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research.everestgrp.com 2015 Life Sciences Industry: CIO as the CEO of IT led Business CIOs Need to Link Infrastructure Services to Business Transformation Jimit Arora, Vice President Abhishek Singh, Practice Director Copyright © 2015, Everest Global, Inc. All rights reserved. AN EVEREST GROUP REPORT EGR-2015-12-E-1438 This report has been licensed for exclusive use and distribution by Cognizant Technology Solutions.

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Page 1: Life Sciences Industry: CIO as the CEO of IT led Business

r e s e a r c h . e v e r e s t g r p . c o m

2015

Life Sciences Industry: CIO as the CEO of IT led

Business

CIOs Need to Link Infrastructure Services to

Business Transformation

Jimit Arora, Vice President

Abhishek Singh, Practice Director

Copyright © 2015, Everest Global, Inc. All rights reserved.

AN EVEREST GROUP REPORT

EGR-2015-12-E-1438

This report has been licensed for exclusive use and distribution by Cognizant Technology Solutions.

Page 2: Life Sciences Industry: CIO as the CEO of IT led Business

r e s e a r c h . e v e r e s t g r p . c o m 2

EGR-2015-12-E-1438

Executive Summary

In the last decade, the Life Sciences (LS) industry has undergone structural

changes. These have been due to:

Declining productivity and long drug approval cycles that have brought

unprecedented focus on efficient spending and Return on Investment (RoI)

Humongous global sales operations that relied on blockbuster drug demand

are under a constant cost-benefit radar

In order to define a new competitive niche for themselves in a period where

generics market is seemingly more talked about than the blockbuster drugs

market, companies are acquiring products, entering new markets, while, at

the same time, hiving off non-focus product areas

With ever increasing sensors, wearables and data (both internal, external),

there are opportunities to capitalize by developing product, markets,

consumer insights in real-time and accelerate business objectives

The above have had a significant impact on the way IT (especially, Infrastructure

Services) is being adopted by the LS industry. Infrastructure Services adoption in

the LS industry has been characterized by value-chain fragmentation. Despite

being business critical, it has not got any strategic impetus. Different Lines of

Business (LoB) such as R&D, manufacturing, and sales have traditionally had

their own IT outsourcing siloes, resulting in varying maturities of technology

enablement across the value chain. Hence, what we have as a result, is an

array of infrastructure redundancies, technologies, and provisioning metrics.

While the above may be true for large organizations across industries, it is the

LS industry that has to start thinking of it as a business transformation challenge.

The structural changes in the LS industry are forcing industry leaders to apply

the evolutionary paradigm of BC2BE (Business Continuity-to-Business

Enablement) to all aspects of operations, even Infrastructure Services. Hence,

CIOs need to think increasingly of the business outcomes that will be driven by

their decisions, right from service-level management and provisioning, down to

the boxes of servers, storage, and devices. Hence, there appears to be a

conscious thought process to move from the traditional IT Service Management

(ITSM) towards Business Service Management (BSM).

The challenge to achieve business-IT alignment in infrastructure services is

immense. This requires CIOs to make the various components of the

infrastructure consumption lifecycle not only easy to procure and manage, but

also easy to evolve. In-depth analysis shows that such a mandate would have to

be driven by the following tenets:

Technology transformation

Service transformation

Automation as an enabler of transformation

This report analyzes the above tenets and focuses on how they relate to the CIO

mandate to drive business outcomes.

LIFE SCIENCES INDUSTRY: CIO AS THE CEO OF IT LED BUSINESS

Page 3: Life Sciences Industry: CIO as the CEO of IT led Business

r e s e a r c h . e v e r e s t g r p . c o m 3

Life Sciences: CIO as the CEO of IT led Business

Like most other industries, the LS industry looks at Infrastructure Services as a

horizontal function that caters to the aggregated infrastructure technology and

services demand of the firm. However, it is imperative to look at the

infrastructure services demand as it relates to the LS value chain and its

subcomponents. The following image attempts to illustrate the extent to which

the value-chain elements, business imperatives, and data-management

mandates have driven the demand for Infrastructure Services.

