Life Sciences Executive Overview

March 2015
Improve outcomes and enable innovation for the
life sciences industry
Executive Overview

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 2
Market Dynamics SAP for Life Sciences Why SAP? Next Steps
The mandate: grow in a dynamic and changing market
Differentiate in a market of global healthcare
reforms and growing competition
Achieve operational excellence while complying
with increasing regulatory requirements
Increase customer satisfaction and patient safety
despite volatile value chains
Improve patient outcomes and drive personalized
medicine
Take advantage of new collaboration models
across traditional outsourcing partners, care
providers and patients

Mastering the challenge: Innovate while improving
profitability and efficiency
Primary Business Objectives Key questions: How do we . . .
Innovate faster, drive personalized
medicine, and improve patient
outcomes
Maximize supplier performance for
APIs, substances, materials, and
outsourced services
Optimize supply chain efficiency and
customer service
Secure high product quality, patient
safety and compliance efficiently
Increase brand value, customer
loyalty and revenue
• Improve R&D productivity?
• Find new solutions focusing on patient
outcomes?
• Collaborate with third parties efficiently?
• Comply with ever-changing complex
regulations?
• Proactively minimize operational risk?
• Attract many market segments via many
channels?

Improve outcomes and enable innovation for the life
sciences industry
* In comparison to bottom quartile performers
Collaborative R&D
Streamline development, simplify collaboration
with internal stakeholders and external research
partners and manage compliance
Strategic Sourcing and Procurement
Integrate and automate sourcing and
procurement processes, including on- and off-
boarding of third parties, with full visibility into
spend and supplier performance
Demand-Driven Supply Networks
Synchronize demand and supply, optimize
inventories and ensure global traceability of
drugs and devices
Compliant Manufacturing
Align and integrate core manufacturing
processes internally and externally, monitor KPIs
and mitigate risks
Multi-Channel Sales, Marketing and Service
Consistently demonstrate product and services
differentiators across the spectrum of payers,
patients and caregivers
Suppliers:
Chemical
and equipment
Contract research
organizations
Contract laboratories
Wholesalers
Physicians,
patients,
payers, and
drug stores
Contract
manufacturers
Contract packaging
organizations
Human resources
Finance
Collaborati
ve R&D
Demand-
driven
supply
networks
Strategic
sourcing
and
procureme
nt
Multichann
el sales,
marketing,
and
service
Compliant
manufactur
ing
Platform and technology
Contract
organizations

Driving top performance delivers substantial rewards
82% lower R&D expense (% of revenue)
58% higher revenue growth (%)
39% lower days in inventory
* In comparison to bottom quartile performers
Industry analysis shows that top
performers in life sciences achieve:*
*In comparison to average performers, source: SAP Performance Benchmarking, all benchmarks are for life sciences except R&D expense as a % of revenue, R&D
expense as a % of revenue benchmark is for consumer products and life sciences industries.
0.6%7.0%
Bottom 25% Top 25%
63140
12.0%3.0%
Average
3.3%
104
7.6%
53% higher operating margin (in %)
38% lower spend (% of revenue) 28.4%57.0% 45.8%
25.7%8.4% 16.8%

To support top performance SAP offers a comprehensive
and industry-specific solution portfolio
Industry value map for
Corporate functions > Finance | Human Resources
Collaborative
R&D
Strategic
Sourcing and
Procurement
Demand-Driven
Supply Networks
• Project and Portfolio
Management
• Research and Discovery
• Design and Development
• Product Safety and
Compliance
• Environment, Health, and
Safety
Platform and technology > Enterprise technology | Analytics | Mobile | In-memory platform
• Strategic Sourcing and
Supplier Management
• Direct Procurement (On
Premise)
• Contingent Workforce
Management
• Services Procurement (On
Premise)
• Travel Management
• Sales, Inventory, and
Operations Planning
• Demand Management
• Response and Supply
Management
• Supply Chain Integrity
• Extended Supply Chain
Insights
Compliant
Manufacturing
• Production Scheduling
• Responsive Manufacturing
and Quality Management
• Warehouse Management
• Maintenance and Service
• Contract Manufacturing
Life Sciences
Multi-Channel
Sales, Marketing
and Service
• Market Segmentation and
Campaign Management
• Order to Cash
• Collaborative Sales Force
Automation
• Field Service Management
• Omnichannel Commerce
Management

