War Games for Competitive Advantage - Pharma Competitive ...

War Games for Competitive AdvantagePharma CI USAParsippany, NJ Sept 12 th 2012Neil Rogersnrogers@lifesciencedynamics.com

AgendaDeveloping a differential advantageVital role of War GameDefinition of War GameQ&A2

AgendaDeveloping a differential advantageVital role of War GameDefinition of War GameQ&A3

Competition“If you don’t have competitive advantage, don’tcompete”- Jack Welsh CEO GECopyright Lifescience Dynamics Ltd. 20124Confidential

Developing competitive advantage essential at an early stageThe earlier this is done the betterCopyright Lifescience Dynamics Ltd. 20125Confidential

Competitive strategyThe essence of competitive strategy is to position the company or brand insuch a way as to take advantage of its unique strengths (capabilities,competencies) against its competitors’ weaknessesCreate competitive advantage• Key strategy decision is “Positioning” – where can we compete and what isour level of Competitive AdvantageCopyright Lifescience Dynamics Ltd. 20126Confidential

Successful Positioning improves competitivenessPositioningPositioning options are better formulated based on detailed understanding of market, patientneeds and competition.Copyright Lifescience Dynamics Ltd. 20127Confidential

A number of key commercial inputs across drug developmentCompetitive intelligence input into drug development processFuture trendsCompetitiveLandscapesScenarioPlanningScientificBreakthroughsStrategy workshopPipelinesKey trial centresOpinion leadersCompetitor trialprogramsCompetitor capabilityCompetitive advantageWar gameWar gamePromotion strategy &tactics-likelyCompetitor reactionsBlindspot analysisNewOpportunityAssessmentIntelligence gatheringCopyright Lifescience Dynamics Ltd. 20128Confidential

When to run a War GameWar Game is an essential component of the “positioning” process Rigorous test of yourdifferential advantage•Defining where youshould compete –potential patientsegments•Defining key attributes /benefits required Defines clear actions toachieve improvedcompetitiveness•Value definition•Specific clinicalendpoints•Key claims•Resource requirementsTwo key times to run a War GamePrior to Phase III design – to help definekey patient segmentPrior to launch – test key claims and marketingprogramme requiredBut whenever there is a change in the market dynamic or competitorsCopyright Lifescience Dynamics Ltd. 201211Confidential

“Positioning” key step in processKey marketing decisions across development processMarket segmentationPortfolio planningPh I / Ph II designStrategic positioningPh III Trial DesignFinalise positioningValue, PriceBrandingLaunchCopyright Lifescience Dynamics Ltd. 2012Intelligence gathering13Confidential

War game supports critical decisions on phase III designMarket segmentationPortfolio planningPh I / Ph II designStrategic positioningPh III Trial DesignFinalise positioningWar gameCI inputsValue, PriceBrandingLaunchIntelligence gatheringCopyright Lifescience Dynamics Ltd. 201214Confidential

Phase III clinical trial designRigorous test of possible strategic positioning and launch strategyDefines key patient segmentsDefines level of differential advantageWhat actions required to improveAdditional studies required and clear end pointsCopyright Lifescience Dynamics Ltd. 201215Confidential

War Game tests launch strategy and defines actionsMarket segmentationPortfolio planningPh I / Ph II designStrategic positioningPh III Trial DesignFinalise positioningWar gameCI inputsCopyright Lifescience Dynamics Ltd. 2012Intelligence gathering16Confidential

Testing Launch StrategyTesting key patient segmentFinalise PositioningTesting / Refining key claimsClarifying key messages by stakeholderUnderstanding resources requiredCopyright Lifescience Dynamics Ltd. 201217Confidential

Many other opportunities to run a War GameProduct development stageBroad Strategy Detail Strategy TacticalConceptPhase IIPhase IIIPrior to launchLifecycle strategyLocal tactical strategyLicensingCopyright Lifescience Dynamics Ltd. 201218Confidential

Rigorous analysis, action orientedWar Game War gameWar Game War GameBrings together all the key CI elements (bothclinical and marketing)MultifunctionalActs as catalyst for various connections/voicesAction orientedIntelligence gatheringCopyright Lifescience Dynamics Ltd. 201219Confidential

AgendaDeveloping differential advantageVital role of War GameDefinition of War GameQ&A20

Definition of a war game – action orientedA process, and a specific event, where teams within a company eachrepresent a key competitor, and “compete” against each other with aview to learning about your competitors, in order to:Anticipate their behaviour and plansDevelop a differential advantageCopyright Lifescience Dynamics Ltd. 201221Confidential

Essence of War Game is an iterative processProcessIntroduction and briefingDevelop plans - Round 1Refine plans - Round 2Differentiation and actionsCritique and suggest specific action planCopyright Lifescience Dynamics Ltd. 201222Confidential

3 or 4 team at maximum to gain the maximum advantage ofthe plenary feedback and action planningSimulation rounds---- Round 2---- ----- Round 1----Team 1Define SWOTWrite planTeam 1Refine planTeam 2Define SWOTWrite planPlenary group review of market plans - challengeFurther syndicate work to refine plansTeam 2Refine planIntroduction and briefingTeam 3Define SWOTWrite planTeam 3Refine planGroup review of specific brand plan and define actionsTeam 4Define SWOTWrite planTeam 4Refine planCross team learningCopyright Lifescience Dynamics Ltd. 201223Confidential

Example war game “Plan”Usually, simulate brand and market at launchWill differ depending on what stage being runCopyright Lifescience Dynamics Ltd. 201224Confidential

Workshop analysisCopyright Lifescience Dynamics Ltd. 201225Confidential

Pre event activitiesClarify objectives and exact format• Competitor teams• Analysis required / templatesSet date / agree attendees• Send out invitations / clarify objectives and rolesSelect venue and specific requirements• Number of teams / syndicate roomsDecide on intelligence required• Define briefing materials• Secondary (in house reports, multi client etc)• Commission primary if necessaryPrepare briefing materialSend out briefing material• 2 – 1 week before eventCopyright Lifescience Dynamics Ltd. 201226Confidential

War game timelineCommissionDefine materialsand CI requiredSecondary datasearchPrimary datasearchWar game event1 month 2 months 3 monthsChoose venue andplan eventBriefing materialspreparedBriefing materialssent outCopyright Lifescience Dynamics Ltd. 201227Confidential

Huge benefits of the War Game – improved strategy• Identifying the key strategic drivers• Testing the product strategy, and identifying necessary actions• Defines key trials and outcomes required for competitive advantage• Uncovering potential conflicts• Discovering holes in company assumptions• Define further CI• But real benefit comes through real insight into market opportunity -“light bulb” moment!• And improved differential advantage and strategyCopyright Lifescience Dynamics Ltd. 201228Confidential

However, there are some downsides……..!!But easily compensated by the overall benefitsCopyright Lifescience Dynamics Ltd. 201229Confidential

Many major companies using War Games to provide input tobrand strategiesCopyright Lifescience Dynamics Ltd. 201230Confidential

War game summaryCopyright Lifescience Dynamics Ltd. 201231Confidential

AgendaDeveloping differential advantageVital role of War GameDefinition of War GameQ&A32