Meaningful Data at Scale & The Right Mindset

as Central Elements to Transform an Organization

Nadja Schäfer May 2019Digital Transformation OfficeRoche in Mannheim

Roche: Our Purpose

Roche Diagnostics GmbH: Our Digital Transformation Journey

Roche Diagnostics GmbH: Starting our Data Journey

Roche - Our Purpose – Doing now what patients need next…

#PersonalisedHealthcare | Join the revolution!

Roche is a global pioneer in personalised healthcare.

We work across diagnostics and pharmaceuticals

Innovation is in our DNACHF 10.4 billion R&D investment

30 R&D sites worldwide **

CHF 53.3 billion sales

~94,000 employees in >100 countries

**Pharmaceuticals and Diagnostics* Strategy & Global Innovation 1000, Winter 2017

#1 R&D investor in healthcare*

Among top 10 R&D investors across industries

Roche Group

headquarters

Largest sites based on

number of employees

Research and

development sites in

Pharmaceuticals and

Diagnostic

Manufacturing sites in

Pharmaceuticals and

Diagnostics

Sales sites

Pharmaceuticals

and Diagnostics

Roche in Germany

~16,000 colleagues work with us for patients

PenzbergGrenzach-

Wyhlen

Waiblingen

Mannheim

Roche in Germany:

3 large sites representingthe whole value chain

of two divisions

Munich

Pharma

&

Diagnostics

Production

Development

Marketing

Research

Sales

Roche: Our Purpose

Roche Diagnostics GmbH: Our Digital Transformation Journey

Roche Diagnostics GmbH: Starting our Data Journey

Digital Transformation is a Journey……with a clear direction and an open end

2019

Drive cultural and

mindset change

Transfer to business

functions

2016

Recognizing the need

Exploration Phase

2018

Enable organization

Assess needs for

transformation

2017

Trends & Technology

Common vision

Framing scope

Initiate pilots

Objective of the Digital Transformation Office RDG

Boost Digital Transformation of Mannheim/Penzberg sites

Drive the Digital Transformation of the Mannheim/Penzberg sites through an holistic and coordinated approach by:

● Initiating, leading and supervising cross functional Digitalization Projects

● Supporting functional Digitalization Projects by leveraging synergiesacross functions and sites

● Fostering a working culture appropriate to the digital world

… to finally realize our Vision for:

“Our digital future @ Roche in Germany!”

Digital Transformation Framework

Holistic, cross-functional approachR

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Digital

Factory

Shape the

Digital

Environment

Medical

Value/Decision

Support

Digital Vision

Culture and Mindset

Change Management & Communications

“With connected

end-to-end processes and

advanced data analytics

we develop and produce

individual medical

solutions

to benefit patients and the

Roche group”

Digital Maturity Model (DMM) – A Powerful Change Tool

Objective and approach of the assessment per function

Level 1

Pre-digital Plant

Level 2

Digital Silos

Level 3

Connected Plant

Level 4

Predictive Plant

Level 5

Adaptive Plant

Primarily Paper-based

processes

Predominately manual

processing

Applications are

stand-alone with

minimal or no

integration

Some manual processes

Limited integration across

functional silos

Analytics on demand, “why

did it happen?” high manual

effort

Vertical Integration

ERP, LES, MES and

Automation layer are fully

integrated to support

digitized business

processes.

Analytics semi-

automated; “where else

can it happen?”

Islands of real-time

Process analytics

Enterprise Integration - internal

integration of plant to value

chain

Proactive analytics across plant

and internal value chain; “what

can happen and when?”

Integrated Real-time Process

analytics

Simulation used for process

modeling and improvements

Full end-to-end value-chain integration from

suppliers to patients

“Plug-n-play everything” from an instrument to a

production scale or a CMO

Self-aware, continuously adaptive,

“Autonomous” plant; exception conditions

handled by remote experts

Advanced simulation used across value chain for

modeling, testing and improvement business

processes

Trusted information insights are freely and securely

available. Pervasive use of adaptive analytics and

Self/Machine learning across value chain.

