strategy

Life Sciences Industry Cloud

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As we begin the New Year we’ve gone through our resolutions. Now the focus for us is to gain a fast start 2015 loadingand the aim of this first blog post around the idea of the Life Sciences Industry Cloud. I’ll provide the background and challenges you will face, and what you could consider that will put IT in a position to help meet your business goals.

Background: The Enterprise in 2015 

Cloud computing has been often discussed as the innovation option for Life Sciences companies. Back on September 7th, 2014 I wrote about an initial way of getting into cloud via Testing in Planning your Move to the Cloud? as an option to get the organization used to using cloud applications.

I read an interesting article from Alison Wagonfeld (@awagonfeld) The Enterprise in 2015. Which takes an investor’s perspective on technology trends for the Enterprise, and the focus on “industry cloud” applications. The article points our examples from Salesforce and Veeva of applications that can be rapidly deployed and consumed by business users. This puts Enterprise software vendors in a place to play catch-up with two distinct reactions/approaches. One is to buy up point solutions, and leave the integrations to the systems integrators (SIs) or the end-user. Cloud applications are easy to deploy the key here is to make sure you plan out the business process. The second being a hybrid approach where part of the solution is deployed as ‘on-demand’ (in the cloud) and integrated with the rest of the back office application (on-premise). This forces the end-user to rely on their SI to have the right resources and plan for every interface and data point.

Software challenges 

There is a nice summary on the software challenges we will face as we seek to improve the business with technology. Lora Cercere’s (@lcecere) article “Undeniable Truths of Software” provides some very good perspectives on the challenges that Enterprise Software vendors face. She describes a variety of challenges with software companies.

Because the cloud vendors come at the problem from the user side it is easier to create a solution with no back-end integration. The challenge for the Enterprise Software vendors is do they re-write the application or develop only a portion of the business process. There are some Life Sciences clients that are waiting to see how the enterprise software vendors respond to the challenge from cloud applications. There are other considerations from a business user perspective that is driving these discussions*.

Electric plug

[*I will look at the issues with Big Data and Mobility in another blog post.]

Best practices that allows you to leverage cloud applications

Prior to cloud applications the focus was on ‘best practices’ for each industry. I contend that we have to resurrect these processes as a guide to reaching the Life Sciences Industry Cloud.

Working industry cloud

The focus should be on the business process and the integration points needed to offer the complete process for the end-user. This allows for an easier time to ‘validate’ the process. In 2015 we are at a point where business users are clamoring for IT to improve the business. The benefits are as follows:

  • Enterprise software vendors can pick which part of the business process to move into the cloud or stay on-premise. Timing for all this is inevitable as the users of the solutions prioritize business process that give the highest benefits and can rank them so.
  • System Integrators (SIs) will have to live with the fact that deploying cloud applications are more about the experienced resources used in faster and quicker projects than long program deployments. Done well repeat business will help drive net new opportunities.
  • Clients need to become more aware of the users and how they work to give the right business process. Change should be the motive in all this – failure to recognize this will lead IT to fall out of favor with the business.

For many customers the move into cloud applications can be daunting given the investment in on-premise software applications. Today’s users want to work more efficiently and have already personal experience with cloud applications. The goal for 2015 is how well you can adopt the Life Sciences Industry Cloud into your organizations.

Let me know what you think?

Thanks,

Jim

Planning your Move to the Cloud?

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For most IT departments supporting the business with new functionality
means planning a move to the ‘cloud.’ With most ofmoving to the cloud the Enterprise software vendors are now offering their solutions via the cloud. In this blog post, I will present some the most commons myths against the use of ‘cloud computing’ and offer a common Testing application to help you and your organization get experience with ‘cloud computing.’

 

What is holding you back from moving to the cloud…?

Today as you read this blog post you most likely have your personal data in the cloud. Costs for storage have been dropping, and recently my Dropbox account went from 100GB to 1TB for the same monthly fee! So what is holding organizations back from moving to the ‘cloud?’

