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Strategic Decision Support

Strategic Decision Support Fact Sheet view pdf

Life science companies operate in an environment of daunting technical, clinical, regulatory, and commercial uncertainties. Throughout the business life cycle, executives are often faced with high stakes decisions that involve substantial risk with uncertain outcomes. In these situations, effective management of business risk is critical. Utilizing advanced financial evaluation and decision analysis techniques, Maxiom Group's Strategic Decision Support practice helps executives make critical, high value business decisions that translate into profits and market opportunities.

Maxiom Group has significant experience using modeling, financial analysis and risk assessment techniques that can add a tremendous amount of value and insight to the strategic decision-making process. Thoroughly evaluating strategic investment decisions in the highly dynamic and uncertain environment of life sciences demands an approach that not only helps quantify the risk and opportunities associated with technology and market conditions, but also values the ability to be flexible in the staging and execution of investments.

Our experienced practitioners have developed a unique set of services and methodologies utilizing methods such as:

  • Real Options Analysis
  • Monte Carlo Simulation
  • Optimization Models

These tools are applied to help life science executives identify ways to manage and mitigate risks, and exploit opportunities in the face of substantial uncertainty. These techniques have been applied successfully in our life science clients to:

  • Value and calculate expected returns from highly-uncertain projects and capital investments
  • Choose between R&D projects, and optimize portfolio value
  • Evaluate strategic alternatives
  • Assess in- and out-licensing drug development efforts
  • Determine strategies for staging and executing significant investment decisions
  • Optimally allocate resources within a portfolio of investment opportunities in order to maximize value

A leading global pharmaceutical manufacturer retained Maxiom Group to develop a strategic decision support model to assist in performing demand forecasting for one of its key products.

The client's current demand forecasting was a complex process with a high degree of uncertainty due to a constantly changing business environment. Many variables were driving forecasts and, generating what-if scenarios based on forecasts was a manual and time consuming exercise. Maxiom Group developed a demand forecasting simulation model that utilized Monte Carlo simulation to simulate each variable independently and account for inter-dependencies between variables. Through this tool, the client is able to develop more realistic demand forecasts to drive its business and isolate the variables that have the most impact on the forecast.

For other clients, Maxiom Group has deployed decision support models based on Real Options Analysis for plant construction and capacity decisions, product development portfolio investments and other critical business decisions.