Strategic growth process

•2
Part:
1. Introduction
2. Changing Industry Trend of Pharma
3. Criteria for Selecting Offshore Strategic Partners
4. Strategic Partnership Process
5. Strategic Partnership Requirement
6. Risk and Mitigation
7. Benefit of Strategic Partnership
Index
www.stabicon.comStrategic Relationship Team

Part - 1
Introduction

Changing Industry Trend of Pharma
•4
Present Pharma Industry Challenges
• Revenue under pressure
• Cost and risk of developing new drugs are increasing
• Globalization
How to Over Come the Present Challenges
Corporate restructuring
i ) Consolidation within industry, refocusing on fewer business lines
ii) Adoption of risk reduction strategies
iii) Acquisition rather than development, Use of Joint ventures

Strategic Partnership Region - Pharma
•5
India
(Best mix of IT &
Scientific breadth and
depth of Technical
Skills with
strong English
language
and 24x7 support)
China
( Large labor pool,
but Language is an
issue)

Why India??
•6
Quality
•Access to highly qualified – skilled pool
•Faster adoptability to New Technologies
•40%-60% cost
reduction for
off shored
process
•Technical
manpower
resource cost
likely to
continue next
20-30years
India’s
Value
Proposition
•Faster
turnaround
time
•Adoptability
to Different
Time zone
•24X7 service

•7
HR Management
• Enough human resource
• Quite easier to motivate and retain people
Infrastructure
• Better Infrastructure facilities at very low cost
• Best Net Connectivity & Resource Availability
• English Language Proficiency
• Expertise in New Technologies
• Quality Assured (A grade) & regulatory requirement
• Unexpected Cost Advantage
• Research & development Abilities & Skilled Manpower
• Excitement about Pharmaceutical in the area
Stabicon Strength At A Glance

•8
Part - 2
Criteria for Selecting Strategic Partnership

How to Select ?
•9www.stabicon.comStrategic Relationship Team

Stabicon
•10
Concept
• System integration –Partner site
Opportunity
• Reduced overhead costs
• Increased customer satisfaction
Potential
• Statistics suggest Strategic Partnership Industry has
more Indians than any other nationality.

Why Stabicon ?
•11
• Ability to work in joint ventures and across divisions, cultures and
countries
• Ability to integrate an understanding of IP
• Scientific expertise and business strategy
• Ability to spur creativity while managing commercially
• Expertise in functioning and decision making of regulatory requirement
• Human resource skills to transform pharmaceutical segment
• Dedicated support systems for web interface with real time information
• Quality system must meet regulation in multiple markets plus clients
internal standards

•12
Stabicon: Quality Not Quantity
• Quality is the new buzzword and is dominating business process and services like
never before in this sector.
• Quality is no longer an oral guarantee given over handshake, but Stabicon has well
defined set of criteria are applied to the entire process.
• Stabicon Standards of quality are par with, if not superior to your counterparts
requirement aboard.

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Flexibility
• Flexibility of being able to access a large pool of resources working on various Project
and increasing / decreasing the teams at a short notice.
• Flexibility to select the team jointly from the best pharmaceuticals brains handpicked
from Indian Pharma Industry
• Higher availability of our team to manage contingencies as they work 6 days a week and
available at odd hours even on Sundays for emergencies. The team can also work at
normal office timings of your country.
• Team are trained to understand the culture of your country, thereby leading to better
communication and co-ordination across the teams.
• Based on varied experience, the processes are designed to comply with the industry's
best practices and standards, enabling total transparency, access & control of our team .
• Flexible engagement contract, leading to managed business risks.

•14
Stabicon
Internet usage/Web
based Application
/Empower/LIMS and
etc.
Phone Lines
Email Usage
Skype
Usage/VC Line
Regular phone
no. in World
wide
User name with
safe password
World Wide
Client
Location
Information Management System

Stabicon Advantage
•15
•Modest sized company with extensive experience of offering offshore services to
• clients globally.
Advantages:
•Competitive pricing & risk sharing (dedicated model, incentive model, royalty
• model) Speed & agility (response time)
•Drastic reduction of your operating costs.
•Gain access to the world-class pharmaceutical skills.
•Seek resources not available in-house.
•Finish projects which otherwise cannot be finished in-house due to technical or
• staff limitations.
•Free up non-capital resources for other in-houses projects.
•Gain a fresh and new perspective on a stalled project.

