Enabling Growth & Innovation for the Life Science Industry. Jack Schmidt SAP Life Science Industry Principal

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1 Enabling Growth & Innovation for the Life Science Industry Jack Schmidt SAP Life Science Industry Principal November, 2011

2 Agenda 1. SAP Life Science Industry Overview 2. SAP Life Science Strategy and Innovation 2011 SAP AG. All rights reserved. 2

3 Industry Segments and Examples Companies Segment Segment Examples Med Supply Devices Bio-Tech Pharma Generics Pharma Branded 2011 SAP AG. All rights reserved. 3

4 SAP Medical Device Product Categories & Customers Medical Supply Equipment / Diagnostic Implantable/ Devices 2011 SAP AG. All rights reserved. 4

5 The Life Sciences Industry is Transforming Industry trends are driving 3 business imperatives Innovation Pressure Changing Markets Global Markets Demanding Patients Stringent Regulations Higher costs of bringing devices & drugs to market New innovation opportunities from convergence of drugs and devices Declining blockbuster pipeline Generics cannibalizing share from brand owners Pressure on margins and market share Emerging countries present challenge and opportunity Increasing alliances, partnerships, outsourcing Want superior outcomes and safety at a lower cost Want to be informed re: treatment options Financial & operational Global trade Employee Health & Safety Compliance Regulatory Compliance

6 SAP Investment Impact on Life Science Industries SAP R&D Investment Millions Thousands of developers & Implementers are focusing on the Life Science Industry scenarios: Compliant Manufacturing Revenue Management QM: FMEA, CAPA Integrated Sales, Service Mgmt & Marketing Clinical Trial Supply Management Lean Manufacturing Advanced Planning & Optimization Serialization (RFID) Supply Network Collaboration HCP Spend reporting Mobile Applications HANA Applications Embedded Analytics 21 CFR Part 11 Compliance Importantly, the stronger margin does not appear to becoming at the expense of future growth R&D headcount is up Q/Q and Y/Y and S&M headcount is down marginally quarter-on-quarter and up year-on-year both indicating that capacity and product investment are not being curtailed SAP AG. All rights reserved. 6

7 38+ Years Of Life Science Industry Focus Reduced Risk / Increased Business Value Customer-based communities share best practices and create a network effect in the Life Sciences Ecosystem Industry Leaders Running SAP ERP Market Leadership for Life Sciences includes: 7 of the top 10 Medical Devices companies Top 19 of 20 Pharma customers Top 8 of 10 Bio-tech customers Industry expert communities include: Life Science Executive Council Medical Device Supply Chain council Serialization roundtable Small & Mid-Sized Companies Running SAP ERP Mobility expert workshop LS Supply Chain roundtable Institute of Validation Technology SAP Network SAP Developer Network - 1 million+ members worldwide SAP Partner Network s of partners 2011 SAP AG. All rights reserved. 7

8 Agenda 1. SAP Life Science Industry Overview 2. SAP Life Science Strategy and Innovation 2011 SAP AG. All rights reserved. 8

9 SAP Innovations that change the market Beyond 2000 s 1990 s Innovation Client Server Integrated business processes Country specific localization Common business platform Business Suite Open architecture Enhancement pack upgrades Complete analytic suite Real Real time enterprise In-Memory computing Appications on any mobile device Industry specific analytics and content Benefits Scalability Enable global growth Improved business performance Work with diverse landscapes Lower TCO Insights from enterprise data Decisions at the speed of thought Improved user experience Empower mobile workers 2011 SAP AG. All rights reserved. 9

10 SAP Product Strategy ORCHESTRATION On DEVICE On DEMAND On PREMISE SAP Business Suite 7 Collaboration Analytics Mobile LoB on Demand SAP Business ByDesign All devices All user experiences Easy to extend Instant value Line of business or suite Integrated to On Premise SOA-enabled Best-practices packages Non-disruptive enhancements Platform In-Memory Expand Ecosystem Partner to accelerate innovation and expand market 2011 SAP AG. All rights reserved. 10

11 SAP Innovation Strategy ORCHESTRATION Big Data On DEVICE On DEMAND LoB on Demand On PREMISE SAP Business Suite 7 Real Time Analytics Collaboration Analytics Mobile Cloud Computing SAP Business ByDesign Connectivity All devices All user experiences Easy to extend Instant value Line of business or suite Integrated to On Premise SOA-enabled Best-practices packages Non-disruptive enhancements Platform In-Memory Expand Ecosystem Partner to accelerate innovation and expand market 2011 SAP AG. All rights reserved. 11

