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Supplier-User Collaboration Requires More Than Advanced Technology—Alliance Management Is Needed, Too

Posted By Jon Lavietes, Wednesday, November 13, 2019

The World Economic Forum (WEF) issued a white paper this month calling for all players along the manufacturing chain to expedite the adoption of advanced digital technologies that enhance the collaborative supply chain. WEF has given the industry plenty of homework in the directives it detailed in the document:

  • Mine artificial intelligence (AI), predictive analytics, and machine learning technologies to reduce material consumption and increase resource efficiency
  • Utilize electronic labels, such as an integrated electronic display or a machine-readable code that links to a webpage (e.g., QR code), in order to foster the seamless movement of products across different regions that each have their own unique information and labeling requirements
  • Leverage digital twin technology to combat fraud
  • Use the potpourri of “it” technologies—blockchain, the Industrial Internet of Things (IIoT), edge computing, predictive analytics, etc.—to increase supply chain network agility so that organizations don’t miss a beat when faced with natural disasters, new tariffs, social instability, equipment or infrastructure failure, or any other unforeseen events that can disrupt operations
  • Remanufacture, reduce, reuse, and recycle parts wherever possible

WEF’s report is dotted with success stories from household names, including Foxconn, Ralph Lauren Corporation, Apple, and General Motors.

Now, nobody’s disagreeing with WEF’s premise; there’s an urgency for component suppliers, assembly manufacturers, final-product producers, and users to adopt these technologies—those who don’t will perish. However, we were struck by the relative simplicity of the use cases put forth in WEF’s paper. This isn’t to say that the achievements of the aforementioned brands came easily or that they implemented these technologies handily, but the case studies consisted largely of linear one-to-one relationships.

In reality, many of the increasingly complex products and services that manufacturers are trying to deliver today depend on an ecosystem of multiple deeply intertwined partners. As Russ Buchanan, CSAP, vice president of global channel strategy alliances and operations at Xerox and ASAP’s chairman emeritus, noted in a recent discussion about sourcing in the new economy, there can be as many as five or six vendors delivering a single smart vehicle, heart monitor, or other interactive device. Each of these partners has its own large network of suppliers and subcontractors. That is a lot of moving parts!

With each of these players bringing an essential part of a solution, a collaborative supply chain needs more than just these wonderful technologies themselves to deliver transformative solutions.

“The sourcing community is definitely being very sophisticated in some cases in managing their suppliers like alliance partners,” said Buchanan. “Increasingly, I find that the people in sourcing need these [alliance management] skills. When they start to work with a supplier, they’re trying to get more than just the lowest possible cost of commodity, the primary mission of most sourcing agencies. Increasingly, what you hear us asking our suppliers for, and what we hear our customers asking us for is, ‘Do more than that. Give me good value, but also give me innovation. Help me change my business. Help my transformation be more competitive in enhancing my customers’ experience working with us.’”

There is a much deeper degree of codependency between alliance members working together to construct solutions of this nature than the average supplier in a company’s network. This interdependency makes it much harder to switch suppliers in the face of a political revolution, seven-on-the-Richter-Scale earthquake, or sudden tariff hike, even if your predictive analytics algorithm is recommending and providing the blueprint for a change. That digital twin will certainly help the partner ecosystem synthesize a voluminous amount of data into actionable direction on how to maintain and enhance physical assets, systems, and processes, but it won’t help you iron out disagreements between each partner over how to implement changes.

As the degree of mutual dependence increases in manufacturing partnerships, the less effective advanced digital technologies will be in enhancing collaboration without good old-fashioned “soft skills,” particularly those set forth in The ASAP Handbook of Alliance Management. After all, conflict management, issues identification, and risk mitigation are integral parts of managing an alliance. Andrew Eibling, CSAP, vice president of business development and alliance management at Enable Injections, Inc., said it takes more backroom interaction to maintain a healthy relationship once you make the leap from run-of-the-mill supplier to strategic ally—or “Vegas-rules discussions,” as he framed it, where “you can have conversations with somebody about the partnership, but what we talk about stays here.”

In other words, supply chain collaboration has in many cases risen to a level of sophistication that requires more than just state-of-the-art software to drive industry-changing outcomes.

