BT Mobile Pharma. Increasing market share begins with the sales force

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1 BT Mobile Pharma Increasing market share begins with the sales force

2 Build stronger Physician Relationships The pharmaceutical industry is truly unique. Unique in its type of regulation, unique in its supply chain, unique in its product development and, most importantly, unique in the way it is allowed to interact with its clients and end users. This uniqueness in client interaction has encouraged sales engagement models unique to the pharmaceutical business. Traditionally, research showed that the more sales representatives a pharmaceutical organisation held, the more influence over the prescribing process it had - and thus the more market share and profit it made. The market, however, is changing. Macro competitive pressures such as increased competition, scarcity of blockbuster drugs and less market exclusivity are making the effectiveness of sales engagement more critically important. Executives are having to wrestle with the paradigm that, as sales representatives try to prise more time from physicians, they become increasingly resistant to let it go. This is revealed in manifold ways. The average sales appointment is just 4-6 minutes. Increasingly, ill-informed representatives are not seen again. Staff churn is so high that it is a board room issue with its associated recruitment and training costs. A recent survey by BT s strategic partner ianywhere solutions (formerly Avantgo) gives more granularity to these sales engagement issues. It established that up to 75% of a representative s working day was spent on non-sales related activity including waiting, travelling and administration. It also found that, although 60% of those surveyed had remote access to systems, only 25% reported that information vital on a physician appointment was readily available to them. Fewer than one in six claimed to have on-demand access to sales and marketing resources on their intranet and felt this severely limited their effectiveness. The survey also revealed that less than half of field representatives used sales systems in the way management intended and less than 20% of managers regard their implementations as very successful. Become more productive Become more effective

3 Improving the health of your sales organisation The impact of the representative/physician conflict is that the old adage of throwing more reps at the problem doesn t get results. Four to six minutes is not enough quality time in order for a sales representative to perform their job adequately. But given this confine it is all the more important that they have access to all the pertinent information they need in real time. What would the impact be of a 1% improvement in sales call efficiency on bottom line profits? Correspondingly what would the impact be of a 5% improvement in staff retention on training and recruitment costs? Real-time access to vital client information at or near a client appointment and effective use of time are not the only issues that affect the pharmaceuticals unique sales engagement process. Data capture and training are huge issues to this unique work force, with many hours being spent on e-learning and data entry tasks each evening. This has an obvious soft impact on worklife balance and harder impact in terms of staff retention. However, a far more concerning issue is the quality of data entry to enterprise systems and their resulting costs of failures. Recent surveys show that 78% of sales managers would like to see data quality improve. This has a clear and measurable impact upon customer satisfaction, management information quality, marketing, data mining, segmentation and management decision making. All of the above are mere symptoms of a complex disease. Many pharmaceutical companies have tried remedies around mobility and CRM but few senior managers would declare them a success. This in spite of the fact that 90% of sales representatives indicated that they would use the company sales management system more if they had reliable, mobile, real-time access to Corporate Information. Each of these remedies has merely soothed symptoms and not addressed the disease. There are many reasons for their failure but most are centred around technology including legacy and new CRM and Territory Management Systems inability to effectively mobilise. BT believes that a new approach to deriving real value from the Pharmaceutical Industry most under optimised asset is called for. for more information on this best of breed approach please read on

4 BT Mobile Pharma Having mobilised and optimised many of its own enterprise applications and processes to over 22,000 of its own people, BT has built up a client s eye view of the manifold pitfalls that can await. This client s eye view, developed over 10 years, has fundamentally influenced our approach to mobilising our customer s enterprise. When it comes to corporate technology, processes, integration and culture one size does not fit all. As such, BT s approach is rooted firmly in understanding our pharmaceutical customers unique business DNA and all technology and application choices are built on this uniqueness. Our interactions with the pharmaceutical industry have indicated that mobilised systems for the sales force can be difficult to set up and only integrate with a single information source. In response to this, BT has partnered with ianywhere to provide an out-of-the-box Mobile Pharma Application suite, which is configurable to end-user requirements. The Application suite is certified to work with Siebel 6 and 7, and can also be integrated with other CRM and ERP systems. BT also provides Application Hosting and Management Services, underpinned by a single point of contact helpdesk for end-users. This effectively reduces the Total Cost of Ownership for customers by also being able to provide fully configured and managed mobile devices and associated connectivity and security. Although our technology and application choices are agnostic and supported by a web of best-of-breed business partners, there are certain common elements to our proposition. These are outlined in the diagram opposite. BT has unparalleled strength and expertise in each of these individual areas: whether it be mobile or fixed connectivity, the supply and management of mobile devices and the applications sat on them or the integration of legacy systems. The strength of BT s proposition, however, lies not in its components but in the total managed end to end solution.

