The document provides recommendations from The Peregrine Group for Richter Pharmaceutical's IT roadmap. It recommends moving to a cloud solution with SAP and VMWare to reduce costs, improve integration and scalability. Adopting this approach could save 20% in costs in the short term and 50% in the long term compared to the on-premise infrastructure. It also recommends a hybrid centralized-decentralized organizational structure for IT.

1. If your time to you
Is worth savin‘
Then you better start swimmin‘
Or you'll sink like a stone
For the times they are a-changin'
cost

2. Richter Pharmaceutical:
Information Technology
Roadmap
THE PEREGRINE GROUP

3. Scaling up IT Demands
6 months
30%
$12m
$1m
Data doubles for pharmaceutical companies
Increase in ERP data every year
IT departments cost
Analysis Recommendation Implementation Results
Installation cost per SAP module

4. Projected costs & trends
• Poland and Romania need 4 new SAP modules
• Equipment and installation costs = $4m
New implementation costs
Need for IT integration
Analysis Recommendation Implementation Results
• Seamless and cohesive IT modules
• Integrated business processes
• $10m investment cost + $6m ops cost
• 30% increase in IT costs
Projected IT cost

5. Recommendations
Analysis Recommendation Implementation Results
Cloud Virtualization.
Save cost
Integrated
IT Solution
Scalable Reliable

6. Vendor Recommendation
Analysis Recommendation Implementation Results
Our Considerations: SAP cloud and VMWare
Why VMWare?
 Proven track record for SAP and non-SAP virtualization
 Official cloud partner with SAP
 0.001% downtime
 Cost effective solution

7. Roll-out Strategy
Analysis Recommendation Implementation Results
Phase wise geographical implementation
• Starts with SAP
• Followed by non-SAP (Documentum)
SAP non-SAP
Integrated Biz
solution
+
SAP non-SAP
SAP non-SAP+
non-SAP
+
Hungary
Romania
Poland
Russia &
India

8. s
Implementation
Analysis Recommendation Implementation Results
SmartVault
Pivotal One
• Migrate Documentum to SmartVault
• Cloud based
• Runs on noSQL
• Powerful search capabilities
• Complete business analytics solution
• Scalable to big data
• Cloud compatible – VMWare Partner
• Cheaper costs compared to HANA

9. Result & Value Add
Analysis Recommendation Implementation Results
No future Infrastructure investment expenses
0
5
10
15
20
25
Year 1 Year 2 Year 3
On Premise
Cloud
Reduced Carbon Footprint
Cost in
million $

10. Analysis Recommendation Implementation Results
0
5
10
15
20
25
Year 1 Year 2 Year 3
On Premise
Cloud

11. ROI
Analysis Recommendation Implementation Results
• ‘
Short term profit Long term profit
20%
50%
Cost savings

12. “To Centralize
Or
Not to Centralize”

13. Organization Structure
Current Structure Our Recommendation
IT Head Infra Head
SAP Expert BA Head
Vince
Biz Owners Biz App expert
VMWare
Consultant
Steering
Committee

14. Long term Org Structure
Erik Bogsch,
CEO
CEO, Romania
Infra Head,
Romania
CEO, Poland
Infra Head,
Poland
CEO, Russia
Infra Head,
Russia
CEO, India
Infra Head,
India
Gabor Gulacsi,
CFO
Vince Szucs,
CIO
BA Head,
Hungary
BA Head,
Romania
BA Head,
Poland
BA Head,
Russia
BA Head, India

15. Hybrid IT Structure
• Centralized business-centric reporting structure
• Easier global IT policy roll-outs
• Flexible structure for lateral movement for BA team
• Localized Infrastructure teams

16. Risks & Mitigations
Risks
• Possible attrition due to change in reporting structure
Mitigation Plan
• Hire IT business application expert to head BA team
• Lateral movement between geographies

17. THANK YOU!
Q&A

18. References
• http://www.thecloudcalculator.com/calculators/build-vs-buy.html
• http://www.watserv.com/infographic-saas-cloud-growth/1987/
• http://vcloud.vmware.com/pricing-calculator
• https://www.thecloudcalulator.com
• APC Datacenter Cost Calculator
• Operating Cost Benchmarks For Data Centers - Mike Tower, May 24,2011

19. Appendix
• INV Cost = $2 million (2 SAP modules) + $50*12,000 (blade servers) +
$6.5 million (labor)
• Operational cost = $5 million (using APC Data center cost calculator)