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Pharmaceutical market dynamics and strategic planning: a system dynamics perspective
Author(s) -
Paich Mark,
Peck Corey,
Valant Jason
Publication year - 2011
Publication title -
system dynamics review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.491
H-Index - 57
eISSN - 1099-1727
pISSN - 0883-7066
DOI - 10.1002/sdr.458
Subject(s) - system dynamics , perspective (graphical) , dynamics (music) , product (mathematics) , forcing (mathematics) , business , strategic planning , pharmaceutical industry , information flow , marketing , process management , risk analysis (engineering) , management science , industrial organization , computer science , economics , medicine , linguistics , philosophy , geometry , mathematics , climatology , artificial intelligence , pharmacology , geology , physics , acoustics
Competitive pressures are forcing pharmaceutical companies to develop even more effective product‐based strategic plans, which have traditionally been derived from unarticulated mental models about the individual diseases and the role of various decision‐makers within them. The industry is blessed with a wealth of patient‐ and physician‐level data, but often this information is not leveraged to its full extent. System dynamics provides an operational framework for understanding and analyzing how the interaction of patient flow dynamics, physician prescribing/product adoption behavior, and the evaluation of therapy options drive marketplace behavior. By evaluating the response of such an integrated model to possible marketing initiatives, pharmaceutical firms can develop and ultimately execute more cost‐effective strategic plans for their products. Copyright © 2011 System Dynamics Society.