by Thomas Sim, 10 Mar, 2001
Microsoft Words doesn't have the word 'Rep-ing' because it is a colloquial which doctors and pharmacists call us to describe our job - medical representatives rep-ing for a living. Thanks for the high respects that the public has on doctors and pharmacists. Or else, medical rep-ing may even become medical begging. On many occasions, it has become medical begging in the eyes of doctors and healthcare professionals.
Why? There are two facets of this problem. Insofar, the results are currently shaped by two PEST factors: technology and competition.
Facet No.1: From the evolution of medicine to what is available now to the physicians, there is immense need of information and enormous expectation of high standard of healthcare. This demand super-specialists in ultra-sub-disciplines of the already vast field of medicine. These people are geniuses and they know that very well themselves. They are no simple persons, they demand respect and crave for egoism, kiasu-ism, selfishness and greed - see my earlier articles on The Human Touch. Technology enhances these behaviours and 'begging' is to satisfy these needs.
Facet No.2: The easiest way to make a sale is by asking for help. A salesman's fundamental role is to ask for a commitment. There is nothing wrong with this because every one of us does it every day. We do this to our spouses, children, bosses, and even taxi drivers. Most importantly, we do this to ourselves. We ask ourselves to be careful while driving; we ask ourselves for commitment to study hard and live a good honest life or commit crime. When we do this too much due to increased competition, we get drifted away from the essence of time and trust in a selling relationship. The resultant is our customers think we are asking too much for favours. This degrades our rep-ing to 'begging'.
So, what would the future of rep-ing be?
An attempt to answer this question is not difficult at all. Let us look at more advance countries. The medical representative profession is still intake in USA, Canada, UK and France. These are countries with Veto power in the UN Security Council and their political and economic systems are pretty stable over the years. With the recent mergers and acquisitions of major pharmaceutical companies, mega-corporations of size equivalent to General Motors, Microsoft or AOL Time Warner are currently undergoing metamorphosis. The top 5 giants are likely to stay for a long time, at least for our generation.
When there is competition among medical representatives, only the best ones will be picked. The requirement to the job will be two extremes: 1. highly technical for differentiation strategy or 2. highly persuasive a negotiator for cost strategy - according to Michael Porter (again).
To dissect future possibilities of the pharmaceutical industry as a whole, let's look at it by management technique called scenario building. This is a preferred technique when the general environment is relatively stable and the factors affecting it are limited in outcomes.
Some PEST factors to consider are:
1. Technology - Advanced v.Stagnate
Biotechnology and Proteomic research, or Make do with generic copies
2. Political - State-run enterprise v. Private healthcare
Highly bureaucratic, or Highly dynamic
3. Social/stakeholders
Minority groups Strong and demanding v. Fragmented minority weak influence,
Professionalism high v. uethical practices
Healthcare Management Organisations powerful v. Healthcare Management Organisations divided and weak
4. Cost of care - Expensive v. Affordable
5. Regulatory Stringent control v. Loose enforcement
Sole distribution rights and dispensing rights enhanced, or Parallel imports and status quo on dispensing act which deter quality goods and promote imitation and faked goods
Scenario A
Due to mergers and acquisitions, stronger companies are formed in research and development. The future medicine is highly technical and individualized to patients. The cost of manufacturing is high and products are highly differentiated. Government continues to be influential in the healthcare policies of the country due to electorate pressure and regulatory measures are stepped up to ensure welfare and order. Professionals are sub-specializing with more technologies and super-specialists are well sought after. Healthcare management is fragmented and healthcare professionals are calling the shots. Insurance costs runs high and not publicly affordable. Private hospitals are norm in premium care segment of market. Division of wealth generally widens and minority pressure groups (diabetic society, kidney foundation) are weak in exerting influence.
Scenario B
Mergers and acquisitions incur more corporate bean counting. M&A turns out to be a major failure. High cost of research results in products that are not affordable by most people and sales of premium products never takes off. Government bureaucracy worsens and healthcare reform resulted in a few strongly connected healthcare management organizations. Cost of public health care cannot be supported by government revenue and thus, compulsory insurance scheme is exercised. Cheap medical insurance schemes entail generalized healthcare and thus, favour generic copies of pharmaceutical products. Healthcare professionals are at the liberty of the healthcare companies and unethical practices mushroomed to cut cost and make do with the mere minimum. Minority groups are strong and demand quality with low cost and financial reimbursements by desperate companies. Profit shrinks and closure of R&D facilities in major pharmaceutical companies results in low morale and finally retrenchment. Regulatory measures are lacking, imitation goods and parallel imports and malpractices become rampant at the risk of patients.
Lets hope the scenario is A rather than B.
If the situation being that the money is placed in the 'differentiation' strategy (scenario A) with the advance of biotechnology in general and human genome and proteomics in particular, a sound mind would go for the job in these technological field rather than "me too!" or "I am cheaper!" type of pharmaceutical manufacturers (scenario B).
The possible answer for future rep-ing is sharpen your technology or the technology will drift you away. Or do some saving and 'con' your ways through!
May be we ought to be insurance salesman or con-artists after all.
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