To date, and perhaps surprisingly, the idea of using data strategically remains somewhat
novel in some organizations. However, the reality of “big data” and “big data analytics” (which
is “the process of examining big data to uncover hidden patterns, unknown correlations, and
other useful information that can be used to make better decisions”) is quickly changing this
situation. Indeed, some suggest that, today, an organization wishing to be innovative will, at
a minimum, commit to quickly learning how to comprehensively use big data analytics (BDA)
across all customer channels (mobile, Web, e-mail and physical stores) as well as throughout its
supply chain.
This is the situation for large pharmaceutical companies (these firms are often called
“big pharma”) in that many are considering the possibility of developing a core competence
in terms of BDA. (We define and discuss core competencies in this chapter.) But why are
these firms evaluating
this possibility? There
are several reasons.
In addition to the vast
increases in the amounts
of data that must be
studied and interpreted
for competitive purposes,
“health care reform and
the changing landscape
of health care delivery”
systems throughout the
world are influencing
these firms to think about
developing BDA as a core
competence.
Many benefits can
accrue to big pharma
firms capable of forming
BDA as a core competence.
For example, having BDA as a core competence is expected to help a firm quickly identify trial
candidates and accelerate their recruitment, develop improved inclusion and exclusion criteria
to use in clinical trials, and uncover unintended uses and indications for products. In terms of
customer functionality, superior products can be provided at a faster pace as a foundation for
helping patients live better and healthy lives.
Big pharma firms could try to develop BDA as a core competence themselves or collaborate
with companies specializing in helping others do so. Currently, venture capitalists are funding
an increasing number of entrepreneurial start-ups that specialize in the data analytics field.
Regardless of the approach used, changes to an organization’s culture often are required if the
BDA process is to be appropriately supported. This is the case at Ford Motor Company where
the firm is using BDA to establish the view that it is a mobility company rather than an auto-
motive company. This perspective finds Ford using BDA and research on autonomous vehicles
and mobile technologies to support its work on a number of functionalities for customers
including, for example, being able to use their Ford product to “communicate with home
thermostats so a person’s heat might be automatically lowered as he or she drives away from
the house.”
As we discuss in this chapter, capabilities are the foundation for developing core competen-
cies. There are several capabilities big pharma companies could form and emphasize in order
for BDA to be a core competence. Supportive architecture, the proper mix of data scientists,
and “technology that integrates and manages new types and sources of data flexibly and
scalably while maintaining the highest standards of data governance, data quality, and data
security” are examples of capabilities that big pharma firms may seek to possess if they wish to
develop BDA as a core competence.
DATA ANALYTICS, LARGE PHARMACEUTICAL COMPANIES,
AND CORE COMPETENCIES: A BRAVE NEW WORLD© Creativa Images/Shutterstock.com