  • Compliance – Life Sciences companies have the need to perform computer system validation (CSV). Very often the push back is around how to define the systems and processes.
    • Drawing a line around the components and defining the connections between the applications helps to focus on what needs to be validated. Once you define this as part of your process – the validation and documentation that you used with your legacy systems remain the same. Just because you have a part or all of your process in the cloud should not hold you back from performing CSV on your process.
  • Data security – there is still a ‘fear’ that going to the cloud means a less secure IT environment.
    • Overcoming this fear is to look at how you currently access your data. I work closely with Amazon Web Services (AWS). Where the concept of a ‘private cloud’ is certainly an option in protecting access to your data. In short, this is a direct connection between your IT landscape and the cloud servers.
    • Another way of overcoming this fear is via industry examples, and thanks to Andy Waroma and the folks at Cloud Comrade here is a link to an article “Amazon Web Services becomes first cloud provider to handle sensitive US defense data” So if the US Defense industry can use cloud services it most certainly can be leveraged for your application data.
  • Cost – what are the savings from moving to the cloud?
    • We have been accustomed to a cycle of Capital requests for software and hardware on an annual basis, and support costs is an on-going expense.
    • In working with my clients comparing the overall costs – moving to the cloud can bring down the overall support costs by 2X!
    • The added benefit from a move to the cloud is the flexibility it can bring to your current IT landscape. This is where you need to get some experience with cloud computing to gain further insight in this area. We will discuss this next.

 cloud-computing

Typical IT Landscape

For purposes of this discussion we will focus on an SAP landscape. The situation is where you want to add additional users to an existing landscape of ERP, Business Warehouse (BW) and NetWeaver. What you would do is to test the performance of your applications with the increased user count.

For my client we provide Testing services and invariably we have to request additional hardware to ‘simulate’ this environment. The solution is to provide….

 

Performance Testing in the Cloud

Consider the use of cloud computing services for “Performance Testing” to achieve the following experience:

  1. Requires a discussion on connecting your IT landscape to Amazon Web Services or similar provider. This will ensure and test the security around your data. Direct Connection versus Virtual Private Network (VPN)
  2. Server sizing and set-up that is similar to your landscape. Please note: the hardware will not be exactly what you currently have in your landscape.
  3. Have your IT department provide Basis support for performing client copies and any software application changes you need to simulate in the cloud. If you don’t have the resources available you can ask your systems integrator to provide this service for you.
  4. Costs – include a one-time setup – an operating cost and cost for when you don’t run you’re ‘performance testing.’ Your costs will vary based on your needs.

data-server-cloud

In summary, moving to the cloud should be part of your annual IT project planning. You can work through your Compliance and Data Security needs. The goal should be a move to shift your overall support cost from maintaining your hardware to an operating cost that will allow for expansion of your IT landscape to meet the increasing needs of the business.

In discussing this with clients that have the ‘traditional’ server centers there is a hesitance to move to the cloud. I would recommend you look to do your ‘performance testing’ in the cloud to give you and your IT team the experience in working with cloud computing services. The benefits can be realized very quickly.

I am open to your feedback, so tell me what you think?

Thanks,

Jim

Are you Effectively using Big Data?

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Since the market introduced this term we’ve tried to make a distinction between data and ‘more’ Using Big-Data
data. In my opinion all data is ‘big data.’ That the challenge for IT departments is how to ‘quickly’ turn these new sources of data into ‘value’ for the business. In this blog post I’ll explain where we are with big data – illustrate the issues and propose a solution.

Backdrop

Within Life Sciences (pharmaceuticals and medical devices) ‘big data’ has been in place for quite some time. Most companies have had to address the challenges of managing data for instance:

  • Financial data – this would include your typical data for operating your company. There are additional complexities from a sales and rebate perspective along with cross border/country tax issues for products.
  • Supply Chain data – includes your typical sales and operations data plus the traceability of packaged pharmaceuticals or individual devices.
  • Clinical trials data – generating data that needs to be translated into information for product approval as well as storing data for adverse events analysis.

Government regulations influence how companies manage data. Most firms are required to maintain patient data for the life of the user. Managing data is also part of any legal defense in the event of product failures in the field, and the random audit from the FDA and other regulatory bodies.

 

Influences

If Life Sciences companies maintain their data we are dealing with large repositories of data. What are influencing IT departments are the changes in today’s markets, for instance:

  • Mergers and Acquisitions – most companies are prepared for this both from a due diligence prior to the acquisition. In most cases there is a common set of financial and supply chain information that is shared until an IT decision is made to absorb, or let stand, the IT landscape of the acquired company. There are a few firms that still operate in a mixed IT environment. So this can be a challenge without the right strategy for reporting and analytics.
  • Mobile devices – we’ve already been made aware of the growing use of smartphones and tablets. Besides the security aspects of these devices. Data needs to be made available at various levels of the organization. This is a topic that most IT departments are struggling with, and an area that requires a strategy with feedback from your users.
  • Digital Marketing or Business Insights – we should be aware that ‘social media’ is having a huge impact on Marketing. The advent of these new tools and data sources (Twitter, Facebook, Pinterest, etc.) poses several data questions:
    • How do we analyze and treat these new sources of customer/patient feedback?
    • With more and more doctors using tablets how do we get our product messages to them, and can we measure the impact on our market share?
    • How do I plan for this additional explosion of data because we still have the existing ‘structured’ data, and now we are adding new sources of ‘unstructured’ data?
    • Marketing and Business folks are asking for this information for further analysis? IT has to decide on the tools and methods to perform this analysis.

structured and unstructured data

So are you effectively using ‘bigdata,’ and if not what plans do you have to support the business and your company’s growth targets?

