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Business Strategy



Analytics, Mobility and In-memory—Empowering Life Science and Healthcare
Companies with Actionable Insights at the Speed of Business
Andy De and Joe Miles



                        Joe Miles
                        Joe Miles utilizes his industry operations and software application experience from across the health sciences value chain to lead SAP’s
                        Health Science direction in North America. Whether working with companies on global regulatory compliance, supply chain operations
                        or improving patient outcomes, Joe has helped health science organizations enable key business processes to achieve their operational
                        objectives, global compliance mandates and/or strategic financial goals. This would include automating business processes that improve
                        corporate performance by reducing operational inefficiencies and, more recently, collaborating with organizations from across the
                        healthcare value chain to improve overall patient outcomes. Joe has a Masters Degree in Operations Management from Loyola University
                        of Chicago and a Bachelors Degree in Business Administration from the University of Illinois at Urbana/Champaign.




                        Andy De
                        Andy De is the Global Head of Solutions Marketing for Health-sciences at SAP. In this role, he leads the go-to-market strategy and
                        planning, thought leadership, messaging and positioning, analyst, media and press relations, social media strategy and execution, sales
                        and demand enablement for SAP’s offerings targeted at Pharmaceuticals, Medical Devices and Bio-Tech companies and Healthcare
                        Providers. Andy holds a Bachelor of Engineering in Mechanical Engineering from the University of Bombay, and a Masters Degree in
                        Materials Science and Engineering from the University of Florida. He has a Masters Degree in International Business from the Tel Aviv
                        International School of Management (TISOM) and has earned his MBA in General Management, with a specialization in Business Strategy
                        and Marketing, from the Richard Ivey School of Business at the University of Western Ontario.




Disclosure: The authors are employees of SAP
Correspondence: joseph.miles@sap.com                 Citation: iHealth Connections, 2011; October [ePub ahead of print]



This article will focus on how life science and healthcare companies can leverage the significant innovations in mobile
devices, in memory computing, and realtime analytic technologies to drive down the cost of healthcare and improve
the accuracy and availability of information for business users, clinicians, physicians, nurses, and patients. These
innovations will enable the rapid analysis of vast amounts of data to deliver actionable insights that previously took
hours or even days to achieve, thus enabling a competitive business advantage and a superior patient outcome.



The global healthcare market is going through a time of tremendous                 49 % in 2082.
volatility and change. Reimbursement mechanisms are getting                      • Federal spending on Medicare (net of beneficiaries’ premiums) and
revamped, reduced, or eliminated as governments look to reduce or                  Medicaid should rise from 4 % of GDP in 2007 to 7 % in 2025, 12 %
stop the growth in healthcare spending. Markets are changing                       in 2050, and 19 % in 2082.2
dramatically as patients are presented with newer and less expensive             • A shift from a ‘pay-for-services’ to a ‘pay-for-performance’ model
means of receiving their healthcare products and services.                         that will base reimbursement rates on patient outcomes is predicted.
Furthermore, governments, organizations, and companies are
looking to the future to create innovative ways of leveraging new                Ironically, the increasing cost of healthcare is occurring at a time of
technology, models, and information to improve patient outcomes                  tremendous innovation in information technology (IT) and personal
while reducing the cost of care.                                                 devices across the health science value chain. There are a variety
                                                                                 of new technologies that are poised to create tremendous
• Drug companies analyze 5,000–10,000 compounds, spend around                    innovations, including the following.
  $1 billion over 12–15 years and leverage as many as 6,000 people to
  develop one Food and Drug Administration (FDA) approved drug.1                 • The growth and use of smartphones continues; current estimates
• Total spending on healthcare is projected to rise from 16 % of gross             predict that there are around 5 billion in use worldwide today, that is
  domestic product (GDP) in 2007 to 25 % in 2025, 37 % in 2050, and                almost one per person.


1                                                                                                                               Š TOUCH BRIEFINGS 2011
Analytics, Mobility and In-memory


• ‘In-memory’ information processing is replacing disk with memory           (e.g. a hospital, a plant floor, or a distribution facility), resulting in an
  and is leveraging the power of the next generation of hardware that        interaction unlike any previously attempted. It is the convergence of
  uses multi-core architecture with massive parallel scaling across many     these various technologies and capabilities that, when presented with
  blade servers to dramatically increase processing power at a low cost      traditional problems of ‘big data’ that sit inside or outside their
  of entry.                                                                  business systems, creates a tremendous opportunity for innovation in
• Next-generation devices, such as the Apple iPad, are providing             driving new and improved methods for reducing the cost of care while
  a significantly more compelling interaction through the use of             improving patient outcomes.
  high-definition video or interactive applications between a healthcare
  practitioner and nurses or patients, in either ‘connected’ or              In-memory
  ‘disconnected’ mode.                                                       The volume of data that organizations have to manage is growing at an
                                                                             exponential rate. It is estimated that four exabytes (four million
Despite all the advances in technology and information, health               terabytes) of unique information will be generated this year alone, which
science organizations still have tremendous challenges to face in            is more than the previous 5,000 years combined. However, the time
improving organizational decision-making that optimizes decisions and        businesses have to make relevant decisions is shrinking and the
results in a positive patient and/or business outcome:                       complexity of the IT infrastructure required to make those decisions is
                                                                             becoming unmanageable. SAP offers an in-memory computing solution
• An Economist survey3 determined that only 20 % of business people          that moves data from old disk technology to local solid state memory.
  surveyed had the right information to make a decision, while 80 %          SAP’s solution leverages groundbreaking innovations in software
  said they had either too little or too much. Furthermore, 75 % stated      and hardware so that massive volumes of data can be instantly and
  that they made the wrong decision because they did not have                cost-effectively managed and analyzed. In-memory enables
  sufficient information.                                                    organizations to combine realtime transaction analysis with billions of
• Large pharmaceutical companies are challenged by patent expiry,            historical records to dramatically improve existing business processes,
  as the US alone will lose $133 billion in revenue of branded drugs4        with no impact on the response time and/or performance of the
  from 2012 to 2016, and a constrained capacity for bringing new,            enterprise system, to enable a new breed of innovative solutions
  innovative blockbuster drugs to the marketplace while confronting          (see Figure 1).
  cannibalization by overseas generic competitors.
• The traditional sales and marketing models for life science companies      Figure 1 highlights how SAP’s in-memory solution, SAP HANA, provides
  are outdated and increasingly less effective in today’s market. New        the perfect starting point for organizations that need to analyze large
  legislation such as the 2010 US Sunshine Act to ensure transparency        volumes of transaction and/or historical data in realtime.
  in the manufacturer, physician, and patient relationship will have a       Furthermore, SAP HANA can leverage existing IT infrastructure such
  significant impact on these models and processes going forward.            as data marts or data warehouses, and it can also go directly to the
• Healthcare reform has increased costs and reduced margins for              source systems to avoid the time-consuming and costly effort of building
  the healthcare manufacturer but has simultaneously provided a              these structures.
  tremendous opportunity for providers through a national healthcare
  program that can potentially add tens of millions of patients into the     In addition, by running in parallel to SAP Business Suite applications,
  system who were previously unable to afford healthcare services.           SAP HANA allows business users to query large volumes of data in
                                                                             realtime without having to wait for scheduled reports to run or build
Clearly, these are just some of the numerous challenges that are changing    traditional data warehouses to be populated with aggregated data.
the health science market and demand more innovative approaches to           From a life science perspective, SAP is working with customers on a
solving the variety of illnesses. Physicians need better access to data,     variety of business scenarios where SAP HANA can provide
patients need high-efficacy and cost-effective treatments, manufacturers     tremendous value, including the following.
need to get products to market faster with greater understanding of the
impact of the therapy on a patient group, and, ultimately, the healthcare    • Realtime Sales and Margin Analysis by Customer, Product, and
industry requires timely, accurate, and actionable insights to make better     Region Organizations are continually trying to determine their
decisions, at a lower cost and a superior therapeutic outcome.                 level of success and understanding sales and margin performance
                                                                               is critical to that success. SAP HANA can provide realtime or
Why In-memory, Mobility, and Analytics for the                                 near-realtime sales, profitability, and margin analysis at a customer,
Healthcare Industry?                                                           region, or product level, delivered to any device including an iPad,
SAP, as a provider of enterprise applications to the life science              smartphone, or laptop computer, and companies inside and outside
manufacturer and healthcare provider industries, has been providing            life sciences see the value of this scenario.
innovations to the industry that have improved productivity, reduced         • Complaint Tracking Life science companies are required to track any
costs, and increased margins for four decades. More recently, SAP’s            complaint related to the products or drugs that they sell. This is
innovations in the area of in-memory, mobility, and analytic                   challenging because complaints can originate in a variety of areas and it
technologies have provided organizations with the ability to analyze           may not be clear if a complaint has been previously analyzed
billions of records in sub-second response times and deliver that              and resolved. A large medical device company saw an opportunity to
role-based analysis to any individual on any device and at any location        use SAP HANA to connect directly to a variety of source applications,


