Delivering Real-Time Business Value for Life Sciences

Delivering Real-Time Business

Value for Life Sciences SAP Business Suite Powered by SAP HANA

July 2013 Public

© 2013 SAP AG or an SAP affiliate company. All rights reserved. 2 Public

Continuously improve operational efficiency,

reduce cost

Enter rapidly new markets in a compliant fashion

Boost margins through real-time customer service

The real-time opportunity


Becoming an innovation-driven enterprise Aligning business operations with customer needs

Gain real-time

operational visibility

Boost revenue through responsive supply

networks

Improve manufacturing operations

Reduce waste

Ensure high-quality

and compliant

products

Increase quality with low cost of compliance

Optimize maintenance

Manage outsourced manufacturing operations

effectively

Boost operating

margins with improved

customer service

Accelerate service responsiveness

Manage physician/payer/patient relationships

profitably

Raise customer satisfaction and margins


SAP Business Suite powered by SAP HANA The next-generation business platform

Real-time business

In-memory

Business

transactions

Digital

connections

Collaborative

business

Cloud Social

Big Data Mobile

One platform bringing it all together

Advanced

analytics


Industry value map for life sciences The life sciences networked enterprise

Patient and Provider

Engagement

Channel Effectiveness and

Social CRM

Contract Lifecycle Management

Real-Time Service Management

Collaborative Innovation

and Development

Collaboration and Social R&D

Product Compliance and Product

Safety

Product Development Integration

and Acceleration

Product and Service

Differentiation

Responsive Supply

Networks

Synchronized Demand and

Supply Chain

Logistics and Fulfillment

Supplier Networks

Serialization / Global

Traceability

Compliant Manufacturing

Manufacturing Operations

Quality Excellence and

Maintenance

Manufacturing Execution

People and

Talent

Core Human

Resources and Payroll Talent Management

Time and Attendance

Management

Workforce Planning

and Analytics

Finance Financial Performance

Management

Accounting and

Financial Close

Treasury and Financial

Risk Management

Collaborative Finance

Operations

Enterprise Risk and Compliance Management

Procurement Supplier Discovery and

Lifecycle Management

Strategic Sourcing and

Contracting

Procurement and Order

Collaboration

Collaborative Invoice

to Pay

Commodity

Management

IT Management Application Lifecycle

Management

IT Infrastructure

Management

IT Portfolio and Project

Management

IT Service

Management

IT Strategy and

Governance

Outsourced Manufacturing Physician/Patient/Payer

Relationships

Technology

Solutions

Analytics Consumer Experience Data Management Enterprise Mobility

SAP HANA Platform

Application Development and

Innovation


Highest real-time

business value

for life sciences

Industry value map for life sciences The life sciences networked enterprise

Patient and Provider

Engagement

Channel Effectiveness and

Social CRM

Contract Lifecycle Management

Real-Time Service Management

Collaborative Innovation

and Development

Collaboration and Social R&D

Product Compliance and Product

Safety

Product Development Integration

and Acceleration

Product and Service

Differentiation

Responsive Supply

Networks

Synchronized Demand and

Supply Chain

Logistics and Fulfillment

Supplier Networks

Serialization / Global

Traceability

Compliant Manufacturing

Manufacturing Operations

Quality Excellence and

Maintenance

Manufacturing Execution

People and

Talent

Core Human

Resources and Payroll Talent Management

Time and Attendance

Management

Workforce Planning

and Analytics

Finance Financial Performance

Management

Accounting and

Financial Close

Treasury and Financial

Risk Management

Collaborative Finance

Operations

Enterprise Risk and Compliance Management

Procurement Supplier Discovery and

Lifecycle Management

Strategic Sourcing and

Contracting

Procurement and Order

Collaboration

Collaborative Invoice

to Pay

Commodity

Management

IT Management Application Lifecycle

Management

IT Infrastructure

Management

IT Portfolio and Project

Management

IT Service

Management

IT Strategy and

Governance

Outsourced Manufacturing Physician/Patient/Payer

Relationships

Technology

Solutions

Analytics Consumer Experience Data Management Enterprise Mobility

SAP HANA Platform

Application Development and

Innovation

6

1

4

2

7

3

5


Today

KPI improvements are high-level estimates and will have to be validated for each customer situation.