Your Strategy

Reporting Strategy and Elastic Analytics

If you are in this situation there is a need to prepare your ‘reporting strategy.’ Typically this is a 6 to 8 week exercise to identify the business needs and match this against your current IT landscape and solutions. I often recommend this exercise because if you have this strategy in place you can leverage this output for funding needs, new tools, etc., as well as a discussion with the business. Focus on immediate pain points and demonstrate ‘quick wins’ will go a long way to ensuring that IT is still a strategic influence within your organizations.

Yet even if you have you’re strategy in place you may need to move faster to help the business. At Capgemini we have introduced a solution called ‘elastic analytics.’ The link below is a video which provides a high level summary for this offering.

 Capgemini Elastic Analytics video

Elastic Analytics helps IT with the following:

  1.  If the deployment of your reporting strategy is a lengthy process then elastic analytics can provide you with ‘quick wins’ that demonstrate the ‘art of the possible’ when it comes to reporting and analytics. All you need to do is provide the data and we will process this into information served up in a variety of outputs (from a dashboard to a screen on a Smartphone or tablet).
  2. Let’s say you want to ‘test’ out different analytics tools using your data. Using elastic analytics there is no need for you to invest in and take time out for product demos. This landscape includes most of the leading products on the market. This allows you the freedom to test your data on multiple products.
  3. Maybe there is no in-house expertise when it comes to the science of converting data into meaningful information. Within this offering we have up 250 data scientists that can help you correlate your data into relevant business information.

In summary, if all data is big date then are you using this ‘effectively?’  There are various reasons for companies to look into changing their approach to reporting and analytics. What I’ve explained is available today, and I hope this helps you decide how best to approach your problem.

I am open to your feedback or suggestions, so tell me what you think?

Thanks,

Jim

Realizing a 360 degree view of your customer…

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The problem we are looking to solve is the change in realizing a 360 degree view of your customer for the medical devices industry. Most companies that I deal with are struggling with leveraging customer relationship management (CRM) solutions that live in the cloud versus the traditional ‘on-premise’ applications. In this blog post I will give for you a set of questions to ask so that you can select an IT service provider to help you navigate the technology choices to help your organization reach this goal.

Why medical devices and not pharmaceuticals? Within the business of medical devices you have the normal sales force activities to place your products and services. You also have a service management aspect of medical devices where equipment must be serviced and maintained. The clients I work with are the IT folks that are responsible for ensuring that technology is in place to support the organization, and it is the business that is driving the choice for technology. Ultimately I want to share some pointers on what to ask for to reach a better view of your customer with the right technology.

Background

Let’s begin with how today’s IT solution’s have evolved? ERP solutions have been where customer data has been stored and where sales orders are entered. CRM was an extension of the sales order taking process along with added enhancements for a variety of business activities. Medical device companies have added ‘service management’ activities that are managed. This ranges from dispatching service technicians to service order status and contract management. I also recognize that there is a lot of other activities. The goal for technology was to offer a better view into customer services and a more complete view of your customer.

Can your CRM deliver on a view of your customer?

I came across a great article of “What exactly is a 360-degree view of the customer?

“The term a “360-degree view of the customer” has been used in the industry for several years. But what exactly does it mean, and what information would you actually display on the agent desktop?

Whenever a customer interacts with an organization, it is vital that the richness of information available on that customer informs and guides the processes that will help to maximize their experience, while simultaneously making the interaction as effective and efficient as possible. This includes everything from avoiding repetition or re-keying of information, to viewing customer history, establishing context and initiating desired actions.

A true 360-degree view needs to include views of the past, present and future:

  • The past means providing a meaningful and easily digested view of the customer’s history. This includes product or policy activity, interaction history across all channels, including community, recent product views, campaign activity and process history.
  • The present requires presenting key customer information about who they are and how they relate to your organization, but also requires determining the context of the call. Is there a recent order or current fault, why are they interacting with us now?
  • The future relates to actions that can be initiated to guide the future of the relationship. Is the customer likely to churn? Are there up-sell or cross-sell opportunities or targeted messages to bring in at this time?