* from BioPhorum Operations Group

10

Digital Maturity Model (DMM)- Key Achievements up to Now

We speak the same language, when we «talk digital»

11

Operations functionsSites

ServiceR & D Finance HR Proc

Common understanding of digitalization within each function

Baseline for IT planning and digital roadmap

Identification of cross-functional opportunities

Observations:

• Big cultural change

• Growing skills in data analytics & E2E value chain thinking

• Reduction of organizational boundaries towards matrix

• Integration of external suppliers/partners

• IT architecture moves towards simplified & standardized platforms

• IT security to grow according to dependency on systems

• IT becomes integral part of business decisions

600 employees affected

Roll out in 2019 locally, 2020 globally

Three workstreams:

Digital Maintenance

Pharma PZ and Dia MA

Masterdata

management

Maintenance

Execution

Predictive

Maintenance

Data Value Chain

Diagnostics

Break up data silos

Showcase value of Data e.g. for

• Early trend recognition of market issues

• 100% traceability for Quality

• New service offerings

Creasphere Munich

Pharma Dia

FutureX Health care

Munich Accelerator

• Start Up culture

• early access to external innovation

Digital Maturity Model (DMM)- Key Achievements up to Now

“Outcome – Projects”

Digital Maintenance Project in Pharma and Diagnostics

Two pilots completed in 5-2019 in Global Logistics and Pharma Biotech

• Similar processes for Diagnostics and Pharma

• 600 employees on both sites involved

• Workstreams:

• Masterdata Management

• Maintenance execution

• Analyze/predictive

• Synergies with Claim- and Inventory Management

• Roll out in 2019 MA/PZ, 2020 globally

Expectations:

“Give me as a technician all at hand that I can do an excellent job”

“Reduce machine downtime”

Digital Transformation is a Journey……

… Aggregate structured

and unstructured data

(internal and external) to

generate new value

… Build infrastructure

and ensure common

standards and principles

… Have specific digital

skills by developing and/or

adding digital talent

… Demonstrate a digital-

ready mindset (not only in

new digital areas)

...Ensure appropriate set-up

of processes and

organisation to support the

transformation

TechnologySkills &

CapabilitiesData Organisational

PrinciplesMindset

...with enablers that contribute to the success of the journey

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Reaching Out To Our Colleagues: Inform, Explain & Activate

Main Communication Activities since the journey started…

Basic knowledge,

questions & answers

Topic Deep Dives:

IOT, Data Science,…

Bottom-up

involvementActivation:

Awareness event

All EmployeesLeadersSenior Leaders

Enabling Transition

… by addressing all parts of the organisation

Digital Leadership Academy

Reverse Mentoring

Digital Strategy Support

(via DMM)

Digital skills & capabilities

Platform “digital.durchgeblickt”

Communities and networks are key:

e.g. Digital Ambassadors

e.g. Data Expert Network

Transformation to become more agile & digital

How do agility and creative leadership fit together?Tammy Lowry Head Talent Innovation– Interview Mc Kinsey & Company

• The company is undertaking a transformation to become a more agile and digital organization

• Part of the foundation for this effort has been a global leadership initiative designed to help senior

leadership develop the mind-sets and capabilities they need in both personal and

organizational transformation.

• In a dynamic environment, our ability to respond well to whatever happens requires a different

approach and a more agile mind-set, especially for our senior leaders across the organization.

• Over the previous seven years, we’d done a lot of work within Roche on leadership, including the

introduction of leadership commitments where the expectation was not just about delivering the

business but also focusing specifically on people leadership. But we had to ask ourselves if this

was enough.