Be sure to check out the forthcoming editions of Strategic Alliance Monthly and Strategic Alliance Quarterly in Q4, which will feature deeper explorations of the evolving relationship between alliance managers and the sourcing and procurement functions as the latter more and more often find themselves managing their supplier relationships like alliances.  

Tags:  alliance managers  alliances  Andrew Eibling  artificial intelligence (AI)  Enable Injections  manufacturing partners  partner  predictive analytics  Russ Buchanan  sourcing and procurement  Strategic Alliance Monthly  Strategic Alliance Quarterly  supplier relationships  World Economic Forum  Xerox 

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When Worlds Converge: Digital Therapeutics Meets Biopharma Alliance Management

Posted By Michael J. Burke, Tuesday, September 24, 2019

Even a year or two ago, the idea of digital therapeutics didn’t stir up a great amount of interest among most participants at ASAP’s BioPharma Conference, according to Mike Leonetti, president and CEO of ASAP. That sort of ambivalence no longer applies, as was evident at the September 23 Leadership Forum that kicked off ASAP’s BioPharma 2019, held Sept. 23–25 in Boston.

            The invitation-only gathering of 20-some biopharma alliance leaders was treated to a glimpse into the future—and a privileged look at a rapidly changing present—by senior executives from two companies that have been fast-tracking prescription digital therapeutics in their own alliance. Alex Waldron, chief strategy officer at Pear Therapeutics, and Joris van Dam, head of digital therapeutics for the Novartis Institutes for BioMedical Research, were introduced by Leonetti and by Brooke Paige, vice president of alliance management at Pear Therapeutics and ASAP’s board chair.

            Waldron and van Dam described digital therapeutics as “software as a therapeutic,” or customer-facing software that helps clinically treat disease. It’s still relatively new, but already has become one of the five modalities of modern medical treatment (small molecule, large molecule, gene, cell, and digital). Whereas traditional biopharma alliances are asset-based partnerships formed on the basis of a molecule, in a partnership around digital therapeutics, the technology product is the asset.

            While we often think of wearable devices when we think about digital therapeutics, perhaps the most common such device is your smartphone. So far Pear and Novartis are experiencing some success around products used to treat depression that occurs with patients who have multiple sclerosis (MS) or schizophrenia, for example.

            Patients’ usage of and familiarity with their own cell phones is a big plus in such treatment, both in terms of access—a phone app is available 24/7, when patients need it, unlike a doctor or psychiatrist—and also adherence to the treatment plan, since the app can remind patients to stick to the program they’re on and help them get going with it again.  Other uses being explored include the treatment of addiction and other types of depression.

            Managing an alliance between a smaller, tech-oriented company and a large pharma company can be challenging, of course—as can any partnership between more traditional biopharma and tech. In this case, Novartis brought its commercial infrastructure, clinical trials expertise, and scientific strengths to the table; Pear brought technology, manufacturing, and ownership of the pharmacovigilance aspect, i.e., safety and data reporting.

            As part of the forum, the 20-plus alliance leaders were asked several questions and polled on their responses. Among the highlights:

  • More than 50 percent said their company had at least one or two digital/nontraditional alliances that were being operated as managed partnerships.
  • More than 50 percent said someone other than alliance management or business development managed these partnerships at their companies.
  • More than 80 percent said they expected their companies to increase the number of these digital/nontraditional partnerships in the next two years.
  • Nearly 70 percent reported the biggest challenges of such partnerships included finding a common language, the lack of alliance management skills, and cultural differences.
  • Fifty percent of respondents felt that these partnerships should be managed by the alliance management group in their organization—but nearly as many acknowledged that they don’t currently have the bandwidth to do so.

            In the roundtable discussion portion of the forum, participants came up with a number of elements or processes in traditional biopharma alliance management that would need to be revised, modified, leveraged, or speeded up to meet the needs of digital and nontraditional partnerships and to take advantage of the potential for innovation. These included:

  • Increasing the frequency of governance meetings and check-ins
  • Speeding up decision-making processes and structures and including more senior people in them
  • Educating senior management and managing stakeholders to ensure senior-level support and alignment
  • Hiring more tech-savvy alliance managers
  • Having more people on board who are well versed in IP issues and the regulatory environment
  • Needing to trust the partner in ways beyond what has been common in the past—including continuous data sharing
  • Hiring more disruptors and fewer people who are invested in protecting “the way we do things here”
  • Establishing clear roles and responsibilities from the outset of the alliance, as early as the kickoff (if not before)
  • Understanding each other better, given the different cultures of tech and biopharma companies

A window into the future indeed, and certainly there will be much more to come on this subject as the numbers of digital and nontraditional partnerships in biopharma continue to increase. And as ASAP BioPharma Conference 2019 continues, stay tuned for more of the latest coverage!

