© 2007 IBM Corporation
MassMEDICMassMEDIC ProgramProgram Optimizing Sales and Services for Competitive AdvantageOptimizing Sales and Services for Competitive Advantage
June 5th, 2007
© 2007 IBM Corporation2
Medical Device Industry - Sales & Services Trends (Simon Goodman)
Program Overview (Prasad Rao)
Service Transformation (Prasad Rao)
Sales Transformation (Simon Goodman)
Questions
Agenda
© 2007 IBM Corporation3
Medical Device Industry Trends
MDI is going through a rapid consolidation. Bringing in newly acquired companies under single FDA-approved process is every acquiring company’s utmost priority.
As there are many small and medium size companies (70% of overall market share) entering into device manufacturing industry, most of the companies are looking to invest in their core business aspects R&D and Sales, Marketing and Service.
IBM internal estimates reveal that life sciences companies are investing in a core set of IT solutions specific to their industry.
Life Sciences Transformation accounts for approximately one-quarter of all IT spending in the industry with 18% annual spending growth.
The future growth estimation by the MDI analysts is 4.4% which is $154.3 Billion by 2011.
© 2007 IBM Corporation4
Trends continuedThe market for healthcare is relatively concentrated, with the top four players accounting for approximately 30% of the global revenues.
A considerable percentage of this remaining 70% of the share is combination of small and mid size companies.
These companies will be eager to invest in solutions with pre-configured functionality which can support regulated business processes.
US region accounts for 46.3% of the global market’s value in 2006. In comparison, Europe and Asia-Pacific account for 35% and 16.7% of the market’s value respectively.
© 2007 IBM Corporation5
Trends continuedSurgical and medical equipment sales proved the most lucrative for the global health care market in 2006, generating total revenue of $98.1 billion, equivalent to 78.7% of the market’s overall value.
In comparison, sales of dental equipment generated revenue of $15 billion in 2006, equating to 12.1% of the market ’s revenue.
The compounded annual growth rate of the market in the period 2006-2011 is predicted to be 4.45.
© 2007 IBM Corporation6
Understanding the common pitfalls of CRM projects
IT vs Business Driven– IT will enable the solution; Business has to drive the project to achieve the planned results
Lack of Senior Management involvement– Senior management is typically ‘hands-off’ after the project kick-off
Underestimating the Change impacts– Users are impacted – once-and-done training is never enough– The entire Organization needs to be ‘prepared’
Technology maturity, fit and ‘blend’– The system – the technical components working together to support business processes – has to
work!– Plan for “sensible” phasing of users and technology to iron out the kinks
Post go-live support and user-adoption challenges– Support processes need to be in place– Proactive vs Reactive, where possible
© 2007 IBM Corporation
Program OverviewProgram Overview
Case Study: Medical Equipment Manufacturer
© 2007 IBM Corporation8
Executive Summary
COSTSCOSTS• CAPEX = $XX• P&L Impacts:
• 2005: $XXX• 2006: $XXX• 2007: $XXX
• Checkpoints release funding • Program duration 19 months
RISKSRISKS• Executive commitment• Willingness / ability to change• Becoming a data-driven
business• User adoption• Losing our entrepreneurial
spirit
CHALLENGECHALLENGE• A sales and services oriented
company• Aggressive growth goals• Process / infrastructure unable to
support growth• Manage by intuition, not fact
BENEFITSBENEFITS• $XX over 5 years• Readiness for growth
• Standard processes• Better access to data• 360° view of the customer• Service management platform
© 2007 IBM Corporation9
