your hosts today: Stefan Langthaler Andy Rich Head of Business Systems Managing Director Life Sciences USA actavis GmbH update CRM Inc. update CRM @ actavis – a live webinar

relate@ my actavis Austria / Switzerland Stefan Langthaler, head of business systems, actavis AT + CH

changing software and tools from an „enemy“ to a piece of daily life in an upcoming organisation ... and let them talk „ actavis language“

Trends & changes in the European pharmaceutical industry Shift in health care decision  Substitution, power INN-Prescribing Increased patient  Co-Payments contribution Increased tendering  contracts with insurances, hosp. corp. Industry Drivers 1 2 3 4 4 focus areas in the field of drug expenditure Deregulation of pharma  chains, paneuropean WS markets free pricing

some general customer touchpoints Key Accounts Mailings Press Events Rep Calls Sales Force Office Telephone Websites

some “must haves” in our implementation basic CRM functions in relate@ my actavis modules: WHO is our customer (basic data) VALUE of this customer for actavis (classification) POTENTIAL of this customer (targeting) WHAT does the customer expect (criteria, interests) HOW do we serve that customer demand (channels) HOW do we interact with the customer (contact, order, todo, web. XML interface, ERP, phone) RELATIONS of and to that customer and activities (relations, matrix, network structures) conclusion: ONE informationcenter for the employee, ONE place to analyse, report, printout, ... prepare the next activities

basic CRM functions in relate@ my actavis modules:

WHO is our customer (basic data)

VALUE of this customer for actavis (classification)

POTENTIAL of this customer (targeting)

WHAT does the customer expect (criteria, interests)

HOW do we serve that customer demand (channels)

HOW do we interact with the customer (contact, order, todo, web. XML interface, ERP, phone)

RELATIONS of and to that customer and activities (relations, matrix, network structures)

conclusion: ONE informationcenter for the employee, ONE place to analyse, report, printout, ... prepare the next activities

fast planning, fast implementation easy system operation and improvement

greenfield: what will be the major needs of actavis AT and CH to provide best startup services for their customers? „ S-Class“ vs. „Golf GTI“: is it „image“ and spendings, or flexibility, courage and reliability to approach a saturated target group? from template to tailormade: using standard tools, no self development customising, not programming operational excellence: what do our shareholders, what does our management expect? do we sell one package more: how to empower a marketing and sales organisation to know MORE about their customer needs? questions to ask ourselves … ...as we prepared sales people for selling

greenfield: what will be the major needs of actavis AT and CH to provide best startup services for their customers?

„ S-Class“ vs. „Golf GTI“: is it „image“ and spendings, or flexibility, courage and reliability to approach a saturated target group?

from template to tailormade:

using standard tools, no self development

customising, not programming

operational excellence: what do our shareholders, what does our management expect?

do we sell one package more: how to empower a marketing and sales organisation to know MORE about their customer needs?

relate@ my actavis components CRM customer relationship management relate@ my actavis Head Office Organisations external partners Field Force Supporting the sales force Office driven initiatives in exactly the same “world” like the reps no friction losses !!! same database, same application update.seven as a pharma approved, pre-customised, favourable , easy to handle, very fast to implement, self improveable, self maintainable state of the art CRM all necessary interfaces “ webworld” actavis.at and actavis.ch CONTACTS “personalized” by gaining information from CRM, which has input from field force internet service tools physician software provider marketing agency according corporate guidelines concentrating on applications and content for target groups value adding functions for target groups and employees local provider and agency, 100% focussed on actavis AT and CH requests CONTENT MANAGEMENT mainly in the hands of actavis sales and market figures from IMS data clearing targeting support area maintenance and improvement support and helpdesk functions CENTRAL POINT OF INFORMATION uses modern technical possibilities of information clustering supports actavis AT and CH synergies in functionality support in own hand further development local 100% tailormade for market size and market needs customers are everywhere, anybody in our small units has to do his best in customer services and satisfaction of customer needs

