massmedic program program · 2017-03-30 · roadmap implementation. roadmap. Îsales planning...

© 2007 IBM Corporation

MassMEDICMassMEDIC ProgramProgram Optimizing Sales and Services for Competitive AdvantageOptimizing Sales and Services for Competitive Advantage

June 5th, 2007

© 2007 IBM Corporation2

Medical Device Industry - Sales & Services Trends (Simon Goodman)

Program Overview (Prasad Rao)

Service Transformation (Prasad Rao)

Sales Transformation (Simon Goodman)

Questions

Agenda


Medical Device Industry Trends

MDI is going through a rapid consolidation. Bringing in newly acquired companies under single FDA-approved process is every acquiring company’s utmost priority.

As there are many small and medium size companies (70% of overall market share) entering into device manufacturing industry, most of the companies are looking to invest in their core business aspects R&D and Sales, Marketing and Service.

IBM internal estimates reveal that life sciences companies are investing in a core set of IT solutions specific to their industry.

Life Sciences Transformation accounts for approximately one-quarter of all IT spending in the industry with 18% annual spending growth.

The future growth estimation by the MDI analysts is 4.4% which is $154.3 Billion by 2011.


Trends continuedThe market for healthcare is relatively concentrated, with the top four players accounting for approximately 30% of the global revenues.

A considerable percentage of this remaining 70% of the share is combination of small and mid size companies.

These companies will be eager to invest in solutions with pre-configured functionality which can support regulated business processes.

US region accounts for 46.3% of the global market’s value in 2006. In comparison, Europe and Asia-Pacific account for 35% and 16.7% of the market’s value respectively.


Trends continuedSurgical and medical equipment sales proved the most lucrative for the global health care market in 2006, generating total revenue of $98.1 billion, equivalent to 78.7% of the market’s overall value.

In comparison, sales of dental equipment generated revenue of $15 billion in 2006, equating to 12.1% of the market ’s revenue.

The compounded annual growth rate of the market in the period 2006-2011 is predicted to be 4.45.


Understanding the common pitfalls of CRM projects

IT vs Business Driven– IT will enable the solution; Business has to drive the project to achieve the planned results

Lack of Senior Management involvement– Senior management is typically ‘hands-off’ after the project kick-off

Underestimating the Change impacts– Users are impacted – once-and-done training is never enough– The entire Organization needs to be ‘prepared’

Technology maturity, fit and ‘blend’– The system – the technical components working together to support business processes – has to

work!– Plan for “sensible” phasing of users and technology to iron out the kinks

Post go-live support and user-adoption challenges– Support processes need to be in place– Proactive vs Reactive, where possible


Program OverviewProgram Overview

Case Study: Medical Equipment Manufacturer


Executive Summary

COSTSCOSTS• CAPEX = $XX• P&L Impacts:

• 2005: $XXX• 2006: $XXX• 2007: $XXX

• Checkpoints release funding • Program duration 19 months

RISKSRISKS• Executive commitment• Willingness / ability to change• Becoming a data-driven

business• User adoption• Losing our entrepreneurial

spirit

CHALLENGECHALLENGE• A sales and services oriented

company• Aggressive growth goals• Process / infrastructure unable to

support growth• Manage by intuition, not fact

BENEFITSBENEFITS• $XX over 5 years• Readiness for growth

• Standard processes• Better access to data• 360° view of the customer• Service management platform


To fill capability gaps, we must prioritize initiatives into a phased transformation roadmap

IDENTIFY GAPS

IDENTIFY GAPS

GROUP BYCAPABILITY

GROUP BYCAPABILITY

PRIORITIZEINITIATIVES

PRIORITIZEINITIATIVES

IMPLEMENTATIONROADMAP

IMPLEMENTATIONROADMAP

Sales PlanningContact ManagementActivity ManagementAccount ManagementSales ForecastingOpportunity ManagementTerritory ManagementSales ReportingHandheld and Wireless

SALES FORCE EFFECTIVENESSEffectively plan and deliver the right message in calls on the appropriate target customers and consistently capture useful information to share and leverage for improved and productive future interactions

S1

S2a

S2b

Order InquiryOrder Status

InitiativesBenefit Driver CapabilityGroupings

ICMCompensation PlansCompensation EngineCompensation Predefined Queries Compensation Analytics

Contract InquiryQuote InquiryPrice Inquiry

Sales PlanningContact ManagementActivity ManagementAccount ManagementSales ForecastingOpportunity ManagementTerritory ManagementSales ReportingHandheld and Wireless