Collaborative R&D
Typical results*
What do SAP solutions help customers do?
Project and Portfolio Management
Develop new therapies and services based on value-driven
investment decisions
65
lower cost when product ideas are evaluated with a
standard set of analytics*
faster time to market when development is run through
a documented process*% %13
Design and Development
Collaborate across silos and integrate product development to
get to market first with innovative, compliant products
Product Safety and Compliance
Ensure that new therapies comply with evolving regulations
and maintaining brand value
Environment, Health, and Safety
Reduce environment, health, and safety risks to help ensure
safety and business continuity
Research and Discovery
Adopt new business models and open new revenue streams
with Big Data insights
*Source: SAP Performance Benchmarking.
EHS Global Label Management – Creating compliant labels
efficiently

Strategic Sourcing and Procurement
Typical results*
Strategic Sourcing and Supplier Management
Reduce risk and cost through increased savings opportunities,
sourcing efficiency, and contract and supplier compliance
46
lower cost for companies with a single electronic
supplier contract repository*
of life sciences firms have a single electronic repository
of supplier contracts*% %21
Contingent Workforce Management
Cut costs, enforce compliance, and improve quality and
efficiency
Services Procurement (On Premise)
Standardized, automated, and collaborative service
procurement
Travel Management
Streamlining the entire trip lifecycle to control costs and
enforce corporate and legal compliance
Direct Procurement (On Premise)
Improve operational efficiency and source determination for
direct materials
Ariba Supplier Enablement – Onboarding suppliers quickly

Demand-Driven Supply Networks
Typical results*
Sales & Operation Planning – Aligning supply and demand
precisely in real time
Sales, Inventory, and Operations Planning
Align demand and supply plans across business functions, in
tune with overall financial goals
6.3
Higher inventory accuracy for Life Sciences companies
which have real time enterprise wide visibility to
inventory*
higher on-time delivery where safety stock is calculated
dynamically and often*X X17
Response and Supply Management
Align planning and execution in real time
Supply Chain Integrity
Provide safety and efficacy of drugs and devices across the
value chain
Extended Supply Chain Insights
Optimize supply chain responsiveness through extended, real-
time insights
Demand Management
Manage and analyze demand streams to feed operational
planning and drive greater productivity and customer
satisfaction

Compliant Manufacturing
Typical results*
ERP PP-PI – Achieving compliance efficiently through electronic
batch records
Production Scheduling
Integrate production planning with scheduling and minimize
inactivity
10
higher on-time delivery when causes of issues and
resolution are found quickly*
lower inventory of finished goods with integrated
manufacturing execution systems*% %33
Warehouse Management
Improve planning and optimization of warehouse operations
Maintenance and Service
Asset retention or restoration maintenance for optimal
performance of required functions
Contract Manufacturing
Use a responsive multitiered supply network to streamline
collaboration with trading partners
Responsive Manufacturing and Quality Management
Synchronize manufacturing and business operations

Multi Channel Sales, Marketing and Service
Typical results*
Market Segmentation and Campaign Management
Market with speed and precision, and convert market
opportunities before they disappear
26
of organizations use multichannel communication to
optimize customer contact*
lower cost per interaction for organizations using
multichannel communication*% %15
Collaborative Sales Force Automation
Providing medical representatives with the resources and
information they need to close sales faster
Field Service Management
Support field service from every angle with optimized
workforce scheduling and mobile apps
Omnichannel Commerce Management
Attract and keep more customers in today's omnichannel
marketplace
Order to Cash
Optimizing order-to-cash processes to improve customer
satisfaction
Marketing Analytics – Segmenting and targeting your audiences
more effectively

SAP solutions are delivered on a real-time platform
SAP Business Suite
software
SAP Business
Warehouse application
Private cloud (SAP HANA
Enterprise Cloud service)
SAP HANA Cloud Platform
Integration | Development | Customers | Partners
Big
Data
Internet of
Things
Industries
Industry cloud
HR CEC FINANCE PROCURE TRAVEL
Line-of-business public cloud
The SAP platform is designed for collaboration, innovation, and high
performance, taking a “cloud first” approach

Delivering substantial value through simplification
 Real-time processes
 Digitally connected enterprise
 Best business practices
 Simplified data model
 Choice of deployment
 Open innovation platform
New profit models Lower total cost of ownership
Complex technologyComplex business processes Complex user experiences
 Live business insight
 Role-based experience
 All devices
Immediate business impact