Supporting the sales force

Office driven initiatives in exactly the same “world” like the reps

no friction losses !!! same database, same application

update.seven as a pharma approved, pre-customised, favourable , easy to handle, very fast to implement, self improveable, self maintainable state of the art CRM

all necessary interfaces

CONTACTS “personalized” by gaining information from CRM, which has input from

field force

internet service tools

physician software provider

marketing agency

according corporate guidelines

concentrating on applications and content for target groups

value adding functions for target groups and employees

local provider and agency, 100% focussed on actavis AT and CH requests

CONTENT MANAGEMENT mainly in the hands of actavis

sales and market figures from IMS

data clearing

targeting support

area maintenance and improvement

support and helpdesk functions

CENTRAL POINT OF INFORMATION

uses modern technical possibilities of information clustering

supports actavis AT and CH

synergies in functionality

support in own hand

further development local

100% tailormade for market size and market needs

customers are everywhere, anybody in our small units has to do his best in customer services and satisfaction of customer needs

some “unique selling points”, or: what does it really make sense to push specify, build, discuss and coach: how to classify and why ( actavis customer value matrix ) how to use modules efficient ( plan, execute, reflect ) not to analyse hours and hours ( paralysis through analysis ) how to prepare informations, tools and systems to serve the customers and not doin´ somebody in sales force steering „a favour“ ( information clustering ) management committment, training, training, training ...

specify, build, discuss and coach:

how to classify and why ( actavis customer value matrix )

how to use modules efficient ( plan, execute, reflect )

not to analyse hours and hours ( paralysis through analysis )

how to prepare informations, tools and systems to serve the customers and not doin´ somebody in sales force steering „a favour“ ( information clustering )

management committment, training, training, training ...

targeting is the first step to successful sales force effectiveness projects

assumptions of the pharmaceutical industry our customer treatment is as good as our outstanding products CRM is an important part of the sales and marketing strategy everybody in our organisations needs hundreds of reports to deeply analyse sales, growth, forecasts, ... no question, that every function in our business knows the „ how, when and why “ of CRM in their daily routine

our customer treatment is as good as our outstanding products

CRM is an important part of the sales and marketing strategy

everybody in our organisations needs hundreds of reports to deeply analyse sales, growth, forecasts, ...

no question, that every function in our business knows the „ how, when and why “ of CRM in their daily routine

reality in the pharmaceutical industry CHECKLIST: please check your company strategies for the word CUSTOMER how many independent „ customer databases “ are available if there is a running system, what is the number of real committed users (f.e. only in the sales force) how many functions is a sales person willing to use in a contact reporting process, how many reports will a manager really use to run his business in our customer approach, do we think about (company) customer value, share of wallet, potentials and unrealised potential (per customer) „customer classification matrix“ what is the average price per user, TCO, running costs per month of a „best branded“ CRM in the pharmaceutical industry did we ever ask our customers what they really expect from us Conclusion: a successful CRM project is neither a headquarter and/or IT driven project, nor something a local sales dept. can do „aside“ ...

CHECKLIST:

please check your company strategies for the word CUSTOMER

how many independent „ customer databases “ are available

if there is a running system, what is the number of real committed users (f.e. only in the sales force)

how many functions is a sales person willing to use in a contact reporting process, how many reports will a manager really use to run his business

in our customer approach, do we think about (company) customer value, share of wallet, potentials and unrealised potential (per customer) „customer classification matrix“

what is the average price per user, TCO, running costs per month of a „best branded“ CRM in the pharmaceutical industry

did we ever ask our customers what they really expect from us

Conclusion: a successful CRM project is neither a headquarter and/or IT driven project, nor something a local sales dept. can do „aside“ ...

4 building Blocks of a CRM Strategy Customize Product and/or Service Interact (And Remember) Identify Customer Individually & Addressably Differentiate By Value Then Needs Talk to customers as individuals Offer products and services based on individual needs Remember and act upon customer requests Success = keeping and growing your most valuable and most growable customers 1 2 3 4 Learning Loop

Talk to customers as individuals

Offer products and services based on individual needs

Remember and act upon customer requests

Success = keeping and growing your most valuable and most growable customers

Weaknesses of Classic Classification/Targeting Processes FF-representative in the lead of a classic “ABC” targeting Total # German Physicians: 120.000 Non Target (eg. Dentists, other non focus) 40.000 Target Group 80.000 - = Target Group 80.000 Reps per line 300 Target / Rep 270 / = Field days 180 Calls / day / Rep 9 Annual calls / Rep 1.600 * =

Value creation by fact based Targeting time Customer life time value Share of Wallet investment Maximizing ROI over time ROI Get them cheaper Grow them quicker Keep them longer

