BioPharm: Where do you see these business strategies moving over the next 5 to 10 years?
Mottram: Design for Value is here to stay. So we're going to see a shakeup in the industry. We'll see some companies emerging very
strong with that approach, building new partnerships and networks that set them apart from their competitors.
We are already seeing a huge increase in co-development efforts that involve multiple partners and capitalize on a hybrid
innovation model. There are many elements to co-development and partnerships, including understanding how to manage alliances
and relationships better. Companies that are thinking about this strategically will do better. Partnerships that have clear
strategic goals translated to operational plans and processes bear the real fruit expanding the value to both partners.
This approach will change the model between the large and small companies. We'll learn to approach acquisitions and mergers
differently as a result. Today, large companies have a lot to offer, they have the process knowledge, they have the business
acumen, and they have the capital.
They want the small company for its entrepreneurial agility and scientific discovery. Unfortunately, they sometimes try to
merge the environments too tightly. In the end, they lose the essence of what that small company had to offer and the small
company doesn't necessarily realize the full benefit from the infrastructure of the larger company. So there is room for improvement
in learning how to collaborate with internal and external partners in ways that embrace the essence of each partner to create
something new and better.
I think this is a challenging but exciting time and I have high hopes for the industry. Different metrics are already emerging.
We'll likely see more emphasis on collaboration and deep scientific engagement by the new industry winners, who will introduce
different business and team models. With the right focus, we can change the trend and start improving R&D productivity across
Tarja Mottram, CEO of Action for Results.