SAP platforms and solutions reflect unmatched industry
expertise
3200+ 40+ years of delivering value to life
sciences
Get access to industry-tailored value
engineering services
Benefit from tightly integrated
comprehensive Business Solutions
Leverage a comprehensive life
sciences industry network
of the life
sciences
companies in
the Forbes
Global 2000
are SAP
customers
Chemicals
Allergan
Arkopharma
B. Braun
Melsungen
Boston Scientific
Bristol-Myers
Squibb
CareFusion
ConvaTech
Dishman
Eli Lilly
Roche
GlaxoSmithKline
Indian Immunologicals
Johnson & Johnson
Medtronic
Merck
Novartis
Nuvasive
OraSure
Ranbaxy Laboratories
Sanofi-Aventis
St. Jude Medical
Wyeth
Zimmer
Industry
97%
*Source: Source Text
life sciences
companies in 86
countries run SAP
solutions.

Welch Allyn: Speeding Innovation Process
with SAP® Product Lifecycle Management
Company
Welch Allyn
Headquarters
Skaneateles Falls, New York
Industry
Life sciences – medical
devices
Products and Services
Medical devices and services
Employees
2,600
Web Site
www.welchallyn.com
Partners
Zytalis Inc., Linx/AS LLC,
and LeverX Inc.
Top objectives
 Release product innovations more quickly and efficiently
 Replace legacy software with first-class product lifecycle management
software for all locations
 Support all plants with standard processes and configurations
Resolution
 Implement the SAP® Product Lifecycle Management application as
the corporate global environment
 Support 1,500 employees and 60 CAD engineers and users as well
as operations and services enterprise-wide
 Establish a new governance process for global standardization
Key benefits
 Reduction in IT costs
 More efficient release of product innovations and improvements
 Centralized product data management for all locations with one small
team
 Standardized training and education for engineering teams worldwide
 Leveraged the service expertise of Zytalis Inc., Linx/AS LLC, and
LeverX Inc.
“Ultimately, we knew that a single enterprise solution would allow
us to become more efficiently connected and accelerate our
global growth and profitability.”
Lauri Ventresca, Director, Global Product Data Management, Welch Allyn
35106 (15/02) This content is approved by the customer and may not be altered under any circumstances.
50%
Reduction in average days
to implement a sponsored
engineering change request
(ECR) or engineering change
order (ECO)
75%
Reduction in resources
required to prepare ECR
packages
1,500Application users

Perrigo Streamlines and Enhances Training
with SuccessFactors Solutions
Company or Organization
Perrigo
Headquarters or Location
Allegan, Michigan, U.S.
Industry
Life Sciences
Products and Services
Learning
Employees
6,000
Web Site
www.perrigo.com
Objectives
 Develop an agile learning system to stay proactive in complying with
constantly changing controlled documents and FDA-mandated
training
 Bring new acquisitions into alignment with processes
 Enable the training department to support larger programs
Why SAP
 Ability to support consistent training and enterprise-wide adoption of
Good Manufacturing Practices (GMPs)
 Ability to customize controlled documents for future effective dates
Benefits
 Eliminated lag time between when new controlled documents take
effect and when employees are qualified on them
 Streamlined FDA compliance inspections and audits
 Avoided slowing the production line by training employees one at a
time at kiosks
 Cut costs by reducing paper records and automating the process of
managing training
“SuccessFactors eases FDA compliance and audits. More
importantly, it eliminates the lag time between training and
crewing a person to a line….”
Faster
FDA compliance inspections
and audits
Easier
employee training at kiosks
Lower
costs through reductions in
paperwork
xxxxx (YY/MM) This content is approved by the customer and may not be altered under any circumstances.

Life Sciences industry leaders rely on SAP
Collaborative
R&D
Strategic
Sourcing and
Procurement
Demand-Driven
Supply
Networks
Compliant
Manufacturing
Multi-Channel
Sales,
Marketing and
Service

Next steps
Initiate
…the benchmarking
process with a free value
assessment at
valuemanagement.sap.com.
Engage
…with SAP in design
thinking workshops.
Contact: Ryan Sonnenberg
Ryan.Sonnenberg@sap.com
Contact
…your account team to
schedule a meeting.
Ryan Sonnenberg
Ryan.Sonnenberg@sap.com
Experience
…it yourself at the next
SAP event near you, or
check out SAP global
events or solutions for the
life sciences industry

Life Sciences Executive Overview

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