iHEALTH CONNECTIONS                                                                                                                                     2
Business Strategy

Figure 1: SAP HANA Overview                                                 of enterprise data. Hence SAP HANA serves as a non-disruptive,
                                                                            realtime attachment to the SAP suite of products.
               Other applications             SAP business objects
                                                                            Mobility
                                                                            Much of the world today operates in a mobile environment – and business
           MDX         SQL                             SQL        BICS
                                                                            is no exception. Business processes no longer require people to be tied to
                                                                            their desktops or landlines. Operating at the ‘speed of business’ efficiently
                                      SAP HANA                              and cost-effectively demands that business executives, managers, and
                                                                            employees perform a variety of tasks anywhere, anytime and on any device.
                                      Modeling                              For example, life science companies, like many industries, now depend on
                                       studio
                                                                            mobile technologies to complete from the most trivial to the most complex
                                                                            of transactions. Whether it is a North America-based pharmaceutical
                             In-memory computing engine                     executive who is traveling through Asia and has to approve a spend
                   Calculation and               Row & column               requisition for their organization, or a customer service person, because a
                   planning engine                 storage                  medical device manufacturer receives an alert that their device is required
                                                                            for an emergency procedure, life science companies need to operate in
                                                                            realtime and need to manage their mobile devices, transactions, and
                Realtime replication                                        applications in a compliant, cost-effective, and secure manner. Specifically,
                                                  Data services
                      services
                                                                            SAP’s Sybase Unwired Platform (SUP) provides a mobile platform that
                                                                            can transform the enterprise in a variety of interrelated ways including
                                                                            the following.


                                                                            • Delivering an enterprise mobility platform that supports and
        SAP business suite          SAP NetWeaver BW          Third party
                                                                              manages SAP and/or third-party applications on mobile devices. In
                                                                              addition, SAP has mobile device management solutions to manage
                                                                              corporate-issued or personal devices in terms of device and data
  as well as existing enterprise data warehouses, to conduct text-based       security. Delivering SAP mobile applications to our customers that
  analysis of existing complaints to determine whether they had               can be deployed quickly and easily, yet still enabling data and
  previously handled anything similar. This process eliminates any time-      business process integrity and security across end-to-end business
  consuming effort and immediately directs users to the corrective action     processes compliant with industry standards.
  plan that was put into place to resolve the reason for the complaint.     • Enabling a corporate mobile ‘app store’ that will allow users to simply
• Clinical Research A clinical research organization maintains terabytes      and easily download mobile applications.
  of clinical and protocol information and can take hours or days to run    • Providing a secure device management environment that can wipe
  simple queries against the data. SAP Life Sciences worked with a            devices clean if lost or stolen while also providing ‘best-in-class’
  clinical research company to merge two tables of 431 million records        enterprise device management capabilities.
  and 161 million records, respectively. A standard clinical query was
  run against the data that had taken around 47 minutes to run and the      Figure 2 highlights how SAP provides the most comprehensive mobility
    SAP HANA application ran the query in just 1.78 seconds.                platform that is built on the ‘4 Cs’ including the following.


In summary, SAP HANA enables the following.                                 • Connect. The platform is optimized to connect not only with SAP
                                                                              Business Suite but also with any other third-party applications
• Speed and power of in-memory processing—realtime insight into               and/or data sources. Mobile applications should not be confined to
  business operations without the delay.                                      the application boundaries and need to provide people- and
• Flexible modeling and calculation capabilities—complete insight             process-centric views of data to be successful. This platform enables
  based on huge volumes of detailed information.                              a mash-up of application data, irrespective of source.
• Leveraging a variety of SAP or non-SAP data sources, eliminating the      • Create. SAP delivers mobile applications and also allows partners
  need to build complex and costly data warehouses, also providing            or third parties to build applications that they believe add value to
  the flexibility to connect to existing data stores if available.            the organization. Furthermore, SAP’s mobile platform also provides the
• Flexible and detailed data to answer any query—lower total cost of          ability for life science customers to build their own apps through the use
  ownership (TCO) by reducing IT complexity.                                  of the software development kit and design studio that are included.
                                                                            • Consume. Employees and customers want to use mobile applications
SAP delivers SAP HANA solutions that empower business users                   from the device of their choice. Our mobility platform makes it easy
at all levels to conduct immediate ad hoc data analyses and transaction       to support a variety of devices so life science companies can pick the
processing using massive amounts of realtime data for expanded                device that is best suited to their business process without worrying
business insight. SAP HANA frees up IT resources, lowers the cost of          about whether they need to, for example, support an Apple,
operations, and provides a ‘game-changing’ capability in the analysis         BlackBerry or Android mobile operating system.