Tags:  Alex Waldron  alliance managers  ASAP BioPharma Conference  clinical trials expertise  commercial infrastructure  digital therapeutics  Joris van Dam  Novartis Institutes for BioMedical Research  Pear Therapeutics  scientific strengths  software as a therapeutic 

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The Tsunami Effect of AI on Partnering—Part 1 of the 2019 ASAP Summit Keynote Address

Posted By Cynthia B. Hanson, Friday, March 22, 2019

How do you align for the era of smart?  “Let’s put smart to work” was the mantra Bruce Anderson chose for his keynote address “Partnering in the AI Era: An Essential Shift from Value Chains to Business Ecosystems” at the recent 2019 ASAP Global Alliance Summit in Fort Lauderdale, Florida. Anderson is IBM’s global managing director, global electronics industry, and he painted a vision that appeared highly relevant to alliance managers and their associates in the packed room.

“In my world, with the scope of clients, there is almost [always] an alliance idea that happens several times a day,” Anderson said, setting the stage for his address. “We put a lot of structure around that. I have seen that structure help us define these alliances and what they could do.”

The market is moving so fast from a linear to dynamic approach that you need to ask how your company should be thinking about alliances in this accelerating business approach, he stated. “IBM figured out a long time ago you have to partner, and the real value of companies like IBM is to bring the pieces together to create business value. That’s where the ecosystem comes into play.”

Anderson then provided some context: Design cycles for hardware took years, but now technology development is going faster and faster. As companies come into this space, they need to leverage what they’ve created by “reaching out to a broader ecosystem to create value. The approach is getting more open,” he pointed out. “This is only going to accelerate. The change is not only how products are brought together, but also how they partner in the marketplace.”

In this climate, alliance managers need make sure ideas are aligned “because a lot of thought went into the idea of strategy to get momentum for the alliance in the company. We use the word cognitive. You can use the world AI. We think about augmented intelligence and using data to make life—at work and at home—better. This is done most effectively in the Cloud. So there has been a lot of change for us since the ‘80s. But the context for what this is useful for is industries.”

In the advancing era of artificial intelligence (AI), companies need to create all the pieces—and alliances—necessary to make it easy to adapt for the advancement of products, he said. “Alliances have become fundamental to the idea of strategy. How has IBM shifted over the years?” he then asked, flashing a slide of a revenue chart IBM put together years ago with the overarching header “Over 50% of IBM revenue will come from Cloud and Cognitive Solutions in the near future.” Anderson then followed with a slide on AI “emerging across ecosystems … everywhere,” that was broken into three categories:

  • AI-enabled engagement
  • AI-enabled analytics
  • AI-enabled operations

AI seems to have an unlimited number of applications, and Anderson talked about a small handful of which IBM has been partnering on: digital farming, block chain (which prevents waste), mapping the microbiome, sensor detection of pathogens, and radical recycling. A discussion then took place about the multiple benefits of AI in IBM’s Food Trust.

Stay tuned for more of ASAP Media’s live, onsite coverage of this session and others from 2019 ASAP Global Alliance Summit. Cynthia B. Hanson is managing editor of ASAP Media and Strategic Alliance publications. 

Tags:  AI-enabled engagement  alliance managers  Artificial Intellegence  block chain  Bruce Anderson  Cloud  cognitive Solutions  design cycles  digital farming  ecosystem  global electronics  IBM  partner 

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Partnering the Future: Our Community’s Ahead-of-the-Curve Thinkers Pave the Path Forward

Posted By Michael Leonetti, CSAP, Monday, March 11, 2019
Updated: Saturday, March 9, 2019

Want to know what the future holds for your organization? Go to an ASAP conference or read ASAP Media publications. It’s been that way since the first ASAP Global Alliance Summit in 1999—but two decades later, at the 2019 Summit in Fort Lauderdale, Florida, it feels different. As the future of business rapidly unfolds before us in this partnering everywhere world, it seems our thought leaders are on the cusp of just about everything.