Accounting and financial close Business value for entity close

Limited transparency without ability to

manage a central financial close

Missing financial excellence results at

the capital market due to a higher

cost of equity

Difficult to support parallel financial

reporting standards and simulate

scenarios

Single repository for company and

corporate data

Common view across financials and

logistics

Deeper and faster insight down to the

lowest level of detail

Faster reconciliation with automated

real-time matching

Easier consolidation across legal

entities, including issues like

intercompany transfers

Simulation of organizational changes

and alternate accounting methods, or

FX rates

Improve service-level

performance

Reduce

Minimize

month-end

closing time

operating costs

With SAP Business Suite on SAP HANA


Today


Financial performance management (1/3) Business value for planning, budgeting, and forecasting

Planning performance is limited to

online analytical processing (OLAP),

staged cubes for transactional and

master data.

Reporting, loading, and retraction

performance limits planning

iterations.

Enable analytics and transactions on

the same enterprise platform for real-

time visibility.

Reduce planning cycles that improve

information process across

enterprise.

Faster extract and DataStore object

(DSO) activation times

Iterative planning and real-time

simulation supported through

improved performance

Better performance for drill down and

consolidation

Fast drill through and live view of

transactional data in suite


performance

Reduce

Minimize

cycle times and

manual effort

operating costs


Seamless replication of master and

transactional data from SAP

Business Suite applications

Availability of more granular data to

support planning


Today


Financial performance management (2/3) Business value for profitability and cost analysis

Data latencies and processes delays

Low ability to react fast to issues and

opportunities

Internal decision making that suffers

from lack of data depth and

availability

Long-running processes

Time-intensive data queries

Manual data analysis

Substantial amount of effort not

directly adding value

Unsatisfying resource efficiency and

effectiveness

Timely execution of critical business

processes

Higher ability to swiftly act in dynamic

market environments

Fast decision making

Critical transactions and calculations

that run quickly

Instant response times on queries

Prebuilt analytics to automate the

data analysis process

Leaner processes from data capture

through data analysis

Increased productivity through

process-optimized analytics and

mobile support


performance

Reduce

Minimize

cycle times and

manual effort

operating costs



Today


Financial performance management (3/3) Business value for financial and managerial reporting

Risk of noncompliance due to

unfulfilled or overrun audits

Data masses while decision-relevant

information not available

Data analysis not supported or

automated

Long-running batch jobs and reports

Time-intensive data analysis

Large number of time-consuming,

and non-value-added processes

required to access and provide

accurate, up-to-date information

Timely execution of compliance-

relevant validation tasks

Increased end-user satisfaction with

sound data

Accurate, detailed, visualized, timely,

and actionable information

Critical processes and reports are

accelerated

Instant response time on data

analysis queries

Workarounds and data latencies

eliminated

End-user data analysis through self-

service


performance

Reduce

Minimize

month-end

closing time

operating costs



Today


Collaborative financial operations (1/3) Business value for receivables management

High external financing costs from

lack of working capital management

Inadequate alerting mechanics and

lack of context-based facts

Need to manage exceptions within

high volumes of invoices

Manual efforts for assigning incoming

payments to invoices

Need for sales and service to have

better data to support collections,

dispute, and credit management

Cash tied up in high days sales

outstanding or bad debt write-offs

Easier identification of weak points as

a basis for process optimization

Exceptions from reports with

thousands of pages getting pushed to

mobile devices

Algorithms to help receivables clerks

match incoming payments

Unstructured data that can be

searched easily

Integration of sales and account

management where real-time data is

required

Flawless cash collection through real-

time data instead of batch data

Optimize working capital

Minimize

Reduce

bad debt write-offs

days sales

outstanding



Today


Collaborative financial operations (2/3) Business value for payables management

Expensive and error-prone manual

process steps

Need to improve compliance and

audit turnaround time

High cost per invoice due to large

amounts of tasks

Optimization of supplier payment

according individual payment terms

Better insight on the company’s cash

position

Instant visibility of account payables

and days payable outstanding

Joint view of payables and cash

positions to support financial

decision-making

Quicker inquiry turnaround time for

audits

Better scheduling of payment runs

through real-time and accurate

insight on vendor-opened receipts

Payment of dedicated items with

transparency about selection criteria

Increase days payable

outstanding

Optimize

Reduce

working capital

lost supplier

discounts



Today


Collaborative financial operations (3/3) Business value for shared service framework for finance

Difficulties in handling high volumes

of queries in shared services

organizations (SSOs)

Too much time consumed by

searches for vendor, customer, and

employee data

Challenges to continuously improve

the quality of service efficiently

Significant improvement of in-box

performance

Accelerated navigation within the in-

box

Ability to review and prioritize work

much quicker

Faster identification of vendors,

customers, and employees

Improved satisfaction of the agents

and the clients through provision of

more responsive service

Reduced costs and faster response

times

SSO able to meet service-level

agreements (SLAs) on budget and

improve key performance indicators

(KPIs)