3                                                                                                                            iHEALTH CONNECTIONS
Analytics, Mobility and In-memory


Figure 2: SAP’s Mobility Platform

                                                                             C
                                                                             Create


                                                                                                       Mobile SDK
                  Connect                                                              Eclipse                                        Consume




                Applications



                 Databases                                              Partn and custom applications
                                                                        Partner


              J2EE connector
              architecture
                                                                         SA
                                                                         SAP and Sybase applications

               Web services


                Software                                          Unwired                            Mobile
                applications                                      platform                           services



                   Files




                                                                                                 Management console                     Afaria




                                                                             Control


• Control. Comprehensive security and manageability are critical for                performance indicators (KPIs) with actionable insights and work flows
  successful mobility strategies and SAP delivers best-in-class                     (e.g. time and expense approvals) to executives and line-of-business
  capabilities so that organizations can manage their devices                       (LOB) managers for rapid, right-time decisions, thus improving
  securely and cost-effectively. SAP’s Afaria product provides an                   enterprise performance; and
  industry-leading mobile device management solution that helps                   • bringing all data in an enterprise within the reach of decision-makers
  secure and manage mobile devices and applications.                                in seconds, enabling right-time decisions at the speed of business to
                                                                                    outperform the competition.
Specifically, SAP’s mobility solutions can enable value in the life science
and healthcare industry by:                                                       Analytics
                                                                                  The term ‘business analytics’ often conjures up visions of some sort of
• enabling employees to consume realtime relevant content anytime,                reporting that informs about past events. Such reporting comes too late
  anywhere, on any device;                                                        to make a difference and the data cannot always be trusted. These
• delivering relevant content from internal and external sources                  approaches are outdated and ineffective because they provide no
  (e.g. IMS and POS data) for salespeople and executives to                       opportunity to initiate a change to prevent negative occurrences.
  stay current with trends and competitive intelligence, thus
  improving productivity;                                                         Conversely, SAP offers a much broader view of business analytics that
• proactively detecting, sensing, and responding to manufacturing,                goes far beyond ‘reporting yesterday’s news’ to answer key questions,
  service, and supply chain exceptions;                                           such as: What is happening now? Why is it happening? What will happen
• alerting supply chain, manufacturing, and service personnel to often            in the future? The ability of an organization to answer these questions in
  unforeseen exceptions (orders, inventory, shipments, equipment                  realtime or near-realtime can be a competitive differentiator. Realtime
  breakdowns, availability of supplies and qualified personnel), and              analytics can be the difference between success and failure of an
  enabling root-cause analysis and resolution to address these                    organization, and facilitate a company to understand, decide, and act
  exceptions before they become customer issues;                                  with confidence to enable their business to ‘run smarter.’
• empowering executives and managers with accurate, realtime
  actionable insights at the speed of business;                                   The first step to running smarter is to know your business. What does it
• delivering accurate, realtime, role-based analytics and key                     mean to know your business?


iHEALTH CONNECTIONS                                                                                                                                       4
Business Strategy


• Access all relevant business information – in any way, and anywhere.        and faster’ than their competitors and lets them create processes
  Access is a complex first step because the information usually comes        that are truly differentiating in their ability to create a competitive
  from many different sources internally and/or externally.                   advantage over the competition. Deployed across a common
• Trust the information that you have access to. SAP enables you to           business process, organizations can leverage the synergies that are
  view the quality rating of the information and where it is coming from.     aligned across the in-memory, mobile, and analytic technologies.
  Therefore you can choose how reliable the information is. Trust also        Specifically, the inherent nature of the technologies creates these
  comes from having a clear understanding of the current risk levels          benefits, as summarized below.
  and the compliance thresholds needed to be maintained and the
  status of compliance programs. To truly know your business you              • Leveraging the columnar data stores and the ability to manage
  should know the risks you are taking as you are making decisions and          extremely large data sets, SAP’s in-memory HANA application lets
  taking actions.                                                               companies and their business users query huge data sets (dozens of
• Information must be delivered in context, regarding what you are trying       terabytes) with sub-second response times to enable access and
  to do at the moment you are trying to execute it. This is role- and           subsequent iterations on data unlike anything that has been done in
  industry-dependent. To have true meaning the information must be              the past.
  delivered in the right way, at the right time, quickly, and easily.         • Market dynamics have reduced the cost of memory and processing
                                                                                power that has correspondingly made this a very cost-effective
The second step toward running smarter is ensuring every person in your         scenario that can add tremendous value to a business. For instance,
organization can decide with confidence. This means that individuals            clinicians can review large sets of clinical data across the Internet
decide based on aligned performance goals and according to a plan               without significant delays due to data size and/or access latency while
that will achieve success.                                                      reducing the time, cost, and complexity of creating views into simple
                                                                                or complex data structures and sources.
• Deciding with confidence means you are deciding after you understand        • Financial executives can understand, at the earliest point possible,
  business impacts, leveraging sophisticated but easy-to-use ‘what-if’          the performance of their company in the areas of sales, margin, and
  and predictive capabilities to predict future directions.                     profitability. SAP’s HANA analytic engine can analyze tens of
• Deciding with confidence also means a decision must be reached in             terabytes of data in realtime, calculate appropriate metrics for profit
  the light of any risk, balancing risks and opportunities. In other words,     and margin at a product, customer, region, or contract level, and
  access to the risk information and the potential growth opportunities,        deliver the information to executives via SAP’s SUP to any device at
  and the ability to compare them, is imperative. Companies that know           any location in the world.
  their businesses can assess the information holistically to create the
  most accurate plans, minimize risk in the decisions they make, and          SAP’s ability to deliver business analytics resulting from
  maximize customer focus easily and intuitively.                             high-performance analysis of terabytes of data that can be delivered to
                                                                              any individual using any device anywhere in the world is unmatched in
Finally, the third step highlights the need to act boldly – to do this        the marketplace today and provides organizations with an opportunity
you must:                                                                     to provide tremendous competitive advantages through greater insights
                                                                              about their performance at the earliest point possible.
• respond instantly to events as they unfold – the moment something
  happens you must know about it and respond instantly (e.g. in the event     Promising Areas of Value Delivery with Analytics,
  of a product recall, stock out, plane cancellation, terrorist act, etc.);   Mobility, and In-memory in Health Sciences
• collaborate with your team and network to take coordinated action           SAP is partnering with industry leaders in life sciences and healthcare to
  on the best decision (e.g. decide the most efficient way to pull all toys   deliver game-changing value through a combination of in-memory,
  that contain lead, redirect flights because of adverse weather,             mobility, and analytics that rapidly delivers deep business insights to
  etc.); and                                                                  executives and users anytime, anywhere, and on any device. Some of the
• learn from past actions and other best practices, constantly monitor        high-value use cases and scenarios that these leaders are adopting are
  risk levels, and adapt business operations accordingly.                     listed here:

Analytics, Mobility, and In-memory Together—                                  Increasing Revenues and Margins—Improving Sales
Why Is the Synergy Game-changing?                                             Performance with Predictive Sales Analytics
In the past, it has been fairly commonplace for companies to                  The Business Challenge
evaluate and appraise analytics, mobility, and in-memory as                   Vice Presidents of Sales at life science companies are challenged today
disparate areas of innovation. However, visionary leaders across              by a lack of visibility into revenues and margins by customer, product,
multiple industries, including health sciences, now see the game-             and channel. This impacts their ability to optimize customer and channel
changing synergies enabled by the combination of analytics,                   responsiveness, pricing and promotion, revenues, and margins. For
mobility, and in-memory. Deployed together, these three                       example, limited and/or delayed visibility into the sales impact from new
technologies will not only accelerate business processes but will             product launches at a territory and sales rep level prohibits organizations
drive actionable insights in realtime to any device, at any location,         from realigning sales territories, if needed, to maximize the window of
and to any individual. This enables organizations to ‘run smarter             profitable opportunity from a new product.


