sanofi aventis analytics journey: transforming big pharma

Financial performance management at Sanofi-AventisTRANSFORMING BIG PHARMA

Transforming Big Pharma

SPEAKERS SANOFI-AVENTIS AND PMSQUARE

Head of Information Management and Analytics APAC region Currently Head of Global Controlling Core Model

Yazid Helissi Sanofi-Aventis

Solution Architect IBM Information Champion

Yuri Kudryavcev PMsquare

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Transforming Big Pharma

● Global healthcare leader focused on patients’ needs;

● Engaged in research, development, manufacturing and marketing of health products;

● Diversified offer of medicines, vaccines and innovative therapeutic solutions;

● Present in 100 countries;

● NET sales of EUR 33.7 billion in 2014.

ABOUT SANOFI-AVENTIS 4TH LARGEST WORLD PHARMA

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Transforming Big Pharma

Award winning PMsquare is the first accredited Business Analytics Business Partner in ASEAN and first Business Analytics Business Partner worldwide to achieve accreditations in multiple countries in which they operate.

Top verticals: Pharmaceuticals, Transportation, Retail, Manufacturing, Consumer Goods and Automotive.

Product capabilities: IBM Cognos BI, TM1, EP, SPSS, DataStage, Apparro Fast Edit.

Customer summary:

• more than 50 clients; • deployed in 20+ countries.

ABOUT PMSQUARE BOUTIQUE CONSULTANCY

Locations: Singapore, Australia, USA, Philippines, Germany

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Transforming Big Pharma

PROJECT BACKGROUNDPLANNING IN ASIA PACIFIC (APAC)

1. Local operations in each country following different, non-standard business planning and reporting processes. 2. It is difficult to gain visibility of financial and operational performance across the region.

1. Build a repeatable platform for analytics. 2. Go mobile. 3. Accelerating key finance processes.

Goals:Issues:

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Transforming Big Pharma

DEPLOYMENT TIMELINE3 COUNTRIES EVERY 6 MONTHS

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Transforming Big Pharma

• Core model + adjustments for every country

• Standard functionality — «core» template

• Local adjustments to create compelling business benefits

onelocaladjustments of a core model

model for everyone

• Single development effort

• Fast rollout

• Inflexible

• A lot of parameters

• Large

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HOW TO DEVELOP A TEMPLATEONE MODEL OR LOCAL DEPLOYMENTS?

Transforming Big Pharma

CORE MODEL APPROACHINTRODUCTION TO THE CONCEPT

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Transforming Big Pharma

CORE MODEL APPROACHTEMPLATE FOUNDATION

Foundation:

collection of standard functionalities to ensure that minimum group requirements for reporting of planning exercise are met

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Transforming Big Pharma

CORE MODEL APPROACHREVENUE TEMPLATES

Gross margin and revenue cluster:

set of TM1 sub-modules to increase quality of planning and analytics for revenue

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Transforming Big Pharma

REVENUE TEMPLATESDEEP DIVE INTO PROFIT

● Demand planning based on actuals or different product or market models

● Pricing model discount campaigns and government health cuts

● Sales force targets ● Price and volume analysis

3 DAYS

SEVEN

saved on Excel files consolidation

countries have started involving Product

Managers in forecast process

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Transforming Big Pharma

Expenses cluster:

set of TM1 sub-modules to increase quality of planning and analytics for expenses

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CORE MODEL APPROACHOPEX TEMPLATES

Transforming Big Pharma

● Workforce planning ● Project planning ● Local clinical trials, phase 4-5

studies ● Travel planning

3000+

400

employees in HR planning module in

India

clinical trials in China

OPEX TEMPLATESDEEP DIVE INTO EXPENSE DRIVERS

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Transforming Big Pharma

Reporting and dashboard:

financial dashboard available for iPad and desktop

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CORE MODEL APPROACHCONSOLIDATION AND REPORTING

Transforming Big Pharma

● Product P&L ● Allocations by sales force, sales,

headcount etc. ● Pre- and post-allocation checks ● Multiple currencies and different

FX rate types ● Automated export to «corporate»

systems ● Top-level adjustments

<3 MIN

TWO

to re-allocate & produce consolidated

reports

weekends saved for BBQ

CONSOLIDATION AND ALLOCATIONANALYSING PRODUCT PERFORMANCE

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Transforming Big Pharma

REPORTINGMOBILE INSIGHT

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Transforming Big Pharma

REPORTINGDESKTOP E-CONTROLLER

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Transforming Big Pharma

FEEDBACKWHAT END USERS TELL US

1. Intense change management with final users.

2. Less flexible than Excel.

3. The system is very sensitive to master data.

1. Automated consolidation — no need to run processes manually or collect Excel files.

2. Fast calculation.

3. Users like automated actual uploads.

4. Less copy&pasting!

Negative:Positive:

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Transforming Big Pharma

TYPICAL ARCHITECTURE SYSTEM COMPONENTS

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TM1

TM1

Transforming Big Pharma

PROJECT STEPS 3 MONTHS TO DEPLOY A COUNTRY

InitiateProject • Scoping • Meetingminutes

Designthesystem • Excelmockups • Designdocument

Build • Workingprototype

Deploymenttotestenvironment Trainthecontrollers

UAT

Deploymenttoproduction

Productionsupport

Review

Iterative approach of design and build

Controllerstrainusers

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Transforming Big Pharma

DOING THINGS REMOTELYALL PROJECTS DONE OFF-SITE

Local commitment ● Dedicated time; ● Change management; ● Local champions.

Tender love and care ● Fast and proactive; ● Daily meetings; ● Always in touch.

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Transforming Big Pharma

DEVELOPING THE TEMPLATETECHNICAL SIDE

Ease of maintenance

● Power to the users; ● Automated error checks; ● Don’t overdevelop; ● «No» to complex ideas.

Building up complexity

● Best practices from every country;

● Lego-model deployment; ● Revisiting existing

deployments.

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Other projects worth mentioningNOT ONLY FINANCIAL PLANNING

Transforming Big Pharma

PLANETCENTRAL FUNCTIONS CONTROLLING

● Tracking costs per function or project across the whole Sanofi

● Top-level adjustment

● FX variation ● Central & local

controllers ● 10,000+ cost centre ● 70+ currencies

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Transforming Big Pharma

CASAR&D CLINICAL TRIALS FORECASTING

● Local and multi-country studies ● Study planning and tracking ● Actual data from local systems ● Various cost phasing

methodologies ● 50+ countries added in 4 months

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MERCI

Yuri Kudryavcev Solution Architect PMsquare ykud@pmsquare.com.au

Yazid Helissi Head of Global Controlling Core Model Sanofi-Aventis yazid.helissi@sanofi.com