Global Pharmaceutical Enterprise Systems
Mike Romanov, Tyler Lepore, Anik Patel, Dylan Levine
What is an enterprise system?
● Set of interfacing software applications designed to solve enterprise challenges or
problems.
● End to end business management software systems
Why implement?
● Allow large global organizations to aggregate company- wide resources,
information and operational components
● Allow uniformity of data
● Facilitate data-driven decision making and strategy
Key Drivers for Adoption
● Increased regulatory pressure
● Need for compliance and audit management
● Increased focus on quality and product life cycle management
● Security and risk management
Implementation Phases1. Planning
2. System/Vendor Selection
3. Implementation
4. Acceptance
5. Full assimilation
Implementation opportunities● Aggregate data
● Improved visibility
● Streamline business processes
● Standardization and optimization of processes
- Enhanced communication and collaboration across departments
● Cost reductions
Implementation risks and costs● Significant capital investment
-direct and indirect costs
● Cost savings may not be realized right away
● Resource allocation
● Risk of implementation or operational failure
● Difficulty with data migration
SAP and Oracle market overview● Two of the biggest competitors in the ERP market.
● Compete on the basis of product and service
differentiation NOT price.
● Arguably the best quality, customizable and easy-to-use ERP software
applications relative to the price.
○ Higher cost options of internally developing your own ERP system.
SAPSystems Applications and Products in Data processing
● Founded in 1972 by five former IBM employees
● First Market leader to integrate a company's
worldwide functions into one ERP system.
● Focused on ERP systems from the inception of the
company.
OracleFounded in 1977 with an initial focus on relational database management systems.
● Later moved into the ERP space through acquiring various software companies.
○ Big names acquired were JD Edwards, PeopleSoft and Siebel Systems
● These acquisitions gave Oracle the expertise needed to integrate there RDMS into
full out ERP systems.
● Since these innovations Oracle is now the second highest used ERP software.
● Premium costs which
come with (arguably)
premium features
● Better for companies
with changing
environments. (Brand
name Vs. Generic drug
companies)
● Larger market share
● Lower relative cost
than SAP
● Less customizability
● More standardized for
user friendliness
● More innovation in
the cloud computing
space
● Longer
implementation time
SAP Oracle
Common Enterprise Management Systems
● SRM and CRM
● QMS
● Strategic Sourcing and procurement
● DRP
Strategic Sourcing Modules● Very important in the procurement department.
○ Instant savings at the bottom line
● Easy access to data that may be overlooked in any other situation
○ A system where data is consistently being added and edited
● Allows for quick comparisons of large amounts of suppliers
○ Gives procurement departments the ability to look at more than just a handful of suppliers
● Can give procurement departments more power in negotiations
○ Using past supplier history and other metrics against them
● Can help raise quality
○ By meticulously searching through many suppliers and harder negotiating procurement
departments can get better materials at better prices.
Quality Management System (QMS) Module● Pharmaceutical Companies have a great need for QMS modules
○ Products can have lasting impacts on a person's health.
● Streamlines internal operations
○ Reduction in paper documentation and complications due to vast number of processes.
● Some companies will go so far as to implement multiple QMS modules creating
redundancies.
○ Basic fail-safes
● QMS modules can also help keep certifications
○ ISO level certifications can be gained and maintained.
Supplier Relationship Management (SRM)
● The application to interact with suppliers
● “Viewed as an organized approach to defining what they need and want from a supplier and establishing and managing the company-to-company link to obtain these needs” (Cavinato 1)
SRM (continued)● 5 Step Process:
○ Qualify■ AQSCIR
■ Assure supply, Quality suppliers, provide Service, Cost value of these select suppliers, provide Innovation, and abide by the Regulatory environment
○ Segment■ Portfolio Analysis - Strategic/Bottleneck suppliers - APIs, excipients, unique specifications
○ Measure○ Assess
■ Issue: internally, systems are not in place to keep track of the metrics, thus the supplier will have to relay the results to the pharmaceutical company
○ Optimize■ What else do they offer
Customer Relationship Management (CRM)
● The application to interact with customers
● Defined as “a business strategy that helps your business to better understand your customer, retain customers, provide excellent customer service, win new clients and increase profitably” (Beal 1)
CRM (continued)● CRM software systems are complex and usability is difficult to use● However, having a single location for customer data is much more efficient and
creates visibility● Professor McLaury, (formerly at Novartis) “It depends on the company, most
[pharmaceutical] companies don’t dive deep into it […] they don’t do a lot with CRM because they typically sell to the wholesalers.”
CRM (continued)● “it's long been considered too resource-intensive to actively market new drugs to the
entire medical community, so manufacturers have to focus on what are known as key opinion leaders” (Lager 1)
● A KOL is a respected physician who influences his or her peers for a certain medical practice
● A strong relationship with KOLs can thus help pharmaceutical companies reach their target market
● KOL Management - Give just the right amount of attention● KOL Management systems and CRM systems then coincide and need to be integrated
together
CRM (continued)● “solutions such as these offer you "tactical" benefits […] when it comes to dealing
with sales, marketing and customer service. But to stay relevant to customers […] enterprises have to go further. The key to success is to become a customer adaptive enterprise (CAE)” (Rubens 1)
● A customer adaptive enterprise is a business that delivers value based upon the changing consumer market by forging a deeper understanding of the customers
● Pharmaceutical industry, however, is difficult to adapt due to long process of discovery and commercialization
DRP -- Disaster Recovery Planning● A support system that assists in companies dealing with disasters
● A necessity to deal with disasters so companies do not lose too much money
● Both preventative and reactive measures can be utilized
○ Prevent a fire. React to the events of a hurricane
● If DRP measures aren’t in place up to $5,000 can be lost every single minute
● Need to have protocols in place when supply chains are diverted and when you
can’t reach your personnel.
Future Trends ● Migration to the Cloud
● Increasing options for customization and system flexibility
● More user friendly experience
● Data decentralization and increased security
Questions ?