January was an interesting month. Too many work projects that took time away from writing. Last month, WordPress provided a nice summary of last year’s topics. A look back at 2012 revealed that you were most interested in the healthcare value chain and supply chain.
Looking ahead for this year I would like to focus on the following:
- Healthcare improvements
- Analytics and Mobility
- Big data
- Supply chain management (SCM)
- Customer relationship management (CRM)
- Business transformations for Pharmaceutical and Medical Devices
- Book reviews on relevant topics
Besides these topics I continue to see my activity on Twitter as a ‘service’ to those who are interested in the Life Sciences and Healthcare industry. Key hashtags include:
- #pharma, #medicaldevices, and #lifesciences – how technology, social media, and regulations impact this industry segments.
- #mHealth and #mobility – the use of mobile devices will impact healthcare.
- #hcsm and #sm– how to best leverage healthcare social media.
- #healthit, #it and #CIO – all topics related to IT.
- #sales and #productivity – is a new focus for me since being active in sales
I hope to continue to blog and ‘tweet’ on topics that give help to others. I thank those of you that offered feedback on my blog posts.
The question I keep hearing about is ‘how can Life Sciences CIOs help meet the needs of the business at the current pace of technology?’ Last month I wrote about Realizing a 360 degree view of your customer… and a focus on CRM. This described how IT technology can add value in helping the business keep and acquire customers. This month I want to summarize what is impacting today’s executives and what can be done to have IT be an enabler of value within Life Sciences.
The situation today
In the recent Gartner 2012 CIO Agenda “Re-Imaging IT” by Andrew Rowsell-Jones he presents a summary of the results from an extensive CIO survey, and a key question around the relevancy of IT departments when the business has a broader definition of technology.
Many of you reading this blog post experience the rapid pace of technology as you go about your business each day. Technology is reaching more people across the globe consider these points:
- I’ve heard that in China over 70% of the population have never owned a laptop and went straight to handheld devices.
- In India, mobile phones are more popular than toothbrushes
- And other facts about the rapid pace of technology
In the Gartner survey CIOs ranked the following business strategies in order of importance:
- New customers
- Reducing IT costs
Yet the Life Sciences industry executives have to deal with little or no growth in IT budget and increasing demands from the business for more technology (especially around analytics and mobility). CIOs are constrained from delivering IT innovation from budget to skilled IT resources to organization and culture plus alignment between IT and the business.
CIO as the Chief Innovation Officer
I had read this Forbes article by Perry Rotella entitled CIO = Chief INNOVATION Officer. The essence of the article was to lay out the case for CIOs to have their organizations adopt more of an ‘agile’ approach to the use of technology within IT. I recognize and experience that Life Sciences companies have to deal with Regulations, Compliance and Security. Yet I believe this to can be solved.
I do agree with Perry in this article that the CIOs “greatest responsibility is to create value” for the organization. You drive ‘growth’ via ‘innovation.’ IT enabled innovation can differentiate how you deliver service for medical devices, offer a great customer experience, and improve the productivity within the organization.
IT Service providers can aid and enable CIOs move to a more ‘agile’ approach to generate IT Innovation. I would suggest the following actions:
- Embrace the fact that your current approach to delivering projects will have shortened lifecycles – full of frequent changes.
- Find IT providers that add value from a solution/technology perspective. Think of them as extensions to your team. This reduces the need to up-skill or hires talent to your IT team.
- Fill the gap within your IT team around new technology with IT service providers that can rapidly add value to key projects.
- CIOs are asking for short ‘assessment’ projects that can diagnose the current process and offer solutions with costs and timelines. I’ve helped companies adjust their supply chain or enact benefits studies around specific business processes.
- Focus on smaller and shorter (in terms of duration) IT projects.
- Proof-of-concept projects in cloud computing. Balancing validation between on-premise and on-demand applications. Yes a ‘hybrid’ model is possible. Remember the previous points and align these projects with the business to meet the greatest value.
In the coming weeks I will address mobility and big data. These are some of the hot topics within Life Sciences and they can mean different things depending on if you’re a pharmaceutical or medical device company.
