Anti Counterfeiting As Business Opportunity

Mar 31, 2011Download as PPTX, PDF1 like925 views

This document discusses anti-counterfeiting strategies as both a business opportunity and obligation. It argues that counterfeiters are commercial competitors who undermine brand value, and that product security can differentiate brands by assuring quality, safety and authenticity. The document also suggests improving business processes through anti-counterfeiting efforts, noting most processes can be strengthened by examining costs and linking up steps without shortcuts.

Anti-Counterfeiting: Strategic Business OpportunityMark Davison

Personal background22 years in healthcare, 5 years product securityAuthor: “Pharmaceutical Anti-Counterfeiting” (Wiley, New York, June 2011)“Serialisation: Opportunity or Perfect Storm?” (SecuringPharma.com, April2011)Seminar Leader: “Authentication Academy” (London, 23-24 June 2011, Heathrow Windsor Marriott)mark.davison@bluespherehealth.com3

Counterfeiters are Competitorsmark.davison@bluespherehealth.com

mark.davison@bluespherehealth.com5Fakes-R-Us

Success brings imitatorsmark.davison@bluespherehealth.com7Photos © Lew57 on flickr.

Five Forcesmark.davison@bluespherehealth.com8Source: Adapted from Harvard Business Review

mark.davison@bluespherehealth.com9Raw ingredient shortagesDomination of market by one supplier

mark.davison@bluespherehealth.com10Unauthorised genericsCounterfeitingDiversionRepackaged & expired products

mark.davison@bluespherehealth.com11Price controlsReimbursement rulesForced generic switchingInternet pharmacies / consumer choice

mark.davison@bluespherehealth.com12Patent expiryIP infringementInternet pharmaciesCounterfeits / lookalikesIllicit trade

mark.davison@bluespherehealth.com13Price cuttingTolerating off-label useCost avoidance(pedigree, traceability)

Model of Competitive Advantagemark.davison@bluespherehealth.com14

Counterfeiter Value Creationmark.davison@bluespherehealth.com16

Security = OpportunityExamine ALL costs and liabilitiesBrand paternalism is deadCommunication is instant, global and loudmark.davison@bluespherehealth.com17

Security = DifferentiatorQuality, safety, authenticityLegitimate products vs. fake products…not…Brands competing to be “safer” than each othermark.davison@bluespherehealth.com18

Security = Timingmark.davison@bluespherehealth.com19

Most processes can be improvedmark.davison@bluespherehealth.com21

Keep the objective in mindmark.davison@bluespherehealth.com22

Check that processes link upmark.davison@bluespherehealth.com23

Shortcuts are often a bad ideamark.davison@bluespherehealth.com24www.failblog.com

DRASTIC“From drastikos(Gr.):active, effective”(OED)

Conclusionsmark.davison@bluespherehealth.com27

Counterfeiting is an obvious threatCriminal, technological, process counter-measuresAnti-counterfeiting is a clear obligation……but also an opportunity to improve our businessesmark.davison@bluespherehealth.com28

Authentication Academy23-24 June 2011LondonHeathrow Windsor Marriottwww.authenticationacademy.comwww.agoralive.com/bluespherehealth/event1(to register directly)mark.davison@bluespherehealth.com29

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Anti Counterfeiting As Business Opportunity

1. Anti-Counterfeiting: Strategic Business OpportunityMark Davison

2. AgendaPersonal background & introductionCounterfeiters as commercial competitorsProduct security as a differentiatorImproving business processes with brand protectionAnti-counterfeiting as customer servicemark.davison@bluespherehealth.com2

3. Personal background22 years in healthcare, 5 years product securityAuthor: “Pharmaceutical Anti-Counterfeiting” (Wiley, New York, June 2011)“Serialisation: Opportunity or Perfect Storm?” (SecuringPharma.com, April2011)Seminar Leader: “Authentication Academy” (London, 23-24 June 2011, Heathrow Windsor Marriott)mark.davison@bluespherehealth.com3

4. Counterfeiters are Competitorsmark.davison@bluespherehealth.com

5. mark.davison@bluespherehealth.com5Fakes-R-Us

6. mark.davison@bluespherehealth.com6

8. Five Forcesmark.davison@bluespherehealth.com8Source: Adapted from Harvard Business Review

9. mark.davison@bluespherehealth.com9Raw ingredient shortagesDomination of market by one supplier

10. mark.davison@bluespherehealth.com10Unauthorised genericsCounterfeitingDiversionRepackaged & expired products

11. mark.davison@bluespherehealth.com11Price controlsReimbursement rulesForced generic switchingInternet pharmacies / consumer choice

12. mark.davison@bluespherehealth.com12Patent expiryIP infringementInternet pharmaciesCounterfeits / lookalikesIllicit trade

13. mark.davison@bluespherehealth.com13Price cuttingTolerating off-label useCost avoidance(pedigree, traceability)

14. Model of Competitive Advantagemark.davison@bluespherehealth.com14

15. Brand Owner Value Creationmark.davison@bluespherehealth.com15

16. Counterfeiter Value Creationmark.davison@bluespherehealth.com16

17. Security = OpportunityExamine ALL costs and liabilitiesBrand paternalism is deadCommunication is instant, global and loudmark.davison@bluespherehealth.com17

18. Security = DifferentiatorQuality, safety, authenticityLegitimate products vs. fake products…not…Brands competing to be “safer” than each othermark.davison@bluespherehealth.com18

19. Security = Timingmark.davison@bluespherehealth.com19

20. Improving Security & Business Processes

21. Most processes can be improvedmark.davison@bluespherehealth.com21

22. Keep the objective in mindmark.davison@bluespherehealth.com22

23. Check that processes link upmark.davison@bluespherehealth.com23

24. Shortcuts are often a bad ideamark.davison@bluespherehealth.com24www.failblog.com

25. DRASTIC“From drastikos(Gr.):active, effective”(OED)

26. 26D.R.A.S.T.I.C.Process

27. Conclusionsmark.davison@bluespherehealth.com27

28. Counterfeiting is an obvious threatCriminal, technological, process counter-measuresAnti-counterfeiting is a clear obligation……but also an opportunity to improve our businessesmark.davison@bluespherehealth.com28

29. Authentication Academy23-24 June 2011LondonHeathrow Windsor Marriottwww.authenticationacademy.comwww.agoralive.com/bluespherehealth/event1(to register directly)mark.davison@bluespherehealth.com29

Editor's Notes

#3: Interactive discussion, not lecture-styleQuestions as we go
#4: Book will be available from Blue Sphere website or “through all good bookshops”
#8: Arabic Elvis – Salaam aleikum, baby
#18: Examine ALL costs and liabilitiesDoing nothing is not a cost-free optionPharmaceutical paternalism is deadDoctor doesn’t “know best” any morePatients know best (or at least want to be heard) Communication is instant, global and loudBrands have good and bad days but…dialogue with customers is better than just listening
#19: Find ways to emphasise and publicise qualityCollective action
#22: Do you need all those different suppliers?Does your packaging need to be that design / shape / material?Do suppliers do what they say they do, when you aren’t there to check?
#23: Make sure the end result is a coherent process that works for the business and the customer
#27: If brand owners and other stakeholders don’t act soon, the room to manoeuvre may become limited.There are a finite number of solution providers and partners for pilot studies.Drastic is a memorable acronym for some of the main elements that need to be addressed.

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Anti Counterfeiting As Business Opportunity

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Editor's Notes