SALES FORCE EFFECTIVENESSEffectively plan and deliver the right message in calls on the appropriate target customers and consistently capture useful information to share and leverage for improved and productive future interactions

S1

S2a

S2b

Order InquiryOrder Status

InitiativesBenefit Driver CapabilityGroupings

ICMCompensation PlansCompensation EngineCompensation Predefined Queries Compensation Analytics

Contract InquiryQuote InquiryPrice Inquiry

Low

Med

High

Cost Key Prioritization

1. S12. SE13. M1

4. OM5. SE26. S2B

7. ICM8. M29. S2A10. M3

OperationalBenefit

Complexity High

S1

S2a

SE2

SE1

M3

M2

M1

ICM

High

Low

OM

S2b

Low

Med

High

Cost Key Prioritization

1. S12. SE13. M1

4. OM5. SE26. S2B

7. ICM8. M29. S2A10. M3

OperationalBenefit

Complexity High

S1

S2a

SE2

SE1

M3

M2

M1

ICM

High

Low

OM

S2b

30 days of Validation budgeted for S1 & SE2

Order Entry/Mgmt Process Improvement (0M)

I 1

5 4 4 5 4 4Sep DecOct Nov

4

Project Concerto PMO

Handheld Device Selection

Core Template Design

Cytyc Sales Analytics (Staggered)

Cytyc Legacy Integration -POC

Cytyc Field Service POC

Marketing Deployment (M1/2/3)

Incentive Compensation


Service Deployment

Cytyc Sales (TP & NS, 2a & 2b)

Cytyc Sales Deploy ThinPrep

Cytyc Marketing (M1 & M2 & M3)

Cytyc Service (SE1)

Cytyc Service & Marketing (SE2)

Cytyc Sales Pilot (Pilot)

Sales Deployment

AprMar DecNovOct Apr2007

May JunFeb MarJan2005 2006

May Jun Jul Aug SepFebJan5 44 5 4 5 5 4 4

PI 4

4 5 4 44 4

S 3 SE 3

CTD 8

A 3 D 5 B 6 T 5 I 4

A 3 D 6 B 6 T 6 I 6

D 4 B 7

I 4

A 2 P 6 I 2

A 6 D 10 B 9 T 12 I 2

A 3 P 7 I 3

A 5 B 8 T 13 I 3

30 days of Validation budgeted for S1 & SE2

Order Entry/Mgmt Process Improvement (0M)

I 1

5 4 4 5 4 4Sep DecOct Nov

4

Project Concerto PMO

Handheld Device Selection

Core Template Design

Cytyc Sales Analytics (Staggered)

Cytyc Legacy Integration -POC

Cytyc Field Service POC

Marketing Deployment (M1/2/3)



Service Deployment

Cytyc Sales (TP & NS, 2a & 2b)

Cytyc Sales Deploy ThinPrep

Cytyc Marketing (M1 & M2 & M3)

Cytyc Service (SE1)

Cytyc Service & Marketing (SE2)

Cytyc Sales Pilot (Pilot)

Sales Deployment

AprMar DecNovOct Apr2007

May JunFeb MarJan2005 2006

May Jun Jul Aug SepFebJan5 44 5 4 5 5 4 4

PI 4

4 5 4 44 4

S 3 SE 3

CTD 8

A 3 D 5 B 6 T 5 I 4

A 3 D 6 B 6 T 6 I 6

D 4 B 7

I 4

A 2 P 6 I 2

A 6 D 10 B 9 T 12 I 2

A 3 P 7 I 3

A 5 B 8 T 13 I 3


Leading

Optimizing

Practicing

Developing

Aware

1. Sales Strategy

2. Custom

er Acquisition

3. Loyalty and Retention

4. Execution

5. Sales Support

6. Usability

7. Profitable Sales

1. Contact C

enter Strategy

2. Facilities Managem

ent

3. People, Culture & O

rganization

4. Information &

App. Systems

5. Entitlement Verification

1. Field Service Strategy

2. Service Delivery

3. Problem & Service Level M

gmt.