Increase productivity for

shared services

agents

Improve

Reduce

employee

satisfaction

overall costs of

delivering services



Today


Enterprise risk and compliance management Business value for access control role analytics

High number and fast increase of

unused and orphaned roles

Long hours required to run batch jobs

to analyze transaction logs with

millions of records

US$4,000 required each year for

maintenance for each active ERP

role

Long process for identifying unused

roles, resulting in higher risk of

noncompliance with corporate rules

Real-time analysis of role usage

when discussing with the business

owners of the roles

Deep insight into roles for uncovering

potential risks for the organization

Real-time analysis on roles for reuse

or enhancements instead of creating

new or consolidating existing roles

Ability to combine role data coming

from different sources

Facilitation of business reengineering

and reorganization through joint

analysis of role and HR data

Reduce unused/orphaned

roles

Consolidate

Reduce

most-frequently-

used (active) roles

cost of

noncompliance



Today


Physician/patient/payer relationships (1/2) Business value for sales

Missed market opportunities due to

lack of visibility to third-party data

Data explosion, driven by new level

of sales rep connectivity via mobile

devices

Data in disparate data sources, which

prevents true 360-degree view of the

customer

Ability to integrate third-party data

Agile marketing to respond faster to

changing market dynamics and

opportunities

New analytical data mining capabilities

on Big Data (social media, predictive)

Near real-time monitoring and

reporting on sales performance

One central place for collecting all

customer data, leading to 360-degree

view of customers in

real time

Precision marketing to personalize

every interaction with the customer

Improve profitability

Optimize

Increase

return on

marketing

investments

customer

satisfaction



Today


Physician/patient/payer relationships (2/2) Business value for marketing

Difficulty in targeting particular

territories or physicians by disease

area

Inability to identify gaps in sales

pipeline, leading to missed targets

Difficulty to conclude actionable

findings from vast customer data

needed to maximize deal sizes

Low insight into customers’ buying

preferences from social media

content

Easy segmentation of physicians with

account intelligence analytics

Faster transaction search capabilities

Complete transparency into sales

pipeline based on real-time

information with unlimited

drill-down functionality

Real-time analysis of Big Data to

better understand buying patterns

Real-time access and assembly of all

data including social and

sales data

Increase profitability

Increase

Improve

percentage of

sales reps

achieving quota

offer win rate



Today


Real-time service management Business value for complaint management and root cause analysis in

medical device companies

Locating the right resources (like

machines) to resolve customer

issues takes too long.

Root cause analysis based on

unstructured data such as text is not

possible.

Managers lack actionable reporting

and visibility into workload of teams.

Search times are long, and it is hard

to find customer records within

masses of records and interactions.