To fill capability gaps, we must prioritize initiatives into a phased transformation roadmap
IDENTIFY GAPS
IDENTIFY GAPS
GROUP BYCAPABILITY
GROUP BYCAPABILITY
PRIORITIZEINITIATIVES
PRIORITIZEINITIATIVES
IMPLEMENTATIONROADMAP
IMPLEMENTATIONROADMAP
Sales PlanningContact ManagementActivity ManagementAccount ManagementSales ForecastingOpportunity ManagementTerritory ManagementSales ReportingHandheld and Wireless
SALES FORCE EFFECTIVENESSEffectively plan and deliver the right message in calls on the appropriate target customers and consistently capture useful information to share and leverage for improved and productive future interactions
S1
S2a
S2b
Order InquiryOrder Status
InitiativesBenefit Driver CapabilityGroupings
ICMCompensation PlansCompensation EngineCompensation Predefined Queries Compensation Analytics
Contract InquiryQuote InquiryPrice Inquiry
Sales PlanningContact ManagementActivity ManagementAccount ManagementSales ForecastingOpportunity ManagementTerritory ManagementSales ReportingHandheld and Wireless
SALES FORCE EFFECTIVENESSEffectively plan and deliver the right message in calls on the appropriate target customers and consistently capture useful information to share and leverage for improved and productive future interactions
S1
S2a
S2b
Order InquiryOrder Status
InitiativesBenefit Driver CapabilityGroupings
ICMCompensation PlansCompensation EngineCompensation Predefined Queries Compensation Analytics
Contract InquiryQuote InquiryPrice Inquiry
Low
Med
High
Cost Key Prioritization
1. S12. SE13. M1
4. OM5. SE26. S2B
7. ICM8. M29. S2A10. M3
OperationalBenefit
Complexity High
S1
S2a
SE2
SE1
M3
M2
M1
ICM
High
Low
OM
S2b
Low
Med
High
Cost Key Prioritization
1. S12. SE13. M1
4. OM5. SE26. S2B
7. ICM8. M29. S2A10. M3
OperationalBenefit
Complexity High
S1
S2a
SE2
SE1
M3
M2
M1
ICM
High
Low
OM
S2b
30 days of Validation budgeted for S1 & SE2
Order Entry/Mgmt Process Improvement (0M)
I 1
5 4 4 5 4 4Sep DecOct Nov
4
Project Concerto PMO
Handheld Device Selection
Core Template Design
Cytyc Sales Analytics (Staggered)
Cytyc Legacy Integration -POC
Cytyc Field Service POC
Marketing Deployment (M1/2/3)
Incentive Compensation
Incentive Compensation
Service Deployment
Cytyc Sales (TP & NS, 2a & 2b)
Cytyc Sales Deploy ThinPrep
Cytyc Marketing (M1 & M2 & M3)
Cytyc Service (SE1)
Cytyc Service & Marketing (SE2)
Cytyc Sales Pilot (Pilot)
Sales Deployment
AprMar DecNovOct Apr2007
May JunFeb MarJan2005 2006
May Jun Jul Aug SepFebJan5 44 5 4 5 5 4 4
PI 4
4 5 4 44 4
S 3 SE 3
CTD 8
A 3 D 5 B 6 T 5 I 4
A 3 D 6 B 6 T 6 I 6
D 4 B 7
I 4
A 2 P 6 I 2
A 6 D 10 B 9 T 12 I 2
A 3 P 7 I 3
A 5 B 8 T 13 I 3
30 days of Validation budgeted for S1 & SE2
Order Entry/Mgmt Process Improvement (0M)
I 1
5 4 4 5 4 4Sep DecOct Nov
4
Project Concerto PMO
Handheld Device Selection
Core Template Design
Cytyc Sales Analytics (Staggered)
Cytyc Legacy Integration -POC
Cytyc Field Service POC
Marketing Deployment (M1/2/3)
Incentive Compensation
Incentive Compensation
Service Deployment
Cytyc Sales (TP & NS, 2a & 2b)
Cytyc Sales Deploy ThinPrep
Cytyc Marketing (M1 & M2 & M3)
Cytyc Service (SE1)
Cytyc Service & Marketing (SE2)
Cytyc Sales Pilot (Pilot)
Sales Deployment
AprMar DecNovOct Apr2007
May JunFeb MarJan2005 2006
May Jun Jul Aug SepFebJan5 44 5 4 5 5 4 4
PI 4
4 5 4 44 4
S 3 SE 3
CTD 8
A 3 D 5 B 6 T 5 I 4
A 3 D 6 B 6 T 6 I 6
D 4 B 7
I 4
A 2 P 6 I 2
A 6 D 10 B 9 T 12 I 2
A 3 P 7 I 3
A 5 B 8 T 13 I 3
© 2007 IBM Corporation10
Leading
Optimizing
Practicing
Developing
Aware
1. Sales Strategy
2. Custom
er Acquisition
3. Loyalty and Retention
4. Execution
5. Sales Support
6. Usability
7. Profitable Sales
1. Contact C
enter Strategy
2. Facilities Managem
ent
3. People, Culture & O
rganization
4. Information &
App. Systems
5. Entitlement Verification
1. Field Service Strategy
2. Service Delivery
3. Problem & Service Level M
gmt.