5                                                                                                                            iHEALTH CONNECTIONS
Analytics, Mobility and In-memory


The Value Delivered by In-memory, Mobility, and Analytics                       margins. Most of all, getting life-impacting drugs and devices safely and
Deploying SAP’s in-memory, analytics, and mobility solutions enables            securely to hospitals, pharmacies, physicians, and patients would drive
life science companies to aggregate and analyze large volumes of                higher customer satisfaction and patient safety and bolster brand
sales, point-of-sale, prescription, or forecasted demand data by customer,      reputation and equity.
product, and channel, as well as to determine what, if any, impact they
have had on cost and margin. The ability to simulate scenarios and              Enhancing Patient Loyalty, Satisfaction, and Safety
run what-if analyses on very large data sets enables testing of multiple        through Proactive Complaint Management
pricing and contract discount/rebate models before execution. These             The Business Challenge
deep insights can potentially enable higher volumes of sales at optimal         Patient safety is paramount for the FDA, biopharma companies, device
price/discount/rebate structures and deliver higher revenues and margins        manufacturers, patient advocacy groups, and, most importantly, the
while maximizing the window of profitable opportunity for new drugs             patients themselves. Complaints handling not only provides direct
and devices. Delivering these insights via mobile devices to sales leaders      feedback to manufacturers about product safety but also helps them
empowers them to make right-time decisions in response to unforeseen            improve their products and services over time. In the US alone,
events such as changes in demand, competitive product launches,                 non-compliance penalties include individual fines in excess of $100
changes in prescription behavior, etc., while meeting their sales targets.      million annually, and often pertain to lack of complaint handling
                                                                                procedures and processes, including inadequate handling of complaints
Enhance Customer Service, Patient Safety and Supply                             and failure to submit reports properly.
Chain Efficiency—Enabling Reliable Order Promise
through Accurate Demand and Inventory Visibility                                The Value Delivered by In-Memory, Mobility, and Analytics
The Business Challenge                                                          Deploying SAP’s in-memory, analytics, and mobility solutions in
Supply chain leaders, demand and supply planners, and sales leaders in          conjunction with a complaint tracking system can help life science
life science companies are often challenged by an inaccurate picture of         companies proactively monitor, detect, sense, analyze, and respond to
the finished goods inventory by product, channel, and distribution center.      customer complaints. The ability to aggregate and analyze large
This minimizes their ability to consistently make order commitments to          complaint data volumes can ensure that patterns and trends are
their customers or take advantage of unforeseen demand opportunities            monitored, detect root causes and their financial and product safety
(inability of competitors to fulfill orders, disease or pandemic outbreaks,     implications, and trigger corrective and preventive action (CAPA) and
etc.). Also, the lack of near-realtime demand or the ability to replan          adverse event management work flows and processes to alleviate these
demand on a daily basis (versus weekly, monthly or quarterly ) further          complaints before they become significant issues or invite penalties and
exacerbates these challenges. Life science manufacturers often carry            fines. Rich analytics enable deep insights into historical complaints data,
huge inventory buffers to compensate for this lack of accurate visibility       quality and risk analysis, and their sales impact. Deploying a rapid
into demand and supply and cannot sense and respond fast enough                 response complaints management system would help life science
when unforeseen events happen, resulting in lost revenues and, more             companies improve customer loyalty and retention and have a positive
importantly, the inability to deliver life-saving drugs and devices to          impact on the company’s brand while assuring high levels of patient and
patients who need them. It is not surprising that life science companies        product safety.
carry 100–300 days of inventory on average, tying up billions of dollars of
working capital that is by far the largest of any industry.                     Value Delivered by SAP’s Innovation in In-memory,
                                                                                Analytics, and Mobility—A Customer Success Story
The Value Delivered by In-memory, Mobility, and Analytics                       The advent of the Apple iPad as a tactile touch-sensitive content
Deploying SAP’s in-memory, analytics, and mobility solutions to                 consumption mobile device is significantly impacting the way sales reps
augment current supply chain planning solutions delivers deeper,                deliver content, presentations, and data to doctors, clinicians, and
faster, and more accurate business insights that are not feasible               nurses. Not only is the content delivered in a more compelling manner
with today’s demand-planning tools. Leveraging the columnar data                via the iPad (and similar tablet devices), but it also improves the
structure and running queries on large data volumes in-memory                   productivity and efficiency of the sales rep. A leading medical device
can speed up computing and planning processes by as much as                     company was challenged with improving sales productivity while
100 times. Faster and more accurate demand plans, realtime what-if              leveraging the significant investment that they had recently made in the
scenario analysis, and the ability to make reliable order promises              Apple iPad. The organization had begun to see the positive impact of
(available-to-promise/capable-to-promise) anytime, anywhere, on mobile          the iPad but they needed an enterprise-level mobile platform to develop
devices of choice, become eminently feasible for life science companies.        and manage mobile applications on all their enterprise devices while
Integration with financial data, also in realtime or near-realtime, would       maintaining appropriate access and security in a cost-effective manner.
enable business users and executives to immediately understand the
financial implications of missed orders, changes in demand and supply,          Furthermore, the sales analytics information was distributed across a
and inability to fulfill as planned what is clearly not feasible today. These   variety of source systems and integrating the data into a cohesive and
business insights would then empower their sales executives and supply          integrated view was extremely difficult, if not impossible. Much of the
chain and manufacturing leaders to not only sense and respond to                information was siloed, lacked any business context, and had lost a lot of
unforeseen changes at the speed of business but also exploit revenue            its value given the time it took to assemble, aggregate, and distribute
opportunities faster than the competition without compromising on               the reports.


iHEALTH CONNECTIONS                                                                                                                                      6
Business Strategy


The medical device company needed to improve the quality and                                        by the company.
timeliness of the ‘sales briefcase’ information so that their sales team                          • It provided a robust, actionable view of sales and service information
could drive revenues and improve productivity. Information needed to                                that not only drives revenue uplift but also enables greater flexibility
be current and comprehensive and reflect the multifaceted view of                                   in deploying resources across the service environment.
hospitals, physicians, and patients so that they could have a holistic view                       • SAP’s SUP enabled the users to run in a connected or disconnected
of their customers. Also, this medical device organization had patient                              model that was critical for their organization, owing to the lack of
registration information associated with their implantable medical                                  access to the Internet for most of their hospital customers.
device product lines. Incorporating the patient registration data into the                        • It provided an integrated view of the inventory across the sales and
day-to-day sales briefcase would significantly improve sales force                                  service processes while also enabling improved visibility into future
productivity and effectiveness.                                                                     demand through what-if and scenario analyses.
                                                                                                  • It enabled greater visibility and understanding of complaints and/or
SAP worked with the IT and business users at the medical device                                     service requests, positively impacting customer satisfaction and
company and developed a comprehensive solution for their sales,                                     loyalty while mitigating risks associated with product safety.
service, and analytics requirements, with measurable benefits.                                    • Further development in the foreseeable future will provide the
                                                                                                    ability to integrate the patient registration information with the rest
• Time taken, complexity, and cost were significantly reduced by                                    of the sales and service information to better understand the roles
  leveraging the SAP HANA application to connect with the various                                   and impacts of the various primary care, referring, implanting, and
  source systems to analyze the large data sets in sub-seconds and                                  follow-up physicians that this medical device deals with, across the
  provide role-based actionable insights in the form of KPIs, metrics,                              many thousands of hospitals, with an anticipated positive impact on
  and analysis, delivered to the Apple iPad, for the sales and service                              sales and service personnel productivity.
  areas of the business.
• SAP’s SUP provided a mobile platform that not only enabled an app                               Ultimately, the combined power of the SAP in-memory, mobility, and
  store for downloading applications but enabled a comprehensive                                  analytic applications created tremendous value for this leading medical
  process for managing any device used by the organization that                                   device manufacturer to transform their sales and service processes. This
  ensured the safety and security of the organizational, customer, and                            transformation will drive revenue growth for the organization, enable
  patient information. The platform provides the ability to ‘turn off’ a                          greater responsiveness to customer demands, enhance employee
  mobile device and prevent access to sensitive data in the event of                              productivity, and create competitive differentiations that will separate
  loss or theft of the device, or if an employee leaves or is terminated                          them from their rest of the players in the space. ■


