharmaceutical companies are yet to see a ROI on their older CRM investments 12
Pharmaceutical companies do not have sufficient reference points for other CRM implementations 13
While an enterprise wide solution CRM solution is sought it can slow down the rate of implementation 13
Despite these inhibitors Datamonitor projects strong growth 13
Each region is producing differing challenges for the pharmaceutical industry 14
The US has the most consumer driven drugs market 15
Japan and Italy have cost constraints set by their governments on drug pricing 15
Pharmacoeconomics are becoming increasingly important in the UK 16
ACTIONS 17
Vendors need to use their references to help sell CRM solutions 17
The changing customer means vendors need to evolve their solutions 17
Formulating an effective CRM strategy (Strategy Focus) 18
Summary 18
Pharma companies need to increase drugs' profitability during their profit window 18
Sales need to be more effective in a short period of time 18
Getting the message of the new drug across is essential 19
A genericized trademark is the 'holy grail' for pharmaceutical companies 20
Viagra - a success story of branding 21
CRM and unified communications can help to make a reduced sales force more effective 21
Unified communications will help to increase sales 21
An effective communication strategy is based around the sharing of information 22
Knowledge of the physician is crucial to making the most of the time spent with them 22
Having a flexible sales force can allow market changes to be cushioned and demands shifted 23
Pharma needs to come up with an effective long term sales strategy and be less conservative 23
CRM solutions should be part of creating a coordinated marketing and sales approach 24
Coordination means communication from all departments 25
At the heart of this approach must be sales and marketing working in tandem 26
Pharma companies need CRM solutions that manage both the patient and physician 26
Reaching the patient is continuing to increase in importance 26
Providing the patient with sufficient advice and information is crucial as they become key influencers 27
As pharmacogenomics becomes more prevalent pharma companies need an appropriate strategy 27
ACTIONS 28
Vendors need to provide CRM solutions that can target different customers 28
Coordinated CRM solutions are essential to provide pharma with increased profit margins 28
The increasing importance of CRM in the pharma industry (Technology Focus) 29
Summary 29
Creating a unified enterprise wide solution for the industry is crucial 29
Large CRM companies are likely to dominate 29
Systems Integrators will continue to increase in importance a implementations become more complex 29
Unified enterprise wide solutions are crucial to provide an improved ROI 30
As M&A activity takes place vendors need to ensure that CRM systems can be integrated 30
A clear front runner for the future of CRM in pharmaceutical companies is yet to emerge 30
Analytic CRM is going to increase in importance within the industry 32
Analytical CRM can help pharma companies to comply with regulations 32
Mobile solutions will enable unified communications for the industry 33
SFA still is, and will remain so, the most important aspect of CRM 34
Ease of use is crucial to ensure optimum use of mobile solutions 34
Training programs that can be completed remotely and easily 35
SFA applications need to meet the needs of the sales force to ensure they effectively use solutions 35
As the sales force is highly mobile solutions' functionality should reflect this 35
The increase in mobile solutions will present opportunities for different vendors 35
Multiple vendors being involved will mean partnerships continue to increase in importance 35
Solutions should be able to adapt to the specific needs of the pharmaceutical industry 36
The complexity of the influencers within pharmaceuticals creates challenges for CRM solutions 36
There are a number of complex characteristics for the pharma industry 36
The complexities of the pharma industry requires sophisticated CSA and MA 37
ACTIONS 37
An understanding of the complex nature of the pharma industry is crucial 37
Unified solutions are crucial to help tie in the disparate parts of pharma companies 37
