Almost three years after the COVID pandemic put the world into lock down, we are still not yet free of COVID-19. In fact, we now have steadily increasing cases of monkeypox, which was previously confined to endemic regions.

Are we better prepared for the next health threat? Have we plugged the gaps to respond faster? Let鈥檚 not forget the many obstacles on this path.

For one, analysts point out that India Pharma Inc is still heavily dependent on imports for key raw materials. More than 70 percent of its raw material requirements and in the case of certain drugs, more than 90 percent are imported. Nearly 70 percent of APIs are imported from China, and the cost has reportedly jumped by orders of magnitude, thanks to geo-political concerns. This has impacted the margins of pharma drugs.

While higher raw material, freight costs as well as pricing pressures in the US business due to high channel inventory will continue to drag overall performance for the pharma sector, how will the first two challenges hamper the development of medicines and diagnostics for future health threats?

Corporate boardrooms have been in re-set mode to prepare themselves for this scenario, incorporating the hard lessons of the COVID pandemic into business-as-usual practices. This exercise has been enriched with direct feedback from cross-functional heads who were never part of boardroom discussions in the pre-pandemic era.

This is vital because some vital benchmarks have not yet 鈥� and probably will not 鈥� revert back to pre-pandemic times.

Express Pharma, as part of 麻豆原创 India鈥檚 Industry Knowledge Exchange (IKEX) Series, in partnership with the Indian Pharmaceutical Alliance (IPA), has culled some of these insights over a series of interactions. In May, we met up with CFOs, IT heads, and CRAMS leaders for an overview of how collaborations and technology are driving business innovation in the lifesciences sector. ().

And, in July, we got pharma procurement leaders, along with IT and operational leaders, to decipher their game plans on the procurement and SCM side. While the 麻豆原创 team gave an overview of how pharma companies can transform their organisations into intelligent enterprise by achieving value with intelligent ERP systems, pharma leaders spoke of transformations within their organisations to cope with disruptions in the pharma supply chain.

Harking back to the total disruption of pharma procurement during the early stages of the pandemic, Sapna Sharma, Director, Procurement, Category Head for API, Excipients and Respiratory, Cipla, said creating alternatives for suppliers topped the list of her company鈥檚 learnings. 鈥淲e have to be proactive, not reactive about creating alternatives for suppliers, especially those where we could predict we might have a problem. Cipla had started on this process a couple of years back. So, during the pandemic, we were able to move to alternative suppliers very fast as we already had them in place.鈥�

This process actually started way back in 2008, when China shut down many chemical and API manufacturing units before the Beijing Olympics. That was the pharma, and other sectors, first warning of supply chain shocks due to heavy dependence on imports.

But, even though this might seem like a logical thing to do, there was a lot of push back within companies, because as Sharma pointed out, it is a laborious process. For instance, one API might go into multiple SKUs. Sharma says it took some time to create a mindset that alternative suppliers were necessary. Cipla also created a plan to shift not just to alternative vendors, but alternate sites of existing vendors. As part of this initiative, Cipla also started educating their vendors, so that they were in line with the company鈥檚 overall strategy.

While these interactions show that most big pharma companies have taken the COVID lessons to heart and are proactively planning for disruptions like scarcity of key ingredients, consumables, etc, this transition remains a work in progress. In the coming months, Express Pharma, in partnership with IPA and 麻豆原创, will continue to meet more leaders to reflect on how companies are transforming into more resilient corporations and to ensure this transition percolates into all segments of the sector.

The article was originally published on 听on 6th October 2022.听Read more about it .

viveka.r@expressindia.com
viveka.roy3@gmail.com

听

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In a world that鈥檚 constantly changing, digitalization has been that much-needed anchor that has helped businesses build resilience amidst disruption. It鈥檚 helped businesses harness data to garner better customer insights and competitor tracking in real time basis. Given how digital-savvy today鈥檚 customers are, it鈥檚 become critical for companies to embark on digital transformation journey, if nothing to keep up with the customer and ensure consistent customer experience across omni-channels and platforms.

But why this emphasis on digitalization? When did digitalization become the lifeline of companies looking to survive in changing business environments, looking to stay agile and responsive?

The digitalization story

Digitalization is more than the integration of technology into different facets of business. True digitalization completely changes the way an organization functions including its processes, systems, and culture. In an era where everything, from the way we work to the way we shop, has been recalibrated digitalization has been at the center of this change. Collaborative tools, data moving to the cloud, online commerce, connected devices, Artificial intelligence and machine learning, Industry 4.0, Workplace 4.0 鈥� each of these are an intrinsic and important part of the digitalization story.

