Introduction

This report offers insight into PLM in the pharmaceutical industry, bringing together all briefs published for this theme. The report covers market trends, technological components which Datamonitor believes are key for this sector, and four critical vendor attributes used by pharmaceutical companies to select a PLM vendor.

Scope

From Idea to Market: Product Lifecycle Management in the Pharmaceutical Industry (Market Focus) Optimizing PLM Technology for the Pharmaceutical Industry (Technology Focus) Managing Process Complexity in the Pharmaceutical Industry with PLM (Strategy Focus) Pharmaceutical PLM Forecast in North America, Europe and APAC 2006-2012 (Databooks)

Highlights

Pharmaceutical product lifecycle management technology is gaining momentum PLM addresses key business challenges facing the pharmaceutical industry PLM is successful when treated as an enterprise, strategic initiative

Reasons to Purchase

Gain valuable industry insight into the market drivers and inhibitors for product lifecycle management solutions in the life sciences market Align your go-to-market strategy with both the business and technology needs of the pharmaceutical industry Quantify the current and projected market opportunity for PLM in the pharmaceutical industry in North America, Western Europe, China and Japan.

Overview 1
Catalyst 1
Summary 1
Methodology 1
Executive Summary 2
Introduction 2
From Idea to Market: Product Lifecycle Management in the Pharmaceutical Industry (Market Focus) 2
Optimizing PLM Technology for the Pharmaceutical Industry (Technology Focus) 2
Managing Process Complexity with PLM (Strategy Focus) 2
Pharmaceutical Product Lifecycle Management Forecast in North America 2006-2012 (Databook) 3
Pharmaceutical Product Lifecycle Management Forecast in Western Europe 2006-2012 3
Pharmaceutical Product Lifecycle Management Forecast in APAC 2006-2012 3
Table of Contents 4
Table of figures 5
Table of tables 6
From Idea to Market: Product Lifecycle Management in the Pharmaceutical Industry (market focus) 6
Summary 6
Product lifecycle management will transform the drug development lifecycle process 6
The nature of a drug's lifecycle necessitates a PLM strategy 7
PLM addresses key business challenges facing the pharmaceutical industry 7
A greater focus on decreasing time to market is driving adoption of PLM 7
Harmonizing product portfolios from M&A activities sets the stage for PLM 8
Reducing the challenges and cost associated with regulatory compliance 9
The nature of the pharmaceutical drug pipeline is changing 9
Complexity of pharmaceutical products is increasing 9
The end of the Blockbuster era signifies more candidates in the pipeline 10
Successful PLM for the pharmaceutical industry prevails over several constraining factors 11
Repurposing software from other industries makes the pharmaceutical industry suspicious 11
The traditional autonomous-business-unit mentality inhibits adoption of PLM 12
PLM does not mean an antidote to new product development 13
ACTIONS 13
Articulate strategic business benefits of your PLM investment decisions 13
Take a holistic approach to PLM 13
Understand how PLM changes the lifecycle processes of a pharmaceutical product 14
Optimizing PLM Technology for the Pharmaceutical Industry (technology Focus) 14
Summary 14
PLM technology should align to the pharmaceutical industry's business challenges 14
Digitizing research information earlier in the product lifecycle is an essential first step towards PLM 15
The electronic notebook offers an entry point to a connected and global product management system 15
PLM links disparate technologies offering a single point of truth for each drug in development 16
Alleviating risks of non-compliance is a key application for PLM in the pharmaceutical industry 16
Six technology features reflect how PLM technology is aligned to the industry 17
Scalability places SOA at the center of a PLM solution 17
A quality-by-design feature facilitates compliance 18
PLM must integrate with ERP solutions 18
A web-enabled PLM solution matches the global nature of most pharmaceutical organizations 18
