Environmental Impacts On Pfizer Business Operation Commerce Essay

Environmental Impacts On Pfizer Business Operation affair EssayThe trading actions solicitude is involved in every(prenominal) discovers of organizations and it is considered as a core value of the organization. Business is a typical dramaturgy where trading operating theaters perplexity fits in. However, several some other bowls hire heartfelt understanding of trading trading trading trading operations management such as industry, Healthc ar, education, and governmental sectors. The scientific background of these sectors is quite miscellaneous from to severally one other tho the jitneys in these fields usually shargon equal management qualification.The pharmaceutic companies continuously reflect the field of science and rargonly been thought of their exceedingly withdraw of operations management. Sales and investigatees ar the main activities in pharmaceutical companies which require authoritative procedures to be carried out in a specific sequence. notwithstanding its scientific background, pharmaceutical companies procedure would reflect the operations in this type of organization thus, managing these operations are utmostly demanded to avoid errors.Pharmaceutical companies are unmatched type that host scientific from several backgrounds. Despite its emergency for high sales achievement, pharmaceutical companies aim to keep their image as a trusted source of education and adding values to the wellness monetary aid culture. As a result, operations in Pharmaceutical companies require and then a high take aim of operation management, and challenges that apply to organizations in the trading field are applied here as sanitary.Operations management consists of several aspects such strategy, handle design, projectning and control, supply chain management, and avail which could be applied on the laboratory work. However, the menstruation sketch go away emphasis only on three aspects related to operations management, which are IT and finish reservation, military operation standards, and mathematical productiveness, in the Pharmaceutical companies.Pharmaceutical companies now present a lot of challenges which admit to a greater extent agility to defend the duty way with. Many of those problems are remote and unpredicted as what is going to be discussed later.Literature critique discipline Technology (IT) and Decision MakingThe outcome of Information Technology (IT) as approximately efficacious tool do the talk, superviseing operations and implementation, and managing info easier than before. Some clippings it is recitationd as a product deli genuinely fair in software developing companies for example. As yield, it becomes a powerful for tool that find outs the last makers for its accuracy and clarity. Numerous investigatees chip in been carried out that showed the signifi johnt deflect of IT on the ratiocination makers. This section leave covered non-homogeneous a spects related to IT and ratiocination qualification in diametric type of organizations.One obvious example of using IT is the indwelling intercourse interior an organization. Anderson carried out hypothesis testing research to study the inwardness of enhanced tele conference capability on military operation musical composition practicing modify strategical decision do and alter coordination of strategic actions. The study investigated the influence of internal communication by using computer ne twainrks (Intranet) and external communication through and through (Internet). The investigation was associated with two strategic decision making approaches (autonomous and participatory) aboard the strategic planning. In order to assess probable environmental contingencies, two different industrial settings that are characterized by low and high levels of dynamism and complexity were used to test the relationship. The use of intranet showed authoritative association with re younging in less dynamic and complex industries. Whereas internet use indicated positive association with profitability and innovation, but companies following participatory decision approach. On the other hand, the combination of intranet usage and autonomous decision approach was frame positively associated with high profitability and sales growth in highly dynamic and complex industries. The combination of internet usage and participatory decision making was found positively associated with higher(prenominal) innovation. Finally, the study revealed that using two internet and participation are highly related to innovation in general. Also, use of Intranet and autonomy has a positive relation with the economic efficacy in dynamic and complex industries.The military group of IT in frontier of entanglement speed was found to influence the decision making of medical personnel. Networking specialists tend an empirical investigation by constructing testbed to control the n etwork impairment levels. A video poseed from a medical institution was used as well as physicians who evaluated the contribution of video whole step to their diagnosis. Despite the utilization of one video and small tally of physicians, investigators concluded that medical decision making capability are dependent on video frames instead of general video quality. Internet . The study was able to show the operative resultant habit of one small aspect of computer networking on the decision making of medical personnel.The effect of IT on strategic decisions in the industrial companies was studied. Executives from xiii companies in The Netherlands and in Germany were interviewed. Information about decision movement followed in thirty two recent decisions . Executives found to apply a demythologized approach while collecting and using ample teaching. The structured decision-making process undergoes number of distinct phases before decision is made. The necessary education se lf-contained by IT increases confidence and reduces uncertainty. Authors stated authorisely that circumstantial evidence was obtain about tacks in the decision making process. The underlying causes of these changes were regarded to developments in in the buff information acquisition and analysis methods, ex. Internet use became common practice. The study revealed that with to a greater extent pertinent information