5th Annual InternationalBusiness Research Forum
Globalization of the Pharmaceutical IndustryImplications to Information Technology
Bruce FademBruce FademMarch 27, 2004March 27, 2004
Pharmaceutical IndustryLate 1980’s – Early 1990’s
Halo effect Significant contributions to humankind Excellent profitability Local market focus Multinational
Pharmaceutical IndustryForces and Trends
ForcesRising healthcare costs
More complex and expensive new products
Greater regulatory oversight
TrendsGlobalization of the business
Complexity of government regulations
Tougher partnerships and integrations
Customer focus
Improve cost effectiveness and productivity through consolidation and standardization, i.e., operate as an integrated global company.
Pharmaceutical IndustryNecessary Response
Information Technology is an integral part of our business …
IT systems play support role in planning and production
IT used to plan and manage all aspects of production and capital management
Enabling complex network of commercial and supply partners
Business units manage own IT Systems designed for specific
functions/areas within business; different systems across geographies
Limited need for integration
IT complexity and cost drives need for shared services
Business functions increasingly linked; applications begin to be standardized
Industry investing heavily in integrated systems
IT used primarily to capture andmanage data within silos
IT solutions largely tactical and operational
IT enabling more aspects of R&D process – optimizing and accelerating speed of clinical trials, predictive modeling and simulation, managing genomic data
IT supports contact centers IT used to plan campaigns at
market/channel level
Data analytics used for creating targeted campaigns; enable measurement of promotional impact and proactive response measurement
Getting closer to one-to-one marketing through internet and direct prescriber interactions
Early 90s Today
Enterprise
Research andDevelopment
Manufac-turing and supply chain
Commer-cialization
Evolution of IT in the pharmaceutical industry
*Decision Support Systems
Trends Business challenges
Globalization of the business
Worldwide marketing and distribution – coordinate development and commercialization to allow global product management
New sources of competition – continued growth of local competitors, particularly in off-patent drugs requiring increasing efficiency
Increasing standardization of process and coordination through development of cost-effective connectivity of workforce
Continued use of IT to improve manufacturing productivity/efficiency
Complexity of government regulation
Linking internal and external processes to ensure timely information flow with regulators
Tighter control over regulatory interactions – proactively tracking and reporting regulatory changes; actively monitoring GCP, GLP, GMP, and GPP
Social, economic and political pressure on pricing
Allow real-time exchange and dissemination of regulatory information
Electronic submission and regulatory reporting from centralized repositories
Global pricing processes and management systems
Tighter partnerships & integration
Tracking, evaluation, and coordination of multiple external relationships to gain/assess value
Seamless integration of business processes between enterprise functions and partners
Connectivity/systems for collaboration, process integration, and contractual monitoring of network of partners
Standardize applications and integration through middleware and data warehouses
Customerfocus
Continued growth of one-to-one marketing with targeted promotion and services
Consumer awareness and influence on prescriber decisions
Close loop promotion- interactive detailing DTC and internet capabilities Promotional response modeling Potential for “real-time” interventions
Potential IT needs
Industry trends will focus attention on IT solutions to increase collaboration and controls
Industry trends
Wyeth
Global, research based pharmaceutical company $16 billion annual revenue 53,000 employees 100+ locations worldwide Established in 1926 Formerly named American Home Products
Wyeth’s global network of sites shows extent of IT integration into the business
1999~85 connected sites
Wyeth’s global network of sites shows extent of IT integration into the business
19992004
~227 connected sites
Wyeth’s global network of sites shows extent of IT integration into the business
1999
2004
2009
~275 connected sites
American Home ProductsInformation Services Organization-Pre 1997
PharmaIT Head
International AffiliateCFO(s)
PharmaCFO
International AffiliateIT Head(s)
CorporateIS
CorporateCIO
FDAH DomesticIT Head
FDAH DomesticCFO
International IT Head(Home Office)
International PharmaCIO
Consumer Healthcare IT Head
Consumer HealthcareCFO
FDAH InternationalIT Head
FDAH InternationalCFO
Wyeth Information Services Organization-2004
Wyeth IS
Research IS
CorporateIS
PharmaIS
InternationalIS
ConsumerHealthcare IS
FDAH IS
IS Support
ISOperations
ISTechnology
ISFinance
Business Solutions Providers
Shared Services Providers
Responsible for providing allinformation technology supportto Wyeth Pharmaceutialsbusiness units.
Responsible for providing allinformation technology supportto Wyeth Research andDevelopment units.
Responsible for providing allinformation technologysupport to Wyethheadquarter units.
Responsible for the overallfinancial management ofWyeth Information Servicesincluding budgeting,forecasting and chargeouts.
Responsible for the deliveryof information technologyoperational services (datacenters, telecom, LAN,desktop).
Responsible for establishingenterprise technologyarchitecture and standards,and providing ongoingtechnology integration andsupport.
Responsible for developing andsupporting policies and processesto meet regulatory and compliancerequirements and to strengthencustomer service delivery. Providehep desk, client usability, training,security and acquisitionsleadership and services .
Responsible for implementationand ongoing support ofinformation technology solutionsfor pharma and consumerhealthcare international affiliatebusiness units.
Responsible for providing allinformation technologysupport to ConsumerHealthcare.
Responsible for providing allinformation technologysupport to FDAH.
Wyeth IS Vision
Common Business Processes Across the Company
Enterprise Application System in Predominant Use
IT Shared Services for Operations, Technology, and Processes Across the Globe
IT “Follow the Sun” Centers of Excellence for Business Applications, Technology, and Operations
Infrastructure Funding by Platform, Technology, and Application
An Intense Focus on Delivering Value to Our Clients
A Total Commitment to Cooperation, Communication, and Coordination
Keys to Effective Application of Information Technology