Our client is a leading global company which develops, manufactures and distributes pharmaceutical products with a wide and diverse portfolio of brands across primary care, women’s health, oncology, and hospitals.
Challenge + Opportunity
With the ever increasing demands of having access to “one version of the truth” for data related decision making, the client needed to execute a global, large scale (>100M), multi-year IT infrastructure and business alignment implementation and value stream standardization – basically, a complete restructuring of its financial systems and processes to enable the end to end business.
The foundation of the project was the transfer of companywide financial and non-financial data to a unified platform using a Common Information Model providing transparent business analytics. This action would provide senior business leaders in the finance, marketing and manufacturing teams a view of the entire Transforming Reporting and Analytics Necessary for Strategic Planning value stream Buy/Sell/Make/Distribute), enabling effective business decisions using universally agreed upon data. TayganPoint Consulting was engaged to program manage the entire initiative, provide change management, communication and work stream project management support as well as ensure coordination of approximately 110 internal resources and 60 additional third party consultants.
The project objectives and deliverables included:
- The ability to view inventory across the entire value chain
- Creation of a standardized set of terms and definitions across the enterprise (Common Information Model)
- The ability to generate reports to address any business need (Internal and External Reporting)
- The ability to respond to global pricing needs across the enterprise
- The ability to view and access our actuals in a timely manner without the need for human middleware
- Implementation of a formal enterprise wide governance structure to support business analytics.
Approach + Solution
After documenting the current state environment and assisting with the selection of a new platform, our approach included the creation of a 5-year road map which containing the strategic priorities and broke down the work down into ten work streams:
- Close and Consolidation: shorten the time of financial closing
- Reporting Strategy: create standard reporting package and executive dashboards
- Information Architecture: update information architecture to minimize “human middleware”
- Common Information Model: creation of consistent definition of data element across the global organization
- WINS: reviewing and prioritizing which interim solutions to help bridge the business disruptions
- Standard Unit of Measure: Defining consistent definition and measurement of products at the unit level
- Global Supply Chain Visibility: improving the view of the supply chain in order to reduce costs and improve customer service
- Pricing Analytics: creation of a logical data model for gross to net information based on a common information model
- COGS (Cost of Goods Sold) Analytics: define a consistent/automated means to capture operation data and calculate COGS across the organization
- Mark-Up Tracking (M-TRAC): tracking and reporting mark- up across the product supply chain appropriately
To manage change resulting from the impacts of this project, TayganPoint established a Communication/Education/Training (ETC) program to positively manage the acceptance and daily use of the solution elements and minimize business disruption to 2500 employees.
Results + Impact
Through our program and project management efforts our client was able to reduce the days needed to close the financials, decommission legacy systems with cost avoidance of over 100M, have the ability to conduct pricing analysis by 10 fold on a monthly basis (valued at 50M on a sample month), and reduce overstock and inventory discards by 20% (87M annual savings) due to optimizing product availability views.
TayganPoint is a management consulting firm focused on dynamic business transformation. Aligning people, process, culture and technology, they combine deep experience in strategy alignment, process improvement, change management and program management with extensive industry knowledge in Life Science, Financial Services, Healthcare and Energy. TayganPoint delivers high value operations solutions that improve performance, delivering measurable and sustainable results to clients. Learn more at www.tayganpoint.com.