4. Entitlement Verification
5. People
6. Culture & O
rganization
7. Information &
App. Systems
1. Order Entry
2. Order Processing
3. Timely Q
uery Managem
ent
4. Integrated Returns
5. Order M
anagement S
upport
1. Marketing Strategy
2. Custom
er Information & Analytics
3. Segmentation & Targeting
4. Marketing Effectiveness
A. Sales B. Contact Center C. Field Service D. Order Management E. Marketing
The Capability Maturity Model illustrates significant gaps faced in achieving our future state vision
Maturity Levels
Functions
Dom
ains
Current
Target
Capability Gap
Target State
Note: Domain averages shown
© 2007 IBM Corporation11
Technology Benefits
Multiple systems to manage
Inefficient ability to scale as the company grows
Many “one-off” applications and patches
Islands of data to manage and support
Sunset of multiple legacy systems
A unified systems environment
Scalable and flexible
Leading practices “built in”
CURRENT FUTURE / VISION
© 2007 IBM Corporation12
Retired Systems
Field Service Handheld
ERP
Data Warehouse
Legacy CRM System (Lab)Quote and Contract
Management
Enterprise Reporting
Complaint Investigation SIEBEL
Sales Handheld Device
Legacy CRM System (Office)
Legacy CRM System
Siebel Analytics Reporting
Technology Architecture
© 2007 IBM Corporation13
Global Delivery for Sales and Service
IBM Onsite IBM Siebel GDC
Change Mgmt, Configuration Mgmt, Environment Setup and Mgmt, Documentation Mgmt,Methods and Tools
Medical Device CompanyProgram management
Business Release Management
Technical Design
System Integration Test
Deployment
User Acceptance Test
Build & Unit Test
DefineUser requirements
(WHAT)
Functional Design
Project management Team management
Review/Approve Functional Design
DefineSiebel
System requirements(HOW)
Effort Estimation / Impact Analysis
Effort Estimation Review/Signoff
Functional Test case
Technical Design Review/ Signoff
Functional Design Review
© 2007 IBM Corporation
Service Transformation Service Transformation
Prasad Rao - IBM
© 2007 IBM Corporation15
Benefits for the Future – Customer Support
A new Tier 1 customer support function is deployedTier 1 agents accept all calls, are trained to solve or route as appropriateTier 1 agents will be “entry level”Consolidation of capabilities into Tier 2 support functions
FUTURE / VISION
© 2007 IBM Corporation16
Benefits for the Future – Technical Support & Field Service
Systematic, integrated service management system w/ tools, processes and metrics:
– Increase phone fix rate, reduce visit rate
– optimized dispatch and call handling
– Real-time service data and trending– service agreement status
(entitlement)– Optimize field service inventory /
reduce service time and cost– FSEs receive weekly customer
listings of service contracts nearing expiration and pursue future business potential
FUTURE / VISION
5-Year NPV = $XXM
© 2007 IBM Corporation17
Tier Service Delivery Model-Agent Grouping and Characteristics
Tier 1
Tier 3
Tier 2
Technical SupportSupport Specialist Finance DepartmentClinical AffairsInvestor RelationsCustomer ServiceClinical SpecialistInternal Sales
Field Service Coordinator
Universal Agents
Call F
low
© 2007 IBM Corporation18
Service Implementation
A number of leading practices were referred to and implemented during the definition of ‘To Be’ processes. These bring about significant process improvements (on completion of implementation) in the contact center and dispatch areas, for example:
• Development of a tiered service delivery model• Single ownership of service request• Transfer of activities from tier to tier
40 different call types maintained in SiebelTiered Service Delivery Model for Call handlingAuto assignment of Calls based on Skills and availability of the FSEInterfaces between Siebel and ERP to exchange data across the applicationsTerritory Administration maintained in Siebel
© 2007 IBM Corporation19
Siebel Audit TrailFeatures
Audit Scope
Audit Trail Content
Parent-Child Associations for Audit
‘Siebel Audit trail’ option was discussed with business team and they approved implementing this solution.
© 2007 IBM Corporation20
Audit trail was enabled on Service Requests
SR #: 1-1KVDX Modification: New SR (SR Category/SR Type) and New Activity (1-1KVE4) Captured in Audit Trail (see highlighted record below): Y Status: Passed
© 2007 IBM Corporation21
Installed base re conciliation reports help Asset Management
© 2007 IBM Corporation22
Overall Test ApproachThe Test execution approach will follow the high level method depicted below. Different types of testing will be performed and tasks and deliverables related to each type of testing will be represented and monitored in the master project project plan.
