from
Schneider Electric
Life Sciences
Solutions
IND-03
Rakesh Mukhija
Director, Life Sciences Solutions
Life Sciences Segment Facts and Figures
2014 Software Global Client Conference 4
R&D APIs Formulations Packaging Distribution
8% Global CAGR
10% Generics CAGR
60% Contribution of Top 20 companies to Life
Sciences revenue
>50b€ R&D investment
~20% Average operating margin
15b€ Annual revenue decline due to patent expiry
1TWh Annual Electricity Consumption
>5b€ Cost of energy consumed
65% Energy consumed by HVAC as % of total
800b€ 1.5% 85b€ 6b€ Life Sciences Segment
Revenue
Global GDP
contribution CAPEX
Schneider Electric’s
2014 Available Market
Life Sciences Segment Trends
• Aging Population
• Rising incidence of chronic diseases
• Opportunities in emerging markets
• Technological advancement
• Heightened regulatory activity
• Focus on niche products
• Healthcare reform provisions
• Increased M&A and alliances
Source: PwC
Paradigm shift of Life Sciences segment
2014 Software Global Client Conference 6
1980-
2000
2011-
2020+
Old Environment
• Economic stability
• Focus on top 10 markets
• 6%-7% of popl. aged 65+
• Blockbuster biz. model
• Treatment for chronic
conditions
• Products marketed to
primary care physicians
New Environment
• Economic volatility
• Focus on growth mrkts.
• 7.6%-9.4% of population
aged 65+
• Spl. medicines biz. model
• Treatment for rare/acute
diseases
• Products marketed to
healthcare payers
• Globalization
• Market dynamics
• Demographic changes
• Communication technology
• Shift in R&D direction
• Healthcare reforms
Forces of Change
Ke
y
Ch
all
en
ge
s
Challenges faced by Life Sciences segment
7
Innovation-driven Market-driven
Expand aggressively
with small molecules,
generics and local
formulations
1. Margins
2. Market share
3. Portfolio
optimization
Build market
presence with
selective local
investments
1. Portfolio
optimization
2. Margins
3. Market share
Sell limited range of
proprietary
products at high
prices
1. Portfolio
optimization
2. Market share
3. Margins
Sell full proprietary
portfolio, including
biologics, at high
prices
1. Market share
2. Portfolio
optimization
3. Margins
Customers’
Business
Goals
Our solutions connect to segment’s key challenges
2014 Software Global Client Conference 9
Stakeholders [ Customers, Investors, Employees ]
=SE=
Solutions Goals
Execute
Report Comply Investigate Diagnose
Visualize Record Detect Govern
Right Product
Right Quality
Right Quantity
Right Time
Right Cost
Right Outsourcing
Partners
Innovation
Specialization
Critical Mass
Agile Production
Quality/Genealogy
Maintain Compliance
Reliability/Maintenance
Product Safety
Waste
Standard processes
Cycle Times (Velocity)
Traceability (Recall)
Time-to-ramp
Empowering frontlines
Flexibility
Open & Interoperable
Market share
“First to market with right
product…”
Margins
“Continuously taking waste
out of the system”
Portfolio Optimization
“Strengthening Market
position & managing risk”
Customers’
Market
Goals
Customers’
Manufacturing
Goals
Competitive pressures favor first to market with brand and allow
more time for profit prior to generic competition
Emerging markets seeking higher standards of healthcare and
driving local supply chain for drugs
Risk reduction has inhibited new technology, but companies are
now seeking more modern and efficient processes
Standardizing processes across facilities reduces regulatory
exposure and creates efficiencies in operations
Multi-product facilities are replacing dedicated facilities to limit
supply chain disruptions
New acquisitions and mergers create a landscape of disparate
systems and competing technology standards
Costs of regulatory findings can be detrimental in real dollars,
lost production and bad publicity
Segment’s challenges driving our solutions
2014 Software Global Client Conference 10
Market share
Margins
Portfolio
Optimization
First to Market
Emerging Markets
Modernization
Standardization
Agile Production
M&A
Compliance
Building Accelerator Methodology Accelerate your return on investment
2014 Software Global Client Conference 12
Reduce your time to market:
• Commission and validate your
plant upto 2 months in advance
• Generate an additional revenue of
upto $50M
Schneider Electric focuses on delivering Life Sciences solutions designed
and built to specification, on time, and on budget
Total Environment Management (TEM) Stay on the right side of regulatory compliance
2014 Software Global Client Conference 13
Keep your facility safe, secure,
operational and compliant:
• Avoid Form 483 notices from
US-FDA
• Avoid opportunity cost upto
$1M/day by preventing involuntary
plant shut-down
Establish and maintain a desired environmental state through the
integrated monitoring and control of all events and parameters
Raise your sustainability Comprehensive approach to energy management
2014 Software Global Client Conference 14
Improve your bottom-line and
get listed on DJSI:
• Energy savings of upto
$1.5M/year for an average size
production plant
• Reduced carbon foot-print: upto
5‘300 MTe reduction of CO2
Improving your Dow Jones Sustainability Index score has been shown to
increase your company's stock valuation by 1.48%
Batch Standardization to meet Business Goals Empower your operators to make real-time decisions
