85% of interviewed companies lack sufficient data, price quality, or price transparency information to be able to properly apply advanced analytics. Experts in the industry have recognized the potential applications of advanced analytics, but understanding the point at which, and how, to utilize these tools remains problematic. Christian Schuler and Benedikt Porten of Simon-Kucher & Partners offer their insight regarding making pricing decisions using advanced analytics. They note that price transparency as well as data quality remain essential for companies, but gaining a deep understanding of advanced analytics is also critical.
They remark “Approximately 95% of pharma executives believe that the relevance of analytics in the future will be undisputed, and that the upside potential generated by analyticsin terms of increase in RoS ranges from 3% to 10%. Nearly every company is investing in advanced analytics capabilities at varying intensity to keep up with the competition, but the success is so far unclear. Managers need to be patient, view advanced analytics as a long-term investment that may not pay off immediately or directly, and remind stakeholders that efficiency gains will be seen implicitly.” Learn more here.
(Schuler & Porten, PharmExec.com 2/23/21)