Shaping a Three-Layered Intended Strategy to Realize Benefits for Life Sciences R&D Site Closures
Document Transcript
- 1. • Cognizant
20-20 InsightsShaping a Three-Layered IntendedStrategy to Realize
Benefits for LifeSciences R&D Site ClosuresTo ensure minimal
disruption and impact to regular business operations,leadership teams
must ensure that closure and transition to a new site issmooth; this
requires effective change management, as well as efficientknowledge
retention and management. Executive Summary
new site is smooth; this requires effective change
management, as well
as efficient knowledge The global life sciences industry is
undergoing a
retention and management. wave of mergers and acquisitions,
organizational transformations and restructurings. R&D site
To attain this, life sciences organizations should closures
are a consequence of radical changes to embrace the three-layer
intended strategy, pre- the traditional life sciences research and
devel- sented in this paper, to execute a site closure opment
business model. Since 2009 there have program that results in
substantial business been nearly 18 R&D site closures in the
U.S. and benefits that exceed expectations. The three layers
14 in the EU region, based on public disclosures. pivot around
strategic considerations, tactical con-
siderations and operational considerations.
To remain competitive, life sciences organizations are
focusing on core research/therapeutic areas
Industry Trends Influencing and
consolidating their R&D locations (closing
R&D Strategic Changes some
sites and relocating others to lower-cost destinations) and
selectively outsourcing activities As revenue growth slows, the
R&D strategies of to external service providers to gain
efficiency and life sciences players are morphing. These changes
reduce costs. The decision to close an R&D site is are in
response to: a major, sensitive issue for life sciences organiza-
• Patent
cliff: With patents on many blockbuster tions. Once decided upon,
the closure must be drugs due to expire, an estimated $290
billion delicately managed and executed because it can in
sales are at risk between 2012 and 2018.1 have a significant
long-term impact on the orga- There are also persistent fears of
government- nization. To ensure minimal disruption and impact
backed healthcare reforms aimed at reducing to regular business
operations, leadership teams exclusivity periods enjoyed by drug
makers in must ensure that the closure and transition to a
different geographies. cognizant 20-20 insights | december 2012
- 2.
• Post-merger integration activities or con- Key R&D Site
Closures Since 2009 solidation: R&D consolidation is an important
aspect of post-merger integration, as it helps Year
Companies bolster productivity and reduce costs. For
2009
Pfizer, Merck, Eli Lilly example, in 2009 Pfizer consolidated R&D
operations and closed six R&D sites in the UK 2010
GlaxoSmithKline, AstraZeneca, and U.S. following its acquisition
of Wyeth. Pfizer, Takeda, Abbott Labs,
Sanofi-Aventis, Bayer, Roche,• Shift toward selective outsourcing: Due
to Novartis margin pressures driven by
higher development
2011 Pfizer, Novartis costs, increasing regulatory
compliance costs, reduced R&D budgets, government-enforced
2012 Sanofi, AstraZeneca, Roche price cuts and
intellectual-property-related Figure 1 taxation laws, life
sciences organizations have gradually embraced cost-reduction
strategies such as selective outsourcing of R&D activities
laborative approach, with selective outsourcing to academic
institutions (early stage research) and “open innovation,” are
gradually phasing out and contract research organizations (CROs).
oversized facilities, which is creating greater job
insecurity across the industry.•
Pipeline deficiencies: In the past, life sciences organizations relied
on a robust pipeline of new Typical site closure activities run the
gamut, from products that opened up new revenue streams
exiting the site completely, to reducing its existing to offset revenue
lost from patent expiration footprint by exiting partially, or
by consolidating of existing products in the market. However,
operations across multiple sites. Regardless of a sharp decline in
successful innovation due the approach taken, the primary goal
is to help to increasingly complex disease targets and the
organizations reduce costs, consolidate R&D numerous
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Automated Product Data Publishing from Oracle Product Hub Is the Way Forward
Document Transcript
- 1. • Cognizant
20-20 InsightsAutomated Product Data Publishing fromOracle Product Hub
Is the Way ForwardA framework using Oracle tools and technologies to
publish products fromOracle Product Hub to disparate product data
consuming applications. Executive Summary
organizations today are countering it by
employing master
data solutions in the Having accurate and up-to-date product data
in an enterprise. Where this is not implemented,
enterprise is a key to improving customer ignoring
data management may impact the experience. Oracle Product Hub,
along with a ability to deliver the key enterprise
functions and configurable publishing mechanism, helps in
processes. Inaccurate product data is a leading sharing
clean product information as a single source for process
inefficiencies in any business, source of truth across enterprise
applications. which leads to: This process demands an
effective framework, to standardize the product publishing process
! Fragmented and duplicate information, leading a u
to m a t i ca l l y f ro m P ro d u c t H u b, w i t h to supply
chain inefficiency and process configurable business criteria built
in. inefficiencies in warehouse management,
sourcing,
replenishment, supplier payment This paper deals with a common
framework for the processing, etc. product data
publishing process, with business
!? Continuously evolving information,
resulting in validation for each target system, which will
lost market
opportunity. improve productivity significantly with a user
interface for configuring business criteria for !? Low data
quality, leading to bad user data dissemination. The key business
benefit experience in channels where the end from
this is a simple, fast and automated customer is
not able to touch and feel the publishing mechanism from Product
Hub and product. easy on-boarding of new
product data consuming !? Difficulty achieving harmonized
information systems, without any additional development
sharing among organizations and trading effort.
partners, with an inadequate
data collaboration
mechanism. Overview
Product Hub needs to provide a common
Over the past few decades, organizations have
definition of the product
across the organization. invested heavily in IT, which has helped
them
And to publish product information for multiple improve their
supply chain efficiency. But this has
downstream applications, for performing
resulted in master data spread being across
different business processes around product data multiple systems
in the organization, which is in a in downstream applications.
constant state of flux. This is a major challenge and
Cognizant 20-20 Insights
- 2. One of the key challenges for most
of the interfaced automatically, without
manualorganizations implementing the Product Hub
intervention, based on predefined businesssolution is to automate the
product dissemination criteria.process, satisfying business
criteria and !
Business criteria include mandatoryvalidation without manual
intervention.
validations, conditional validations based onWhitespace Analysis
product lifecycle stage, data
completeness
check, payload and frequency, etc.Our Oracle Solutions Practice provides
services ! These
business criteria need to be userranging from business consulting to
application
configurable in Product Hub for businessmaintenance across Oracle’s
entire solution suite.
flexibility.! Product Hub is to distribute data as a single
! Oracle Fusion
Applications offers tools and source of truth for consistent enterprise
view.
middleware to perform the product publishing! A typical business
scenario demands data process, but there are no
standard frameworks managed in Product Hub is published/
prescribed by Oracle to facilitate the automatic
publishing
process.Configurable Publishing Analysis Identify
Automatically
Eligible
Identify Item for Items for
Different Distribution
Systems
Configurable
Publishing Automatically
Manage Identify
Data Payload
Entities for
Type for Each Different
Downstream SystemsFigure
1We propose a framework for publishing product data from Product Hub
that will address the aboveidentified gaps. Our automatic publishing
mechanism greatly aids efficient data dissemination andprovides easy
on-boarding for new consumption/destination systems.Product Data
Publishing Mechanism Service
l to identify products:
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