With millennials and Gen Z being an always-on consumer group, it has become critical for companies to have a digitalization strategy, which keeps pace with changing market dynamics.

Having the right digitalization strategy will help companies in reducing costs while optimizing efficient use of resources (both technology and people). A digitalization strategy also helps to measure the size and scale of a business, the targeted customers and the听digital supply chain听involving both.

The key driver for embarking on digitalization is usually costs related. Other factors are starting to take center stage, from enabling employees to work from anywhere and having access to data anywhere (which is where the cloud becomes a driver) to ensuring great customer experiences and superlative customer service (connected customers are the driver). Digitalization brings process improvements across all aspects of an enterprise: business functions (like human resources, marketing, and operation), the entire business ecosystem (including stakeholders and vendors), asset management (including customers and their data), work culture and听digital supply chain听between employees and customers.

Benefits of digitalization

Digitalization isn鈥檛 about short-term gains but about achieving a company鈥檚 long-term strategy, which goes beyond expanding its business presence or standing out from the competition. The pitfalls of ignoring digitalization are evident. In times of disruption such as the pandemic, digitalization enabled businesses to stay connected to customers and continue to offer their services uninterrupted; small businesses, especially, that had digitally transformed survived and thrived pivoting on technology.

Here are the听top benefits of digitalization听that you shouldn鈥檛 ignore:

1. Saving costs is topmost for businesses听

   The first and immediate benefit of digitalization is cost optimization (of resources) and cost savings. Companies are using their digital transformation initiatives to bring in efficiencies and utilize existing resources better, a direct cost implication. Automation saves time and eradicates duplication and repetitiveness of tasks, again a cost reduction. By monitoring processes constantly, there鈥檚 a reduced possibility of (manual) error. This also leads to predictive response, instead of reactive which in turn leads to greater agility.

2. Customer is the king and customer service is queen

   The old 鈥榗ustomer is king鈥� has never been more apt than now. With customers adapting to digital everything (from accessing brands to building relationships with brands online) companies need to be quicker to cater to this digitally savvy customer. A unified view of the customer offered by CRM software can help keep track of this complex customer journey and offer personalized service. Linking CRM and ERP will help companies provide great customer service that will translate to great customer experience. Digitalization enables constant and consistent improvement of products/service leading to elevated customer experience while efficiencies in inventory management results in optimized costs.

3. Be where your customer is to grow your business

   Today鈥檚 customer doesn鈥檛 have a linear journey to a brand. They browse online, check instore and purchase online. By having digital presence on all possible channels and platforms companies can constantly stay connected with customers, communicate with them, address concerns and prevent escalations- a death knell in this age of always-on consumers. Due to digitalization, companies can stay connected through mobile applications, social media content and forms, emails and other platforms, something unknown earlier. By offering services where the customer is present, a company can build deeper relationship and customer loyalty.

4. Data is the new oil and will fuel strategic decision making

   Never has it been easier to harness data and derive insights that transform how businesses run and plan for the future. Digitalization has helped companies to make sense of data – organized data that enables predictive instead of reactive decisions. It鈥檚 not cliched that 鈥榙ata is the new oil,鈥� but the truth. Without data, companies cannot take strategic decisions from understanding what are new market opportunities to figuring out if customers are ready for a new product or assessing whether employees and satisfied and motivated to work. Data fuels strategic business decisions across all aspects of the organization (marketing, sales, customer service, product development, human resources, etc.). Due to data availability in organized, customized, and personalized data structures, digitalization has made decision-making faster and easier.

5. Rewire your presence in the digital world to create greater visibility

   Heightened competition and ever-changing consumer behavior can only be addressed through digitalization. Tracking competition real-time and tracking consumer sentiment real-time will enable companies to stay competitive and customer-centric. To do both, companies need to be present on every available digital platform offering their services (websites, online stores, etc.) and communicate through all available online media (blogs, social networking handles, websites, etc.) ensuring brand reach and visibility. Since today鈥檚 digital-first natives are just that digital, companies鈥� shifting or pivoting business to digital platforms has also put e-commerce on hyper thrust mode.

