Tags |
|
|
Links |
|
|
Main Subject - Pareto's Law- Your Formula For Success
A 'dirt-world' retail business I used to manage had a large turnover, a very high profit, and less than 100 lines. Early in 2001, I was contracted to manage another business. This one carr
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
ied over 800 different lines, yet had a turnover of only about a sixth of the other business, and a lower profit margin. They both had a comparable amount of traffic and credibility in the
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
market, so how can it be that the results were so different?
The explanation starts with Vilfredo Pareto, an Italian economist and political sociologist who lived from 1848 to 1923. He d
The explanation starts with Vilfredo Pareto, an Italian economist and political sociologist who lived from 1848 to 1923. He d
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
evised the law of the 'trivial many and the critical few', better known as Pareto's Law, or the 80:20 rule. This rule says that, in many business activities, 80% of the potential value can
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
be achieved from just 20% of the effort, and that one can spend the remaining 80% of effort for relatively little return.
Old Vilfredo might have lived a century ago, but he was spot on.
Old Vilfredo might have lived a century ago, but he was spot on.
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
I've been in business a long time, and I can confirm the almost universal truth of the 80:20 rule, in many forms.
- When Sales Manager of a Realty office, I had 19 sales staff working to
- When Sales Manager of a Realty office, I had 19 sales staff working to
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
me. About 85% of the business was written by the four top staff.
- In a Consumer Electrical business I owned, around 75% of the turnover came from the the best-selling 20% of the stock.
- In a Consumer Electrical business I owned, around 75% of the turnover came from the the best-selling 20% of the stock.
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
In an eco-tourism business I managed, there were almost 40 Departments of stock. One department alone produced over 25% of the profit; the next five departments produced the next quarter
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
of profit; the next seven another quarter, and the last twenty-five or so together only produced the last quarter of profit.
The 80:20 Rule applies in almost every sphere. It's uncanny. I
The 80:20 Rule applies in almost every sphere. It's uncanny. I
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
n almost any field, 20% of the resources produce 80% of the result. It's vital to understand that the reverse is also true- things that take up 80% of your time and resources, will only pr
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
duce 20% of your results.
Stocks, products, services, insurance, litigation, people- the 80:20 Rule keeps coming up! Look for it and you'll find it.
The universality of this principle sh
Stocks, products, services, insurance, litigation, people- the 80:20 Rule keeps coming up! Look for it and you'll find it.
The universality of this principle sh
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
ould be a powerful guide for you in business. Find out how it applies to your enterprise, and you have the power to set the vital priorities which will mean the difference between failure,
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
survival, and success. Take the time now to look at your business. Look at where the results are coming from, and concentrate on those areas. Look at some of these areas...
- Have a prod
- Have a prod
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
uct range? Have a look at how much of your profit comes from each item. Put your effort into the 20% that give you 80% of your sales- your winners.
- Selling products or services? Most li
- Selling products or services? Most li
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
ely, 80% of your sales come from 20% of your customers- the ones who make the big purchases and are repeat-buyers. Cherish that 20%.
- Have a sales force? Have a look at how much of your
- Have a sales force? Have a look at how much of your
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
profit comes from each person. Make sure you reward and retain the 20% that are your winners.
- Have an affiliate program? Find the top 5-20% who give you 80% of your income, and make sur
- Have an affiliate program? Find the top 5-20% who give you 80% of your income, and make sur
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
e you support, encourage and reward your winners.
- Do advertising? Have a look at where the sales come from. Then identify the few ads that really pull, and the few places where you run
- Do advertising? Have a look at where the sales come from. Then identify the few ads that really pull, and the few places where you run
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
hem that really produce. Then refine your winning ads, and run them in those few places that give you the best results.
- Check your web traffic logs! Which keywords are bringing you the
- Check your web traffic logs! Which keywords are bringing you the
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
most traffic? Which search engines? Which websites? You'll find that a small number of keywords, search engines and websites give you the lion's share of your traffic. Nurture them, and bu
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
ild on those strengths!
Run the 80:20 Rule over YOUR business today. It will save you time, effort, money and resources, and take you further down the road to business success. Bon voyage
Run the 80:20 Rule over YOUR business today. It will save you time, effort, money and resources, and take you further down the road to business success. Bon voyage
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.mainsubjects.org.ua/article/24660/mainsubjects-Paretos-Law-Your-Formula-For-Success.html">Pareto's Law- Your Formula For Success</a>
BB link (for phorums):
[url=http://www.mainsubjects.org.ua/article/24660/mainsubjects-Paretos-Law-Your-Formula-For-Success.html]Pareto's Law- Your Formula For Success[/url]
Related Articles:
Treat Your Suppliers With Respect
5 Newspaper Advertising Myths Revealed
Bookmark it:
|