Last fall, I kicked off three conferences in three months on two continents, each time ticking off essentially the same list of trends that now are accelerating alliances and transforming how we partner. On Tuesday, March 12, I welcome alliance management’s best and brightest at the Summit’s opening and my list of game-changing topics remains pretty much the same:

  • Artificial intelligence (AI) software learns to learn
  • Internet of Things (IoT) on the edge
  • Public cloud innovation
  • Cyber security, distributed trust, blockchain, data protection and privacy (in particular, Europe’s General Data Protection Regulation, or GDPR)
  • Med tech, organ on a chip, and bio printing
  • Agile partnering and agile technologies
  • Consumers and their tools (social media) and immersive customer experience (CX)
  • Amazon and Alibaba

For alliance managers in biopharma, I also added the volatility of the Affordable Care Act (ACA) in the US—and healthcare costs everywhere; the co-pay accumulator and the consolidation of patient access; the inevitable convergence of e-services; the role of gene therapy as an economic change maker; digital therapeutics; and new antibiotic discoveries.  

Then, each time after I ticked off this list—at the ASAP BioPharma Conference in September, at the October ASAP Tech Partner Forum, and in November at the ASAP European Alliance Summit—I found myself sitting back in wonder, listening as speaker after speaker boggled my mind. Heading into spring at this month’s Summit—and heading into summer at the June 19, 2019 ASAP Tech Partner Forum in Santa Clara, California, hosted by Citrix Systems—the ride gets even wilder, and more relevant, current, and provocative.

We’ve had CEOs onstage talking about combining Cambridge, Massachusetts, life sciences and Silicon Valley technologies into software-based, FDA-approved therapeutics that replace pills. A global alliance manager who manages a $5 billion public-private partnership dedicated to accelerating the innovative medicines pipeline. Chief alliance officers from software, artificial intelligence, and robotics companies that are partnering at light speeds to automate everything they can, from clerical work and automobile driving to marketing, sales, and even alliance management itself.  

I was amazed to hear in an IoT session the back-and-forth between speakers and audience about regulatory efforts, like GDPR, to stick the data privacy genie back into the bottle. “What about privacy?” ChromaWay’s Todd Miller asked the panelists.  Scott Smith, founder of Fathym, surprisingly replied:

I think people will eventually give up privacy. Go back 100 years, when we all lived in small villages. We lived with no privacy whatsoever. I think that today's privacy issue grows out of [Orwell’s] 1984 and the ‘70s when we were concerned about Big Brother and the CIA, but I think in comparison with human history, today's concern over privacy is an anomaly. I think we’d be shocked at what they already know. … I was sitting next to a 20 year old when Snowden came out. She said, "I thought everyone already knew this.”

There’s a reason we’re so on top of things in the ASAP community: We’re in the middle of it. We didn’t have to do a dissertation on it (though we do have a plethora of PhDs in our ranks). We’re seeing, hearing it, living it every day. That’s why we build our leadership muscle—the topic of the Q4 2018 Strategic Alliance Quarterly cover story. We’ve got to be strong and flexible to pave the road to the future through our partnerships.

Ready for our next mind-blowing workout? Join me and attend at least one of the next three events already on the calendar in this year—the March 11-13, 2019 ASAP Global Alliance Summit, the June 19, 2019 ASAP Tech Partner Forum, and the September 23-25, 2019 ASAP BioPharma Conference. You’ll return to your daily tasks with profound new insights—and a brain that’s just bulging with newfound leadership muscle.

Visit http://asapsummit.org for the most up-to-date agenda for March 11-13, 2019 ASAP Global Alliance Summit, and register for the event, at. See the ASAP Media team’s comprehensive before, during, and after coverage of the 2019 Summit in Strategic Alliance publications and on the ASAP blog.

Michael Leonetti, CSAP, is president and CEO of ASAP and executive publisher of ASAP Media and Strategic Alliance publications. A previous version of this article appeared in Q4 2018 Strategic Alliance Quarterly.