Vendors should market themselves on their ability to provide mobile solutions 37
Future Spending of CRM Technologies, North America and Japan, 2006-2012 (Databook) 38
Introduction 38
Software and Services Market Size in USA, 2006-2012 38
Software and Services Market Size in Canada, 2006-2012 39
Software and Services Market Size in Japan, 2006-2012 40
Future Spending of CRM Technologies, Europe, 2006-2012 (Databook) 41
Introduction 41
Software and Services Market Size in France, 2006-2012 41
Software and Services Market Size in Germany, 2006-2012 42
Software and Services Market Size in Italy, 2006-2012 43
Software and Services Market Size in Rest of EMEA, 2006-2012 44
Software and Services Market Size in Switzerland, 2006-2012 45
Software and Services Market Size in United Kingdom, 2006-2012 46
APPENDIX 47
Definitions 47
Methodology 47
Further reading 47
Ask the analyst 48
Datamonitor consulting 48
Disclaimer 48
List of Tables
Table 1: How likely are the following factors to affect or impact your prescribing decisions? 23
Table 2: Software and Services Market Size for CRM in Pharmaceuticals in the USA, 2006-2012 38
Table 3: Software and Services Market Size for CRM in Pharmaceuticals in Canada, 2006-2012 39
Table 4: Software and Services Market Size for CRM in Pharmaceuticals in Japan, 2006-2012 40
Table 5: Software and Services Market Size for CRM in Pharmaceuticals in France, 2006-2012 41
Table 6: Software and Services Market Size for CRM in Pharmaceuticals in Germany, 2006-2012 42
Table 7: Software and Services Market Size for CRM in Pharmaceuticals in Italy, 2006-2012 43
Table 8: Software and Services Market Size for CRM in Pharmaceuticals in the Rest of EMEA, 2006-2012 44
Table 9: Software and Services Market Size for CRM in Pharmaceuticals in Switzerland, 2006-2012 45
Table 10: Software and Services Market Size for CRM in Pharmaceuticals in the United Kingdom, 2006-2012 46
List of Figures
Figure 1: The pharmaceutical industry is facing pressures pricing from all sides 7
Figure 2: NMEs per year vs. Global R&D spend ($billion) 1980 - 2003 8
Figure 3: How CRM can maximize sales force effectiveness 9
Figure 4: Process by which patients become more influential in drug prescription 10
Figure 5: How likely are the following factors to affect or impact your prescribing decisions? 12
Figure 6: CRM in pharmaceuticals market for Europe, North America and Japan, 2006-2012 14
Figure 7: Percentage CRM market share in pharmaceuticals, 2007 15
Figure 8: CRM in pharmaceutical market size in Italy and Japan, 2006-2012 16
Figure 9: Increasing the profit from a drug during its lifecycle 19
Figure 10: Total CRM spending from 2006-2012 20
Figure 11: Market size for CRM by application from 2006-2012 in North America, Japan and EMEA 24
Figure 12: Diagram illustrating different strategies of pharmaceutical companies 25
Figure 13: Marketing Automation market size from 2006-2012 27
Figure 14: Market size for software and services in CRM for EMEA, North America and Japan, 2006-2012 30
Figure 15: Comparison of niche and leading CRM vendors in the pharmaceutical industry 31
Figure 16: US Customer Analytics Market, 2006-2012 32
Figure 17: Analytical CRM sitting alongside the data can view the whole sales process 33
Figure 18: Global market share for CRM by type of application, 2007 34
Figure 19: Software and Services Market Size for CRM in Pharmaceuticals in the USA, 2006-2012 38
Figure 20: Software and Services Market Size for CRM in Pharmaceuticals in Canada, 2006-2012 39
Figure 21: Software and Services Market Size for CRM in Pharmaceuticals in Japan, 2006-2012 40
Figure 22: Software and Services Market Size for CRM in Pharmaceuticals in France, 2006-2012 41
Figure 23: Software and Services Market Size for CRM in Pharmaceuticals in Germany, 2006-2012 42
Figure 24: Software and Services Market Size for CRM in Pharmaceuticals in Italy, 2006-2012 43
Figure 25: Software and Services Market Size for CRM in Pharmaceuticals in the Rest of EMEA, 2006-2012 44
Figure 26: Software and Services Market Size for CRM in Pharmaceuticals in Switzerland, 2006-2012 45
Figure 27: Software and Services Market Size for CRM in Pharmaceuticals in the United Kingdom, 2006-2012 46