sap business objects for pharmaceuticals · 2017. 2. 23. · institutionalize compliance,...

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Jim Sabogal, VP and Global IBU Director for Life Sciences

March 12, 2008

SAP Business Objects forPharmaceuticalsPrinceton Hyatt Hotel, Princeton, NJ

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SAP and Business Objects ComplementingEach Other’s Offering

Structured / engineered Unstructured / ad hoc

Process-centric

User-centric

Business User Applications

Work Center, Duet

SAP NetWeaverComposite Environment

(CE) /Business ProcessModeling (BPM)

© SAP 2008 / 2

Goal for today: How the joining of Business Objects and SAP enable the creationof an information hub that spans the enterprise and can benefit all functional

business units.

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Agenda

1. Strategy and Update on SAP Business Objects2. How does Business Objects help the Industry?3. Next steps

© SAP 2008 /

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Segment Segment Examples

Industry Segments and Examples CompaniesM

edic

alD

evic

esBi

o-Te

chPh

arm

aE

thic

als

Phar

ma

Gen

eric

s

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The SAP Strategy is based on the ThoughtLeadership topic….

© SAP 2007 /

SAP AG 2007, Title / First Name Last Name / 12

Co-InnovateEvolve vertically integratedBlockbuster development

into virtually integrateddevelopment and

commercialization modelbased on M&A, partnering,

co-development

1

The Three Strategic Imperatives

Institutionalize Compliance, Operational Excellence and Co-Innovationneed to be leveraged across the Healthcare Ecosystem.

§

InstitutionalizeCompliance

Reinforce public trust bymanaging compliance andrisk in all aspects of your

business in a collaborativeapproach

2Scale Operational

ExcellenceEnsure operational excellenceon a global scale to manage

proliferation in products, pricetags, channels, partners,

reporting etc.

3

SAP AG 2007 , Title / First Name Last Name / 13

3) Enable CoreProcesses forCo-Innovation

Patient InsightsDiscover Actionable Insights

1) InstitutionalizeCompliance

Proven Compliance and Validation

2) ImproveOperationalExcellence

Industry Best Practices

Time toValue

PlanSegmentExecuteAnalyze

Time toMarket

DiscoverDevelopSubmitLaunch

ProductQuality

BuyMake

ReleaseCalibrate

ProductSafety

IdentifyInvestigate

MonitorTrace

DeliveringProfitable Patient Treatments

on the Life Sciences Business Process Platform

How To Enable The Three Strategic ImperativesTo Transform Your Business


In Summary: SAP Is The Platform For Transformation

Time

InstitutionalizeCompliance

Reinforce public trust bymanaging compliance and riskin all aspects of your business

OperationalExcellence

Ensure operationalexcellence on a global scale

Co-InnovateEvolve vertically integrated

Blockbuster development intovirtually integrated development

and commercialization model

PersonalizedMedicine

Compliance Platform•Financial•Operational•Environmental•Global Trade

End to End Processes•Supply Chain•Manufacturing•Sales & Marketing

Life Sciences IVN•Aris Global•Conformia•… More Targeted

Treatments leading toPersonalized Medicine

SAP AG 2007, T itle / First Name Last Name / 11

Addressable Market SizePer New Product

Volu

me

of N

ew P

rodu

cts

Intr

oduc

ed P

er Y

ear

MASS

HIGH

TARGETED

LOW

… is Leading to a Transformation Opportunity

PersonalizedMedicine(Future)

TargetedTreatments(Emerging)

Targeted Therapeutic Offerings forMicro-SegmentsVirtually integrated network of Pharma,Bio-Tech, MedDevices etc.Distributed risk and cost sharing:Economies of Scope

Blockbuster(Today)

Mass Market – sub-optimal PatientOutcomesEnd-to-end development – economiesof scaleHigh cost- High Risk- High ReturnsAstronomical cost of product failuree.g. Vioxx

The industry is transitioning from producing broadly applicable treatmentsand products to more-individualized, targeted treatments and therapies.


The Game Change in Big Pharma …

The blockbuster model is no longer the growth enginein the industry

The blockbuster's share of the total market represented about45% of overall sales in 2001, grown from 6% in 1991By 2015 global blockbusters worth $160 billion in sales willbe coming off patentDue to dramatically decreasing R&D productivity, pharmawill find it hard to replace much of this revenue

0

10

20

30

40

50

60

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

The PharmaInnovation Gap

PharmaInnovation

Gap

* Source: SAP, McKinsey, IBM Business Consulti ng

The blockbuster model has become a high risk modelOn average, of 20 drugs entering Phase I trials, only one willbe approved for marketingFailure of a drug in the late stages of the approval process isprohibitive

MFX Daily

The loss of Vioxx resulted in a40 percent plunge to Merck's

stock price


Key Trends Impacting The Life Sciences Industry

* Source: SAP, McKinsey, IBM Business Consulting

More Demanding Patients

Want safety and limited side effectsWant new drug delivery to ease their lifeWant to be informed and select drugsEmerging countries demandinglow cost drugs

Innovation Pressure

Innovation pipeline of Pharma is dryingoutIP issues effecting global competitionBiotech's emerge with higher R&DproductivityIndian pharma company’s costs areabout 75 percent lower

More Stringent Regulations

Ensure patient safetyLower the cost of health to avoid HC crisisIncrease drug effectivenessDefining the parameters of innovation


What’s on the CEOs Mind?

