Implementation of a
Global Pricing System
A journey to agile pricing analytics and revenue management: How organizations can become faster, more precise, and more responsive to revenue leakage. Situation: A major Life Science and Pharmaceutical company ...
A major Life Science and Pharmaceutical company wanted to elevate pricing decisions, available pricing, access information, and seize opportunities faster.
The company envisioned to enhance the strategic decision-making capability in pricing and market access to achieve further commercial success for inline and pipeline products, optimize price governance, and enable local entrepreneurship. The executives decided to implement a best in class pricing and reimbursement management platform to achieve this ambitious goal. With this platform, the executives expected to increase the company’s global pricing capabilities significantly.
To achieve this, they reached out to Aurynion for support in planning, managing, and rolling-out this innovative global pricing platform. Some of the benefits expected with the implementation of this new platform were the following:
- Supporting successful launches
- Integrating commercial targets into decision-making
- Empowering local country entrepreneurship through reliable pricing and reimbursement resources
- Strengthening the company’s external competitive focusCreating a single “point of truth” to all information needed for strategic decision making.
Our Approach:For this extensive project, we were responsible for interacting with internal stakeholders from various global business units, the external system vendor, internal IT teams, developing a feasible overall project plan, and ensuring the alignment of all workstreams for the project’s success.As a starting point, we applied a structured interview methodology to assess key activities within several business functions to identify business requirements and assess its current pricing system and governance process. Adopting an agile project methodology, we developed the necessary business requirements and used them for prioritizing rules during the implementation.While the company decided on an off-the-shelf system, we were still required to enable adjustments and customizations based on business needs and data requirements. We established a robust data integration strategy, went through a detailed data cleanup exercise, established a robust testing approach. We built and designed the training deck and materials for the roll-out in more than 140 countries and 250 users and implemented a change management and adoption strategy. The roll-out was delivered in several waves based on priority and business impact.
Impact:Overall, the project was a great success. The new global pricing and reimbursement platform involved more than 40 products, 140 countries, 250 users, enabling the organization to drive strategic pricing decisions and deliver commercial success for inline and pipeline products. Plus, we delivered more than 1.5 months ahead of schedule and under budget.The new platform allowed decentralized pricing decisions in more than 80% of the cases leading to significant time savings and speeded up the pricing decision making across regions. The system optimized the pricing approval process and generated data storage and pricing evaluation documents in a single platform (with no more long email chains).With faster price decision-making, affiliates could act as local entrepreneurs and implement early price negotiations with local authorities. A pricing analytics system integrated with other internal and external data also delivered:
The company achieved superior pricing and revenue management by further enabling the client’s internal resources and capabilities.
- Consolidated pricing and reimbursement summaries for the whole portfolio
- Integrated competitor prices in the market and future product launches
- Real-time pricing and reimbursement monitoring dashboard and reports
- Detailed pricing data flows and global pricing governance
- Revenue optimization through real-time IRP portfolio simulations
- Correlations for international referencing pricing by indication across markets
- Evaluation of potential price change impact on global revenue
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- Archive old pricing data for future historical analysis
- Enable more strategic pricing decisions, allowing faster decisions and enhancing local entrepreneurship
- Improve governance and enable better pricing analysis results
- Access to price and reimbursement for reference countries to mitigate price erosion risks and prepare for the future launch products
- Strengthen competitor price visibility
- Allow more transparent access to pricing and reimbursement decisions to key stakeholders for a better planning process