A easy-to-configure user interface drives adoption amongst both scientists and engineers 18
The industry is most comfortable with non-hosted solutions 19
PLM technology adoption differs across geographies 19
Japan and China will experience the fastest growth in PLM 21
ACTIONS 22
Offer technology features that speak to the customer's business goals 22
Make PLM a core part of the customer's every day life 22
Consider geography as a criterion for prioritizing your target market 22
Managing Process Complexity with PLM (Strategy Focus) 23
Summary 23
Pharmaceutical product lifecycle management technology is gaining momentum 23
A variety of challenges is fueling PLM adoption in the pharmaceutical industry 23
Cultural and technological barriers have inhibited wider adoption of PLM in the pharmaceutical market 24
PLM in the pharmaceutical industry is poised for strong growth and vendors have an important role to play 24
PLM in the life sciences should map to business processes, managing process complexity 24
Pharmaceutical companies produce what they discover, not what they invent 24
The pharmaceutical sector looks for PLM that can manage process complexity 26
PLM is successful when handled as an enterprise, strategic initiative 27
As part of a company's product development business strategy, PLM is discussed among executives 28
Collaboration, through enterprise PLM, breaks down individual silos 29
Reducing drug development costs is a major strategic goal for implementing enterprise PLM 29
The benefits of an enterprise-wide PLM solution do come with risks 30
A phased implementation approach is most likely for pharmaceutical organizations 31
Partnering with a technology vendor may be a necessary PLM strategy 32
A long-term commitment to the project indicates a willingness to share risk 33
Innovative and flexible vendors will attract most business 33
Implementation efficiency is an important vendor characteristic 34
Track record of success reflects on a vendor's reliability and trustworthiness 34
ACTIONS 35
PLM must support executive-level decisions 35
Have a long-term vision but establish short-term milestones 35
Look beyond point solutions for a strategic approach to PLM 35
Pharmaceutical Product Lifecycle Management Forecast in North America 2006-2012 (Databook) 36
Summary 36
iNTRODUCTION 36
Definitions 36
Total PLM spending in the pharmaceutical industry in North America 37
Total pharmaceutical PLM spending in North America by technology segment 38
US PLM spending in the pharmaceutical industry 2006-2012 39
Canada PLM spending in the pharmaceutical industry 2006-2012 40
Total North America PLM spending in the pharmaceutical industry by sector 41
Global PLM spending by geographic region 42
Pharmaceutical Product Lifecycle Management Forecast in Western Europe 2006-2012 (Databook) 43
Summary 43
iNTRODUCTION 44
Definitions 44
Total PLM spending in the pharmaceutical industry in Western Europe 45
Total pharmaceutical PLM spending in Western Europe by technology segment 46
Total pharmaceutical PLM spending in Western Europe by sector 47
France PLM spending in the pharmaceutical industry 2006-2012 48
Germany PLM spending in the pharmaceutical industry 2006-2012 49
UK PLM spending in the pharmaceutical industry 2006-2012 50
Italy PLM spending in the pharmaceutical industry 2006-2012 51
Spain PLM spending in the pharmaceutical industry 2006-2012 52
Switzerland PLM spending in the pharmaceutical industry 2006-2012 53
Global PLM spending by geographic region 54
Pharmaceutical Product Lifecycle Management Forecast in APAC 2006-2012 (Databook) 55
Summary 55
iNTRODUCTION 55
Definitions 55
Global PLM spending by geographic region 57
Total PLM spending in the pharmaceutical industry in APAC 58
China PLM spending in the pharmaceutical industry 2006-2012 59
Japan PLM spending in the pharmaceutical industry 2006-2012 60
Total APAC PLM spending in the pharmaceutical industry by sector 61
APPENDIX 62
Definitions 62
Abbreviations 62
Methodology 63
Further reading 63
Ask the analyst 63
Datamonitor consulting 63
Disclaimer 64
List of Tables