available, decision making process foundation be controlled efficiently in addition to facilitating rational decision making.The unavoidableness of IT is not restricted to industrial or business firms, the role of information delivery enhances decision-making capabilities of Indian farmers inwardly Indian Tobacoo Companys, e-Choupal initiative . E-Choupal implemented information communication applied science (ICT) to increase information deliver among farmers in different areas. On various agricultural practices across the agricultural supply chain, users of e-Ch oupal pregnantly show better decision-making aptitudes compared to non e-Choupal users. The study emphasizes the grandness of designing information communication technology (ICT) which enables information frames to suit different socio-demographic groups.It is obvious that implementing up-to-date finishs in business firm become a priority in highly competitive trade. Business environment remain changing every while and required modifiable and scalable IT application to adapt itself instantly when it is required. Often, a dramatic change in market environment requires essential system progress. However, decision for investing in system upgrade sometimes stay tough task for managers in term of cost and time to upgrade. Mukherji et.al. clarifies a decision carry model able to determine the optimal time and choice of upgrades. Their analysis confirmed that feasible continuous upgrading is not forever optimal strategy when the cost is significant. They suggest that necessary up grade has to hire place after measuring the gap between on-going technology and new technology. As the gap increases and reaches a diminutive threshold, system upgrade become essential and play along priority. surgical procedure MeasurementsIn its general meaning, motion bill is action of measuring and evaluating point process of the entire operations public presentation. Therefore, organizations effect is most important concern for stockholders and partnership owners. This activity is a wait onful tool to know how effective the current operations are as well as how much the organization meets the market demands. carrying into action measuring sticks vary jibe to the organization field. Some standards are very vital at particular organizations and useless in others.A literature review was performed on supply chain carrying into action meter recommended the adaptation of confederacy development, collaboration, agility, flexibility, information productivity and bu siness excellence metrics in executing measurement system. The study indicated further research is required as the environment of this business is changing . Along the very(prenominal) way, most of doing measurement systems practiced is proposed to improve the productivity only. As a result, managers utilize skimpy measures to increase feat, which in turn does not reflect the reason of using this tool. Developing a performance measurement remains challenge. The desired performance measurement system needs to serve both purposes, improved performance and accountability .The human factor was found to play a significant role in improving performance. In practice, performance measurements serve the higher level managers who monitor the general organization and therefore draw the equal strategy. Involving managers on the operation level showed a significant impact on performance. It is the consequent enhancing the employees beliefs in performance measurements system and the commit ment of operation managers to performance improvement . Authors adopted a developmental approach for performance measurement establish on five principles. Among these, building on employees professionalism, transparency and employee ownership, and outside facilitators were much toward employees and idle wordsership rather than measurements themselves.(I advise to remove the below part as Pfizer RD is only in USA Europe and not relevant to the focus case of Pfizer gulf States)performance Measurements vs. RDIn the field of research and development (RD), defining performance measurement system is very critical and was found to be challenging mission. It is still uncommon among RD organizations. Avoiding the under or over estimating performance is more important issue when it reaches decision making level and motivates people in RD companies. Designing effective performance measurement system properly found hard to achieve and was regarded to the lack of intensive studies in actual context, such as pharmaceutical research field in a biotech lodge . In healthcare organization, selecting an appropriate performance measurement system is still unresolved issue. One study suggested that performance measurement system has to be sensitive to both changes in the external and internal environment of such organization . Authors proposed a theoretical account that measures performance from both multi and interrelated perspective, specifically effectiveness, flexibility, and efficiency.An early fret seeking a proper definition for performance measurement system for RD activities took place but it was very difficult. The most likely reason is the uncontrollable factors which influence the measurement elements used and hence delay the perspicacity. These studies was focused mainly on performance measurement such as dimensions of performance to be controlled and the metric measurement of such performance . The drawback of these studies is the ignorance of managerial and organizational meaning of each measure. victorious them into consideration would allow an appropriate use of each measure. This approach get out lead to better RD performance analysis with respect to the organizations strategy. Later, Kerssens-van Drongelen and Bilderbeek applied the analogous idea using Balance Scorecard (BSC) to RD, a performance measurement method that link all four measurements to each other and was suggested by Robert S. Kaplan and David P. Norton . In general, numerous attempts was found in the literature suggest that efficient performance measurements depend desperately on the type organization and should nominate its internal and external environment into account.Performance Productivity MeasuresIn principle, productivity is a measurement that used to evaluate the performance. It is necessary to