•16
Part - 3
Strategic Partnership Process

•17
Strategic Partnership Process
PILOT PROJECT
CLIENT SATISFACTION
AGREEMENTS
NECESSARY TRAINING
ACTUAL OUTSOURCING
IMPLEMENTATION
QUALITY CHECKS
FINAL OUTPUTS

•18
Partnership to Stabicon should be much more than off shoring and
staff augmentation
Adopt a partnership based approach to Stabicon partner and move
towards a competency based vendor selection
Follow a staged approach for transition to an offshore partner with a
careful selection of projects
Prepare detailed transition plans for each project, especially Stability
projects
Establish strong governance and management oversight to manage
relationship and performance
Best
Practices
Ensure that integration processes are tailored to your business
requirements
Best Practices in Partnership

•19
Project Transition Plan – Details For Individual Project
Knowledge
Acquisition
Project Planning Stabicon Simulation
Stabicon Training/Pilot
Stabicon
Execution
Duration
Project Stage
Client Staff FTE
2 – 4 Weeks 1 – 2 Weeks 3 – 4 Weeks 2 – 3 Weeks Ongoing
 Establish Project
scope, Expectations
and Criteria for
Success
 Set team
composition,
requirements
and performance
metrics
Member of
Stabicon team
work with client to
understand
Document System/
Process
 Finalize transition
plan
 Execution of
project as per
approved
protocols
Review and
approval of
reports by
client
Establishment
of coordination
team, process
and metrics
Program for
Stabicon
Complete
fulfillment of
projects request
by Stabicon as
agreed upon
Service Levels
Agreements
Stabicon Transition
Description

•20
• Involve the end user
closely in the transition
• Discuss in existing
governance forum
• Involve end user in
oversight
Typical
projects
Test
Increase scope
and scale
Complete product
pipe line
• Short projects • Complex
projects
• Handles
Portfolio
Increasing management complexity and mission criticality
Key Success Factors in
a Transition
A Staged Approach Helps Transition to
Partner

•21
Governance
Board
• Governance board consist of both senior management from both sides is the final
decision making authority
• Every quarter, partnership board should consist of senior review the level of
collaboration and the performance.
• Every year, partnership board conducts joint strategic technology planning
sessions
Relationship
Management
• Day-to-day project management would be performed by dedicated relationship
managers from each side
• Relationship managers will facilitate smooth project execution, define processes
and act as trouble shooters
Performance
Management
• Performance tracking will be automated and Commitment tracker
• Clear definitions of success and failure
• Predefined processes for increased and decreased collaboration
• Exit clauses that define responsibility and timelines for knowledge transfer,
documentation and intellectual property rights
Best PracticesKey Levers
Critical Practices For – Strong Governance &
Management

•22
Process Approach
Use Stabicon for project components
Maximize offsite component
Use staff augmentation approach for
onsite presence
Focus on development on cost & time
lines only
Complete products pipe line development
Use in-house & partnership capabilities,
integrate for improve performance
Maintain onsite presence for managing
and delivering solutions
Extend organization virtually (includes
development, management, infrastructure
projects, etc.)
vs.
“Traditional” Mindset “Winning” Mindset

•23
Advantages of Partnership
No long term commitment
RFP issued for every project
Stabicon not expected to invest
Stabicon follow customer orders with
limited value added
Vendors not involved in technology
strategy and planning
Insufficient focus on risk mitigation
vs.
Medium/Long term commitment
Competency based vendor selection
Stabicon expected to invest in
infrastructure, knowledge transfer, etc.
Stabicon expected to leverage their
knowledge base and contribute to
overall strategy and planning issues
Stabicon expected to be actively
involved in technology planning
Proactive measures for mitigating risks
“Transaction” approach “Partnership” approach

•24
Technology Provider Successfully
Follow a Phased Approach for Partnership
Year : 2017
No. of people : 5-10
Year : mid 2018
Year : 2019
Year : 2020
Year : 2021
• Development project
to test Stabicon
capability
• low priority and low
complexity project of
a small component
• Medium priority
and medium
complexity
• Medium priority
and medium
complexity
project
(including
analysis and
reporting)
• High priority and
high complexity
• Full testing of
products
• Contribution to
new releases
(development)Scaled down
SLAs to give
time to
Stabicon
Marked up
SLAs
Partnership /
Joint Venture
Client onsite
governance
Moving up the value chain with increasing customer confidence in Stabicon capabilities
SLA  Service Level Agreements

•25
X Axis
Y Axis
Partnership Ladder

26
Partnership Model Has Benefits
Cost
Quality Time to market
• Learning curve benefits
help in faster time to
market
• Releases important
customer resources for
more value added
work
• Reduces time spent in
the RFP process
• Learning curve benefits
help in improving quality
• Allows Stabicon to prepare
resource plan in advance
and staff projects with
appropriate resources
• Helps achieve best practice
transfer by Stabicon
• Enables Stabicon to offer lower pricing
because they have better visibility into
revenue streams
• Reduces the Stabicon total cost of doing
business which can be passed to
customer.