1. Pharmaceutical Research and Manufacturers of America, Drug Discovery & Development: Understanding the R&D Process, 2007. Available at:
www.phrma.org/sites/default/files/159/rd_brochure_022307.pdf (accessed October 4, 2011).
2. The Long-Term Outlook for Health Care Spending, Congressional Budget Office estimates. Available at: www.cbo.gov/ftpdocs/87xx/doc8758/MainText.3.1.shtml (accessed October 3, 2011).
3. Economist Intelligence Unit: Enterprise Knowledge Workers, Understanding Risks & Opportunities, 2007. Available at: http://graphics.eiu.com/upload/SAP_InfoWork.pdf (accessed October 4,
2011).
4. Critical Outcome Technologies, September 29, 2011.




7                                                                                                                                                            iHEALTH CONNECTIONS

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Mobility, Analytics & Big Data for Life Sciences

  • 1. Business Strategy Analytics, Mobility and In-memory—Empowering Life Science and Healthcare Companies with Actionable Insights at the Speed of Business Andy De and Joe Miles Joe Miles Joe Miles utilizes his industry operations and software application experience from across the health sciences value chain to lead SAP’s Health Science direction in North America. Whether working with companies on global regulatory compliance, supply chain operations or improving patient outcomes, Joe has helped health science organizations enable key business processes to achieve their operational objectives, global compliance mandates and/or strategic financial goals. This would include automating business processes that improve corporate performance by reducing operational inefficiencies and, more recently, collaborating with organizations from across the healthcare value chain to improve overall patient outcomes. Joe has a Masters Degree in Operations Management from Loyola University of Chicago and a Bachelors Degree in Business Administration from the University of Illinois at Urbana/Champaign. Andy De Andy De is the Global Head of Solutions Marketing for Health-sciences at SAP. In this role, he leads the go-to-market strategy and planning, thought leadership, messaging and positioning, analyst, media and press relations, social media strategy and execution, sales and demand enablement for SAP’s offerings targeted at Pharmaceuticals, Medical Devices and Bio-Tech companies and Healthcare Providers. Andy holds a Bachelor of Engineering in Mechanical Engineering from the University of Bombay, and a Masters Degree in Materials Science and Engineering from the University of Florida. He has a Masters Degree in International Business from the Tel Aviv International School of Management (TISOM) and has earned his MBA in General Management, with a specialization in Business Strategy and Marketing, from the Richard Ivey School of Business at the University of Western Ontario. Disclosure: The authors are employees of SAP Correspondence: joseph.miles@sap.com Citation: iHealth Connections, 2011; October [ePub ahead of print] This article will focus on how life science and healthcare companies can leverage the significant innovations in mobile devices, in memory computing, and realtime analytic technologies to drive down the cost of healthcare and improve the accuracy and availability of information for business users, clinicians, physicians, nurses, and patients. These innovations will enable the rapid analysis of vast amounts of data to deliver actionable insights that previously took hours or even days to achieve, thus enabling a competitive business advantage and a superior patient outcome. The global healthcare market is going through a time of tremendous 49 % in 2082. volatility and change. Reimbursement mechanisms are getting • Federal spending on Medicare (net of beneficiaries’ premiums) and revamped, reduced, or eliminated as governments look to reduce or Medicaid should rise from 4 % of GDP in 2007 to 7 % in 2025, 12 % stop the growth in healthcare spending. Markets are changing in 2050, and 19 % in 2082.2 dramatically as patients are presented with newer and less expensive • A shift from a ‘pay-for-services’ to a ‘pay-for-performance’ model means of receiving their healthcare products and services. that will base reimbursement rates on patient outcomes is predicted. Furthermore, governments, organizations, and companies are looking to the future to create innovative ways of leveraging new Ironically, the increasing cost of healthcare is occurring at a time of technology, models, and information to improve patient outcomes tremendous innovation in information technology (IT) and personal while reducing the cost of care. devices across the health science value chain. There are a variety of new technologies that are poised to create tremendous • Drug companies analyze 5,000–10,000 compounds, spend around innovations, including the following. $1 billion over 12–15 years and leverage as many as 6,000 people to develop one Food and Drug Administration (FDA) approved drug.1 • The growth and use of smartphones continues; current estimates • Total spending on healthcare is projected to rise from 16 % of gross predict that there are around 5 billion in use worldwide today, that is domestic product (GDP) in 2007 to 25 % in 2025, 37 % in 2050, and almost one per person. 1 Š TOUCH BRIEFINGS 2011
  • 2. Analytics, Mobility and In-memory • ‘In-memory’ information processing is replacing disk with memory (e.g. a hospital, a plant floor, or a distribution facility), resulting in an and is leveraging the power of the next generation of hardware that interaction unlike any previously attempted. It is the convergence of uses multi-core architecture with massive parallel scaling across many these various technologies and capabilities that, when presented with blade servers to dramatically increase processing power at a low cost traditional problems of ‘big data’ that sit inside or outside their of entry. business systems, creates a tremendous opportunity for innovation in • Next-generation devices, such as the Apple iPad, are providing driving new and improved methods for reducing the cost of care while a significantly more compelling interaction through the use of improving patient outcomes. high-definition video or interactive applications between a healthcare practitioner and nurses or patients, in either ‘connected’ or In-memory ‘disconnected’ mode. The volume of data that organizations have to manage is growing at an exponential rate. It is estimated that four exabytes (four million Despite all the advances in technology and information, health terabytes) of unique information will be generated this year alone, which science organizations still have tremendous challenges to face in is more than the previous 5,000 years combined. However, the time improving organizational decision-making that optimizes decisions and businesses have to make relevant decisions is shrinking and the results in a positive patient and/or business outcome: complexity of the IT infrastructure required to make those decisions is becoming unmanageable. SAP offers an in-memory computing solution • An Economist survey3 determined that only 20 % of business people that moves data from old disk technology to local solid state memory. surveyed had the right information to make a decision, while 80 % SAP’s solution leverages groundbreaking innovations in software said they had either too little or too much. Furthermore, 75 % stated and hardware so that massive volumes of data can be instantly and that they made the wrong decision because they did not have cost-effectively managed and analyzed. In-memory enables sufficient information. organizations to combine realtime transaction analysis with billions of • Large pharmaceutical companies are challenged by patent expiry, historical records to dramatically improve existing business processes, as the US alone will lose $133 billion in revenue of branded drugs4 with no impact on the response time and/or performance of the from 2012 to 2016, and a constrained capacity for bringing new, enterprise system, to enable a new breed of innovative solutions innovative blockbuster drugs to the marketplace while confronting (see Figure 1). cannibalization by overseas generic competitors. • The traditional sales and marketing models for life science companies Figure 1 highlights how SAP’s in-memory solution, SAP HANA, provides are outdated and increasingly less effective in today’s market. New the perfect starting point for organizations that need to analyze large legislation such as the 2010 US Sunshine Act to ensure transparency volumes of transaction and/or historical data in realtime. in the manufacturer, physician, and patient relationship will have a Furthermore, SAP HANA can leverage existing IT infrastructure such significant impact on these models and processes going forward. as data marts or data warehouses, and it can also go directly to the • Healthcare reform has increased costs and reduced margins for source systems to avoid the time-consuming and costly effort of building the healthcare manufacturer but has simultaneously provided a these structures. tremendous opportunity for providers through a national healthcare program that can potentially add tens of millions of patients into the In addition, by running in parallel to SAP Business Suite applications, system who were previously