implement various processes in performance measurement but it is more important to let in at least one process that has a significant influence on the productiv ity. They are quite linked to each other and extract confusion often. Performance measurement is highly demanded when ends achievement is under assessment in the come about managerial level. It illustrates how efficient the resources are used so it has high impact on the club overall.ProductivityMeasuring productivity is a challenge and is a result of many factors contributing independently or together. A ratio of output to excitant is a introductory measurement play along performance. Thus, variety of ratios can be defined based on the measurements type such as physical or financial terms as well as type of resources implemented in performance assessment . A ratio of current output to current stimulations bequeath hand over the intersection technical efficiency. A ratio of current outputs to the maximum executable outputs for a given set of inputs entrust yield the production cost efficiency. A ratio of current inputs to the minimum possible inputs for a given output l evel will yield the production capacity utilization efficiency. Therefore, the relationships of productivity propose that productivity ratios are interlinked with various internal processes. It is influenced by the mixture of input factors.Input resource is a combination of capital, labor, etc. and every type of resource has its own effect on productivity to a certain level. Likewise, non-production labor (e.g., product designer, engineers, administrators, and quality inspectors) was found to have a value in manufacturing plants productivity. However, a simile of the effect of non-production labor with other input resources was not investigated deeply. As a result, lacking the understanding of individual input resources affect might lead to mismanage resource investment hinder the growth of productivity afterward.In this manner, a study was conducted to examine carnal knowledge elasticity of three input resources on factory productivity (production workers, non-production workers, and capital equipment) away from comparing relative productivity levels . 508 samples from 16 countries were used in the study. Authors developed three hypotheses Non-production workers or capital equipment, have higher elasticity than production workers in most countries studied. This finding suggests factories studied are more automated and require non-production workers to support output. In developed countries, concentrating the investment on capital equipment showed a significant impact on output, which means that improved productivity is a consequence of improved capital investment. Some countries have higher levels of non-production employee elasticity than other countries.How do you measure the productivity or evaluate the total performance in an organization of professional functions such as purchasing, accounting, personnel, and information bear on?Operations ChallengesPfizer Inc.Pfizer was founded by Cousins Charles Pfizer and Charles Erhart in 1849. Since that time, i t has remained dedicated to the discovery and development of malady treatment and healthcare improvement. The company focuses on meeting the worlds diverse health needs and continually evolves to keep pace with the needs and expectations of its stakeholders and society as a whole. The production of Penicillin, Pfizer Helpful Answers, and Medicine Safety website are untouchable evidence of Pfizers flexibility.Pfizers Executive Leadership Team is the companys precedential-most leading and decision-making body. It brings together top leaders to focus on major financial, strategic and operational decisions. A series of decisions has been made by this team which provides extra evidence of Pfizers high flexibility management. One example is the establishment of two distinct research bodies, Pharma Therapeutics Research Development Group and BioTherapeutics Research Development Group. The decision was made to maximize new opportunities in biomedical research, and bring more advance( a) medicines to more patients more quickly. Pharma Therapeutics Research Development focuses on the discovery of small molecules and related modalities where BioTherapeutics Research Development Group focuses on large-molecule research such as vaccines.Pfizer has also developed an enhanced technicalised operating structure and has nine diverse health care businesses aboriginal Care, Specialty Care, Oncology, Emerging Markets, Established Products, Consumer Healthcare, Nutrition, Animal Health and Capsugel. Each of these businesses is managed by an executive who has strong accountability through the entire processes that start at product development level to proof of concept followed by providing introduction to patients all the way to the end of product life cycle.The businesses are back up by resources to pursue attractive growth opportunities and to deliver benefits to everyone require certain medications around the world.The strategy was made to enable rapid investment on opportunities which would develop the business in turn. The strategy was focused on funding new successful medicines, increase partnerships with signalize guests, entering co-promotion and licensing agreements, investing in new technologies, and acquiring new products and receiptss from outside the company.Environmental Challenges Pfizers ontogenyProduct uniqueness was the cornerstone of pharmaceutical product success but the whole environment has been changed. The high competition and patency expiration were the most underlying causes the recent dramatic changes in pharmaceutical market. For example, Lipitor Norvasc, the wide used medicines for cholesterol hypertension, is not restricted within Pfizer anymore. These changes placed a huge forcefulness on Pfizer to move from a Product cogitate company to a Customer Focused company. This mind shift was clearly reflected on the strategies as well as plans operation, which will be discussed shortly in the following contextIn formation technology its effects on operation decisionsPerformance measurements which play all stakeholdersPerformance productivity measures its frameworkPfizers Operations and Current ChallengesInformation Technology and Decision MakingIt is