Easier search capabilities for experts

in order to dispatch or escalate

issues to help field technicians

Root cause analysis based on

structured and unstructured data to

help customer service

New actionable insights into

workload of teams and employees

Significantly faster searches, such

as account searches, interaction

history, and customer fact sheets

Decrease average handling

time

Improve

Reduce

service-level

agreement

compliance

service cost



Today


Logistics and fulfillment (1/2) Business value for inventory management

Lack of real-time insight into

inventory situation that might cause

inaccurate reordering, finally resulting

in higher stock

Time-consuming inventory

management reporting

Need for accurate display of actual

stock to react quickly to stock

shortfall

Inability to completely track material

movements

Real-time stock insight and inventory

monitoring with high performance

Support for demand-driven

procurement

New analytical inventory

management cockpit

Real-time access to complex

inventory management data

High-performance inventory

management with large volumes of

documents


monitoring

Improved adjacent procurement

processes, such as purchase order

or invoicing processing

Reduce inventory levels

Minimize

Optimize

out-of-stocks

working capital



Today


Logistics and fulfillment (2/2) Business value for warehouse management

No up-to-date view of the inventory

situation

Need for accurate display of actual

stock to react quickly to stock

shortfall

Time-consuming inventory

management reporting

Real-time access to complex

inventory management data


monitoring

High-performance inventory

management with large volumes of

documents

Higher process efficiency in adjacent

procurement processes


Reduce out-of-stocks by

36%

Decrease

Limit bullwhip effect

inventory and

safety stocks by

29%


Today


Procurement and order collaboration Business value for operational procurement

Missing real-time insight into

operational procurement reporting

Dynamic operational procurement not

possible

Slow and costly paper-based

processes

High transaction costs

Increased processing time for

transactions with a high number of

line items

Frequent errors due to maverick

spend

New configuration options for

procurement analysis

Modern, easy-to-consume user

interface

Complete visibility into end-to-end

procurement activities

Real-time insight and information

that is easy to manipulate

Accelerated long-lasting processing

of purchasing documents

Increase

transparency

Lower

Increase

procurement

operations cost

process

effectiveness



Today


Synchronized demand and supply chain and supplier

networks (1/2) Business value for sales and operations planning

No smooth collaboration across

stakeholders during sales and

operations planning

Long cycle times to develop

consensus forecast

Long loading times lead to decisions

based on incomplete, inaccurate and

outdated data

Complex administration of system

landscapes, especially movement

and replication of data

Increased collaboration and shorter

cycle times for sales and operations

planning

Improved user experience

Better supply chain visibility and

decision making through near real-

time reporting with faster analysis

Better production and less cost

through simplified system setup,

administration, and robust planning

foundation

Reduce

planning cycle times

Increase

Reduce

supply chain

performance

total cost of

ownership (TCO)



Today


Synchronized demand and supply chain and supplier

networks (2/2) Business value for supply chain monitoring

Lack of near real-time information

Batch jobs to extract data from planning system to central reporting based on the SAP NetWeaver Business Warehouse (SAP NetWeaver BW) application on weekly basis

No ad hoc operational reporting

Reporting, queries, dashboards that

must be created by each customer

individually

Not possible to run sub-daily planning

jobs and analyze the results

Inability to respond fast to ad hoc

queries from customer which may

result in lost sales

Implementing GxP (good anything practice) compliance made easier by improved supply chain visibility

Decision support based on near real-time information

Information able to be updated via delta capabilities

Prebuilt box analytical reporting

scenarios provided with streamlined

data load

Planned ability for customers to add

their own KPIs and dashboards

Advanced data retrieving and

computing capabilities supported

Optimized reporting of supply chain

planning data

Reduce

time spent compiling,

generating, and

waiting for reports

Increase

Optimize

visibility into key

supply chain data

in an easily

consumable way

analysis capabilities

with multiple levels of

aggregation and drill-

down techniques



Today


Manufacturing operations Business value for asset operations and maintenance

Maintenance scheduling that

consumes a great deal of time

Manual and error-prone process of

preselection of maintenance plans

Potentially missing necessary objects

for maintenance calls

High number of maintenance plans

that must be scheduled frequently

Planning once a week

Accelerated mass transactions

Instant analysis on top of

transactions

Preselection of due plans that speeds

up the process significantly

Real-time analytics on all data,

including machine sensor information

Scheduling all maintenance plans

within a specific time frame

Faster response times and more

accurate maintenance scheduling

Planning several times a day and up-

to-date scheduling information in

maintenance

Increase

asset utilization and

reduce unplanned

asset downtime

Maximize

Update

asset uptime

scheduling information

on maintenance

operations



Today


Core HR and payroll (1/4) Business value for payroll processing

Responses to management ad hoc

inquiries about trends of high volume

payroll information are costly.

Business users have very limited

ability to analyze payroll results.

Addressing employee inquiries

around payroll is time-consuming and

expensive.

HR needs to increase the quality of

service provided to employees at

lower costs.

HR IT resources freed to focus on

the execution of organizational

strategic tasks

Thresholds leveraged as a steering

mechanism to optimize business

performance

Simplification of payroll data analysis

with optimized representation of data

High-speed read access based on

SAP HANA, slashing time to access

and analyze critical payroll

information

Faster response times to employees,

increasing employee productivity and

satisfaction

Increase

efficiency of payroll

management

Improve

Reduce

employee

satisfaction

overall costs of

payroll processing



Today


Core HR and payroll (2/4) Business value for effective shared services delivery

Shared services organization (SSO)

is challenged to give prompt,

accurate answers.

SSO agents spend time searching for

employee data using employee

identification.

SSO needs to improve the quality of


lower cost.

Acceleration of in-box performance

allowing SSO agents to review and

prioritize their work more efficiently

Faster employee identification

enabling more responsive service

Improved employee satisfaction

Reduced costs and faster response

times

SLAs and budget objectives met,

KPIs improved

Increase

productivity for

shared services

agents

Improve

Reduce

employee

satisfaction

overall costs of

delivering services



Today


Core HR and payroll (3/4) Business value for time and absence calculation

Responses to management ad hoc

inquiries about trends of high-volume

payroll information are costly.

Business users have a very limited

ability to analyze time evaluation

data.