unable to afford healthcare services. SAP HANA allows business users to query large volumes of data in realtime without having to wait for scheduled reports to run or build Clearly, these are just some of the numerous challenges that are changing traditional data warehouses to be populated with aggregated data. the health science market and demand more innovative approaches to From a life science perspective, SAP is working with customers on a solving the variety of illnesses. Physicians need better access to data, variety of business scenarios where SAP HANA can provide patients need high-efficacy and cost-effective treatments, manufacturers tremendous value, including the following. need to get products to market faster with greater understanding of the impact of the therapy on a patient group, and, ultimately, the healthcare • Realtime Sales and Margin Analysis by Customer, Product, and industry requires timely, accurate, and actionable insights to make better Region Organizations are continually trying to determine their decisions, at a lower cost and a superior therapeutic outcome. level of success and understanding sales and margin performance is critical to that success. SAP HANA can provide realtime or Why In-memory, Mobility, and Analytics for the near-realtime sales, profitability, and margin analysis at a customer, Healthcare Industry? region, or product level, delivered to any device including an iPad, SAP, as a provider of enterprise applications to the life science smartphone, or laptop computer, and companies inside and outside manufacturer and healthcare provider industries, has been providing life sciences see the value of this scenario. innovations to the industry that have improved productivity, reduced • Complaint Tracking Life science companies are required to track any costs, and increased margins for four decades. More recently, SAP’s complaint related to the products or drugs that they sell. This is innovations in the area of in-memory, mobility, and analytic challenging because complaints can originate in a variety of areas and it technologies have provided organizations with the ability to analyze may not be clear if a complaint has been previously analyzed billions of records in sub-second response times and deliver that and resolved. A large medical device company saw an opportunity to role-based analysis to any individual on any device and at any location use SAP HANA to connect directly to a variety of source applications, iHEALTH CONNECTIONS 2
  • 3. Business Strategy Figure 1: SAP HANA Overview of enterprise data. Hence SAP HANA serves as a non-disruptive, realtime attachment to the SAP suite of products. Other applications SAP business objects Mobility Much of the world today operates in a mobile environment – and business MDX SQL SQL BICS is no exception. Business processes no longer require people to be tied to their desktops or landlines. Operating at the ‘speed of business’ efficiently SAP HANA and cost-effectively demands that business executives, managers, and employees perform a variety of tasks anywhere, anytime and on any device. Modeling For example, life science companies, like many industries, now depend on studio mobile technologies to complete from the most trivial to the most complex of transactions. Whether it is a North America-based pharmaceutical In-memory computing engine executive who is traveling through Asia and has to approve a spend Calculation and Row & column requisition for their organization, or a customer service person, because a planning engine storage medical device manufacturer receives an alert that their device is required for an emergency procedure, life science companies need to operate in realtime and need to manage their mobile devices, transactions, and Realtime replication applications in a compliant, cost-effective, and secure manner. Specifically, Data services services SAP’s Sybase Unwired Platform (SUP) provides a mobile platform that can transform the enterprise in a variety of interrelated ways including the following. • Delivering an enterprise mobility platform that supports and SAP business suite SAP NetWeaver BW Third party manages SAP and/or third-party applications on mobile devices. In addition, SAP has mobile device management solutions to manage corporate-issued or personal devices in terms of device and data as well as existing enterprise data warehouses, to conduct text-based security. Delivering SAP mobile applications to our customers that analysis of existing complaints to determine whether they had can be deployed quickly and easily, yet still enabling data and previously handled anything similar. This process eliminates any time- business process integrity and security across end-to-end business consuming effort and immediately directs users to the corrective action processes compliant with industry standards. plan that was put into place to resolve the reason for the complaint. • Enabling a corporate mobile ‘app store’ that will allow users to simply • Clinical Research A clinical research organization maintains terabytes and easily download mobile applications. of clinical and protocol information and can take hours or days to run • Providing a secure device management environment that can wipe simple queries against the data. SAP Life Sciences worked with a devices clean if lost or stolen while also providing ‘best-in-class’ clinical research company to merge two tables of 431 million records enterprise device management capabilities. and 161 million records, respectively. A standard clinical query was run against the data that had taken around 47 minutes to run and the Figure 2 highlights how SAP provides the most comprehensive mobility SAP HANA application ran the query in just 1.78 seconds. platform that is built on the ‘4 Cs’ including the following. In summary, SAP HANA enables the following. • Connect. The platform is optimized to connect not only with SAP Business Suite but also with any other third-party applications • Speed and power of in-memory processing—realtime insight into and/or data sources. Mobile applications should not be confined to business operations without the delay. the application boundaries and need to provide people- and • Flexible modeling and calculation capabilities—complete insight process-centric views of data to be successful. This platform enables based on huge volumes of detailed information. a mash-up of application data, irrespective of source. • Leveraging a variety of SAP or non-SAP data sources, eliminating the • Create. SAP delivers mobile applications and also allows partners need to build complex and costly data warehouses, also providing or third parties to build applications that they believe add value to the flexibility to connect to existing data stores if available. the organization. Furthermore, SAP’s mobile platform also provides the • Flexible and detailed data to answer any query—lower total cost of ability for life science customers to build their own apps through the use ownership (TCO) by reducing IT complexity. of the software development kit and design studio that are included. • Consume. Employees and customers want to use mobile applications SAP delivers SAP HANA solutions that empower business users from the device of their choice. Our mobility platform makes it easy at all levels to conduct immediate ad hoc data analyses and transaction to support a variety of devices so life science companies can pick the processing using massive amounts of realtime data for expanded device that is best suited to their business process without worrying business insight. SAP HANA frees up IT resources, lowers the cost of about whether they need to, for example, support an Apple, operations, and provides a ‘game-changing’ capability in the analysis BlackBerry or Android mobile operating system. 3 iHEALTH CONNECTIONS
  • 4. Analytics, Mobility and In-memory Figure 2: SAP’s Mobility Platform C Create Mobile SDK Connect Eclipse Consume Applications Databases Partn and custom applications Partner J2EE connector architecture SA SAP and Sybase applications Web services Software Unwired Mobile applications platform services Files Management console Afaria Control • Control. Comprehensive security and manageability are critical for performance indicators (KPIs) with actionable insights and work flows successful mobility strategies and SAP delivers best-in-class (e.g. time and expense approvals) to executives and line-of-business capabilities so that organizations can manage their devices (LOB) managers for rapid, right-time decisions, thus improving securely and cost-effectively. SAP’s Afaria product provides an enterprise performance; and industry-leading mobile device management solution that helps • bringing all data in an enterprise within the reach of decision-makers secure and manage mobile devices and applications. in seconds, enabling right-time decisions at the speed of business to outperform the competition. Specifically, SAP’s mobility solutions can enable value in the life science and healthcare industry by: Analytics The term ‘business analytics’ often conjures up visions of some sort of • enabling employees to consume realtime relevant content anytime, reporting that informs about past events. Such reporting comes too late anywhere, on any device; to make a difference and the data cannot always be trusted. These • delivering relevant content from internal and external sources approaches are outdated and ineffective because they provide no (e.g. IMS and POS data) for salespeople and executives to opportunity to initiate a change to prevent negative occurrences. stay current with trends and competitive intelligence, thus improving productivity; Conversely, SAP offers a much broader view of business analytics that • proactively detecting, sensing, and responding to manufacturing, goes far beyond ‘reporting yesterday’s news’ to answer key questions, service, and supply chain exceptions; such as: What is happening now? Why is it happening? What will happen • alerting supply chain, manufacturing, and service personnel to often in the future? The ability of an organization to answer these questions in unforeseen exceptions (orders, inventory, shipments, equipment realtime or near-realtime can be a competitive differentiator. Realtime breakdowns, availability of supplies and qualified personnel), and analytics can be the difference between success and failure of an enabling root-cause analysis and resolution to address these organization, and facilitate a company to understand, decide, and act exceptions before they become customer issues; with confidence to enable their business to ‘run smarter.’ • empowering executives and managers with accurate, realtime actionable insights at the speed of business; The first step to running smarter is to know your business. What does it • delivering accurate, realtime, role-based analytics and key mean to know your business? iHEALTH CONNECTIONS 4
  • 5. Business Strategy • Access all relevant business information – in any way, and anywhere. and faster’ than their competitors and lets them create processes Access is a complex first step because the information usually comes that are truly differentiating in their ability to create a competitive from many different sources internally and/or externally. advantage over the competition. Deployed across a common • Trust the information that you have access to. SAP enables you to business process, organizations can leverage the synergies that are view the quality rating of the information and where it is coming from. aligned across the in-memory, mobile, and analytic technologies. Therefore you can choose how reliable the information is. Trust also Specifically, the inherent nature of the technologies creates these comes from having a clear understanding of the current risk levels benefits, as summarized below. and the compliance thresholds needed to be maintained and the status of compliance programs. To truly know your business you • Leveraging the columnar data stores and the ability to manage should know the risks you are taking as you are making decisions and extremely large data sets, SAP’s in-memory HANA application lets taking actions. companies and their business users query huge data sets (dozens of • Information must be delivered in context, regarding what you are trying terabytes) with sub-second response times to enable access and to do at the moment you are trying to execute it. This is role- and subsequent iterations on data unlike anything that has been done in industry-dependent. To have true meaning the information must be the past. delivered in the right way, at the right time, quickly, and easily. • Market dynamics have reduced the cost of memory and processing power that has correspondingly made this a very cost-effective The second step toward running smarter is ensuring every person in your scenario that can add tremendous value to a business. For instance, organization can decide with confidence. This means that individuals clinicians can review large sets of clinical data across the Internet decide based on aligned performance goals and according to a plan without significant delays due to data size and/or access latency while that will achieve success. reducing the time, cost, and complexity of creating views into simple or complex data structures and sources. • Deciding with confidence means you are deciding after you understand • Financial executives can understand, at the earliest point possible, business impacts, leveraging sophisticated but easy-to-use ‘what-if’ the performance of their company in the areas of sales, margin, and and predictive capabilities to predict future directions. profitability. SAP’s HANA analytic engine can analyze tens of • Deciding with confidence also means a decision must be reached in terabytes of data in realtime, calculate appropriate metrics for profit the light of any risk, balancing risks and opportunities. In other words, and margin at a product, customer, region, or contract level, and access to the risk information and the potential growth opportunities, deliver the information to executives via SAP’s SUP to any device at and the ability to compare them, is imperative. Companies that know any location in the world. their businesses can assess the information holistically to create the most accurate plans, minimize risk in the decisions they make, and SAP’s ability to deliver business analytics resulting from maximize customer focus easily and intuitively. high-performance analysis of terabytes of data that can be delivered to any individual using any device anywhere in the world is unmatched in Finally, the third step highlights the need to act boldly – to do this the marketplace today and provides organizations with an opportunity you must: to provide tremendous competitive advantages through greater insights about their performance at the earliest point possible. • respond instantly to events as they unfold – the moment something happens you must know about it and respond instantly (e.g. in the event Promising Areas of Value Delivery with Analytics, of a product recall, stock out, plane cancellation, terrorist act, etc.); Mobility, and In-memory in Health Sciences • collaborate with your team and network to take coordinated action SAP is partnering with industry leaders in life sciences and healthcare to on the best decision (e.g. decide the most efficient way to pull all toys deliver game-changing value through a combination of in-memory, that contain lead, redirect flights because of adverse weather, mobility, and analytics that rapidly delivers deep business insights to etc.); and executives and users anytime, anywhere, and on any device. Some of the • learn from past actions and other best practices, constantly monitor high-value use cases and scenarios that these leaders are adopting are risk levels, and adapt business operations accordingly. listed here: Analytics, Mobility, and In-memory Together— Increasing Revenues and Margins—Improving Sales Why Is the Synergy Game-changing? Performance with Predictive Sales Analytics In the past, it has been fairly commonplace for companies to The Business Challenge evaluate and appraise analytics, mobility, and in-memory as Vice Presidents of Sales at life science companies are challenged today disparate areas of innovation. However, visionary leaders across by a lack of visibility into revenues and margins by customer, product, multiple industries, including health sciences, now see the game- and channel. This impacts their ability to optimize customer and channel changing synergies enabled by the combination of analytics, responsiveness, pricing and promotion, revenues, and margins. For mobility, and in-memory. Deployed together, these three example, limited and/or delayed visibility into the sales impact from new technologies will not only accelerate business processes but will product launches at a territory and sales rep level prohibits organizations drive actionable insights in realtime to any device, at any location, from realigning sales territories, if needed, to maximize the window of and to any individual. This enables organizations to ‘run smarter profitable opportunity from a new product. 5 iHEALTH CONNECTIONS
  • 6. Analytics, Mobility and In-memory The Value Delivered by In-memory, Mobility, and Analytics margins. Most of all, getting life-impacting drugs and devices safely and Deploying SAP’s in-memory, analytics, and mobility solutions enables securely to hospitals, pharmacies, physicians, and patients would drive life science companies to aggregate and analyze large volumes of higher customer satisfaction and patient safety and bolster brand sales, point-of-sale, prescription, or forecasted demand data by customer, reputation and equity. product, and channel, as well as to determine what, if any, impact they have had on cost and margin. The ability to simulate scenarios and Enhancing Patient Loyalty, Satisfaction, and Safety run what-if analyses on very large data sets enables testing of multiple through Proactive Complaint Management pricing and contract discount/rebate models before execution. These The Business Challenge deep insights can potentially enable higher volumes of sales at optimal Patient safety is paramount for the FDA, biopharma companies, device price/discount/rebate structures and deliver higher revenues and margins manufacturers, patient advocacy groups, and, most importantly, the while maximizing the window of profitable opportunity for new drugs patients themselves. Complaints handling not only provides direct and devices. Delivering these insights via mobile devices to sales leaders feedback to manufacturers about product safety but also helps them empowers them to make right-time decisions in response to unforeseen improve