Value creation by fact based Targeting Below Zeros: Divest / discontinue business or find alternative ways of doing business Customer value tiers Actual value Strategic value (potential share of customer) Top Customers: Retain with balanced service Investment Targets: Grow with personalized offers, high investment in service Migrators: Keep them in the loop Service cost Cash Cows: Opportunistic Business

ROI – improvement by differentiated sales channel management Potential Share of wallet Classification * = Criteria Weight Score Potential Criteria Weight Score Share # of patients #of nurses Urban / rural Scientific orient. Opinion leader Total 5 3 1 3 2 2 3 2 1 3 10 9 2 3 6 30 Sound board member Reg. WWW user Receives Newsletter In high Index Region In high Growth Region Total 2 3 1 4 5 2 3 2 1 3 4 9 2 4 15 34 Top Investment Migrator Cash Cow Below Zero Pre-defined Customer data To be filled by the Rep. Added by FF Management Calculated in CRM System Pre-defined Customer data To be filled by the Rep. or FF Mgnt. Added by FF Management FF Mgnt. Feedback to Rep. Via CRM System Calculated in CRM System

ROI – improvement by differentiated sales channel management we only tackled Targeting as value driver knowing there are much more as e.g. touchpoint selection, interaction models, need based offer creation … clear value driven criteria defined by the top management should be the base of the targeting process assigning an equal number of leads to the representatives leads to wrong classification therefore the region size should be defined by the customer potential in the region Training, Training, Training

we only tackled Targeting as value driver knowing there are much more as e.g. touchpoint selection, interaction models, need based offer creation …

clear value driven criteria defined by the top management should be the base of the targeting process

assigning an equal number of leads to the representatives leads to wrong classification

therefore the region size should be defined by the customer potential in the region

Training, Training, Training

biz.sys.Tasks: creating sales&marketing driven tools and services, building target group oriented customer relations screen and cover customer demand and adjust our customer approach, for sustainable competitive advantage

case study: customer enters actavis website and finds company informations

case study: customer logs in service area with pre defined login data (from CRM)

case study: in REM (recherche Service evidence based Medicine), co-operation with PMU Salzburg, customer can enter medical questions

case study: medical supervisor in PMU sees new questions, decides about expert and checks proceedings, as well as medical correctness

case study: closed loop to CRM, every sales rep knows about things happening in „web world“

case study: every remarkable „event“ in web is tracked as „contact“ in the CRM and the rep is informed about his related tasks

some “learnings” in our implementation Sales People have enough to do with selling: WHAT functions are they really using (rightsizing) VALUE of CRM functionalities in daily business (do we sell one package more ...) POTENTIAL tracking of Customers (Key issue!) WHAT drives our Business (price, services, something else) HOW do we serve that customer demand (Customers expect perfect handling of their demands) CUSTOMERS are Customers, no matter what Country or Market Model we are talking about conclusion: ONE informationcenter is a valid Base for an international Rollout within the actavis Group GERMANY is a high performance Market where we reach a next step of performance and complexity within our CRM implementation

Sales People have enough to do with selling:

WHAT functions are they really using (rightsizing)

VALUE of CRM functionalities in daily business (do we sell one package more ...)

POTENTIAL tracking of Customers (Key issue!)

WHAT drives our Business (price, services, something else)

HOW do we serve that customer demand (Customers expect perfect handling of their demands)

CUSTOMERS are Customers, no matter what Country or Market Model we are talking about

conclusion: ONE informationcenter is a valid Base for an international Rollout within the actavis Group

GERMANY is a high performance Market where we reach a next step of performance and complexity within our CRM implementation

Thank you for your attention For further questions Contact Europe Contact USA Tina Zembacher Andy Rich Director Sales LSI Europe Managing Director, USA phone: +43 (1) 87855-140 phone: +1 (917) 886-9405 eMail: [email_address] eMail: [email_address] Please visit our website at www.update.com We are looking forward to seeing you again!

For further questions

Contact Europe Contact USA

Tina Zembacher Andy Rich

Director Sales LSI Europe Managing Director, USA

phone: +43 (1) 87855-140 phone: +1 (917) 886-9405

eMail: [email_address] eMail: [email_address]

Please visit our website at www.update.com