Topic Re-inventing your

pharmacy in 3-5 years -

why is it necessary?

Norman Dunn JP.

PharmD candidate

Objectives 1. Define reinventing

2. Determines who really re-invents?

3. Understands what is the psychology behind reinventing

4. Determine if re-inventing is necessary or not in Pharmacy

5. What should be re-invented

6. Decide what is a good reinventing period . Is 3-5 years realistic?

7. Take away practical tips for reinventing.

8. Blow your horn!

Definition

Re-Inventing:

Change (something) so much that it

appears to be entirely new.

Who is this?

Before

After

Who really re-invents?

1. Any one with an idea, product or

service

Cont’d

2. Stalling of business

-Results from failure to stick with the core (or sticking with it for too long)

- Problems with execution, misreading of consumer tastes

http://hbr.org/2011/01/reinvent-your-business-before-its-too-late

Other reasons

• The need to spend more time with family.

• The market may have changed.

• The economy may have reshuffled your customer base.

• You may be bored.

• But you need to be practical too. Any change involves risk. If you're paying for kids in college and have a steady cashflow, you may have to suck it up a few more years. http://www.entrepreneur.com/article/220523#ixzz2WuMCAkZV

Why do we invent?

To stay ahead of your competitor and

remain viable!

Before you re-invent

Look at your core competencies and

stick with what you do best!!

Famous names that were

slow to re-invent

• Kodak

• Nikon

• Compaq

• Blockbusters-Movie

Famous re-inventors

• Pepsi

• Coke

• KFC

• Amazon- books-ebooks (kindle)

• American Airlines- the new American

airlines

Example of

re-inventing

• TrainSignal CEO Scott Skinger –lecture- DVD.

His company TrainSignal, has sold millions in IT courses on disc, which go for as much as $400 a crack. In one year the company brought in more than $7 million.

http://www.inc.com/christina-desmarais/5-tips-for-reinventing-your-business-model.html

• Migrated to cloud technology when

DVD was going out of style.

• Subscribers can download online

version for offline usage and viewing.

http://www.inc.com/christina-desmarais/5-tips-for-reinventing-your-business-

model.html

What is the psychology

behind reinventing

Influencing and maintaining customers purchasing habits

Research!

1.Research the heck out of what customers want- fashion designers predicts!

2. Choose your price points carefully

3.Get passionate about quality-passion for quality is the key to building a strong brand.

And so will assist in determine the timing of reinventing

Is re-inventing is

necessary or not in

Pharmacy?

• When your sales have reached a

ceiling/stagnant

• When you notice that you are not seeing some of your customers anymore

• When most of your older customers are dying and you are not seeing the younger ones

• When there is/are new commercial and residential activities in your area

• When you have new or potential threat to your business- competitors

• When your sales are falling and your

cost are rising

Old saying!

If it ain’t broke don’t fix it!!!!!

What should be re-invented ?

Decision!!!

Should we do a little tweak or a do

major overhaul,“

Depends on

• Finances

• Market capacity- customer target

market- changing demographics

• Knowledge –experience

• What is it that your really want to

offer?

• Companies fail to reinvent themselves not necessarily because they are bad at fixing what’s broken, but because they wait much too long before repairing the deteriorating business

• Not enough energy is spent creating the foundations of successful new businesses. Because of that, they are left scrambling when their core markets begin to stagnate.

What is a good

reinventing period . Is

3-5 years realistic?

Business cycle.

• Year 1-3- absorbed in getting things started.

• Year 3-4 growth phase .

• Year 5 > Then they hit a glass ceiling, or don't find the work challenging anymore and want to try something different.“

http://www.entrepreneur.com/article/220523#ixzz2WuLOU35K

Take away practical tips

for reinventing.

5 steps to reinvent

1. Know When to Make a Change

2. Decide What You Want

3. Follow the Plan

4. Make the Switch

5. Mentor and Manage http://www.entrepreneur.com/article/220523

Know When to Make

a Change

The easiest way to figure out what to change--and at what magnitude--is to work backward.

• Are you chiefly interested in reducing the hours you spend in the office?

• Are you sick of selling in a Pharmacy and think that running a dog bakery is your destiny?

• "Once you have clarity on your goals and values, you have a compass to guide you and help you decide which ideas are good and which are brilliant." http://www.entrepreneur.com/article/220523#ixzz2WuOTLpWL

Decide what to

change

Decide what type of change is

necessary to meet your goals

Should we do a little tweak or a major

overhaul,“

Follow the Plan

Every business owner should be experienced at--making and following a business plan.

Therefore act as if you're starting from scratch. You need to think it through thoroughly, figure out who the competition is, how you are going to beat them and what the costs are." http://www.entrepreneur.com/article/220523#ixzz2WuPzJhQV

Make the Switch

• During the transition -likely be running two businesses at once as you phase out the old business model and ramp up the new one.

It's like going through a long divorce before

committing to a new relationship. It's not fun!!!!

The solution

Create a detailed exit strategy and allow time to-

a. negotiate new leases,

b. bring on new employees or train current employees.

c. Be transparent through the whole process with vendors, customers, employees and, most important, your family.

Give everyone notice that changes are coming, when they will happen and what it means for them

Mentor and

Manage

• Even those committed starts to deviate.

• Get outside help. - bounce things off of to keep them from going off in crazy directions,

• Some people go through a grieving process. They're letting go of a piece of something they've built and need to process that. There's a lot of stuff to deal with, but if you don't, it will come back and bite you hard." www.entrepreneur.com/article/220523#ixzz2WuSS0dnX

Blow your horn!

• When you do make the change shout

about it

If you keep it to your self no ones will

know!!!

• So …… Advertise it !

Promote it !

And be proud of it!

Make the change be transformational

Before

After

After

Thank you