188 sCenarIos desIgn Scenario D: Reinventing Pharma VP CR CH CS KP KA KR R$ C$ CR CH KA KR CS The landscape of the pharmaceutical industry has completely changed. Pharmacogenomic research has fulfi lled its promise and is now a core part of the indus- try. Personalized drugs tailored to individual genetic profi les account for a large portion of industry revenues. All this has increased the importance of prevention—and is partially replacing treatment, thanks to substantially improved diagnostic tools and a better understanding of the links between diseases and individual genetic profi les. These two trends—the rise of personalized drugs and the increasing importance of prevention—have completely transformed the traditional pharmaceutical manufacturing business model. The twin trends have had a dramatic impact on pharma’s Key Resources and Activities. They’ve transformed the way drug makers approach customers and provoked substantial changes in how revenue is generated. The new pharma landscape has taken a heavy toll on incumbents. A number were unable to adapt quickly enough and disappeared or were acquired by more agile players. At the same time, upstarts with innovative business models were able to acquire signifi cant market share. Some were themselves acquired and integrated into the operations of larger but less nimble companies. What are the attributes of a competitive Value Proposition under the new landscape? What new Key Resources and Key Activities will pro- vide a competitive advan- tage when personalized drugs and prevention are the industry’s main focus? How will revenues be generated when the focus is on personalized drugs and prevention? How will the Cost Structure of a pharmaceutical compa- ny’s business model change under this new landscape? Which partnerships will maximize the effectiveness of a drug company’s new business model? What roles will Customers and Customer Relation- ships play when personal- ized drugs are an industry mainstay? KP VP R$ 188 bmgen_final.indd 188 6/15/10 5:44 PM