Addressing employee inquiries

around time/absence is time-

consuming and expensive.

HR needs to increase the quality of


lower cost.

HR IT resources freed to focus on

the execution of organizational

strategic tasks



performance

Simplification of time evaluation data

analysis with optimized

representation of data

High-speed read access based on

SAP HANA, slashing time to access

and analyze critical time information

Faster response times to employees,

increasing employee productivity and

satisfaction

Increase

efficiency of time

management

Improve

Reduce

employee

satisfaction

overall costs of

time management



Today


Core HR and payroll (4/4) Business value for transactional analytics

Translation of organizational strategy

into HR metrics requires significant

effort or special expertise.

Decisions are often based on

hunches.

It is difficult to zero in on underlying

transactions from high-level KPIs.

Data loads in traditional reporting

tools are time-consuming.

Integrated and personalized cockpits

that provide insight into metrics that

matter most



performance

Predefined workforce and time

management–related KPIs for

managers with the ability to navigate

into details

Analytics embedded in business

transactions

Prebuilt virtual data models for real-

time transactional analytics

Simplified architecture

Increase

revenue per

employee

Optimize

Reduce

HR processes

time and costs of

operational

reporting



Today


Manufacturing execution (1/2) Business value for real-time requirements planning

Slow manufacturing resource planning (MRP) due to complex recipes and process instruction sheets in pharmaceuticals

Complex bill of materials and routing structures in medical devices companies

Synchronizing MRP runs across

plants in the supply chain made

difficult by long MRP runs

Inability to replan quickly if conditions

change due to long

run times

No holistic production planning

across all relevant production sites

50% reduction in MRP runtime with

high-speed reads

Faster reaction to demand changes

Demand information propagated

faster through the supply chain

Facilitation of corrective action at the

plant level and across plants

Enablement of broader supply chain,

sustainability, financial, and

performance improvements

Better synchronize demand and

supply for global cross-plant planning

Instant update on supply network

collaboration with latest demand

information

Reduce

out-of-stocks

Decrease inventory and

safety stocks



Today


Manufacturing execution (2/2) Business value for global plant performance management

Complex global supply chains

leading to several constraints

Hard to implement GxP compliant

practices due to delayed insights into

manufacturing performance

Inability to find process control or

maintenance issues and bottlenecks

in production

Need to capture the root causes for

downtimes, efficiency losses, and

poor quality

High costs due to decreased asset

utilization, unplanned downtimes, and

inefficient performance

Reduced customer responsiveness

due to insufficient product yields and

poor product quality

Integrated view of the global supply chain Combination of quantitative KPIs with

qualitative context and reasons for performance issues

Combination of plant performance with business context, improving GxP compliance

Facilitation of corrective action at the

plant level and across plants

Enablement of broader supply chain,

sustainability, and financial and

enterprise performance

improvements

Enterprise-level rollup of plants that

enable analytics comparing assets

and performance KPIs across sites

Improve return on assets and

product quality

Increase

Reduce

resource utilization

and asset uptime

unplanned

downtime



Today


Product development integration and acceleration (1/3) Business value for portfolio management (SAP Portfolio and Project

Management) of drugs and devices

Solid go/no-go decisions requiring

real-time status data of running

clinical trials and portfolios

Time-consuming analysis for large

portfolios, leading to lack of

transparency

Cumbersome aggregation of

financials and investment

commitments for large portfolios

Outdated information on the

investment increasing efforts for

reviews

High efforts for manual editing of

financial KPIs like net present value

or internal rate of return

Real-time access to decision-making

data aggregated from lowest levels,

such as trial expenses

Evaluation of pipeline net present

values based on most recent revenue

and expense projections

• Ability to go top down from the overall

budget down to single expenses

through drill downs

• Faster aggregation of financials along

the investment area hierarchy

• Automated calculation of most

important KPIs based on values from

financial planning

Increase transparency for

decision making

Improve speed of

aggregating

financial

information



Today


Product development integration and acceleration (2/3) Business value for portfolio management (SAP Portfolio and Project

Management) of drugs and devices

Long waiting times when starting the

project and task dashboards

Low productivity when working on

several projects and tasks across

projects

Updates on multiple tasks that are

inefficient and time consuming as

tasks are confirmed one by one

Very long times spent searching for

documents across projects or for

large portfolio of projects

Slow process of finding projects,

tasks, and phases by responsible

project member

Faster access to users tasks and

projects

Accelerated access to project, task,

and checklist item dashboards

Project team members able to

confirm times, status, and dates and

attach documents for several tasks at

once

Increased user productivity

Accelerated search for documents

Ability to find projects or tasks faster

by responsible project member

Increase user productivity

Reduce

Improve

time for task

confirmation

search for

documents and

project elements



Today


Product development integration and acceleration (3/3) Business value for project management (project systems)

Long wait and locking times slow

down execution and reactions on

deviations.