5 Improving the health of your sales organisation Many customers have observed CRM mega-projects fail and, justifiably, are now seeking an incremental and proven approach. BT can, if required, implement its proven Customer Management Optimisation (CMO) approach to delivering Sales Force Effectiveness ensuring that the project delivers all that it promises. CMO provides a hard-edged metrics based approach to Sales Force Automation whose results are based on proven analysis of your customer and sales force behaviour. BT Customer Management Optimisation (CMO) - Guaranteed Benefits BT Managed Service and Reduced Total Costs of Ownership Mobile Applications Application Development & Integration Mobile Technology Connectivity Management, Training, Hosting, Implementation and Support Before BT Mobile Pharma After BT Mobile Pharma Waiting Waiting (decreased) Travel Administration Productive Time Travel Administration & Learning Most Critical Functions Detail Preparation In Call Detail Preparation Online In Call > Quality Interaction The above diagram typifies where much of the bottomline business benefit from BT Mobile Pharma lies. Prior to its introduction, up to 75% of a representative s time was spent on tasks outside of client visits. Giving that representative any-time, any-where access to Enterprise systems can effectively transform that non-productive time into client-centric and thus profitable time. More importantly, the most critical elements of a representative s time, detailing and visiting physicians, have been optimised. Representatives now have access to just in time collateral, a Physicians Account and Prescribing History and electronic sample management. This makes the physician experience a more meaningful and valued one. What is a 1% growth worth in prescribing worth? BT Mobile Pharma ensures the sales force becomes more productive by transforming downtime into productive call preparation, research and training time. Work-life balance can be bought more into harmony, thus limiting staff churn. Management and marketing decisions become more meaningful as the quality of data captured by the enterprise CRM system improves. If the case for Sales Force Automation is a compelling one, the case for BT Mobile Pharma is equally compelling. Compelling in terms of our experience - we have implemented solutions for many clients including British Gas and two leading pharmaceutical companies. Compelling in our end to end offering. Compelling in the quality of partnerships and management. Compelling in the advice and support we offer. Compelling in the flexibility of purchase and subscription options.

6 Pharmaceutical Sales Mobility ROI The Challenge There are several key challenges facing pharmaceutical sales forces today: Physician Behaviour Increasingly Difficult to Influence With an increasing number of drugs, more sales reps, and the rise in patients knowledge and ability to influence treatments - it is more difficult than ever for a pharmaceutical sales force to get above the noise, gain physician mindshare and effectively influence prescriptions and market share. High Cost of Sales The field sales force has traditionally been the most effective vehicle for driving market share. However, the ROI of incremental sales force growth continues to decline. While the number of reps has doubled in the last five years, the number of details to physicians has only grown 15% (source: Forrester, Pharma s Detailing Overhaul, Feb 2001). Low Sales Force Automation (SFA) Adoption Large investments have been made, or are in the process of being made, by pharmaceutical companies in back-end SFA systems, in an attempt to address some of the challenges being faced by pharmaceutical sales forces. However, user adoption has consistently fallen far short of expectations and asset utilisation has been extremely low. The Opportunity These challenges are driving leading pharmaceutical companies to adopt mobile sales solutions using handheld devices; laptops are not enough. A properly designed and implemented mobile sales solution can: Improve the quality of physician interactions Increase the productivity of the sales force Increase the return on SFA investments. Mobile Pharma ROI Framework Sales Quality of Physician Interactions Market share Unit volume Revenue Call completion Value Information Velocity and Quality Call reporting coverage Call reporting frequency Call reporting quality Sales Rep Productivity Calls per day Physician coverage % day productive vs. admin/ downtime Error rates/ processing cost Call duration Call frequency Physician satisfaction Rep satisfaction and attrition 0-2 months 2-4 months 4-6 months 6+ months