This month my focus is on Supply Chain in Life Sciences. As we head towards the end of the year budgets are being planned and IT projects are being prioritized for next year. Many companies are reviewing their current IT investments in light of mergers and acquisitions and projects that will add to the company’s business ability. My discussions have been around how best to improve your operations at a minimal cost. No one seems to want to buy new IT systems and they want to extract ‘value’ from their current IT systems.
Time to ‘Tune-up’ your Supply Chain
Ask yourself if you are getting the most from your current Supply Chain? Do you feel you’re gotten significant return from your SAP or Oracle investment? It seems everyone had one of these IT solutions. I believe the reason most companies should be looking at their Supply Chain is as follows:
- Most firms have invested in IT solutions to help react quickly and expect demand. We now are moving to ‘collaborative’ business processes as a means for extracting added value from your partners.
- Companies need to give supply chain ‘visibility’ so that the organization can make faster and better decisions.
- Business process improvements need re-training for your people.
I get this now how do I get there?
The answer is to create a ‘road-map’ for your supply chain that includes opportunities (projects) specific to your business systems. The key is how to develop this road-map. You need to have the following:
- Supply Chain experts that can analyze your data and processes.
- IT ability to look at how your SAP or Oracle solutions have been installed.
- Our company has developed a unique set of tools that can analyze your Demand, Supply and Inventory.
We’ve created a project approach to this kind of analysis. Over the next few months I plan to promote this approach for Life Sciences and yet this approach is not just for this industry. I know this can be applied for any industry that is looking to get more value out of their IT investment in supply chain. As we gain traction in the market I hope to offer some proof points to this approach.
I would be interested in your comments and suggestions on this topic.
Last month I spoke about the ‘model’ for integrating clinical operations. In this blog post we’ll review the solution that was presented at the Oracle “OpenWorld” conference held earlier this month. There is also two links to collateral that you can use to help understand how the solution works at the end of this blog post. I welcome your reaction and comments.
I’ve written about ways to improve R&D from the idea of “ERP for R&D” through “Integration” of key business processes. In summary the background issues that I think drive this solution are:
- Access to relevant data
- Getting out of the IT business within R&D
- A solution that is scalable to meet tomorrow’s business needs
How does this solution solve these issues?
Starting with ‘Access to relevant data’ – there have been many attempts to create an IT landscape for R&D. This best-of-breed approach favors decisions that support the best solutions to meet a specific need. Yet if you take a step back and ask how I can get access to facts to make ‘key’ decisions this approach falters. The solution approach being offered starts with the premise that the user needs access to key data. Based on an individual’s role you get access to key data and permission to upload new data. This removes the user from having to make the required ‘conversions’ between solutions to create the information needed. The benefits include:
- Adaptive trials can now be easily facilitated
- Financial decisions tied to key outcomes of clinical trials can be reviewed and decided upon
- Users get to focus on the science of creating new medications and treatments and not the nuances of the technology
Getting out of the IT business – the biggest advantage to this solution is that Pharmaceutical companies can focus on their core business goals of producing new products to complex diseases.
You now have a scalable approach to R&D. This solution not only accommodates your scientists and statisticians you can also invite clinical research organization (CROs). Data security is also key to this solution since you may be adding other teams to help in the development of new clinical products. The solution also takes globalization into consideration as a result of today’s clinical trials.
The purpose of this blog post is to summarize a model for ‘integrating’ clinical operations. I’ll summarize the goals for this model and describe the background and next steps around such an offering. Over the past few months I’ve been engaged with several clients in discussing how our IT Services Company could create such a platform. This new platform should meet the following:
- Lower Operating Costs
- Increase Productivity
- While maintaining Quality and Compliance
There are several very good software solutions yet we know that there is a lack of an ‘integrated’ process that can ‘unify’ the R&D clinical data landscape of IT solutions. The key here is a focus on ‘transformation’ rather than ‘yet another technology implementation.’
In a earlier blog post titled “Improving the Business of RandD” (31Mar2011) the focus was on cloud computing and how this technology could lead to an ‘integrated’ business process. Since companies would be relying on IT Service providers to host these applications. In another blog post “Is It Time for “ERP for RandD?”” (30Apr2011) I spoke to the need for integrated business processes. Now I’ll look to pull these to thoughts together for a more complete view across clinical operations.
