How Asset and Brand Planning is Changing Across Industries
In a matter of months, businesses and entire industries are seeing major changes in the mode of operation. This is mainly due to the on-going coronavirus pandemic. There are very few industries that have not been affected. An example of that is the cryptocurrency industry. According to data from CoinMarketCap, the industry went from $172 billion in March at the start of the pandemic to over $270 billion in July. Another industry worth looking at is the biotech industry. Biotech has grown over the past decades. In 1992, it was worth $8 billion. In 2016, it was estimated to be over $139 billion.
The biotech industry was also affected by the pandemic, particularly companies with first launch assets and those with short-term clinical development plans.
Here are some ways that companies are adapting to the changes in their industries.
Maintaining Operational Effectiveness Amidst a Crisis
It is important to keep the business going forward. While nobody could have predicted such a global crisis, it is the responsibility of each business – small or large – to keep producing value for their stakeholders. One way go about it is by resource re-allocation. This includes both financial and human resources. During the lockdown, companies were forced to work from home. Now as the lockdown eases, many companies are still using the same model. Not only does it save costs, but it also minimizes employee exposure. For many companies, only essential personnel are allowed to go to the office or lab. The notion that commercial buildings are assets is now being challenged as remote working becomes the norm.
Investors and major players in the financial industry are now wary of giving out money. Cash is valuable in times of crisis. There is a complete re-assessment of how much risks financial institutions and investors are willing to take on. Many first launch business plans, particular for biotech companies, are based on launching follow-on assets. In a time of crisis such as this, the delivery may be off. For example, companies that plan on launching follow-on assets in 2020 will most likely have to postpone. It is important to revise business models based on the lead asset and to increase the chances of being funded.
Market assumptions form the basis of many business models such as market demand and price achievement. The belief that serving a small niche, rather than a wider audience, may no longer be viable due to the change in consumer behavior that is driving industry change. One way to review a company’s assumptions is by revisiting them and challenging them one by one.
Planning for Both Extremes
It is now clear that planning for the worst (and best) case scenarios should be a big part of an existing business model. Using simulations is one of the best ways to improve scenario learning. The aviation industry has been using simulators for decades to train pilots and crew. Biotech and other industries are now learning to do the same, thereby making them more robust and flexible. The professionals at Cello Health are experts in planning for uncertain futures in biotech and pharma.
Ultimately, it all comes down to serving the clients. Businesses that survived the impact of the pandemic are stepping up their customer service. By so doing, they are improving their brand image. With proper planning, businesses can survive any crisis or industry change.