2014 Software Global Client Conference
Grow your top-line:
• Increase your productivity by
upto 5%
• Additional revenues upto
$15M/year due to automation of
MES / Workflow
Automated support of real-time decisions and actions to reduce planned
and unplanned downtime
ABB GE Emerson RA Siemens =SE=
Batch Automation Integration Layer
MES Enterprise Data Presentation
15
Site-Executable Recipe
EXECUTION
Data Generated
in S-88 format
with site details
CONTENT
Critical Parameters
& Steps Structured
in S-88 format
VISUALIZATION
Critical Parameters
& Steps in
Context-rich data
Reduced scope of compliance - EMS The importance of high-quality data
2014 Software Global Client Conference
Reduce the scope of
validation:
• Decease the scope of validation
by using dual EMS+BMS
solutions, instead of single BMS
• Reduced operational expenses,
leading to savings of upto
$500‘000/year
Recorded data must be accurate, repeatable and secure and represent
the actual environmental conditions
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Sustainability
Planning
Energy
Management
IT
Management
Process
Management
Our solutions for Life Sciences
2014 Software Global Client Conference 18
Asset
Management
Building
Management
Site
Supervision Simulation &
Optimization
Security
Management
Operation
Management
Power
Management
Sustainability
Planning
Energy
Management
IT
Management
Process
Management
Our solutions for Life Sciences
2014 Software Global Client Conference 19
Asset
Management
Site
Supervision Simulation &
Optimization
Security
Management
Operation
Management
Building
Management
Power
Management
Room control
Building products
Building Services
Building
management
Building Systems
HVAC control
Environ. Monitoring
Lighting control
Sustainability
Planning
Energy
Management
IT
Management
Our solutions for Life Sciences
2014 Software Global Client Conference 20
Asset
Management
Building
Management
Site
Supervision Simulation &
Optimization
Security
Management
Operation
Management
IT room power distrib.
IT products
IT Services
IT management
IT Systems
Racks & Enclosures
Uninterruptible
power supply (UPS)
Cooling
Environmental Monitoring
Network connectivity
Business Networks
Power
Management
Process
Management
Sustainability
Planning
Energy
Management
IT
Management
Our solutions for Life Sciences
2014 Software Global Client Conference 21
Asset
Management
Site
Supervision
Security
Management
Operation
Management
Power
Management
Building
Management
Simulation &
Optimization
Process
Management
Plant & Infrastructure
Automation
Automation products
Automation services
Process
management
Automation Systems
Instrumentation
Process Safety
Process Automation
Machine automation • General machines control
• Pump & Fan control
• Hoisting control
• Material handling
• Packaging control
• Material working
Sustainability
Planning
Energy
Management
IT
Management
Our solutions for Life Sciences
2014 Software Global Client Conference 22
Asset
Management
Site
Supervision
Security
Management
Operation
Management
Video security
Security products
Security Services
Security
management
Security Systems
Emergency lighting
Intrusion detection
Access control
Fire and life safety
Power
Management
Building
Management
Simulation &
Optimization
Process
Management
Sustainability
Planning
Energy
Management
IT
Management
Our solutions for Life Sciences
2014 Software Global Client Conference 23
Asset
Management
Site
Supervision
Security
Management
Operation
Management
Building
Management
Simulation &
Optimization
Process
Management
Power
Management
MV distribution, substations, feeder
Power Products
Power services
Power management
Power Systems
Power protection/control
iPMCC
Power availability & reliability
Renewable energy conversion
Electrical storage
Electric vehicle charging
Sustainability
Planning
Energy
Management
Power
Management
IT
Management
Our solutions for Life Sciences
2014 Software Global Client Conference 24
Asset
Management
Site
Supervision
Security
Management
Operation
Management
Integration Toolkits
System Platform
Integration services
Site Supervision
System Platform
HMI (inTouch, Citect)
Information Servers
Application Servers
Historian
Enterprise Integration
Building
Management
Simulation &
Optimization
Process
Management
Sustainability
Planning
Energy
Management
Power
Management
IT
Management
Our solutions for Life Sciences
2014 Software Global Client Conference 25
Asset
Management
Site
Supervision
Security
Management
Operation
Management
Building
Management
Simulation &
Optimization
Process Simulation
Simulation & Optimisation
Simulation & Optimisation
services
Simulation & Optimisation
Simulation & Optimisation
Systems
Operator Training
Advanced Process Control
Supply Chain Optimisation
Commodity trading &
Producer information
Process
Management
Sustainability
Planning
Energy
Management
IT
Management
Our solutions for Life Sciences
2014 Software Global Client Conference 26
Asset
Management
Site
Supervision
Security
Management
Operation
Management
Power
Management
Building
Management
Simulation &
Optimization
Process
Management
MES • Production Execution
• Performance
• Quality
• Traceability
Operation Management
Operation services
Operation Management
Operation Management
Batch
Intelligence
Business Process Mgt.