very crucial for Operations Managers to have clear, consistent reliable data to be able to make rightly and precise decisions. The role of IT is to make these data manageable and usable rapidly and accurately. Accordingly, decisions are usually about reckon setting, processes, performance improvement, and revenue analysis within the company. Many examples would illustrate the importance of IT in Pfizer1. Business Technology plane section The information technology solutions unit.2. weight unit Matrix Project Customer targeting -segmentation program.3. e-SMART Sales force comprehensive reportage system.4. Gulf States Portal A Portal where all the different aspects of the commercial activities (Sales, Marketing logistics) executed are a nalyzed together to measure our ROI.Performance MeasurementsA set of performance measures was used by the company to monitor the daily and the short term and long term performance. It ensures how close the company operations are to the right track in terms of achieving the strategic objectives resources usage. These measurements consider all the stakeholders. Performance measurements are dubbed Key performance Indicators or KPIs. The KPIs is helpful signs for an operations manager in Pfizer Gulf States to judge the operation and pinpoint errors.Pfizers Performance Measures Financial achievements Evaluate revenues and profits of short and medium term and monitor sales and overheads to ensuring they match the plans. On time commitments achievements in terms of on time supply to the accounts and on time payments to the internal suppliers and on time payments of salaries and expenses of the employees dead body of performance in the operations observe fluctuation in the performance. Bud get restricting processes The company operates within the reckon or not? Risk and change management plan the company response to risks or changes Clear guidelines for the operations clarity of the processes in each department i.e. criteria of hiring people and qualification of people recruited Discipline of the company employees in terms of in and out timings, and their complying with the values and ethical motive of the company optimisation of the company design Evaluate the company structure to estimate the prospective needs i.e. establishment of key account management department data reliability evaluate data reliability and accuracyThe need for a performance measurements frameworkPerformance measurements are all interrelated and interlinked with each other, so they are all encompassed together for achieving the goals.Analysis of the Operation ChallengesInformation Technology in the Operations Decision AreasBusiness Technology DepartmentOffering innovative IT solutions improv ed the performance of several processes and helped in achieving the overall Pfizer Gulf States objectives. Developing an automated dash board where all the data (sales, consumption stocks, and market data) are encompassed on regular basis to enable both operations manager and senior managers make the right decision count on. It allows a rapid response to any risk or change before it virtually harms the performance.Weighting Matrix ProjectIt has an essential role in stating the concept of (customer focused) company. The system filters the costumers to different layers by weighting them tally to coverage area and value of investment. The system then suggest particular layer to be focused on.e-SMARTReporting system enables all the operations processes of the field force (sales teams) to be reported. The system delivers and analyzes both field force activities performance and feedback. It enables senior managers make their decisions about operations reforms or changes.Gulf PortalsThe latest innovation of the company is the Gulf Portals that evaluate the performance of the operation processes. Gulf Portals is deep analysis achieved by comparing directly the input of the company to the output. Gulf Portals receives all the information about the number of visits, and number of activities investment per account, Then it compare those data to the revenue of each account. For example, if a sales person has 2 accounts A B, and he spent 2000 visits evenly for those account annually. grade A achieved 30% of the total budget, while Account B achieved 70%, so was that the optimal exploitation of the time effort? The answer is no, hence we need to reallocate visits between these 2 account, and the same is true regarding any other resource. So, its a matter of reallocating the company resources for a better outcome.Performance Measurement to Satisfy Various Stakeholder GroupsAccording to Pfizer operations manager, KPIs has to be a real measurement for the job descripti on of operations manager as it is summarized below Participating with senior managers in plans setup, forecast and budgets Aligning the resources of Enabling Functions (HR, Finance, Logistics and IT) with the opposite part (commercial parties) of the Core Functions(Sales, Marketing and medical) Facilitating decision making related to employees, investments and strategies in all the departments Continuing improvement of the process Re-engineering the company design when needed to cope with changes and risks.Performance objectives or KPIs has to cope with all stakeholders, internally and externally, for reasons shown belowFinancial objectives are vital to adjoin the senior managers and external audits because every business will end up with the level of profits. Moreover, on time commitments is a common interest for all stakeholders such as employees, senior managements, internal suppliers and customers which become priority according to customer focused strategy.Senior managers con cern is performance long term consistency and prepared for market dynamics. Reducing the operation cost will increase the net profit directly and will satisfy the senior management and the audits. Having clear guidelines to follow and to minimize errors may occur within the operations. Discipline of the employees is a good indicator the people compliance inside the company to the rules and strategies applied.Company design is a crucial issue for reacting with the changes. For instance, new regulations in the market, based on new policies and cost cutting, gave Pfizer an indication of the necessity to establish new department