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E‐commerce in the pharmaceutical industry: threshold of innovation

Rama Prasad Kanungo (Research Co‐ordinator AAFBRU, Cardiff Business School, 31 Colum Road, Cardiff, CF10 3EE)

Management Research News

ISSN: 0140-9174

Article publication date: 1 August 2004



In the last two decades application of E‐commerce is evolving from technology driven to more user driven. Thus E‐commerce has become synonymous with communication, strategy and business practices. E‐commerce aids to exchange information and execute transactions among enterprises and individuals. It facilitates electronic adaptation of communication for business process via EDI (Electronic Data Interchange). More often R&D intensive industries like the pharmaceutical industry implements innovative technologies to gain competitive advantage in the market. E‐commerce provides the pharmaceutical industry with better mode of transaction to achieve competitive advantage and sustained growth. E‐commerce has a considerable impact on the business‐to‐business application, when a diverse group of enterprises become involved in the decision making process particularly in the pharmaceutical industry. This enhances the value of the industry through key underlying processes such as, high value drug innovation, clinical development and trial, project and people management, marketing and sales. This synchronisation of E‐commerce and corporate strategy creates significant value for this industry. The achievement of real value through Ecommerce has three major impacts. First, it enhances the value of the latest clinical developments; second, it increases shareholders’ value and third, it successfully reduces the time‐cycle of research and application. These achievements add substantial value to the industry. Therefore, this article reviews the application of E‐commerce and discusses its significance in the pharmaceutical industry. The theoretical discussion used in previous studies is also presented and four major aspects are highlighted explaining the success of E‐commerce in the pharmaceutical industry.



Prasad Kanungo, R. (2004), "E‐commerce in the pharmaceutical industry: threshold of innovation", Management Research News, Vol. 27 No. 8/9, pp. 98-108.



Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited

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