4. Entitlement Verification

5. People

6. Culture & O

rganization

7. Information &

App. Systems

1. Order Entry

2. Order Processing

3. Timely Q

uery Managem

ent

4. Integrated Returns

5. Order M

anagement S

upport

1. Marketing Strategy

2. Custom

er Information & Analytics

3. Segmentation & Targeting

4. Marketing Effectiveness

A. Sales B. Contact Center C. Field Service D. Order Management E. Marketing

The Capability Maturity Model illustrates significant gaps faced in achieving our future state vision

Maturity Levels

Functions

Dom

ains

Current

Target

Capability Gap

Target State

Note: Domain averages shown


Technology Benefits

Multiple systems to manage

Inefficient ability to scale as the company grows

Many “one-off” applications and patches

Islands of data to manage and support

Sunset of multiple legacy systems

A unified systems environment

Scalable and flexible

Leading practices “built in”

CURRENT FUTURE / VISION


Retired Systems

Field Service Handheld

ERP

Data Warehouse

Legacy CRM System (Lab)Quote and Contract

Management

Enterprise Reporting

Complaint Investigation SIEBEL

Sales Handheld Device

Legacy CRM System (Office)

Legacy CRM System

Siebel Analytics Reporting

Technology Architecture


Global Delivery for Sales and Service

IBM Onsite IBM Siebel GDC

Change Mgmt, Configuration Mgmt, Environment Setup and Mgmt, Documentation Mgmt,Methods and Tools

Medical Device CompanyProgram management

Business Release Management

Technical Design

System Integration Test

Deployment

User Acceptance Test

Build & Unit Test

DefineUser requirements

(WHAT)

Functional Design

Project management Team management

Review/Approve Functional Design

DefineSiebel

System requirements(HOW)

Effort Estimation / Impact Analysis

Effort Estimation Review/Signoff

Functional Test case

Technical Design Review/ Signoff

Functional Design Review


Service Transformation Service Transformation

Prasad Rao - IBM


Benefits for the Future – Customer Support

A new Tier 1 customer support function is deployedTier 1 agents accept all calls, are trained to solve or route as appropriateTier 1 agents will be “entry level”Consolidation of capabilities into Tier 2 support functions

FUTURE / VISION


Benefits for the Future – Technical Support & Field Service

Systematic, integrated service management system w/ tools, processes and metrics:

– Increase phone fix rate, reduce visit rate

– optimized dispatch and call handling

– Real-time service data and trending– service agreement status

(entitlement)– Optimize field service inventory /

reduce service time and cost– FSEs receive weekly customer

listings of service contracts nearing expiration and pursue future business potential

FUTURE / VISION

5-Year NPV = $XXM


Tier Service Delivery Model-Agent Grouping and Characteristics

Tier 1

Tier 3

Tier 2

Technical SupportSupport Specialist Finance DepartmentClinical AffairsInvestor RelationsCustomer ServiceClinical SpecialistInternal Sales

Field Service Coordinator

Universal Agents

Call F

low


Service Implementation

A number of leading practices were referred to and implemented during the definition of ‘To Be’ processes. These bring about significant process improvements (on completion of implementation) in the contact center and dispatch areas, for example:

• Development of a tiered service delivery model• Single ownership of service request• Transfer of activities from tier to tier

40 different call types maintained in SiebelTiered Service Delivery Model for Call handlingAuto assignment of Calls based on Skills and availability of the FSEInterfaces between Siebel and ERP to exchange data across the applicationsTerritory Administration maintained in Siebel


Siebel Audit TrailFeatures

Audit Scope

Audit Trail Content

Parent-Child Associations for Audit

‘Siebel Audit trail’ option was discussed with business team and they approved implementing this solution.


Audit trail was enabled on Service Requests

SR #: 1-1KVDX Modification: New SR (SR Category/SR Type) and New Activity (1-1KVE4) Captured in Audit Trail (see highlighted record below): Y Status: Passed


Installed base re conciliation reports help Asset Management


Overall Test ApproachThe Test execution approach will follow the high level method depicted below. Different types of testing will be performed and tasks and deliverables related to each type of testing will be represented and monitored in the master project project plan.

