Objectives.4
Bristol-Myers Squibb5
Mission and Vision Statement..7
Business Strategy..7
Technology Management..9
Pharmaceutical Development9
Technology Strategy for Improvement11
Conclusion12
Recommendation13
References14
Technology Management at Bristol-Myers Squibb
Introduction
In the world of biopharmaceuticals corporations have to compete with global companies in providing the best medicine in order to help treat illness around the world. The healthcare sector around the world operates in a unique, complex social, ethical, and political environment in which the main priorities of equity are achieved through various means. Bristol-Myers Squibb (BMS) is a global biopharmaceutical company that discovers and delivers the most innovative medicine to help people around the world that are diagnosed with serious illnesses. In the market, Bristol-Myers Squibb faces numerous competition and places themselves in situations where they have serious risk to their financial stability. Many of the financial risks includes new drug development, R&D, competition from generic drug developers, changing technology, and expiring patents. Bristol-Myers Squibb is one of the few global companies that developed drugs that help with serious illnesses such as Type 2 Diabetes, HIV/AIDs, cardiovascular diseases, mental illnesses, Alzheimer’s, and several more.
Bristol-Myers Squibb leading drugs help with treatment for non-fatal and fatal strokes and heart attacks that give the company profits of over $6 billion a year. They are increasingly facing risks to patent expiration, and changes in clinical trials, government regulations, and technology pressure. Technological changes in the biopharmaceutical world have created much competition as, technology has enabled companies to develop new powerful drug chemistries that help R&D and marketing plans that help to reshape the pharmaceutical and biotechnology business strategies. Technology management provides organizations with the ability to manage their technological fundaments in order to develop a competitive advantage. The role of technology plays a vital role in corporations today, and technology forecasting provides identification of relevant technology used to innovate organizations.
Technology management in Bristol-Myers Squibb goes hand in hand with the pharmaceutical development that uses technologies to design, build, and scale the process of molecule synchronization in which assists research labs with the development of medicines used in mass production for patients. The technological advances in the biopharmaceutical industry play a vital role in the R&D process which helps with supplying the company with the resources for investigational drugs in clinical trials, safety studies, manufacturing, labeling, packaging, and distribution of supplies. Bristol-Myers Squibb places much importance on technology management where there is a growing dependence on research, focusing a regular framework, and increase in generic medicines that has forced the global company to resort to turning to technological competitive advantage. More importantly there has been great pressure placed on the pharma industry to deliver better dividends to shareholders, and turn bigger profits. With the most recent acquisitions and expansions from the R&D, there has been great pressure internally and externally for new development ins pharmaceuticals, as well as better structure in the departments, as well as better technology management for weighing the risks and uncertainties within the pharmaceutical market.
Objectives
Technology management is nothing new to Bristol-Myers Squibb, however it was just included in their information management and R&D for the process of pharmaceutical development. Essential technology management innovates pharmaceutical research and development projects in which Bristol-Myers Squibb critically depends on the company success. Bristol-Myers Squibb has only grown in the past years at a rate of .93 percent compared to the industry at 7.61 percent while they have improved significantly from the crisis in 2008, and have earned positive quarters, they have made financial decisions that have placed them at enormous financial risks. They have acquired companies that help them compete further in the pharmaceutical industry, with drugs that addressed some of the more serious diseases such as diabetes. However, the market proved to be contentious as they could not develop a drug that could compete. More money has been pulled into research and development in order to touch on the process of drug development to compete in the crowded market.
In discussing the project of technology management applied to Bristol-Myers Squibb, the objectives to be reached in this report are to discuss the development of the company. How technology management is essential in the pharmaceutical country, the extent in which technology management innovates research and development processes for pharmaceutical development, and how Bristol-Myers Squibb has succeeded in the last several years through the management of technology. The goals of technology management in Bristol-Myers Squibb is to actively compete in the drug markets were illnesses are currently being met by generic companies. With the development of the healthcare systems in the United States where the number one killer is the heart and cardiovascular diseases. The goals of the project for technology management are to develop a system within the R&D department to develop a generic department that can actively compete and use technological advancements to increase the cash flow and product developments, for patients and shareholders.