their products and services over time. In the US alone, events such as changes in demand, competitive product launches, non-compliance penalties include individual fines in excess of $100 changes in prescription behavior, etc., while meeting their sales targets. million annually, and often pertain to lack of complaint handling procedures and processes, including inadequate handling of complaints Enhance Customer Service, Patient Safety and Supply and failure to submit reports properly. Chain Efficiency—Enabling Reliable Order Promise through Accurate Demand and Inventory Visibility The Value Delivered by In-Memory, Mobility, and Analytics The Business Challenge Deploying SAP’s in-memory, analytics, and mobility solutions in Supply chain leaders, demand and supply planners, and sales leaders in conjunction with a complaint tracking system can help life science life science companies are often challenged by an inaccurate picture of companies proactively monitor, detect, sense, analyze, and respond to the finished goods inventory by product, channel, and distribution center. customer complaints. The ability to aggregate and analyze large This minimizes their ability to consistently make order commitments to complaint data volumes can ensure that patterns and trends are their customers or take advantage of unforeseen demand opportunities monitored, detect root causes and their financial and product safety (inability of competitors to fulfill orders, disease or pandemic outbreaks, implications, and trigger corrective and preventive action (CAPA) and etc.). Also, the lack of near-realtime demand or the ability to replan adverse event management work flows and processes to alleviate these demand on a daily basis (versus weekly, monthly or quarterly ) further complaints before they become significant issues or invite penalties and exacerbates these challenges. Life science manufacturers often carry fines. Rich analytics enable deep insights into historical complaints data, huge inventory buffers to compensate for this lack of accurate visibility quality and risk analysis, and their sales impact. Deploying a rapid into demand and supply and cannot sense and respond fast enough response complaints management system would help life science when unforeseen events happen, resulting in lost revenues and, more companies improve customer loyalty and retention and have a positive importantly, the inability to deliver life-saving drugs and devices to impact on the company’s brand while assuring high levels of patient and patients who need them. It is not surprising that life science companies product safety. carry 100–300 days of inventory on average, tying up billions of dollars of working capital that is by far the largest of any industry. Value Delivered by SAP’s Innovation in In-memory, Analytics, and Mobility—A Customer Success Story The Value Delivered by In-memory, Mobility, and Analytics The advent of the Apple iPad as a tactile touch-sensitive content Deploying SAP’s in-memory, analytics, and mobility solutions to consumption mobile device is significantly impacting the way sales reps augment current supply chain planning solutions delivers deeper, deliver content, presentations, and data to doctors, clinicians, and faster, and more accurate business insights that are not feasible nurses. Not only is the content delivered in a more compelling manner with today’s demand-planning tools. Leveraging the columnar data via the iPad (and similar tablet devices), but it also improves the structure and running queries on large data volumes in-memory productivity and efficiency of the sales rep. A leading medical device can speed up computing and planning processes by as much as company was challenged with improving sales productivity while 100 times. Faster and more accurate demand plans, realtime what-if leveraging the significant investment that they had recently made in the scenario analysis, and the ability to make reliable order promises Apple iPad. The organization had begun to see the positive impact of (available-to-promise/capable-to-promise) anytime, anywhere, on mobile the iPad but they needed an enterprise-level mobile platform to develop devices of choice, become eminently feasible for life science companies. and manage mobile applications on all their enterprise devices while Integration with financial data, also in realtime or near-realtime, would maintaining appropriate access and security in a cost-effective manner. enable business users and executives to immediately understand the financial implications of missed orders, changes in demand and supply, Furthermore, the sales analytics information was distributed across a and inability to fulfill as planned what is clearly not feasible today. These variety of source systems and integrating the data into a cohesive and business insights would then empower their sales executives and supply integrated view was extremely difficult, if not impossible. Much of the chain and manufacturing leaders to not only sense and respond to information was siloed, lacked any business context, and had lost a lot of unforeseen changes at the speed of business but also exploit revenue its value given the time it took to assemble, aggregate, and distribute opportunities faster than the competition without compromising on the reports. iHEALTH CONNECTIONS 6
  • 7. Business Strategy The medical device company needed to improve the quality and by the company. timeliness of the ‘sales briefcase’ information so that their sales team • It provided a robust, actionable view of sales and service information could drive revenues and improve productivity. Information needed to that not only drives revenue uplift but also enables greater flexibility be current and comprehensive and reflect the multifaceted view of in deploying resources across the service environment. hospitals, physicians, and patients so that they could have a holistic view • SAP’s SUP enabled the users to run in a connected or disconnected of their customers. Also, this medical device organization had patient model that was critical for their organization, owing to the lack of registration information associated with their implantable medical access to the Internet for most of their hospital customers. device product lines. Incorporating the patient registration data into the • It provided an integrated view of the inventory across the sales and day-to-day sales briefcase would significantly improve sales force service processes while also enabling improved visibility into future productivity and effectiveness. demand through what-if and scenario analyses. • It enabled greater visibility and understanding of complaints and/or SAP worked with the IT and business users at the medical device service requests, positively impacting customer satisfaction and company and developed a comprehensive solution for their sales, loyalty while mitigating risks associated with product safety. service, and analytics requirements, with measurable benefits. • Further development in the foreseeable future will provide the ability to integrate the patient registration information with the rest • Time taken, complexity, and cost were significantly reduced by of the sales and service information to better understand the roles leveraging the SAP HANA application to connect with the various and impacts of the various primary care, referring, implanting, and source systems to analyze the large data sets in sub-seconds and follow-up physicians that this medical device deals with, across the provide role-based actionable insights in the form of KPIs, metrics, many thousands of hospitals, with an anticipated positive impact on and analysis, delivered to the Apple iPad, for the sales and service sales and service personnel productivity. areas of the business. • SAP’s SUP provided a mobile platform that not only enabled an app Ultimately, the combined power of the SAP in-memory, mobility, and store for downloading applications but enabled a comprehensive analytic applications created tremendous value for this leading medical process for managing any device used by the organization that device manufacturer to transform their sales and service processes. This ensured the safety and security of the organizational, customer, and transformation will drive revenue growth for the organization, enable patient information. The platform provides the ability to ‘turn off’ a greater responsiveness to customer demands, enhance employee mobile device and prevent access to sensitive data in the event of productivity, and create competitive differentiations that will separate loss or theft of the device, or if an employee leaves or is terminated them from their rest of the players in the space. ■ 1. Pharmaceutical Research and Manufacturers of America, Drug Discovery & Development: Understanding the R&D Process, 2007. Available at: www.phrma.org/sites/default/files/159/rd_brochure_022307.pdf (accessed October 4, 2011). 2. The Long-Term Outlook for Health Care Spending, Congressional Budget Office estimates. Available at: www.cbo.gov/ftpdocs/87xx/doc8758/MainText.3.1.shtml (accessed October 3, 2011). 3. Economist Intelligence Unit: Enterprise Knowledge Workers, Understanding Risks & Opportunities, 2007. Available at: http://graphics.eiu.com/upload/SAP_InfoWork.pdf (accessed October 4, 2011). 4. Critical Outcome Technologies, September 29, 2011. 7 iHEALTH CONNECTIONS