7 Improving the health of your sales organisation Impact Identification and Measurement Today s leading pharmaceutical companies are improving sales force effectiveness and efficiency with mobile technology solutions which provide real time information reporting, process automation and information access. The impact these solutions have on a sales force can be directly measured over time. The following metrics serve as key indicators that the benefits of mobile solutions are being realised and the ultimate objective of increasing market share is being achieved. A pharmaceutical company can use these metrics to build its own benefits analysis and identify the impact mobile solutions can have on sales force performance and market share. Information Velocity and Quality Metric Definition Benefit from Improvement Impact of Mobile Call reporting coverage % of details for which baseline call reporting is completed by rep Greater coverage means more complete view of field activities. Leads to better strategy and better understanding of physician, competitive environment, and drug efficacy. Offers ability to gain much more value from back-end SFA/ETMS and other system investments Rep can finish call report immediately following detail - reduction in call reporting administrative time for rep Call reporting frequency How often rep submits call reports Greater frequency means fresher, more accurate data (no memory loss) and faster information flow back to brand teams and sales management for strategy planning Rep can finish call report immediately following detail - reduction in call reporting administrative time for rep Call reporting quality What types of information rep collects and reports Broader set of information provides more data for brand teams and sales management - e.g. adverse events, influence networks, time spent, drugs detailed, competitive actions, etc. Rep can finish call report while information still fresh in mind and easy to report Sales REP Productivity Metric Definition Benefit from Improvement Impact of Mobile Calls per day Average number of calls a rep makes each day More calls means greater sales efficiency and effectiveness On-the-go preparation and reduction in administrative tasks frees up time for more details Physician coverage % of target physicians reached in a given time period Higher coverage means greater influence within a geography On-the-go preparation and reduction in administrative tasks frees up time to see more physicians % day productive vs. unproductive % of day seeing physicians or prepping to see physicians vs. % day idle, admin, or travelling Higher productivity means greater sales efficiency, higher quality details (due to preparation) and greater rep satisfaction Administrative time reduced and downtime used productively for preparation Error rates/ processing costs Cost of errors and/or processing due to paper capture, translation and data entry (relevant for samples, inventory management or call reporting) Lower error rates and processing costs mean improved cost structure and operational quality Electronic management of data reduces errors and streamlines the process Quality of Physician Interactions Metric Definition Benefit from Improvement Impact of Mobile Call completion % of times rep is successful when attempting to see a physician Higher call completion means greater sales quality - physician views detail as higher value More knowledgeable and responsive reps will get higher priority with physicians - who will be more likely to see them Call duration Average number of minutes with physician More minutes means greater influence More knowledgeable and responsive reps will get more time with physician Call frequency Number of times a particular physician seen each year Higher frequency means greater influence Physicians will be more open to see knowledgeable and responsive reps more frequently Physician satisfaction Level of physician satisfaction with detailing process and information flow Higher satisfaction means greater influence Physicians will feel like their needs are effectively being met Rep satisfaction Level of reps job satisfaction Higher satisfaction means higher quality details and lower attrition Reps will feel like they have the tools to do their job better

8 For further information call Offices worldwide The telecommunications services described in this publication are subject to availability and may be modified from time to time. Services and equipment are provided subject to British Telecommunications plc s respective standard conditions of contract. Nothing in this publication forms any part of any contract. The BT logotype and the Connected World symbol, are trademarks of British Telecommunications plc. British Telecommunications plc 2004 Registered office: 81 Newgate Street, London EC1A 7AJ Registered in England No: Designed by pb Digital Ltd PHME Printed on paper which meets international environmental standards Details are correct at time of going to print

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