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Curing Complexity

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How radical simplification can improve competitive agility in the pharmaceuticals industry. Learn more.

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Curing Complexity

  1. 1. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Strategy | Consulting | Digital | Technology | Operations
  2. 2. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. THE COMPLEXITY EPIDEMIC In the pharmaceutical industry, organizations are spending more time trying to master complexity than minimize it. Nearly half of the largest global pharmaceutical companies have reached complexity levels not in line with current profitability.
  3. 3. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. COMPLEXITY IS A SILENT KILLER Individual functions have tried to cut complexity, yet transformation has not reached all parts of the organization. Complexity is deeply rooted in pharmaceutical operating models, becoming a silent killer of: Operational excellence Innovation Profitability Competitiveness
  4. 4. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. A HIDDEN TAX Complexity is often a hidden “tax” on the business, as it is difficult to identify and remove. Only 19% of pharmaceutical executives we interviewed confirm that their company is consistently able to identify and remove business activities and investments across the enterprise that do not add value. Cutting complexity now can help pharmaceuticals seize business opportunities.
  5. 5. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. COMPLEXITY INFECTION Complexity lurks beneath the surface, infecting key dimensions of the business. Policy Over-documented, inconsistent, conflicting policies and unclear direction create a document landscape that is not in line with the process model. Process Many pharmaceutical companies have a decentralized process landscape that includes a high number of handovers and wasteful activities. Systems Complex pharmaceutical companies have a high number of stand-alone systems that require inefficient manual effort and increase the number of transactions and data inconsistencies. People Roles are often inconsistent, overlapping and redundant.
  6. 6. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. SO HOW CAN PHARMACEUTICAL COMPANIES MAKE GROWTH ACHIEVABLE? ANDSAVINGS SUSTAINABLE
  7. 7. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. IT’S TIME FOR A RADICAL APPROACH Pruning the portfolio and streamlining individual processes by applying Lean Six Sigma is helpful, but it’s one-dimensional. Radical simplification can recreate a pharmaceutical company as a well- oiled machine that has a fit for purpose cost basis, allowing it to deliver against earnings expectations. Even more importantly, it improves: Quality Compliance Time-to-market across development, launch and commercial excellence to capture the sheer size of growth opportunities without deterioration of profitability.
  8. 8. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. GUIDING PRINCIPLES TO RADICAL SIMPLIFICATION Get radical. To dismantle complexity that has built up over the years, simplification must be radical and follow a zero-based approach. Take advantage of technology. Technology can dramatically help to reduce complexity when organizations use automation, robotics and artificial intelligence to streamline labor- intensive tasks. Adopt an entrepreneurial mindset. It is essential for leaders to have more of a startup spirit, looking for innovative ways to improve speed-to-patient, quality, compliance and cost base. Successful simplification is top-down, and uses analytics to quickly identify unnecessary complexity.
  9. 9. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. CURING COMPLEXITY Pharmaceutical companies can accelerate the path to competitiveness and complexity reduction. Simplification sprints address complexity at the root—and at speed. Sprints include: Identify corporate risk portfolio within the high-level process landscape. Perform impact analysis and assess probability per identified risk to determine the complexity areas to tackle first as quick wins that can be taken out easily. Determine the appropriate control methods needed to mitigate risks, following a zero-based approach. Clearly outline the objectives and components for all control measures.
  10. 10. Learn how to improve competitive agility in pharmaceuticals. Download the full report at: Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. @AccentureLifSci linkedin.com/company/ accenture_life_sciences @AccentureStrat linkedin.com/company/ accenture-strategy

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