User acceptance is reduced due to

affected usability in handling large

project data.

Analysis of high data volumes for

complex, long-lasting projects or

cross-project monitoring is difficult.

Deviations in costs, time, resources,

or quality are seen too late.

Reduced waiting and locking times of

critical transactions along the end-to-

end process

Higher process efficiency and

improved employee productivity

Acceleration of project reporting and

new project line item reporting

delivering faster insights

Timely corrective measures through

clear insights in deviations and risks

in real time

Increase user productivity and

end-to-end process

efficiency

Improve transparency and

decision support to

take corrective

measures in time


© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Thank you


Reference US$10 billion life sciences company Summary of validated scenarios

Feasibility

Bu

sin

ess v

alu

e

Legend

Lo

w

Hig

h

Low High

SAP Business

Suite on

SAP HANA

SAP HANA

products

SAP HANA

platform

Phase – deployment road map Annual revenue: US$10 billion

1 Short term

TCO:

IT spend avoidance (data volumes projected to keep

growing; reduced data load and monitoring costs;

accelerated time to value on future projects)

FIN: Financial supply chain (growth in transactions that

has consumed window of time available for producing

required reports)

SCM: Distributor channel insight (enhancing daily sales

and inventory information for all SKUs, with the ability

to look at nonaggregated data to improve supply

chain responsiveness and insight)

2 Medium term

SCM: Supply planning analytics (access to critical

inventory and manufacturing planning reporting

limited by response times)

FIN: Fast financial close (increasingly dynamic business

environment demanding greater visibility and

analytics; regulatory demands increasing; limited

ability to analyze and understand discrepancies)

CRM: Sales analytics (ability to explore data for customer

insight, which will lead to a competitive advantage

and increased revenue)

Financial

supply chain

($1 million)

Supply

planning

analytics

($650k)

IT spend avoidance

($3.2 million)

Payroll/GSR

($870,000)

Distributor

channel insight

($2.2 million)

Sales analytics

($6.9 million)

Recall

management

($1.3 million) Fast financial close

($150,000)

1

1

2

2

3

1

2 3

SAP HANA use cases mapped to industry value map end-to-end solutions

SAP HANA Platform: customer-specific SAP HANA products: SAP NetWeaver BW on SAP HANA, high-performance applications (HPAs), apps powered by SAP HANA SAP Business Suite on SAP HANA

Scenario

(business value)


4,3 5,1

6,2

2,2 2,2

2,2

6,8

8,2

0

2

4

6

8

10

12

14

16

18

2013 Phase 1 Phase 2 Phase 3

Costs SoH Applications Platform

Reference US$10 billion life sciences company SAP HANA platform

SAP HANA platform: Anything built on the platform that is customer-specific – new business processes and business models

SAP HANA products: SAP NetWeaver BW powered by SAP HANA; high-performance apps (HPAs); applications – mapped to

inventory value map (IVM) end-to-end (E2E) solutions

Currently available functionality (SP0, 1, 2) – 23 scenarios mapped to IVM E2E solutions, and planned functionality(all of the

E2E solutions on the IVM are in scope)

Based on actual SAP

customer engagements

Annual benefits, SAP HANA

platform: $8.2 million

Annual benefits, applications

powered by SAP HANA: $2.2 million

Annual benefits, SAP Business

Suite on SAP HANA: $6.2 million

Estimated deployment costs

Total transition cost: to be determined

SAP HANA platform

SAP HANA products

SAP Business Suite on SAP HANA

In millions of US$

More information: Value Engineering

Annual revenue: US$10 billion

SoH= SAP Business Suite on SAP HANA


Note: Use cases in the global use case repository are captured directly from customers and internal SAP innovation

sessions and may not be completely validated.

Medical solutions provider – recall management Life sciences

Business context and goals

A medical solutions provider has processes in place to address recall management, but this is a

complex batch job process that can take significant time to execute. Reducing the time and

complexity of this process can speed responsiveness, reduce risk, and improve healthcare

outcomes.

Business challenges

Business support for applying new technology to a process that works today could be a challenge

in resource-constrained companies.

Contribution of SAP HANA

SAP HANA will enable the entire process to run faster and provide the ability to get deep insights

into the data without the need to build data marts. This will improve responsiveness and quality.