Risk andComplianceInnovation

Pipeline

ShareholderReturn

At the heart of it:How can I profitably servenew market segments with

innovative treatments?

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So What Are the Key Challenges in the LifeSciences Industry

* Source: SAP, McKinsey, IBM Business Consulting

More Demanding Patients

Want safety and limited side effectsWant new drug delivery to ease their lifeWant to be informed and select drugsEmerging countries demandinglow cost drugs

Innovation Pressure

Innovation pipeline of Pharma is dryingoutIP issues effecting global competitionBiotech's emerge with higher R&DproductivityIndian pharma company’s costs areabout 75 percent lower

More Stringent Regulations

Ensure patient safetyLower the cost of health to avoid HC crisisIncrease drug effectivenessDefining the parameters of innovation

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More Demanding Patients..

The moment of truth for any life sciences company is a safe patient. The priorities are compliance(safe products) and patient needs (customer driven issues)

SAP, U.S., China Meet in Beijing on RFID“ On November 8, 2007, representatives of the ChineseMinistry of Information Industry and the U.S. Departmentof Commerce met in Beijing to discuss the role of RadioFrequency Identification (RFID) in areas such as foodsafety, transportation, and health care. In addition to the150 representatives from multinational corporations fromChina and the U.S., colleagues from SAP GovernmentRelations attended the meeting and played a decisiverole in setting up the discussions.”

(1) Source: http://www.fda.gov/oc/initiatives/counterfeit/hdmanadcs1113_files/textmostly/slide3.html

SAP Enabling Patient SafetyEver Increasing Drug Counterfeits (2)

Most drugs prescribed in theU.S. today are effective infewer than 60% of treated

patients (1)

Delivering treatment that isproactive, predictive,

personalized and participatoryunlike the intuitive medicine

practiced across the world today.

Patients today are moreinformed and want betterand safer treatments to

specific diseases thus puttingadditional pressure for Life

Sciences companies..

(1) Source::Realizing the Promise of Personalized Medicine, Mara G. Aspinall and Richard G. Hammermesh,Harvard Business Review (HBR), pp 109-117, October 2007

Efficacy of Treatment Personalized Medicine Patient Safety

http://www.fda.gov/oc/initiatives/counterfeit/hdmanadcs1113_files/textmostly/slide3.html

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More Stringent Regulations…

Best-in-class Life Sciences companies spend a significant percentage (9.5 %) of their revenues ininstitutionalizing compliance and product safety measures.

OperationalCompliance

FinancialCompliance

Global TradeCompliance

Employee Health &Safety Compliance

The consequences ofnon-compliance are

very punitive andastronomically

expensive

The manufacturing and distribution of pharmaceuticals, medical devices and diagnostics is strictlyregulated by various government agencies throughout the globe.

Institutionalize Compliance

Institutionalize Compliance

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Innovation Pressure..

Source: http://www.imshealth.com

Declining Blockbuster Pipeline:Blockbuster model is no longer thegrowth engine in the industry

Rigorous Approval Processes:Rigorous Safety / BenefitsAssessment done at each stepof the approval process

Huge Investments:Average of 10 to 15 years to bringa new medicine with investmentsas high as 800 million USD

Competition:Emerging countries like India aregiving tough competition with costsas 75 % low as

http://www.imshealth.com/

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Leveraging Business Objects across theLife Sciences Solution Map

Suppliers,Partners &RegulatoryAgencies

Customers,Channels &RegulatoryAgencies

Discovery Commercialization Operations Sales & Marketing Service & Support

Enterprise Management & Support

ResearchIntellectual Property and Patent

ManagementAlliance Management

Design & DevelopmentR&D Administration

Process & Product Life Cycle ManagementClinical Trial Management

Clinical Trial Supply Management

Product SupplyProcure to Pay

Supply Chain PlanningCompliant Manufacturing

Enterprise LIMSEquipment MaintenanceWarehouse Management

Order to Cash

Sales & MarketingContract Management

MarketingField Sales

Sales Operations and Performance AnalyticsChannel Management

Support ServicesCustomer Service Management

Parts ManagementService Execution

Compliance & SafetyRegulatory SubmissionProduct Quality & CAPAProduct & Patient Safety

