Traditional commercial models for biopharmaceutical companies drew clear lines. A company’s audience mainly consisted of physicians. Its offerings stressed the clinical efficacy and safety of its products. Its channel strategy comprised mostly in-person contacts and direct-to-consumer advertising. But a number of well-known trends have made these models outdated. Chief among them are changes in technology, costs, and channels.

Despite these very real challenges few biopharma companies have truly adapted their commercial models to address new realities. To confront these challenges, companies must fundamentally rethink three simple but critical commercial model questions:

1. Audience: Which customers will you engage?
2. Offering: What value will you provide to them?
3. Channel: What channels will you use to create seamless, compelling experiences?

In this article, part of the Monitor Perspectives white paper series, Jeff Wordham and Sheryl L. Jacobson outline how companies can succeed by fundamentally rethinking their approaches to these three questions.

Jeff Wordham is a Partner at Monitor and a leader of the firm’s Innovation practice. In this role, he focuses on helping companies identify and exploit new sources of profitable growth through innovation, including developing and commercializing new business models and concepts. He has led innovation efforts in a variety of industries, including pharmaceuticals, biotech, vaccines, and medical devices, as well as consumer products, telecommunications, and industrial products. Jeff received his bachelor’s degree in commerce from Queen’s University in Canada, and holds an MBA from Harvard Business School. He is based in New York and can be reached via e-mail at Jeff_Wordham AT Monitor DOT com.

Sheryl L. Jacobson is a Partner at Monitor, a leader in the firm’s Market2Customer® practice, and co-head of the New York office. Since joining Monitor in 1996, she has worked in a variety of sectors undergoing fundamental transformations, such as life sciences, financial services, media, and nonprofits. Sheryl has dedicated her career to helping organizations grow—in revenue, profit, shareholder value, and social equity— in the face of technological, social, regulatory, and economic turmoil. Sheryl is also the account leader for one of Monitor’s longest-standing client relationships in the life sciences sector. Over the past 10 years, she has helped the client transform itself into a “market-driven science” bio-pharma firm, and is currently working to transform its customer engagement model for health care practitioners, payers, and patients. Sheryl has an AB in history from Dartmouth College and an MBA from Columbia University. She can be reached via e-mail at Sheryl_Jacobson AT Monitor DOT com.