shift is happening now -...

TRUSTED ADVISORS TO HEALTHCARE AND LIFE SCIENCE EXECUTIVES

2015 Axendia, Inc.

By Daniel R. Matlis, President and Chief Analyst

INTRODUCTION

What is the role of a CIO in a Pharma / Life-Science company? Traditionally, the role of the CIO has been to manage the IT portfolio, implement systems, manage infrastructure and control IT costs to support the business. With the unprecedented rate of shift the industry is experiencing, CIO’s can no longer simply be tasked with managing portfolios and budgets. This was evident at the 2015 CIO Innovation Summit in Kyoto, Japan on October 20th.

There, Executives from leading organizations across the Life-Sciences ecosystem in Asia converged at the Ritz Carlton in Kyoto to learn about industry trends and share success stories and current best practices (cBPs).

Key themes at the event included innovation, transformation, collaboration and connectivity. The event was hosted by BIOVIA- Dassault Systemes and brought together top executives from:

Astellas Pharma Bridgestone Bionet Daichi Sankyo Everlight Chemical Genesis Genetics Asia IPCA Laboratories Samsung Biologics Shionogi &Co Sumitomo Danippon Takeda Pharmaceuticals Mitsui Chemicals WuXi Apptech

Max Carnecchia, BIOVIA's CEO, set the tone for the event in his opening remarks. His message: "By transforming the pharmaceutical industry through innovation, collaboration and connectivity, we can streamline end-to-end manufacturing, enhance quality and improve compliance in today's challenging regulatory and risk environment."

SHIFT IS HAPPENING NOW WHAT CAN PHARMA CIOS DO TO ENABLE INNOVATION


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As CIOs discussed their roles within their respective organizations, it became clear that the days of simply managing the IT portfolio are over. CIOs must also enable innovation in a constantly shifting world.

SHIFT IS HAPPENING NOW

During my keynote address, I challenged attendees with the notion that, as an industry, we are at a tipping point and to succeed we must transform or perish. Shift is happening across multiple dimensions as depicted in this chart:

Our research clearly shows (http://axendia.com/LS-GSC-2010/Axendia-LS-GSC-2010-Report-Final.pdf ) that Life-Science companies are looking at Asia as a key growth market driven by demographics. After all, more than half of humanity lives within a 3000 mile radius circle in the region.

In addition to these market shifts, we discussed topics including:

http://axendia.com/LS-GSC-2010/Axendia-LS-GSC-2010-Report-Final.pdf

http://axendia.com/LS-GSC-2010/Axendia-LS-GSC-2010-Report-Final.pdf



Shifting from Data to Truth Shifting from Paper and Static

Documents to Intelligence The Journey from CACA to PACA Focusing on Improving product

Quality rather that fixating on Compliance

"Transformation requires that we think and execute differently." emphasized Reza Sadeghi, Chief Strategy Officer, BIOVIA. "Science of life is complex, and the Life-Sciences is filled with fragmented pathways and islands of data that must be connected in order for us to innovate and execute better. The recent shift to precision medicine will require far better connectivity in this eco system to aggregate data to business intelligence."

To achieve this goal, Life-Science companies must find and illuminate dark data, as invisible data is useless data. If you cannot see it, you cannot act on it.

Connecting data island leads to visibility. Democratizing information access is a way to connect decision loops and present information in a manner that consumers across the organization can understand and make decisions on.

CIO: CHIEF INNOVATION-ENABLEMENT OFFICER?

As CIOs presented their roles within their respective organizations, it became clear that the days of simply managing the IT portfolio are over. Instead, the role of the CIO is to work with the business to implement solutions that enable innovation across the organization and throughout the ecosystem. This requires the implementation of integrated platforms that enable innovation, transformation by improving collaboration, connectivity and intelligence. Astellas’ Corporate Information Technology VP described his role as a "business value enabler" supported by 3 pillars:

Globalization Simplification Digitalization

Daichi Sankyo’s Global Head of IT presented his global IT strategic business framework based on 4 pillars:



People Process Innovation Technology

The consensus from the healthy discussion at the forum was that the biggest barriers to innovation are People & Organizational Silos NOT Technology.

LEARNING FROM SUCCESS

Takashi Tanaka shared his experiences as an Executive in the Automotive and Aerospace industries. Takashi-son is currently a Senior Business Consultant at Dassault Systemes. He presented multiple case studies on the successful use of “Oobeya” (Japanese for Big Project Room or "war room") to breaking down vertical silos and drive improved product quality and lower costs. Takashi-son discussed the concept of building “Quality into Process” by implementing “Right First Time” approaches thereby eliminating the need for expensive inspections.



Oobeya aims to eliminate silos by creating a feedback system across the total product lifecycle including:

Requirements Product design standardization Working process standardization Design review Personnel training Check sheets Feedback system

The potential benefits for implementation of Oobeya in Pharma include:

Effective decision making for senior level management Expedited problem solving Removal of walls organization Improved workload visualizations

According to Takashi-son the implementation of Oobeya in the Automotive and Aerospace industries has resulted in significant and measurable improvements including:

27% reduction in the production cost of an automobile 20% improvement in automobile initial quality



5% reduction in airplane operating cost

Additionally, the lead-time from planning to launch for a global automobile platform was reduced from 36 to 28 months (a 22% reduction).

A 22% percent reduction in lead time in Pharma could result in a new drug reaching the market 2 to 3 years sooner than currently (based on the current 10 to 15 year discovery to approval cycle).

TRANSFORM OR PERISH

With the unprecedented rate of shift the industry is experiencing, the role of the CIO is no longer simply managing portfolios and budgets. Instead CIOs must work with the business entity to implement solutions that enable innovation across the organization and throughout the ecosystem. To do this, they must gain an understanding of the multiple dimensions across the ecosystem where shift is happening. To enable innovation, CIOs must lead their organizations to seek technology platforms that illuminate dark data and build bridges across data islands. These platforms can lead to improved visibility and democratizing information. Additionally, they must learn from successes in other industries and enable the implementation of strategic approaches that lead to positive transformation and connect data and information to use the power of innovation to improve everyone’s health.

The opinions and analysis expressed in this research reflect the judgment of Axendia at the time of publication and are subject to change without notice. Information contained in this document is current as of publication date. Information cited is not warranted by Axendia but has been obtained through a valid research methodology. This document is not intended to endorse any company or product and should not be attributed as such. About Axendia: Axendia, Inc. is a leading trusted advisor to the Life-Science and Healthcare industries. We provide trusted counsel to industry stakeholders on Business, Regulatory and Technology issues.

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Published: November 2015

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