Competitive intelligence in healthcare: 4 key benefits
As the healthcare industry reorients itself in response to COVID-19, competitive intelligence healthcare needs has become more important than ever. Keeping a close watch on competition strategies is crucial to protecting your organization from being blindsided. Whether you are responsible for GTM strategies, product development, or optimizing healthcare portfolios, continuous and comprehensive competitive intelligence healthcare demands is a key factor for success.
Here’s how competitive intelligence can support key functions in healthcare organizations.
1. Market access
Success in any new market requires a deep understanding of the competitive landscape – the competitors that exist, their services/procedures, reimbursement rates, and marketing strategies. This competitive intelligence healthcare demands offers strategic input for effective go-to-market decisions.
For effective market access decisions, healthcare companies cannot rely on secondary information alone. Primary research, which includes conferring with KOLs to get a cohesive picture of the market and competitive environment is vital to formulating well-rounded market access strategies
2. Research and development
Continued advancements in medical technology and healthcare delivery, combined with pressures from payers and regulatory authorities are pushing healthcare companies to adopt evidence-based approaches to their R&D decision-making.
A competitive analysis of patents and clinical trials, as well as market information, including competitors’ market footprint, performance, and capabilities, can support better R&D decisions. While conducting such an analysis, benchmarking competitors based on company performance, the strength of their product portfolios and partnerships with health exchanges will offer valuable input for optimizing your own product portfolios and IP.
Through continuous access to the relevant competitive intelligence healthcare companies require, R&D and strategic management teams can understand:
- Gaps and unmet needs in the market
- Competitor R&D focus areas
- Potential market changes
- Disease epidemiology and disease sub-populations targeted in clinical development
3. Improving supply chain efficiencies
Competitive insights into the changing trends in the healthcare supply marketplace can influence strategies to lower supply chain costs, optimize contractor arrangements, and enhance risk management.
For example, cardiac rhythm implant prices are declining by more than mid-single digits annually due to increasing hospital cost-cutting, physician-hospital alignment, and fiscal austerity measures. Competitive intelligence can offer such insight to inform relevant supply chain decisions.
Similarly, understanding supply chain shortages affecting your competitors can reveal opportunities for your business to prepare, adapt or adjust accordingly.
Keen insights offered by CI are always helpful for businesses in understanding the changes that can influence strategies, tactics, and techniques to improve supply chain efficiencies.
4. Informing investment and M&A decisions
Recently, there has been an increased focus on strategic partnerships across the healthcare ecosystem. Research shows that post the pandemic, 31% of CFOs plan to acquire physician practices, 30% want to join a clinically integrated network, 28% expect to merge with another organization, 24% plan to enter into a joint venture, 20% may need to sell to another organization, and 17% expect to acquire another organization.
Continual insights into investment trends and activities in the healthcare marketplace, in addition to a closer inspection of competitor strategies, are crucial for identifying opportunities for such partnerships. Competitive intelligence based on the analysis of patents can reveal a competitor’s technological strengths and strategy. A strong patent portfolio is a must to compete in the global marketplace. Such patent-based competitive intelligence can be used in recognizing partners for cross-licensing and collaboration.
A merger or an acquisition in the pharma industry can take up to a few years to complete. Due diligence before M&As, partnerships, or license deals is extremely important for pharma companies to mitigate potential issues such as disagreements regarding company ideologies. CI can offer helpful information, including determining synergies between organizations in research and development (R&D), or knowing the combined operating measures or associated risks, to avoid any potential ‘bad fits’.
In the face of rising uncertainty and technological disruption, Netscribes empowers companies in the Lifesciences industry to stay agile through healthcare market and competitive intelligence. We provide the competitive intelligence healthcare organizations need with a complete and clear market view, making their product development, sales, and marketing decisions a lot easier. Contact us to know more.