Bristol-Myers Squibb
Bristol-Myers Squibb is a multi-billion dollar company founded by Edward Robinson Squibb, who served in the Mexican War as a Navy doctor. From there he started his own branch for a pharmaceutical company in Brooklyn, New York in 1858. Squibb provided his own medicines for the Union Army during the Civil War, and developed the Squibb pannier, that was a wooden case that could hold all of his essential medicines that include chloroform and ether. William McLaren Bristol and John Ripley Myers invested $5,000 into the Clinton Pharmaceutical Company, and in 1887, it was incorporated, and Bristol and Myers served as the president and vice president. Over a century later Squibb merged with Bristol-Myers to create the world leader in health care industry and the world’s second largest pharmaceutical enterprise, Bristol-Myers Squibb (BMS). The innovative idea of Bristol-Myers Squibb was to develop innovative and capable products that at the time other pharmaceutical companies were not doing. The business model that BMS follows is a customer profit centric model where opportunity and innovation help to keep them the market leader. The company has positioned itself as the number one provider for global anti-cancer therapies, and the discovery and development of the first anti-cancer treatment, which is an essential class of ACE inhibitors, to be the first treatment for HIV/AIDS.
The Company has established several pharmaceutical research institutes throughout the world that includes Princeton, New Jersey. Bristol-Myers Squibb has had much success in FDA approvals for diseases such as HIV, acquisition and development of medicines to treat stroke, several forms of cancers, Type 2 Diabetes, and a host of others. After their first initial success in 1997 that saw $50 million on sales, the company invested much money into their R&D to develop leading medicines such as Plavis, Avapro, and Excedrin Migraine, the first migraine headache medication backed by the FDA. (BMS, 2013) Throughout the years in business, they have received numerous awards from several reputable companies in which significantly honors their commitment to providing drugs for HIV/AIDS at no cost. Bristol-Myers Squibb has established several facilities worldwide in United States, Italy, Mexico, Brazil, France, Ireland, England, Japan, and other countries. Bristol-Myers Squibb is a multi-billion dollar company that has been in business for over 100 years, and has grown to be a market leader in several industries for healthcare. The company is still growing and developing new, as they try to compete in several medicine markets to turn a higher profit for their shareholders, and the business. In the past decade, BMS has seen many external and internal issues that are evident in the management organization and outside competition from generic pharmaceutical companies.
Mission and Vision Statement
Bristol-Myers Squibb does not have an outline vision statement, the most appropriate vision statement that best fits is that continuous efforts of Bristol-Myers Squibb to continue to improve on developing high quality product lines of medicine and drugs, and fulfil the growing demand for the needs of medical illness that go unmet. The commitment primarily to become the global leader and benefit all stakeholders by continuing to improve their products. This vision statement is uniquely based on the company’s position in the market and their current business model. In the case of Bristol-Myers Squibb’s mission statement, they emphatically make clear, “To discover, develop and deliver innovative medicines that help patients prevail over serious diseases.” (BMS, 2013) In the place of the company’s vision statement they provide a lengthy commitment in which essentially address their commitment to the employees, patients, global community, customers, stakeholders, and shareholders. Based on the company’s three-tier system in which they place people in charge to oversee their ongoing commitment to environmental stability, economic, and social needs.
Business Strategy
The current business strategy for Bristol-Myers Squibb is to continually invest in the Research and Development that includes placing much focus on their biopharmaceutical research to provide a high-quality medicine to meet the unmet needs for serious diseases. The scientific research conducted by BMS provides clinical and economic benefits through the development of innovative medicines. The strategic plan involves making strategic acquisitions that seek to add to their diverse portfolio, and more importantly helps enter the market for other illness and disease medications. Apart of the strategic plan is to make conscientious business decisions in which are backed by the FDA for approval of the drugs used to treat several types of cancers. Focusing on cancers helps in profitability and influence, as breakthroughs in these types of medication will net the company billions in sales revenue and profits. Part of the strategic plan is going into markets that are necessarily untapped by developing innovative products, where they are capable of providing other companies and suppliers with the pharmaceutical products that other companies have not yet developed. The current CEO, Andreotti, sees that the biopharma behaviors drives the company to succeed and perform highly in the market, where rewards and results are used to recognized and celebrate the success of new talent. (BMS, 2013)
Bristol-Myers Squibb strategic-biopharma strategy is to combine the resources and the reach of a major pharmaceutical company with a spirit of agility and entrepreneurship of a successful biotech company. (BMS, 2013) According to Blessing White (2008) Bristol-Myers Squibb is transforming the corporation from the traditional framework to the next-generation company that is influenced by innovation and customer-centric. (Blessing White, 2008) Firmly the strategic plan of Bristol-Myers is to increase their market share, make continuous improvement, and high customer satisfaction. The focus shifted to satisfying shareholders and customers, as well as managing costs, delivery of sales growth, and increase of pipeline development. They feel they can achieve these goals through the development of new products, improvements to cost structure which are incorporated in high productivity, and quality employees.
