As we begin the New Year we’ve gone through our resolutions. Now the focus for us is to gain a fast start and 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.
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*.
[*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.
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?
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.
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.