6. Lean on technology to enhance productivity and bring in efficiencies

   One of the primary benefits of digitalization is increasing productivity and efficiencies, whether it be man or machines. For instance, digitalization allows you to free up time of employees, who can then focus on innovation and driving business growth, while automating mundane, repetitive tasks. Industrial Internet of Things (IIoT), for instance, monitors machinery in real-time assessing performance and breakages and through AI/ML it enables predictive maintenance instead of reactive, increasing efficiency within the system.

7. Free up human intellect to increase innovation

   When automation allows humans to focus their time and efforts on making process improvements or product innovation, digitalization transforms how businesses work. Instead of looking at short term gains, digitalization leads businesses to look at sustainable growth, generating efficiencies and improving products and services. Besides accelerating improvement across all levels, it also opens ways to streamline the听digital supply chain听of resources and data.听

8. Collaborate to communicate better and engage more meaningfully

   The recent trend of remote working clearly highlights one of the top benefits of digitalization. Companies that had transformed digitally were able to provide employees with anytime, anywhere secure access to data while collaborative tools helped them work from anywhere. As companies move towards a hybrid working model, digitalization will create a level playing field for 鈥榖ack to office鈥� workers and those that continue to work remote.听

9. Work doesn鈥檛 have to be dull nor workplaces boring

   Another key benefit and an area that will show immediate results of digitalization is the workplace and the work environment. Using digital tools to constantly gauge employee sentiment and revisit HR policies has instant results: better adjusted employees, happier employees. Digitalization isn鈥檛 about technology alone, but the culture. A digital culture that accompanies digital transformation is sure to increase employee productivity and engagement levels. From flexible working hours to increased employment options with new teams to a renewed focus on teleworking, digitalization has helped human resource function in organization to keep their ears to the ground and act, rather than react. It also helps talent management to retain talent and decrease attrition.

10. Stay ahead of the competition听

    Digital is where the new battle ground is, and companies must get used to this new reality. To stay in the game, companies need to aggressively track what the competition is doing including product launches, GTM and perceived new market opportunities. Digitalization allows companies to do all this, from tracking new feature enhancements to existing products to design changes to websites and social/digital marketing strategies. Having such information allows the companies to be more competitive, and be innovative catching in new trends and advancements introduced by their direct and indirect rivals. A company鈥檚 digitalization strategy needs to encompass competition audit, monitoring and assessment to win the game.

11. Trust is the new currency

    Whether it鈥檚 employees or customers, trust brought about by transparency is the deal maker or breaker. The听听revealed an epidemic of misinformation and widespread mistrust of societal institutions and leaders around the world. This left businesses with a clear mandate to rebuild trust to chart a new course. Digitalization enables companies to have transparency in all their transactions, a must-have in a 24/7, always on, always connected world (both customers and employees). Whatever the online platform, digitalization provides companies with the wherewithal to keep their key stakeholders informed of any changes before it happens 鈥� building trust. It allows companies to be honest, authentic, and transparent in their responses 鈥� cementing trust.

What next in your digitalization story

Every small- and large-scale enterprise has a digital transformation agenda. Digitalization is no longer a nice to have, it鈥檚 a must have. Companies that have already embarked on their digitalization journey are looking at new ways to pivot on technology learning from their past mistakes and experiences. Consumer behavior has drastically changed in the past two years and this evolution will only continue. Consumers will continue to adapt digital means to initiate relationships, and if companies are to stay competitive, they need to be ahead of the curve. Digitalization is a听, one that will play an even more important role in the years to come.

No realm of business will be untouched by digitalization and no aspect of human life either. From drug development to cancer treatment, from AI-driven manufacturing to deep collaboration in Workplace 4.0, companies need to prepare for the next wave of digitalization. There will be a greater focus on technologies such as AI/ML and Blockchain which would allow companies to get an 鈥榠nside鈥� look of what drives consumer sentiments and how to leverage these insights. AI will let companies to leverage data, find the right set of customers and focus more on this 鈥榠deal鈥� customer profile offering unparalleled customer experience and increasing revenue through new leads that close because of 鈥榙ata insights.鈥�

There will be further innovations and developments in the current set of technologies, perhaps new applications, and these are sure to shape the path to success. Companies will need to constantly recalibrate their digitalization strategy to take advantage of new developments, ensure that these developments lead to increased productivity and efficiencies. They will need to relook their strategies and frameworks to incorporate any requisite changes without disrupting the normal course of business.听

For a more convenient flow of work and data within the company, the development of a more intuitive visual interface should also be on the radar to bring about effectiveness and increased automation. The cost-effectiveness of a digital transformation process will be a critical factor in the years ahead as businesses begin to emerge out of the pandemic and related disruptions. There will be structural shifts on an ongoing basis and well into the future, especially in the听digital supply chain, hence return on technology will become a key factor.