Secure Tracking & TracingRisk Management

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Agenda


© SAP 2008 /

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SAP BUSINESS OBJECTS“LAB TO PLANT” FOR LIFESCIENCES

© SAP 2008 /

public© SAP 2007 /

ResearchOrganizations

Suppliers

ContractManufacturers

Supply Chain

Sales &Marketing

Clincial Trials

Manufacturing

R&D

Payers

$Contract Organizations

Wholesalers

Patients

MembersPhysicians

The Challenge……Bridge islands of IT platforms or systems in Life Sciences R&D

Life Sciences Executives need to accelerate time to market,mitigate compliance risk, and control costs

5. Increasing costs for ITintegration that do not matchvalue delivered for business

2. Increasing lab complexitythru clinical trials andhand-off to manufacturing

1. Long time to bring newproducts to the market

4. High costs to ensureregulatory compliance, productregistration and patient safety

3. Hard to managemanufacturing costs andquality across supply chain

Service &Support

public© SAP 2007 /

Payers

$Contract Organizations

Wholesalers

Patients

MembersPhysicians

Raw MaterialSuppliers

Supply Chain

Sales &Marketing

R&D

Manufacturing

ClinicalTrials

ResearchOrganizations

ContractManufacturers

SAP

Benefits with SAP and Business ObjectsProvide greater visibility across Life Sciences R&D

2. Gain instant visibility intoclinical business processes,development operations forbetter business decisions andreporting

1. Collaborate across departments andbusiness partners to accelerate time tomarket for new products

3. Utilize assets more efficiently,reduce errors, and lower inventorieswhile reducing product shortages

4. Mitigates risk ofnon-compliance and reduce efforts for datacollection during product registrations andhandling complaints

5. Enable R&D data warehousing ,scalable, validated businessprocessesin a regulated environmentwith low TCO

Only SAP enables Life Science Executivesto accelerate time to market, mitigate compliance risk, and control costs across

seamlessly connected business processes

Service &Support

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Traditional Analysis and Reporting Yields Poor ResultsLeaves Executives Unable to Make Informed, Timely, Accurate Decisions

DECEMBERNOVEMBEROCTOBERSEPTEMBERAUGUSTJULYJUNEMAYAPRILMARCHFEBRUARYJANUARY

Executives responsible for strategic decisions are removed from analysis processes,delaying decisions, increasing costs, and driving sub-optimal business results

Executives

Consultants

Marketing Sales/Merchandising

Logistics and Distribution

AB

C

Data Analyst

Consumer Data

Pain: Decision makersseparated from analysis

Pain: Low data qualityand analysis yields low

confidence

Pain: Strategic decisonsoutsourced for expensive 3rd

party analysis

Pain: Manual,disconnected and costly

data managementprocesses

Inventory Allocation

? ??

??

Promotion Effectiveness

PRICE PROFIT

VOLUME

New Product Launch

?NEW PRODUCT

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SAP and Business Objects Enables Harmonization andCooperationLinking Executives to Decision Processes Real-Time, with Confidence

Data harmonization and advanced modeling enable strategic decisions in real-time, drivingsales & profits, ROI, and long-term customer loyalty

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9 3

12

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45

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Solution: SAP integratesand harmonizes data

sources for inter-department cooperation

Solution: SAP enablesinvolvement in all key

decisions

Solution: Solution: Decision makersactively involved in all aspects of the

decision process

Consumer Data

Marketing Sales/Merchandising

Executives

AB

C

Logisticsand Distribution

Solution: Executivescollaborate with

confidence on strategicdecisions in real-time

Demand DrivenSupply Networks

Integrated Sales andMarketing

PRICE

PROFITVOLUME

New Product Developmentand Innovation

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For Today…..

© SAP 2008 /

Platform Updates and Innovations: Competitive IntelligenceInformation Hub - Dr. Bernard L. Palowitch - CEO, IKnow LLC

The latest innovations and additions to our suite of offeringswith a special focus on:

Data QualityUnstructured Data AnalysisInformation PresentationCompetitive Intelligence Workflow Process

Customer success stories:Real world business intelligence success stories from severalof the top Pharmaceutical companies.

In legal and complianceIn research and development

public© SAP 2007 /

For additional information and to get a copy of these slides please visitthe Life Sciences Business Process Expert (BPx) web page at

https://www.sdn.sap.com/irj/sdn/bpx-lifesciences

or to the BPx general web page: http://bpx.sap.com/and go under the "Industries" sectionand then to the "Life Sciences" page

Thank you!

https://www.sdn.sap.com/irj/sdn/bpx-lifesciences

http://bpx.sap.com/

public© SAP 2008 /

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