Technology Management
Bristol-Myers Squibb has focused much resource on managing their biotechnology company. The importance of technology in the biopharma industry is nothing short of a necessity that is needed to have a competitive advantage. The pressures on the pharmaceutical markets are mostly due to the, “a trend driven by a number of factors, including the accelerating development of more-innovative and more expense agents; rising pharmaceutical prices; and other factors.” (Bozzette, D’Amato, Morton, Harris, Meili, Taylor, 2001, pg.2) Much focus in the biopharma world is the use of technology management in research and development. (R&D). Technology Management in BMS is utilized throughout their need to plan, design, optimize, and provide operation for competitive advantage. The use of technology for innovation management is critical in the company’s success to give resources to continue the technology life cycle of emerging, growth, mature, and aging. (Ink, 2004) Bristol-Myers Squibb manages their products and their technology in their pharmaceutical development (PD) organization designs, which scales and builds up the process of transforming ensured synthesized molecules for research labs to develop into medicines, mass produce for patients. (BMS, 2013) BMS uses their BioPharma Information Technology division in order to provide the business units with the commitment and goals of developing and delivering innovations in technology that make the business capable of delivering on their commitments to the customers.
Pharmaceutical Development
Pharmaceutical Development (PD) plays a vital role in the success of medicine production. The changes in technology, and the technological changes in the company have led to more emphasis placed on knowledge management, primarily on big data and analytics. As money is mitigated towards other units, R&D sees the biggest investment from the company, as it is a mirror of the most pharmaceutical companies where investment has been growing about 13 percent per year. (Sweeny, 2002, pg. 2) Management in pharmaceutical development permits the company to determine how to create active pharmaceutical ingredients, as well as a suitable dosage, purity, and if the drugs are safe and effective. PD supplies R&D with investigational drugs for clinical trials and safety studies, as well as other essential forms that give the company a competitive advantage. The use of their Global Manufacturing & Supply organization helps to develop ways to manufacture medicine for mass production. Just as other pharmaceuticals, “technological advances and development of new medicines are achieved on the basis of fundamental research carried out in universities and institutes of research, while virtually all end products and medicines are developed and produced by the pharmaceutical and related industries. (Atun, Sheridan, 2007, pg. 2.)
The threat to the generic markets has put BMS into a situation in relying on R&D and changes in the business units to develop a department focus on providing generic products, or finding new products that can be compete in the market. Bristol-Myers Squibb has spent billions in funds to go towards R&D in the process of waiting on the development and discovery of new medicines, as the cost rises each year. The factors of the aging population, and the increased demand for biopharmaceutical, decrease in the costs for modern technology, and rapid growth in the external environment. Threats to the loss of patent protection, valuation of stock, and the time consumed discovering new medicines has greatly affected the ways in which BMS uses technology management in order to stay a market leader. The management of pharmaceutical development technology places BMS at a competitive advantage in being able to use science, engineering, and innovation to help fulfil the company’s mission to develop solutions for promising results for patients.
Technology Strategy for Improvement
Technological innovations have helped pushed more innovative products down the company’s pipeline. They have had several acquisitions over the years which has helped to compete in different markets. According to BMS, “Our success as a BioPharma leader has been fueled by our pioneering approach to bolster our early- and mid-stage research and pipeline through a series of acquisitions, collaborations, alliances and agreements.” (BMS, 2013) The production process of their acquisitions has netted the company billions in revenues from the development of products such that target key medicines. Throughout their history, the company has developed over 13 key medicines used in cancer treatments, cardiovascular diseases, other serious diseases, and HIV/AIDS. The company has developed and discovered innovative medicines that address serious areas. Bristol-Myers Squibb research on product development focuses on six core therapeutic areas: immunoscience, cardiovascular, neuroscience, metabolics, oncology, and virology. (BMS, 2013) Their operations focus on Amylin Pharmaceuticals where, “Amylin continues to explore the potential of peptide science with a peptide hybrid (fusion of two different peptide hormones, within a single molecular entity with dual pharmacology) that is moving to clinical development for the potential treatment of diabetes.” (BMS, 2013) Their next operation is ZymoGenetics focuses on the advancement of products for autoimmune diseases and immune-oncology. These new directions used in technological advancements in product development helps with supply chain management and getting more products into the market.
