Innovation management for life science companies

May 31, 2022 | 3 minute read
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By Gayle Hayes, Senior Director of Product Strategy, Oracle

These days, it’s a given that change can happen almost overnight. To keep pace, life science companies are looking at new ways to find and invest in the best innovations for the highest return and greatest value. Innovation management software helps you evaluate, select and track execution of the best ideas and inventions. That’s why many life science companies have embraced innovation management as a best practice to address the changing healthcare industry.

Operational impact of ineffective innovation management

Without effective innovation management, often innovation projects fail because they either don’t meet a company’s corporate strategy or because there were not enough resources available to execute. Innovation is especially difficult for life science companies because it requires a consistent focus on meeting regulatory compliance. Life science companies that use innovation management applications often gain a competitive advantage because they can track ideas through introduction and at every step of the life cycle. To shape your company’s portfolio, improve execution, and increase ROI on innovation projects, you should consider managing these considerations:

Align innovation with your strategy. Ensure that your market goals link directly to strategic initiatives, company investments, and the annual operating budget. Collect and prioritize ideas prior to formal innovation execution or before you define specific initiatives to pilot.

Manage your current portfolio profile. Identify the resource requirements you need to sustain current offerings and, at the same time, support new initiatives. Account for the number of active projects, the average project duration, the quantity and type of resources allocated, the level of risk, and your overall portfolio capitalization.

Identify key constituents. Clarify who should be involved in the process and record their job descriptions. Participants should include contributors, subject matter experts and decision makers who can provide ideas, assess risks, and ask challenging questions about alternatives, intellectual property, and competitive response. To successfully manage your innovation portfolio, it’s critical that your corporate culture gives everyone a voice.

Define standard metrics. Define requirements, evaluate ideas, select the most promising proposals, and manage innovation projects based on standardized business cases that factor in both risk assessment and the availability of resources. Use analytics and benchmarking to provide continuous feedback and show which programs are best aligned to—and performing against—portfolio objectives.

Three types of innovation for life science companies

There are three distinct types of innovation, or what some refer to as “innovation channels,” that have emerged for life science companies. Properly managing these innovation channels can have a significant impact on your business performance and market competitiveness. For each of the three channels, you can better determine which proposals align to your corporate strategy and make the best use of your critical resources.

  1. Product Innovation: This channel defines critical requirements for patient and target markets. The goal is to create competitive, differentiated products that align with corporate strategy and use the company’s intellectual property.
  2. Business Innovation: This channel manages the direction, development, and evaluation of new business models in life sciences. New business models may include co-development, market expansion, licensing, new channel development, and M&A activities which can reduce portfolio risk, increase speed-to-market, and improve margins.
  3. Operational Innovation: Aggregating and balancing internal priorities which could include information technology strategies, science and technology initiatives, outsourcing opportunities, and Lean Six Sigma programs to improve execution performance through enterprise transformation.

Establish innovation as a core competency

Oracle Cloud Innovation Management is specifically designed to help you get your best ideas to market, faster. Whether your innovation channel is product, business, or operationally focused, you can re-use requirements, technologies, processes, and even leverage prior analyses to make your innovation pipeline more efficient and productive. By having the ability to visualize your resources and standardize the innovation process, you can ensure you deliver safe, effective, and economical therapies to the global healthcare market.

 Learn more about Oracle Product Lifecycle Management.

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