Delivering on the 360-degree view is not simply about having a unified database of all activity, but rather being able to pull together the pieces of information that are relevant for a specific customer and specific interaction into an intuitive workspace for the agent or the customer.”

Today’s choices

CRM Sales force automation (SFA) has several solutions that business folks can readily adopt. They include Saleforce.com and Veeva. They give a cloud based solution that can easily do all the functions of gathering ‘present’ day information around your clients and prospects. They also offer the flexibility to offer reports and data so that account reps can easily access via their mobile devices. This puts the traditional ERP packages at a distinct disadvantage because they cannot be easily upgraded with similar functions. Customizing these applications is not a cost effective solution.

The key for many folks considering these solutions is the total cost of ownership (TCO) between the ‘on-demand’ versus the traditional applications. Keep in mind the annual maintenance costs can be higher than expected for some of these applications and there is a cost around developing “integration” points between these packages for your key business processes.

CRM Service Management (SM) from the ERP vendors has all the necessary integration so that your customers can get information not only on their service orders they can use data on the products they own. Customer service agents can easily dispatch field service reps and they can get access to data on the nature of the repair or service needed before the customer site visit. This can happen today because most IT solutions have extended their solutions to work with today’s mobile applications.

So far there are very few customer implementations of ‘on-demand’ service management. Be sure to ask for references when someone tells you they’ve done this in the past.

How to realize a 360 degree view of you customer?

The clients I speak with today have multiple systems that the organization must use to gain this insight. First start by organizing the key items you want your field folks to have to ‘improve’ customer satisfaction? You need to think through ‘business process interaction.’ What do you need from your SFA application and your SM application for a given business process outcome. Remember it is not just present day information your looking to have, it is this plus history and future data around expiring contracts and new service programs that will help your customer facing folks be more ‘effective.’

I would ask your IT service providers the following questions:

  • Share examples of where you’ve done Best Practices or Business Process assessments around either sales force automation and/or service management?
  • Do you have capabilities with ‘on-demand’ applications like Veeva or Salesforce.com?
  • What kind of ability does your firm have around the ‘on-premise’ applications (SAP, Oracle and Microsoft)?
  • Do you have industry expertise in Medical Devices?
  • Can have you done ‘benefits’ or ‘value’ realization assessments?

My clients are asking for help because the business as asking for change. The business wants to sell more and yet they may not have all the tools necessary to deal with your customers. Asking these questions of your IT service providers can help you find the needed help in reaching a 360 degree view of your customer.

Thanks,

Jim

Social Media and Life Sciences

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While there has been a lot of discussion about the FDA’s view of Social Media I wrote last month about Gearing up IT for Future Growth. IT must become more relevant in supporting the business and this new way of ‘collaboration.’ In last month’s blog post I spoke of how IT can be a catalyst for the business. There is a conflict in all this since IT budgets are constrained between maintaining the current IT landscape and investing in these new areas.

To get a better view on this dilemma I suggest you read this blog post on The Next Wave of Technology Led Business Gains written by a colleague of mine. His blog post is entitled Sadagopan’s Weblog, January 8th, 2012. In this article he describes the issues that benefit the business and yet prove challenging for IT.

Being a ‘social enterprise’ to me is all about the connections between your end customers and the products you sell. Within Pharmaceuticals and Medical Devices investments have been made in the areas of customer relationship management (CRM) solutions to help business process improvements and adoption for example: sales reps taking orders and processing quotes. Technology is providing opportunities to improve the ways in which companies can rapidly gain insight into the use of a medication or device.

Integration is the key in all this since the business is using social media tools to quickly gather up this data and transforming this into relevant information. Today I am working with several companies that are looking to improve their business processes via upgrades and ‘smarter’ deployment of this technology. The challenge is to ‘connect’ the output of social media for improved clinical trials or insight into existing device performance (via call center data and complaint tracking).

We are not quite there yet in ‘integrating’ social media with back office systems. Tools are being introduced to ease the ‘listening’ and ‘gathering’ of this data. I believe that Life Sciences companies would benefit from a better ‘collaboration’ with their patients and consumers of their products. As I see this progressing in the market I will offer an update to this blog post.

Thanks,

Jim

Time to ‘Tune-up’ your Supply Chain

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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:

  1. 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.
  2. Companies need to give supply chain ‘visibility’ so that the organization can make faster and better decisions.
  3. 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.

Thanks,

Jim

Change is inevitable…

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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?

Data integration

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.

Global access to data

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.

HCL Unified Clinical Operations Platform

HCL Innovation through Integration

Thanks,

Jim