The technological strategy for Bristol Myers is the focus on R&D technology projects reduce healthcare costs through improved effectiveness of generic drugs, new drugs, and reduce of wastage. Bristol-Myers Squibb has invested much into research and development to improve their production of new medicines. These environmental factors that have forced BMS to develop new business units to address generic development, increase competition, reduce costs to technology, and time consumption of new product development. The competitive advantage that BMS offers is their own brand of products, as well as acquisition and mergers that introduce the company to new markets, and the development of new drugs. BMS has management and control over their testing and development, but struggles with global competition in costs and generics. The biopharma industry is being inundated with larger firms that are vying for market shares that shave costs by flooding the market with cheaper drugs. In order to compete with the rest of the market, corporations are forming alliances that develop selective products to make pipelines and acquisitions more attractive. The appropriation of technology in the business strategy to focus on their research and development management projects.
Conclusion
Technology changes and management have helped with increasing product development, sales, revenues, and profits. This has pleased the shareholders and other stakeholders in the business. The results of applying technology management to Bristol-Myers Squibb are the improved quality of health care, from clinical outcomes, improved patient services that provide better support in disease management. Bristol-Myers Squibb has increased net sales to over $9 billion, 18 percent sales gain to $ 2 billion and $2 billion in international markets, and seen a net income of close to $700 million. The increased benefits of technology management of BMS is evident in their financial records with increased revenues for pharmaceutical companies that provide better levels of support, and service for the value of shareholders. More importantly the technological drives that have shifted BMS to R&D in pharmaceutical development technology has created approval for new products that has secured clinical data and revenue for the company.
Recommendations
The recommendations for Bristol-Myers Squibb are to continue to place focus on research and development as technology management helps to increase product development, revenues, drives down costs, and places more emphasis on the company’s mission and commitment statement to provide all stakeholders with integrity, value, and products that meet the primary needs of serious illnesses. The subjections to this report are that Bristol-Myers Squibb technology management places emphasis on generic production. Since they are still behind the market in providing lower costs for their products. This recommendation can help Bristol-Myers Squibb to remain the market leader, and perform better in all areas of the pharmaceutical market.
References
Atun, Rifat, Sheridan, Desmond. (2007) Innovation in Healthcare: The Engine of Technological Advances. International Journal of Innovation Management. Vol.11. No.2. pg. 5-12. Retrieved from http://apsredes.org/site2012/wp-content/uploads/2012/08/Innovation-in-health.pdf
Blessing White. (2008). Bristol-Myers Squibb Receives Blessing White Leadership & Culture Award. Blessing White. Retrieved from http://www.blessingwhite.com/content/pressreleases/BlessingWhite_award_article_genericfinal.pdf
Booton, Jennifer. (2013). Cancer, Diabetes Drugs Fuel Bristol-Myers Squibb Profits. Fox Business. Retrieved from http://www.foxbusiness.com/industries/2013/10/23/cancer-diabetes-drugs-fuel-bristol-myers-squibb-profits/
Bozzette, Samuel, D’Amato, Rebecca, Morton, Sally, Harris, Katherine, Meili, Robin, Taylor, Roger. (2001). Pharmaceutical Technolgy Assessment for Managed Care. Current Practice and Suggestions for Improvement. Rand. Retrieved from http://www.rand.org/content/dam/rand/pubs/monograph_reports/2005/MR1206.pdf
Bristol-Myers Squibb. (2013). Our Company. BMS. Retrieved from http://www.bms.com/ourcompany/Pages/home.aspx
Organizational Life Cycle. (2004). INC. Retrieved from http://www.inc.com/encyclopedia/organizational-life-cycle.html
Sweeny, Kim. (2002). Technology Trends in Drug Discovery and Development: Implications for the Development of the Pharmaceutical Industry in Australia. Pharmaceutical Industry Project Equity, Sustainability and Industry Development Working Paper Series. Retrieved from http://www.cfses.com/documents/pharma/03-Technology_Trends.PDF