Value drivers/KPIs

Improved responsiveness in understanding internal quality issues, customer complaints, and

adverse medical events

Innovation scope

SAP HANA platform (customer-specific)

E2E solution

Life sciences – product compliance and

product safety

Value potential 3

Feasibility 5

Low High

1 5

Low High

1 5




Medical solutions provider – sales analytics Life sciences


This medical solutions provider currently pushes reports to the sales force with data that is

generated weekly. Access to real-time information enabling users to explore data for customer

insights could lead to a competitive advantage and increased revenue.

Business challenges

User adoption, ability to access data, introduction of process change with sales force


SAP HANA will help in providing near real-time insight to customer and supply chain data.

Value drivers/KPIs

Improved customer service, responsiveness, inventory management, revenue growth, and

profitability

Innovation scope

SAP HANA platform (customer-specific)

E2E solution

Life sciences – synchronized demand and

supply chain

Value potential 5

Feasibility 5

Low High

1 5

Low High

1 5




Pharmaceutical manufacturer – distributor channel insight Life sciences


A pharmaceutical company receives product sales and inventory information daily for all its SKUs

but does not have the ability to look at nonaggregated data to improve supply chain

responsiveness and insight.

Business challenges

There may be some additional costs to get access to this data daily. In addition, there will need to

be some work done around data quality. Access to this data globally will be a challenge.


SAP HANA will enable insight into nonaggregated data across the entire North American supply

chain.

Value drivers/KPIs

Improved supply chain visibility, insight, responsiveness, and security

Innovation scope

SAP HANA products (HPAs, apps)

E2E solution

Life sciences – logistics and fulfillment

Value potential 5

Feasibility 5

Low High

1 5

Low High

1 5




Healthcare products manufacturer – integrated business

planning Life sciences


Sales and operations planning (S&OP) is complex process with a long lead time process to

aggregate levels of data. Supply chain planning requires access to real-time information across a

complex network to improve insight and responsiveness.

Business challenges

Cultural issues in designing a global supply chain will be required to benefit from improvements

in this solution.


SAP HANA will enable insight to nonaggregated data across the entire North American supply

chain.

Value drivers/KPIs

Reduced inventory costs, improvements in customer service, reduced supply chain costs

Innovation scope


(now and future)

E2E solution


supply chain

Value potential 5

Feasibility 3

Low High

1 5

Low High

1 5




Pharmaceutical company – business warehouse landscape

simplification

Life sciences


This pharmaceutical company has a complex business intelligence (BI) landscape and will

require a significant investment in new technology. It is looking for a strategy to improve

performance and manage costs long term. The current approach was not sustainable.

Business challenges

The company is risk-averse and has not been an early adopter of new technologies. It has a new

management team in place, which is new to the life sciences industry.


SAP HANA will enable simplification of the BI landscape and provide a platform for improved

information access.

Value drivers/KPIs

Landscape simplification, reduced costs, improved performance, high value delivered to business

partners

Innovation scope


E2E solution

Life sciences – analytics

Value potential 4

Feasibility 4

Low High

1 5

Low High

1 5




Pharmaceutical company – next-generation sequencing in

life sciences R & D Life sciences


Finding the next blockbuster is very costly, with the tools generally used from the last two

decades. Big Data and next-generation sequencing (NGS) allows genome mutation identification

and analysis in just 20 minutes. This used to take days, and so there is the potential for radical

cost reductions and acceleration of R & D pipeline.

Business challenges

Provide applications that overcome workflow challenges related to data analysis as well as

regulatory uncertainties and sequencing costs

Provide NGS for clinical research and molecular diagnostics

Process innovations

Solution delivered: Rapid bioinformatics of genome interpretation provided; biomarker data to

guide treatment decisions through companion diagnostics based on real time

Business benefit: Reduced time and cost of sample-to-result NGS; significantly improved

effectiveness of scientists


Acceleration of R & D pipeline

Value drivers/KPIs

Cost of R & D; throughput of R & D; improved certainty/statistical validity

Innovation scope


E2E solution

Life sciences – product development

integration and acceleration

Value potential 5

Feasibility 4

Low High

1 5

Low High

1 5




Medical device manufacturer – advanced planning and

optimization benefits Life sciences


Limited visibility, development backlog

Business challenges

Access to critical inventory and manufacturing planning reporting is limited by response times.

S&OP requires validation across reporting environments. Inventory initiatives require increasing

access to more timely information to drive results.