Test Execution
Go-Live
Manage Infrastructure and Environments
Perf. Testing (T3)
Regression Testing(T3)
Integration Testing (T3)
UAT/Validation Equipment (PCs, Blackberry devices, Lab) In place
(See Slide 14)
-Siebel,QAD,VETTRO,Qualcyte Teams will be involved
Conversion Testing (T3)
-Sales UAT Test Scripts will be executed
System Testing (T3)
UAT/validation Testing(T3)
Break/Fix Development (Defects in D2)
© 2007 IBM Corporation
Sales TransformationSales Transformation
Simon Goodman - IBM
© 2007 IBM Corporation24
Benefits for the Future
Common tools, processes, and data Fact-based decisionsLess time spent on administrative dutiesTechnology will allow the Rep can do his typical day-to-day call activity planning and tracking from the “palm of his hand”Future rolling forecasts 180 daysReporting capabilities enabling a full picture of the businessCustomer retention actively trackedStandard set of compensation approaches—systematically track progress against goals
FUTURE / VISION
5-Year NPV = $XXM
© 2007 IBM Corporation25
Project Summary
Key Challenges up Front– The Company has grown to date via acquisition resulting in disparate systems, non-integration
technologies and silo-ed business processes. – Three silo-ed business units with varying levels of maturity in the sales business processes (ranging
from almost non-existent to some documented business processes) – Dated technologies supported by an immature IT organization spanning multiple vendors which
resulted in duplication of data in stand alone data-marks when data was needed to be exchanged between legacy systems
3 Key Technical Components of the Implementation1. Siebel eMedical Sales Force Automation
• Focused around Business Planning/Objectives, Opportunity Management, Call Planning and Tracking, and Forecasting
• Flexible design to support core vs business-unit specific requirements & processes2. Antenna HandHeld
• Enabling real-time wireless access to critical Customer-related data anywhere any time on BlackBerries and (Palm) Treos
3. Siebel Analytics (Data Warehouse) Reporting• Focused on summary and detailed sales trending reports, showing Forecasts vs Actuals
© 2007 IBM Corporation26
Solution Overview
SiebeleMedical 7.8
SiebelAnalytics
SAP
Main
AccountsContacts Activities-----------------------------------------Search Results:
AccountsContactsOpportunities
Open-----------Search-----------Settings-----------Exit
EDWCognosReports
•• Business Objectives / PlanningBusiness Objectives / Planning•• Account ProfilingAccount Profiling•• Opportunity ManagementOpportunity Management•• Activity Planning & TrackingActivity Planning & Tracking•• ForecastingForecasting•• Sales ReportingSales Reporting
•• AdAd--Hoc Hoc ‘‘Slicing & DicingSlicing & Dicing’’•• Sales Trending ReportsSales Trending Reports•• Forecast Forecast vsvs ActualsActuals ReportsReports•• Pipeline ReportsPipeline Reports•• Call Activity ReportsCall Activity Reports•• ……
(2) Antenna Software HandHeld / Wireless Medical SFA Application
(1) Siebel eMedical Sales Force Automation Application
(3) Siebel Analytics Reporting Dashboards and Toolset
© 2007 IBM Corporation27
Our overall approach was to stick to out-of-the-box and minimize customizations as much as possible:
Where possible, promote and utilize the use of standard Siebel functionality.Focus on the set of standard Siebel Tools and Workflow-based configurations to support the inclusion of the prioritized set of application requirements.Prioritize and minimize the code-heavy customizations that are required to implement complex business rules, and which typically take longer to develop and test, and which are more expensive to maintain long-term.
Promote & Utilize
Prioritize & Focus
Prioritize & Minimize
Out-of-the-box functionality
Siebel Tools Configurations,
Siebel WorkFlow
Customi- zations
Leveraging out-of-the-box Siebel was a guiding principle
8
Accounts:Addresses
Comments/Notes:This configuration is most relevant for Hospitals which can have multiple addresses that can sometimes be blocks apart.The selected Account is summarized in the top applet Since the Sales Rep (particularly new Reps) may not be able to easily identify the address, multiple addresses and are displayed in the lower applet, with the associated Address Type
Specifications:Screen: Accounts:AddressesConfiguration Changes:
Add additional field, “Address Type” with drop-down valuesReference ‘List Of Values’ spreadsheet for values
WarehouseLoading DockReception…
List Of Values to be finalized mid May during DesignNot a “Required” field; Rep entered (no conversion); Informational only does not drive any downstream processing or logicThis is to be monitored as it is used.
Will NOT be Pre-populated.
Will unlikely be used except in the Hospital Example.
Sample Storyboard
Where high-priority customizations to out-of-the-box were required, detailed annotated storyboards were used to ensure clear and consistent designs,
understood by all.
© 2007 IBM Corporation28
Project Results
People and Process– Alignment of processes and technology to support current sales forces (~350 Users) as well as growth
strategy. – Over time, Users will find their own way to use the system – even if not quite as trained, and not as a
standard… this is a good thing!
Technology– Users loved the HandHeld application – great enthusiasm– Application customization performed in an efficient/cost-effective way, using a blended team of US-
based and global resources
© 2007 IBM Corporation29
Thank You!