Let’s start with the Users
This integrated approach would address users that include Pharmaceutical companies, Clinical Research Organizations (CROs), and any Healthcare entity. We would leverage cloud computing solutions to offer the users with a portal that supports:
- Single point of information capture
- With access to data by role, study and function
- Single sign-on
Here there is a dedicated source of content by pharmaceutical company. Various databases would be organized with content ranging from electronic data capture (EDC) to clinical and scientific data warehouse (CSDW).
Key to the content layer:
- Dedicated source by pharmaceutical company
- Providing flexibility to support variety of data sources
Business Shared Services
Supporting the users and the content is layer of business services ranging from:
- Component user support
- Change management
- Staging and data migrations services
- Data reconciliation
Our team will be presenting this approach at the upcoming Oracle OpenWorld conference in October. In addition to this we will also be presenting on the topic I wrote about last month – Serialization. I am very appreciative of my colleagues – specialists in a variety of topics. What I find satisfying is in ‘stitching’ all this together. We now have several interested clients and the possible next steps are to deploy this solution and that will take some time. I would be interested in hearing from you – and your comments on “Integration for RandD.”
I recently attended an Oracle product training session for ‘serialization.’ The Life Sciences industries, and especially pharmaceutical and medical device companies, are gearing up for the need to offer product traceability. This blog post will be the basis for a possible industry presentation later this year.
There are several solutions that address pedigree and serialization. A recent article by Carla Reed provides a great background to this topic. (Reed, Carla. “Beyond the mandates: Finding business value in mass serialization and supply chain visibility.” Pharmaceutical Manufacturing June 2011: 34-36.) I can recall as early as 2006 when radio frequency identification (RFID) tags were introduced as the solution for the industry. We know that for various reasons this never panned out due to price for the tags and adoption within the industry. Today a good example of this technology is the use of RFID with the devices that help automate toll collection on the various US highways.
Alternative technologies to RFID tags include 2D barcodes. Printers can create these unique tags at a fraction of the cost of RFID tags. The Oracle solution allows you the ability to attach these tags and their associated numbering at any level within your product hierarchy. This data can then be organized into a ‘pedigree’ document for your product. This would be analogous to ‘shipping’ papers that you would normally prepare once you prepare to send your product off to a distribution center or local warehouse.
Implications for supply chain
Now doubt that technology alternatives exist to help solve the problem of product traceability and authentication. Companies today are being forced by local and global regulations for the need to provide traceability solutions. The questions for many companies is just how to go about solving this problem. Let’s first decide what you want to ‘track’ within your product and your business process. I often describe the application of technology with the use of a ‘babushka’ doll (or Russian nesting doll). Where do you want to apply a tracking solution within your product? How do you want your supply chain to track your product?
Why IT services?
An interesting comment came out of the training session when one of the attendees asked “when would I use an IT services company?” Some manufacturers have looked to their packaging and labeling suppliers to provide the ability to ‘serialize’ and track their products. This would be a great idea were it not for the fact that these suppliers lack the resources and ability to discuss the need for traceability within a ‘business process.’ This became very clear when the discussion turned to when do you apply serialized information? You see no two products are manufactured in the same way.
Some manufacturers use production order with routing to make their products and some use process orders and recipes for their products. That was a tough conversation and when I raised the fact that production and process orders can often be mixed – well let’s say that the value of IT services providers that can navigate a client’s business process answered this question.
Some next steps
In my opinion IT service providers need to offer:
- The ability to understand a client’s business process and offer cost-effective solutions to the application of serialization and product traceability.
- Provide the ability to organize a series of steps within a project to deliver a solution. You need good project management – deliverables that includes documentation (yes it is a validated environment) – with skilled resources. Ask your IT service providers if they have any ‘accelerators’ for this type of work?
- Have the technical ability to apply Oracle and SAP solutions. This is a mixed technology environment and there is no one solution to solve this problem.
I will let you know if this turns into an industry presentation later this year.