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Earlier this year, I had the honour of joining NK Singh, chairman of the 15th Finance Commission of India, on a panel discussion during the launch of our Dare2Dream Awards and Mentors of Global Bharat Programme. And his perspective on the importance of digitalisation in relation to India鈥檚 economic future resonated with me, especially when it comes to MSMEs growth.

鈥淢SMEs are central to becoming a global player, and there is a big role for technology,鈥� remarked Mr. Singh. 鈥淲e need to enable the highest level of access to technology, reduce the cost of this access, and consider the degree which enables their linkages to other technologies. These require active support to inoculate the innovation culture in MSMEs.鈥�

In line with Mr. Singh鈥檚 thoughts, 鈥溾�� needs to be empowered to help fulfil such national ambitions. While more than 6.3 crore MSMEs contribute about听听to the GDP, 600 large companies add approximately 48%. This means that at least 10,000 small and midsize companies need to become either midsize or large enterprises by 2030 to achieve such globally competitive dynamism 鈥� and this rapid scale can only be achieved with technology.

Global Competitiveness Begins with Innovation

SMEs are increasing their awareness of the power of technology as they digitalise their operations to optimise the benefits of government and industry measures. As a result, they are becoming self-reliant, future-ready, and bold in their global ambitions across three crucial aspects of their business.

1. Empower MSMEs to enter new Marketplaces

The pandemic has underscored how deeply interconnected businesses are 鈥� and this realisation couldn鈥檛 have happened at a better time. According to听, 62% of midsize organisations are looking to steadily grow by competing in new markets.

This rising trend is an exceptional opportunity for Indian MSMEs to expand, even during times of demand volatility. They can leverage better options for sourcing supplies, increasing manufacturing capacity, and addressing warehousing and logistics needs on a global scale. Furthermore, active participation in digital business networks allows them to introduce unique products, services, and connections to enterprises worldwide.

Mentorship and recognition programmes also play a key role as the Indian government encourages MSMEs to actively contribute to the global marketplace. Even our听听and听听empower Indian businesses to nurture a self-actualisation model of professional and personal success 鈥� at the global stage.

2. Skilling the workforce on digital literacy

The skills of every employee are critical to a company鈥檚 success, no matter the industry. From automotive and manufacturing to high tech and customer services, organisations that fared best during this pandemic have addressed gaps in their workforce鈥檚 digital literacy as part of their overall business performance strategy.

To compete globally, MSMEs need a听听in digitally skilled workers by 2025. Such competencies include data analysis, cross-network collaboration, on-demand learning, and real-time response to operational change.

Considering half the population is below the age of 25, government agencies and industries understand the opportunity to nurture in-demand skills. For example, 麻豆原创 India and Microsoft have a joint initiative, the听TechSaksham听programme, to offer training and learning opportunities to young women from underserved communities, so they can build careers in technology.

3. Transforming businesses digitally and moving to the cloud

When Indian society reopens, businesses across all industries will need to quickly pivot from surviving to thriving in an increasingly digital world. And it seems that MSMEs are getting the message:听听reported that 82% of businesses with annual revenue less than 鈧� 300 crore have digitalised their daily operations, reducing costs and enhancing competitiveness.

Perhaps more interesting is that India is adopting cloud-based ERP solutions at a higher rate than the rest of the Asia-Pacific and Japan. All this activity builds the foundation MSMEs need to help achieve India鈥檚 aspiration to become a global leader in terms of GDP contribution and employment generation. A听听suggests that SMEs can contribute up to 30% of the cloud market by 2025 and drive 25%鈥�30% higher productivity and 15%鈥�20% lower operational costs to the country鈥檚 GDP.

An Ecosystem for Globally Competitive Businesses

India鈥檚 economic policy of Atmanirbhar Bharat听inspires MSMEs to be globally competitive by creating an ecosystem that unites policy makers, industries, and technologies. With the continuous support of a forward-looking government administration, companies can affordably access the听听necessary to move forward.

With their contribution to the economy and employment they create, MSMEs are becoming a bedrock for the Indian economy, which is an immense opportunity for empowering our nation as a globally competitive player.

Ready to renew your sense of resilience? Read the IDC paper, 鈥�,鈥� sponsored by 麻豆原创, for additional insights on the road ahead.

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