Process innovations

Reduce inventory costs, inventory obsolescence, lost revenue due to stock-outs, and reporting

validation costs


Improve service levels without increasing cost to serve; increase ability to manage supply chain

costs with access to timely information; plan more accurately by providing access to actual

results; reduce planning cycle times

Value drivers/KPIs

Reduced cost of planning validation

Reduced cost of S&OP

Innovation scope


(now and future)

E2E solution


supply chain

Value potential 5

Feasibility 5

Low High

1 5

Low High

1 5




Medical device manufacturer – AR financial supply chain

management benefits Life sciences


Business processes supported, limited ability to scale

Business challenges

Growth in transaction volume has nearly consumed window of time available for producing

required reports. Multiple data sources has created need for audit and reconciliation of reports.

Effort required to execute transaction-level reporting leaves no time for other reports.

Process innovations

Reduce monitoring and reconciliation efforts.

Distribute workload more evenly through reducing wait time on data load and reporting process.


Reduce risk of failure in mission-critical process; support ability to scale; reduce compliance risk;

support Sarbanes-Oxley and audit compliance

Value drivers/KPIs

Reduced downtime recovery

Innovation scope


(now and future)

E2E solution

Life sciences – accounting and financial close

Value potential 5

Feasibility 5

Low High

1 5

Low High

1 5




Medical device manufacturer – accounting and financial

close Life sciences


Increasing transactional burden limits strategic focus

Business challenges

Reporting and analytics transactional functions consume significant time and resources.

Increasingly dynamic business environment demands greater visibility and analytics. Regulatory

demands are increasing, with limited ability to analyze, understand, and respond.

Process innovations

Reduce cost of operations and analysis, cost of budgeting and forecasting, and cost of data audit

and reconciliation


Improve visibility to product line, product profitability; improve visibility to customer profitability;

improve ability to analyze and understand regional performance, early identification of trends;

increase ability to support strategic activities with accuracy

Innovation scope


(now and future)

E2E solution

Life sciences – accounting and financial close

Value potential 5

Feasibility 5

Low High

1 5

Low High

1 5




Medical device manufacturer – sales reporting benefits Life sciences


SLA and performance challenges are being experienced with an expanding user base.

Business challenges

Mission-critical reports are delivered inconsistently. Reaching global user base with timely

information is a challenge. There is frustration in the user community based on limited access to

information that drives core processes.

Process innovations

Reduce lost sales time and improve revenue. Improve performance on SLAs. Preserve

investment in portal.


Improve customer satisfaction through more value-added sales relationship; increase revenue

through improved visibility into performance and opportunity; improve ability to manage PO-

pending process through increased visibility and timeliness of information

Value drivers/KPIs

Reduced time spent on workbooks

Innovation scope


(now and future)

E2E solution


Value potential 5

Feasibility 5

Low High

1 5

Low High

1 5




Medical device manufacturer – IT spend avoidance and

landscape simplification Life sciences


Analysis environment is complex and expensive.

Business challenges

Data volumes are projected to keep growing, driving up storage, server, software, and related

costs. Data is moved to an intermediate staging area where it is cleaned and normalized before

being uploaded into SAP NetWeaver BW. Considerable expense is involved.

Process innovations

Reduced storage costs, server costs, database license and maintenance, system development

and management, data load and monitoring


Empower business community with greater access and faster performance; support increasing

demand for access to more timely information; increase ability to support analytics for large data

sets and data from multiple sources

Value drivers/KPIs

Cost of custom development

Acceleration of time to value on future SAP NetWeaver BW projects

Reduction of data load and monitoring

Innovation scope


(now and future)

E2E solution


Value potential 5

Feasibility 5

Low High

1 5

Low High

1 5




Medical device manufacturer – SCM benefits Life sciences


There is growing demand for timely information.

Business challenges

Continued pressure to improve performance demands increased access to information.

Increasing regulation requires audit trail and ability to rapidly access audit data. Increasing

globalization raises demands on supply chain and creates proliferation of suppliers.

Process innovations

Improve planning efficiency and effectiveness. Increase procurement savings on direct material.

Reduce time spend validating and reconciling.


Leverage the scale of global supply chain through timely visibility to management metrics; reduce

cost of regulatory compliance

Value drivers/KPIs

Reduced cost of manufacturing planning

Reduced cost of manufacturing analytics

Innovation scope


(now and future)

E2E solution


supply chain

Value potential 5

Feasibility 5

Low High

1 5

Low High

1 5

Delivering Real-Time Business Value for Life Sciences

Technology

Transcript of Delivering Real-Time Business Value for Life Sciences