Table 1: Total PLM spending in the pharmaceutical industry in North America 37
Table 2: Total pharmaceutical PLM spending in North America by technology segment 38
Table 3: US PLM spending in the pharmaceutical industry 2006-2012 39
Table 4: Canada PLM spending in the pharmaceutical industry 2006-2012 40
Table 5: Total North America PLM spending in the pharmaceutical industry by sector 41
Table 6: Global PLM spending by geographic region 42
Table 7: Total PLM spending in the pharmaceutical industry in Western Europe 45
Table 8: Total pharmaceutical PLM spending in Western Europe by technology segment 46
Table 9: Total pharmaceutical PLM spending in Western Europe by sector 2006-2012 47
Table 10: France PLM spending in the pharmaceutical industry 2006-2012 48
Table 11: Germany PLM spending in the pharmaceutical industry 2006-2012 49
Table 12: UK PLM spending in the pharmaceutical industry 2006-2012 50
Table 13: Italy PLM spending in the pharmaceutical industry 2006-2012 51
Table 14: Spain PLM spending in the pharmaceutical industry 2006-2012 52
Table 15: Switzerland PLM spending in the pharmaceutical industry 2006-2012 53
Table 16: Global PLM spending by geographic region 54
Table 17: Global PLM spending by geographic region 57
Table 18: Total PLM spending in the pharmaceutical industry in APAC 58
Table 19: China spending in the pharmaceutical industry 2006-2012 59
Table 20: Japan PLM spending in the pharmaceutical industry 2006-2012 60
Table 21: Total North America PLM spending in the pharmaceutical industry by sector 61
List of Figures
Figure 1: The pharmaceutical product lifecycle is highly regulated, more complex and longer than other industries 8
Figure 2: Drug discovery licensing dependence of the top 10 pharmaceutical companies 10
Figure 3: PLM spending in the pharmaceutical market is set for strong growth over the next five years 11
Figure 4: PLM in relation to ERP, CRM and BI 16
Figure 5: PLM software must evolve to configurable packages to better meet the pharmaceutical industry's needs 18
Figure 6: Global PLM spending by geographic region 20
Figure 7: In the pharmaceutical industry, complexity in the process defines the product 26
Figure 8: Making a value proposition for PLM as a strategy in the pharmaceutical product lifecycle 28
Figure 9: As the Big Pharma begins to face its information management needs, enterprise PLM investments will grow 31
Figure 10: Examples of ``must-have`` and ``nice-to-have`` criteria pharmaceutical companies use for selecting a PLM vendor as potential partner 33
Figure 11: Total PLM spending in the pharmaceutical industry in North America 37
Figure 12: Total pharmaceutical PLM spending in North America by technology segment 38
Figure 13: US PLM spending in the pharmaceutical industry 2006-2012 39
Figure 14: Canada PLM spending in the pharmaceutical industry 2006-2012 40
Figure 15: Total North America PLM spending in the pharmaceutical industry by sector 41
Figure 16: Global PLM spending by geographic region 42
Figure 17: Total PLM spending in the pharmaceutical industry in Western Europe 45
Figure 18: Total pharmaceutical PLM spending in Western Europe by technology segment 46
Figure 19: Total pharmaceutical PLM spending in Western Europe by sector 2006-2012 47
Figure 20: France PLM spending in the pharmaceutical industry 2006-2012 48
Figure 21: Germany PLM spending in the pharmaceutical industry 2006-2012 49
Figure 22: UK PLM spending in the pharmaceutical industry 2006-2012 50
Figure 23: Italy PLM spending in the pharmaceutical industry 2006-2012 51
Figure 24: Spain PLM spending in the pharmaceutical industry 2006-2012 52
Figure 25: Switzerland PLM spending in the pharmaceutical industry 2006-2012 53
Figure 26: Global PLM spending by geographic region 54
Figure 27: Global PLM spending by geographic region 57
Figure 28: Total PLM spending in the pharmaceutical industry in APAC 58
Figure 29: China spending in the pharmaceutical industry 2006-2012 59
Figure 30: Japan PLM spending in the pharmaceutical industry 2006-2012 60
Figure 31: Total APAC PLM spending in the pharmaceutical industry by sector 61