12 Innovation Without Disruption SAP is accelerating innovation to deliver greater business value through new technologies. Our plan to deliver these innovations in a non-disruptive way with solutions that are already available today Mobility In-Memory On-Demand 2011 SAP AG. All rights reserved. 12

13 SAP for Life Sciences Innovation Analytics, Mobility and In-Memory Computing In-Memory Computing Analyze information in real-time at unprecedented speeds on large volumes of nonaggregated data. Aggregate, analyze and deliver actionable insights on massive volumes of clinical trial and operations data across multiple locations Leverage actionable insights to improve clinical trial performance at a lower cost Mobilizing enterprise with data and insights anytime anywhere on any device Mobility Deliver relevant sales and operations data and insights to field personnel and sales leaders to improve sales effectiveness. Identify and authenticate potential counterfeits using mobile devices before they are administered to patients, and prevent adverse events. Actionable Insights to business users for right time decisions Business Analytics Supply Chain Performance Management - exception management based on SCOR KPIs with financial implications Manufacturing Performance Management monitor, measure, analyze and improve performance across people, processes, and plants in a multi-plant context 2011 SAP AG. All rights reserved. 13

14 Enterprise BI Address All Users/Uses via a Single Platform Search, Explore, Text Analytics Data Sources Ad Hoc Analysis and Enterprise Reporting Warehouses Virtual Documents Sales & Mktg Sales Revenue Account Manager Customer Product Price Order Date... Employee HR Salary Bonus... Dashboards and Visualization Applications Cloud OLAP, Predictive Performance Analytics BI Platform: Semantic Layer Full-Spectrum Business Intelligence 2011 SAP AG. All rights reserved. 14

15 Mobility accelerates business Mobility enables you to connect to enterprise data consume information control your business anytime, anywhere Executive Service Mobile Approvals commerce Scheduling and dispatch Time and expense Social media.. Customer Partner Operations IT Sales 2011 SAP AG. All rights reserved. 15

16 Boston Scientific Leverages HANA and SAP Mobility Leveraging HANA & Mobility to enable improvements in Customer Relationship Management BSCI has rolled out ipads to Sales Project Goal is to Increase Sales Productivity and Reduce Bureaucracy to drive top line revenue growth BSCI is developing a Sales Brief Case program for ipad rollout which pulls data from disparate data sources 12 applications in December Applications in May Applications by December 2011 Applications consist of: Marketing Apps Personal Productivity Apps Enterprise Apps Sales Analytics, Inventory Management 3 rd Party Apps In December, he rolled out Apple ipads and used the Sybase technology to launch an internal application store, akin to Apple's consumer App Store, for the company's U.S. sales force of more than 2,000. Currently, Boston Scientific is rolling out the ipad solution globally. "I think it's really helping change the way we interact with health-care professionals," says Rich Adduci, Boston Scientific's Chief Information Officer. "The sales force is able to be much more productive Wall Street Journal May 16, SAP AG. All rights reserved. 16

17 In-memory computing can transform your business In-memory computing is a technology that moves data from disk to local memory so that the results of complex analyses and transactions are available at your fingertips and business decisions can be executed without delay With in-memory technology integrated in your business, you ll see immediate benefits Immediate answers with 3600x faster analytics Real-time access when it happens, you know it Deeper insight interrogate more granular data Simpler and more cost-effective manage large data volumes while reducing IT complexity 2011 SAP AG. All rights reserved. 17

18 Medtronic Leverages HANA for Global Complaints Medtronic is live on GCH with GSR next SAP & Non SAP Big Data with BOBJ 2011 SAP AG. All rights reserved. 18

19 2011 SAP AG. All rights reserved. 19

20 Harness the power of in-memory computing for Life Science companies Quickly analyze detail cost and profitability data Deliver real time 360 degree view of the customer to employees Lower time-to-market with innovation from deep clinical data insights Result Result Result Understand product costs and profit margins at a detailed product and customer level to drive profitability Improved customer satisfaction, sales revenues and productivity Accelerate clinical trials thru actionable insights from fast processing of massive clinical data volumes 2011 SAP AG. All rights reserved. 20

21 Thank You! Jack Schmidt Life Science Industry Principal M

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