Roche: Our Purpose

Roche Diagnostics GmbH: Our Digital Transformation Journey

Roche Diagnostics GmbH: Starting our Data Journey

2019

Transfer of Digital Roadmap back to the business functions

Increased focus on DATA by new DATA Function

Digital Transformation

Office RDG

RDG Data

Office

From Digital to Data – Data Driven Digital TransformationDigital becomes normal business, Data is the new focus

DATA DRIVEN BUSINESS

MODELS

From Digital to Data – Data Driven Digital TransformationWhy – Some Buzz Words

DATA THE OIL OF THE

FUTURE?

BIG DATA

MDAS – MEANINGFUL

DATA AT SCALE RWD – REAL WORLD

DATA

DATA AS AN ASSET

Detailed strategic roadmap will be developed in the course of 2019High Level Objectives RDG Data Office – Est. Dec 1st 2018

Data Insights

Provide innovative data/info services that support BAs in datafication

Provide top notch data mining research

Data strategy consulting and support

Data Mindset and Environment

Culture: Data as company asset, democratization of data & analysis

Protection: Data enablement, sharing, trust, and security

Regulatory: Support shaping data framework in Europe

Data Access & Mgmt.

External data: Provide access & data brokerage

MDAS & leader in digital diagnostics: scout for opportunities

Internal data: enable cross-divisional sharing and promote FAIR

use Data Curation, Data Platform Enabler RDG

Data-

fication

and

beyond

RDG Data

Office

HOW: Cross-functional incubator style, delivery-driven, pragmatic, concrete!

It is all about Data & Mindset

Unlock greatness in people & data – The what & how in a digital world

Collect Data (internal & external)

Connect & Store Data (internal & external)

Data InsightsVisualizeInsights

Change Business

processes (internal & external)

Adapt resources & organization

RWD- Real World Data

It is essential to get access on Real-world data

(RWD). RWD is an overarching term for data

that are not collected in the context of

conventional randomised controlled trials

Common Data Platforms – Common

Data Principles :

- Data Sharing Mindset

- We believe that data at Roche needs to

be Findable, Accessible, Interoperable

and Reusable (FAIR)

- Leading edge IoT technology across

functions

Artificial Intelligence

/Machine Learning:

Leading edge data

science & tools

Agile Organization:

● From I to we

● From Hierarchies to

Network

● From Controlling to

Empowerment

● From info hording to

process learning

● From Pushing to

Well-being

● From Planning to

Design Thinking

Accesible for all:

Transparency and accessibility for

empowered decision making

22

How can I get my

hands on the

data? How can I combine

diverse data types?

How can I

share data?

F A I R

Where is exciting

data?

Common Data Principles –

How to make data FAIR?

Findable Accessible Re-usableInteroperable

Deep Dive Into the Cross-functional Interest Groups

Enabling Technologies define the group participants

Topics/Technology Why relevant for Data Office

Automation:

● eSignature

● Optical Character Recognition

● Robotized Process Automation

Core Focus: All technologies have an impact

on …

...how we collect data

...how we connect & store data

...how we get the best insights

...how we visualize

Benefits/Opportunities:

...accelerate implementation due to seed

funding

...streamlined approach towards IT

...streamline processes towards Works

Council

...Transparency on tools in use

Chatbot

Blockchain

Augmented Reality/Virtual Reality

Data Platforms

Artificial Intelligence/Machine Learning

Collect Data (internal & external)

Connect & Store Data (internal & external)

Data InsightsVisualizeInsights

Change Business

processes (internal & external)

Adapt resources & organization

From Digital to Data – Data Driven Digital TransformationGetting ready for the Future…. From owning data to leading with data

… with an overarching Data Strategy

There is great value in data and we want to use it to its full potential.

We believe that data at Roche Diagnostics needs to be Findable, Accessible, Interoperable

and Reusable (FAIR), a concept that our colleagues at Roche Pharma follow as well.

This is only possible with a data-centric mindset, a new data operating model and

enabling technologies

… with centralized governance & decentralized leadership

… with data Strategy Principles

… Start-up & innovation spirit

Doing now what patients need next