Test Execution

Go-Live

Manage Infrastructure and Environments

Perf. Testing (T3)

Regression Testing(T3)

Integration Testing (T3)

UAT/Validation Equipment (PCs, Blackberry devices, Lab) In place

(See Slide 14)

-Siebel,QAD,VETTRO,Qualcyte Teams will be involved

Conversion Testing (T3)

-Sales UAT Test Scripts will be executed

System Testing (T3)

UAT/validation Testing(T3)

Break/Fix Development (Defects in D2)


Sales TransformationSales Transformation

Simon Goodman - IBM


Benefits for the Future

Common tools, processes, and data Fact-based decisionsLess time spent on administrative dutiesTechnology will allow the Rep can do his typical day-to-day call activity planning and tracking from the “palm of his hand”Future rolling forecasts 180 daysReporting capabilities enabling a full picture of the businessCustomer retention actively trackedStandard set of compensation approaches—systematically track progress against goals

FUTURE / VISION

5-Year NPV = $XXM


Project Summary

Key Challenges up Front– The Company has grown to date via acquisition resulting in disparate systems, non-integration

technologies and silo-ed business processes. – Three silo-ed business units with varying levels of maturity in the sales business processes (ranging

from almost non-existent to some documented business processes) – Dated technologies supported by an immature IT organization spanning multiple vendors which

resulted in duplication of data in stand alone data-marks when data was needed to be exchanged between legacy systems

3 Key Technical Components of the Implementation1. Siebel eMedical Sales Force Automation

• Focused around Business Planning/Objectives, Opportunity Management, Call Planning and Tracking, and Forecasting

• Flexible design to support core vs business-unit specific requirements & processes2. Antenna HandHeld

• Enabling real-time wireless access to critical Customer-related data anywhere any time on BlackBerries and (Palm) Treos

3. Siebel Analytics (Data Warehouse) Reporting• Focused on summary and detailed sales trending reports, showing Forecasts vs Actuals


Solution Overview

SiebeleMedical 7.8

SiebelAnalytics

SAP

Main

AccountsContacts Activities-----------------------------------------Search Results:

AccountsContactsOpportunities

Open-----------Search-----------Settings-----------Exit

EDWCognosReports

•• Business Objectives / PlanningBusiness Objectives / Planning•• Account ProfilingAccount Profiling•• Opportunity ManagementOpportunity Management•• Activity Planning & TrackingActivity Planning & Tracking•• ForecastingForecasting•• Sales ReportingSales Reporting

•• AdAd--Hoc Hoc ‘‘Slicing & DicingSlicing & Dicing’’•• Sales Trending ReportsSales Trending Reports•• Forecast Forecast vsvs ActualsActuals ReportsReports•• Pipeline ReportsPipeline Reports•• Call Activity ReportsCall Activity Reports•• ……

(2) Antenna Software HandHeld / Wireless Medical SFA Application

(1) Siebel eMedical Sales Force Automation Application

(3) Siebel Analytics Reporting Dashboards and Toolset


Our overall approach was to stick to out-of-the-box and minimize customizations as much as possible:

Where possible, promote and utilize the use of standard Siebel functionality.Focus on the set of standard Siebel Tools and Workflow-based configurations to support the inclusion of the prioritized set of application requirements.Prioritize and minimize the code-heavy customizations that are required to implement complex business rules, and which typically take longer to develop and test, and which are more expensive to maintain long-term.

Promote & Utilize

Prioritize & Focus

Prioritize & Minimize

Out-of-the-box functionality

Siebel Tools Configurations,

Siebel WorkFlow

Customi- zations

Leveraging out-of-the-box Siebel was a guiding principle

8

Accounts:Addresses

Comments/Notes:This configuration is most relevant for Hospitals which can have multiple addresses that can sometimes be blocks apart.The selected Account is summarized in the top applet Since the Sales Rep (particularly new Reps) may not be able to easily identify the address, multiple addresses and are displayed in the lower applet, with the associated Address Type

Specifications:Screen: Accounts:AddressesConfiguration Changes:

Add additional field, “Address Type” with drop-down valuesReference ‘List Of Values’ spreadsheet for values

WarehouseLoading DockReception…

List Of Values to be finalized mid May during DesignNot a “Required” field; Rep entered (no conversion); Informational only does not drive any downstream processing or logicThis is to be monitored as it is used.

Will NOT be Pre-populated.

Will unlikely be used except in the Hospital Example.

Sample Storyboard

Where high-priority customizations to out-of-the-box were required, detailed annotated storyboards were used to ensure clear and consistent designs,

understood by all.


Project Results

People and Process– Alignment of processes and technology to support current sales forces (~350 Users) as well as growth

strategy. – Over time, Users will find their own way to use the system – even if not quite as trained, and not as a

standard… this is a good thing!

Technology– Users loved the HandHeld application – great enthusiasm– Application customization performed in an efficient/cost-effective way, using a blended team of US-

based and global resources


Thank You!

massmedic program program · 2017-03-30 · roadmap implementation. roadmap. Îsales planning...

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