Tags:  Agile partnering  Alibaba  alliance management  alliance managers  Amazon  Artificial intelligence (AI)  bio printing  blockchain  customer experience  Cyber security  distributed trust  GDPR  healthcare  Internet of Things (IoT)  Med tech  organ on a chip  Public cloud 

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The C-Suite Takes Front Seat in Lively Panel Discussion at ASAP BioPharma Conference (Part 3)

Posted By Cynthia B. Hanson, Thursday, November 1, 2018
Updated: Wednesday, October 31, 2018

This is a continuation from the panel discussion “Speak My Language: How to Have a High Impact Conversation with the C-suite,” which took place at the 2018 ASAP BioPharma Conference. See Part 1 of this blog post for background information on the panel, which included:

  • James C. Mullen, chairman of the board of directors at Editas Medicine, Inc., who has grown many organizations dependent on partnerships
  •   Samantha Singer, chief operating officer at the Broad Institute, whose organization partners with multiple industries to achieve the Institute’s mission to impact human health throughout the world
  • Alex Waldron, chief commercial officer at Pear Therapeutics, who is highly skilled at bringing in business development and alliance management expertise to grow a company through partnerships

Christine Carberry, CSAP, chief operating officer at Keryx Biopharmaceuticals, moderated the session. At this point in the discussion, Carberry had just prompted panel members to answer the following: “Let’s dig into where things tend to go awry. How do alliance professionals demonstrate their value to the organization? The second half of my question is, what are some of the pitfalls? Where do alliances get in trouble, and how can an alliance manager avoid those pitfalls?” After listening to the responses (see Part 2 of this blog for panelists’ answers), she added her thoughts.

Carberry: Build C-suite-to-C-suite [connections] early on in the relationship. I use to joke that it’s important to have relationships between companies that play golf so the CEOs can get together. You need to be comfortable getting on the phone with them and having a conversation that can go like this: “This is what we’ve done, tried, and this is why it didn’t work.” This is helpful to an executive. We need to implement what will remove barriers and allow us to go forward. The value proposition may have just changed for the companies: That beautiful future might not get created, because we all know divorce is part of the deal. One of the things you will discover as an alliance manager is  you will get people in the organization grumbling about the partner.

Mullen: How many of you inherited a contact, and you were not at the table? [At this point, nearly everyone raised his or her hand while laughter rippled through the room.] Look for the wishy-washy language. Those are the issues that never got resolved during the contract negotiations.

Singer: No matter how good your business development is, the reality is [your perception of the contract] will not match three months later.

Mullen: If you are talking about “stage gate,” make sure it means the same thing between the partners. It may seem really obvious, but it’s not. Make exactly sure of what they are saying.

Carberry: Have clear definitions. For example, “First Patient In.” You may think things are commonly understood, but lawyers say it’s important to make sure definitions are as clear as they possibly can be.

Carberry then fielded an audience question from Jeremy Ahouse, CSAP, vice president alliances, Merus. “A lot of alliance people complain that when they have to bring bad news, the C-suite thinks they only bring problems. How can you do that so that the messenger doesn’t feel like they will get shot?”

Mullen: You need a fairly straight scorecard for the goals of the partnership, and you need a record against that. That way,  it becomes evident that you are making progress. The fact is, [otherwise], you are just raising problems. Check off the problems, and let them know that they talked to you about it, that work was done, and here’s how it got resolved. Keep a high-level scorecard.

Waldron: I agree on the scorecard. And talk about successes, don’t only talk about problems.

Carberry: Everyone is conditioned to success. So if you are doing your job well, you are having those conversations about problems with us.

Waldron: If your company doesn’t have some kind of periodic review, push for that—even if it’s a 15-minute review. Push for that so you can get in front of them. We had a lot of customers, and both the customers and our company didn’t do everything perfectly. But when I had that review of information first, then when they called me up and let me know, 90 percent of the problem was already solved. I knew about it, cared about it, and it got solved.

See parts one and two of this blog and ASAP Media’s ongoing coverage from the 2018 ASAP BioPharma Conference on the ASAP Blog at www.strategic-alliances.org. You will find interviews with conference presenters and other coverage of leadership and strategy, biopharma-tech partnerships, and other trending conference topics in recent and forthcoming editions of Strategic Alliance Magazine and eSAM Plus

Tags:  Alex Waldron  alliance managers  Broad Institute  Christine Carberry  collaborations  c-suite  Editas Medicine  James C. Mullen  Keryx Biopharmaceuticals  partnerships  Pear Therapeutics  Samantha Singer  scorecard 

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