Workflow
Sustainability
Planning
Energy
Management
Power
Management
IT
Management
Our solutions for Life Sciences
2014 Software Global Client Conference 27
Asset
Management
Site
Supervision
Security
Management
Operation
Management
Energy Management services • Data Analysis
• Global Utility Bill Mgt.
• Market Intelligence
• Energy Rates and Tariff Analysis
Energy Management Projects • Audits & Integration
• µgrid and renewable
• Performance Guarantee
Energy Management
Energy Management
Corporate Energy Mgt
Energy Operation EnMIS
Demand Response Mgt.
Building
Management
Simulation &
Optimization
Process
Management
Sustainability
Planning
Energy
Management
Power
Management
IT
Management
Our solutions for Life Sciences
2014 Software Global Client Conference 28
Asset
Management
Site
Supervision
Security
Management
Operation
Management
Maintenance Mgt.
Asset Mgt. services
Asset Management
Asset Management
Maintenance & Reliability
decisions
Document Approval
Workflow
Asset Intelligence
Condition Management
Continuous Monitoring Building
Management
Simulation &
Optimization
Process
Management
Sustainability
Planning
Energy
Management
IT
Management
Our solutions for Life Sciences
2014 Software Global Client Conference 29
Asset
Management
Site
Supervision
Security
Management
Operation
Management
Power
Management
Building
Management
Simulation &
Optimization
Process
Management
Environmental
Sustainability Mgt.
Sustainability Services • Sustainability Roadmap
• Strategic Energy Roadmap
• ISO 50001 certification
Compliance Consulting • Qualification
• Validation
• Compliance
Sustainability
Planning
Sustainability Planning
Sustainability
Planning
Energy
Management
IT
Management
Process
Management
Our solutions for Life Sciences
2014 Software Global Client Conference 30
Asset
Management
Building
Management
Site
Supervision Simulation &
Optimization
Security
Management
Operation
Management
Power
Management
Sustainability
Planning
Energy
Management
IT
Management
Process
Management
2014 Software Global Client Conference 31
Asset
Management
Building
Management
Site
Supervision Simulation &
Optimization
Security
Management
Operation
Management
Power
Management
ArchestrA System Platform
Designed-in Security
Field Instruments
Building
Management
Systems
Electrical sub-systems:
• Drives
• MCC
• VFD
Software System Platform
A system of systems
Non-SE Devices PLCs
Life Sciences
Applications
Large System
Controllers
Small System
Controllers
Common
Infrastructure
Vis
ualizati
on
(HM
I)
Co
nfi
gu
rati
on
To
ols
ER
P
Inte
gra
tio
n
His
tori
an
So
ftw
are
Ap
ps
End-users
and/or
Partners
Ecosystem
ME
S
Ba
tch
Op
tim
i-
za
tio
n
Ap
ps
Ap
ps
As
se
t
Pe
rf.
Application
Space Real-time
Operations
Management
DCS
Control
Room
Process
Connected
Solution Architecture
2014 Software Global Client Conference
Almac Clinical Services Lower Salford, PA, USA
2014 Software Global Client Conference
Customer Benefits:
• Streamlined commissioning and
qualification process in
accordance with ASTM E2500
• Reduced the project timeline by
2 months & saved more than
1,000 man hours
New facility delivering full service, integrated clinical packaging and
drug supply management with solutions from Schneider Electric
34
MIT Koch Institute for Cancer Research Camridge, MA, USA
2014 Software Global Client Conference
Customer Benefits:
• 10% decrease in the cost of the
building automation system. The
BMS design was >75% complete
before contract award
• LEED sliver-certified facility
delivered on time & on budget
World class facility attracts top researchers in the battle against cancer,
using solutions from Schneider Electric
35
Novartis Singapore
2014 Software Global Client Conference 36
Customer Benefits:
• More than 50% savings in detail
engineering and documentation
• Total savings of 9,400 man-hours,
amounting to >SGD 500,000
Streamlined solid dosage production facility with integrated solutions from
Schneider Electric
Genentech (Roche) Vacaville, CA, USA
2014 Software Global Client Conference 37
Customer Benefits:
• Resumption of GMP production
within 2 weeks, instead of
stipulated 6 weeks downtime
• Additional revenue of >$50M due
to fast execution of project
One of world’s largest biotechnology manufacturing plants, with integrated
software solutions from Schneider Electric
Johnson & Johnson Fort Washington, PA, USA
2014 Software Global Client Conference 38
Customer Benefits:
• Open and interoperable platform,
avoiding any need to rip & replace
existing systems
• ~50% savings in implementation
costs, due to platform capability of
supporting different production
models
LEED silver-certified pharmaceutical production facility, with InBatch
software solutions from Schneider Electric
Proud Partnerships
2014 Software Global Client Conference 39