Key Results
The Opportunity
Unifying Data for Strategic Decision-Making in a Global Pharmaceutical Giant
A leading multinational pharmaceutical corporation stands at the forefront of the industry, with a diverse portfolio spanning primary care, women’s health, oncology, and hospital care. With operations in 180 countries and a network of 250 subsidiary companies, this healthcare giant has a truly global reach. However, despite its impressive scale and scope, the organization found itself confronting a daunting challenge. The company recognized the need for a comprehensive overhaul of its financial systems and processes, calling for a global, large-scale IT infrastructure and business alignment implementation. This multi-year project, with a budget exceeding $100 million, aimed to revolutionize the company’s financial operations and streamline its worldwide business practices.
Our team was tasked with program managing this extensive initiative, coordinating a workforce of 110 internal staff and 60 external consultants. The project’s core objective was to transform reporting and analytics capabilities critical for strategic planning. By providing senior leaders in finance, marketing, and manufacturing with a comprehensive view of the entire value stream, the initiative aimed to enhance decision-making processes across the organization.
The Solution
Comprehensive Approach to Data Unification and Business Alignment
To address the complex challenges faced by the pharmaceutical company, a strategic approach was developed that encompassed multiple facets of the business. This comprehensive solution was designed to not only unify data but also to standardize processes and enhance decision-making capabilities across the organization.
Key Components of the Solution
A multi-year strategic roadmap was developed given the global nature of the publicly traded company. The roadmap outlined strategic priorities and divided the work into ten critical work streams. This long-term planning ensured that the transformation was aligned with the company’s overall business objectives and provided a clear path for implementation.
Common Information Model
A cornerstone of the project was the creation of a standardized set of terms and definitions across the enterprise. This Common Information Model ensured consistency in data interpretation and reporting, eliminating discrepancies and improving decision-making accuracy.
Success driver: Standardization of data definitions and terminology
Global Supply Chain Visibility
The solution improved visibility across the entire supply chain, enabling the company to reduce costs and improve customer service. This comprehensive view allowed for more efficient inventory management and resource allocation.
Success driver: End-to-end supply chain transparency
Pricing Analytics
A logical data model for gross-to-net information was developed based on the Common Information Model. This enhancement significantly improved the company’s ability to conduct pricing analysis, leading to more informed pricing strategies.
Success driver: Advanced pricing analysis capabilities
Educate, Train, and Communicate (ETC) Program
To manage the significant changes resulting from this project, a comprehensive ETC program was established. This initiative was designed to positively manage the acceptance and daily use of the new solutions while minimizing business disruption for 2,500 employees.
Success driver: Proactive change management and employee engagement
Program Governance
The program governance structure was meticulously designed to ensure clear roles and responsibilities, facilitating effective decision-making processes. The program leadership team spearheaded the initiative, overseeing workstream project managers and leading the comprehensive change management effort at both the program and workstream levels. The team comprised 178 individuals globally by the program’s conclusion, ensuring robust coordination and execution.
Success driver: Effective coordination and leadership across all levels of the governance structure
Cost Per Unit
The client initially lacked the ability to understand the cost per unit, which was a significant barrier to effective financial management and strategic decision-making. It was not merely about ensuring data flow but also about determining what costs should be included in calculating the cost per unit. This required extensive consulting to align all stakeholders on the components that constituted the unit cost.
Success driver: Establishing a unified framework for cost allocation and achieving stakeholder consensus
The Results and Impact
Driving Efficiency and Strategic Decision-Making Through
Data Transformation
The implementation of this comprehensive solution transformed the pharmaceutical company’s operations, streamlining processes, enhancing data transparency, and significantly improving decision-making capabilities. The results directly addressed the initial challenges and leveraged the innovative solutions to drive substantial business value.
01. Accelerated Financial Processes
The project successfully reduced the number of days needed to close the financials. This improvement in efficiency allowed for faster reporting and more timely decision-making based on current financial data.
02. Significant Cost Savings
Through the decommissioning of legacy systems, the company achieved a cost avoidance of over $100M. This not only streamlined operations but also freed up resources for more strategic initiatives.
03. Enhanced Pricing Analysis Capabilities
The implementation of the new pricing analytics model increased the company’s ability to conduct pricing analysis by 10-fold on a monthly basis. This capability was valued at $50M in a sample month, demonstrating the significant financial impact of improved data analytics.
04. Optimized Inventory Management
By improving product availability views, the company reduced overstock and inventory discards by 20%, resulting in annual savings of $87M. This optimization of inventory management directly impacted the bottom line and improved overall operational efficiency.
05. Improved Governance and Analytics
The implementation of a formal enterprise-wide governance structure to support business analytics ensured that data-driven decision-making became embedded in the company’s culture. This structure provided a foundation for ongoing improvements in analytics capabilities.
Operational Improvements and Business Impact
- Unified financial and non-financial data on a single platform using a Common Information Model
- Standardized unit of measure definitions and measurements across the organization
- Improved visibility and tracking of inventory across the entire value chain
- Enhanced ability to calculate Cost of Goods Sold (COGS) consistently across the organization
- Implemented mark-up tracking (M-TRAC) across the product supply chain
- Improved responsiveness to global pricing needs across the enterprise
This strategically aligned transformation addressed the initial challenges of data fragmentation, inconsistent reporting, and lack of standardization across the company’s global operations. By leveraging a comprehensive approach that encompassed technology, processes, and people, we delivered a solution that resonated with the organization’s global strategy. This approach not only streamlined operations but also fostered a culture of data-driven decision-making, propelling the pharmaceutical company toward its business objectives in the competitive global healthcare market.
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