called (Key Account Management) to focus on the key accounts and to secure the business. Reliable data is the basis of any successful plan and determining the achievements also needed by stakeholders.The Need for a Performance Measurements FrameworkProductivity is part of performance measurements as it is the ultimate goal of the company. The direct link betwee n each performance measurement and represent productivity measurement can be noticed.Financial achievements improvement in achieving financial goals is an indication of productivity increment, the more Pfizer achieves goals with cost effective the more its productiveOn time commitments achievements on time commitment allows more product consumption and prescriptions loss. It increases the demand and the sales consequently. More Commitment with suppliers will force them to be restricted to time frame which enables smooth resoluteness supply to maintain Pfizers productivity. Along the same way, employees will becaome more prompt to achieve their target, which is a very important element for improving productivity.Consistency of performance in the operations Consistency ensures high productivity level and avoids backlog. For example, satisfying the customers demands and expedite their shipments by increasing performance of some products would help increasing sales.Budget restricting processes complying with budget is certainly a synonym for doing the best cheaply. So, restricting with budget leads to optimum use of the resources and ends up with increasing the profit.Risk and change management It reflects the reliability and the agility of the company to react properly to any change or risk to keep the company productive and profitable constantly. That is, fast reaction to the exclusion of one product from Health Authority Formulary will help the company to counter it to the Formulary after two weeks only to secure the business.Clear guidelines for the operations Understanding operations guidelines is critical to do the job correctly within time frame to reach high level of professionalism. Along the same way, it minimizes errors and failure in the operations, reduces the cost, and raises performance and productivity. For instance, setting up a quantity for marketing approvals prevents time and investment loss.Discipline of the company employees According to Pfizer ethics and laws, employees discipline minimizes errors and reduces loss. if a product manager put an off-label indication for a medicine in a campaign, the company will be empower to millions of dollars as a penalty. Also ensuring that employees effort will be reflected on the productivity.Optimization of the company design A proper design maximizes the use of human resources. The recent restructure of business units in Pfizer to serve customer focused strategy showed better performance and productivity. Also creating new departments helped the company in maintaining business growth, such as the key account managers dept. which allowed the company to build relationships to the decision makers in the market.Data reliability data can be used to show an adequate description of productivity and performance however, it demands high level of accuracy and consistency to give the company a clear vision to current situation.Finally, we can say that performance measurements are close ly related to the productivity so that to achieve the company goals. The need for clear framework that includes satisfaction of the internal and external stakeholders was achieved by Pfizers management (see figure 1).Figure 1. Performance Measurements used by PfizerConclusionsComparison of persona with TheoryInformation Technology and Decision MakingPfizer Gulf States has improved its business operations in the past two years through the utilization of tailored IT solutions to fit in pharmaceutical industry in the Gulf. Considering customer centricity, the operational decisions which was made to expose both resources and established projects to the right customer within precise program was successfully achieved. Managers utilized right applications that were fed with data about the market which interpreted significant information about the market demand and business opportunities.The holistic approach application analyzes sales, projects, and competition performance data to retriev e clear guidance for operations managers. The integration of this approach highlighted areas where concretion across different functions is required. Therefore, it ensures successful exercise and customer satisfaction for service and value added programsPerformance measurement to satisfy various stakeholder groupsThe satisfaction of the various stakeholders has been always the prime objective of the executive team in any successful organisation, especially in pharmaceutical industry. Hence, the operations managers are always keen to have clear KPI to both internal team members and relevant stakeholders. These managers ensure successful execution of the different tactics corresponded to the relevant strategies to meet the companys objectives.At Pfizer Gulf States, as a part of the Pfizer Global company, various stakeholders within Pfizer Africa Middle East leadership team expect clear KPIs that ensure operational objectives along with the overall business objectives. These KPIs foc us on measuring the level of employees engagement with clear metrics every year. Therefore, proper evaluation and continious improvement to employees performance.The Need for a Performance Measurement FrameworkIn matrix structured organizations, ensuring alignment across all functions working together to create deliver the service or product is vital for business success. A framework of KPIs and productivity measures has proven to be with a synergic effect on business revenues in Pfizer Gulf States. Working on growth opportunities which was sought out from the market potential is linked with clear framework for the KPIs. This clarity enables operations manager to make adjustments and follow up easily.RecommendationsWith no doubt, IT showed positive impact in operations within Pfizer Gulf States. Nevertheless, it indicates the success of movement toward more innovative approaches in utilizing IT with more concentration on customer information. Basically, it analyzes costumers data f or