•27
Business Models
Dedicated Development
Centre Model
Build an offshore facility for the
customer, Operate the offshore
facility & customize it as per
customer's needs & when
model reaches maturity,
Transfer the complete
ownership of the facility &
resources to the Client.
Extension of the customer's
software engineering facility.
The customer pays fixed
monthly rate for the Team.
Hybrid Model
A major portion of project is on
a Fixed Price basis and at the
same time resources are
deployed on Time and Material
basis. Adopting such a model
enables the client to maximize
their ROI without
compromising any aspect of
the project itself.
Build-Operate Transfer Model
Fixed Price Model
The customer pays a Pre-
negotiated Fixed price for the
complete project, which in
turn is linked to well-defined
deliverables.
Time & Material Model
Define the business model and
work hand in hand with our
client. The client pays a fixed
FTE rate.

•28
Strategic Partnership Requirement
Part 4

•29
• Form a cross-functional team
• Determine communication plan
• Determine and finalize work plan
• Define measurable deliverables.
• Finalize data review and approval process.
• Finalize process to review project outcomes.
• Have periodic meetings to review work.
Metrics Required to Support Partnership

•30
• Project Coordinator Overall co-ordination of the project.
• Logistics Handling of Sample shipment
• Technical Head
Structure Required at Client Site to
Support Partnership

•31
Risk and Mitigation
Part 5
Strategic Relationship Team www.stabicon.com

•32
Partnership– In many organization
around integration can cause
emotional equivalence of a political
or religious debate due to confusion
Confusion

•33
Challenges
Confidentiality
Issues
Client
Relationship
Training and
Placement
Quality
Assurance
Partnership Risk

34
Talent
Cultural
Infrastructure
Political/Country
Project
Risks Associated with Partnership to
Stabicon Manageable
High attrition rates due
to large demand
Complex projects have
many failure points
Differences in work
culture
Electricity and telecom
not reliable
Different IPR laws
Geopolitical events can
destabilize trade e.g.
with India
Vs.
Stabicon is investing heavily in
training.
3level review on project at
Stabicon
Active governance policies with
interactions at all levels
Leading team at Stabicon have
been proactively trained to
handle culture gaps
Government actively promoting
uninterrupted power supply and
telecom to technology
companies
Established legal system
US / Europe and Indian
Governments agreed to de-link
the pharmaceutical trade from
politics
Perceived risks Why we believe risks
can be managed

•35
Cultural Gaps
Risk:
• Corporate culture clash to the difficulties in managing an partner across large
distances and different time zones.
• Throw in regulatory concerns and proprietary information and relationship
management becomes even more difficult.
Mitigation:
• Exchange team program .
• Focus on the performance and cost

•36
Risk:
• Managing expectations and maintaining relationship is essential for the
success.
• Partnership projects do not meet expectations because
• I) Project, plan & Execution without a clear methodology.
• ii) Disconnect between expectations at management level and what’s actually
delivered at the processes level.
Mitigation:
• By making sure the parties share a common understanding regarding critical
interactions at the Operational & Management Level for successful
Partnering
Team Relationship Management

•37
Knowledge Transfer
Risk:
• Transfer of knowledge from both side of a company is critical otherwise can
lead to broken connectivity .
Mitigation:
• Common Platform of the projects & team information.

•38
Implied Cost savings
Risk
• Estimate most firm save 30-35% during first year; by third year, cost savings
often reaches 40-45% as companies “go up learning curve “ from partnering
process.
• Outsourcing solely control cost can lead alignment issue and increased
project delay.
Mitigation
• Corporation should provide strategy to its business lines of business to allow
them to partner within guidelines.
• Brings in the strategic differential advantage of improved markets share by new
products to your business, thereby, enhancing your profitability
• Once firm understand its integrating drivers, selecting which application to
partner becomes straight forward.

•39
Risk:
• Product failure/Regulatory/Security compliance failure is in fact one of the
top concerns companies face when integrating project to another company.
Mitigation:
The key to successful and secure collaboration agreement is understanding
i) Regulatory compliance followed by schedule third party Audits
ii) Security covered by Legal Agreement
iii) Privacy risks & IP for a business process to be defined.
iv) Application or technology function outcome covered by Technical
Agreement
Compliances

•40
• Choose a partner who provides you with value adds, services or products.
• Develop a strong partnership.
• Simplify the interface between the two organizations.
• Know your requirements, both current and future, and put them in the plan.
• Treat the collaboration site relationship as a partnership.
Minimizing Risk

•41
Benefit of Strategic Partnership
Part 7

•42
CollaborationIncreased
Productivity
Increased
Profits
Reduced
Operating Cost
Quick Turn
around Time
Better
Quality
Your Benefit as a Collaborator

•43
For any query,
Please contact us at
Stabicon Life Sciences Pvt. Ltd
Business Development Team
Phone: +91 80 27839260
e-mail : info@stabicon.com
Thanks
Strategic Relationship Team

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