The illustration shows that Infrastructure Services is not just a brick in the wall

when it comes to LS business imperatives – not just something hidden behind

the “boxes” of storage, compute, and network. Given the challenges being

faced by the industry and the scale of the global operations, CIOs will

increasingly rely on Infrastructure Services as one of the key enablers of

business imperatives, whether it relates to business agility, cost, efficiency, or

productivity.

Challenges facing the life sciences industry

The LS industry has traditionally relied on driving growth through blockbuster

drugs and products. This has brought it in direct conflict with increased scrutiny

and the efficacy mandate that FDA has been driving. The patent cliff faced by

(or facing) many of the blockbuster drugs has further exacerbated the problem.

These challenges have put R&D and clinical segments of the LS business under

pressure. The following picture illustrates the roller-coaster ride that the new

drug approvals have gone through, in the last 15 years.

EGR-2015-12-E-1438

LIFE SCIENCES INDUSTRY: CIO AS THE CEO OF IT LED BUSINESS

Value-chain drivers of

Infrastructure Services adoption

in the life sciences industry

E X H I B I T 1

Source: Everest Group

Laboratory InformationManagement Systems(LIMS)

Lab automation anddevices

Clinical trials and data-management systems

Integrating ERP systemsand information system

Manufacturing-executionsystems

Demand & supplyplanning andsynchronization

Asset management

Plant automation

Sales target activitydashboards

Supply-chain strategyand planning

Sourcing andprocurement tools

Logistics, transportation,and global positioning

Sales-force training andperformance tracking

Pricing-analysisframeworks

Mobility and deviceservices

RFID solutions

Method developmentand validation

Safety-datamanagement solutions

Electronic data-capturesystems

Pharmacovigilanceanalytics and datamanagement

Data analytics

Business-informationmanagement

Batch review anddeposition

Sales & marketinganalytics

Business-informationmanagement

Quality testing, analysis,& documentation

Market informatics

Governance frameworks

CRM services

Electronic product code

ERP services

Master-datamanagement

Compliance analysisand reporting

Bio-informatics

Research portals

Collaboration wikis

Datacenters

Collaboration platforms and e-documentation

Databases, servers, and storage area networks

Service Integration and Management (SIAM)

Network services and helpdesk

Regulatory compliance and legal governance

Drug discovery/research

Clinical and pre-clinical trials

Manufacturingoperations

Marketing and salesSupply chain &distribution

NOT EXHAUSTIVE

Fu

nc

tio

ns

Te

ch

no

log

y v

ert

ica

lsH

ori

zo

nta

ls

High Medium Limited

Value-chain drivers of Infrastructure Services adoption in the life sciences industry

Adoption status

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r e s e a r c h . e v e r e s t g r p . c o m 4

EGR-2015-12-E-1438

LIFE SCIENCES INDUSTRY: CIO AS THE CEO OF IT LED BUSINESS

This picture illustrates that while the drug approval numbers have fluctuated, the

R&D investments have steadily gone up. This has put significant pressure on

downstream operations to improve margins and generate cash flow for business

and R&D reinvestments. Though not highlighted as much, downstream effects of

this challenging situation have impacted other elements of the value chain, such

as manufacturing, supply chain, and sales & marketing. With margins under

pressure, outlook for blockbuster drugs diminished, and a nimble, competitive

landscape consisting of generics manufacturers eating up market share,

competition embracing the big data, advanced analytics journey, the LS industry

has its task cut out – drive costs down (improve profitability) improve process

efficiencies (productivity) and conduct business led technology transformation

(improve effectiveness). Hence, it is not without reason that CIOs in the LS

industry have their tail up. There is growing consensus among LS industry leaders

that technology has a key role to play in improving both, profits productivity and

effectiveness. And that is where the role of the LS CIO becomes critical.

CIO as the bridge between business and IT?

The growing focus on profits productivity and business relevance (effectiveness)

has driven the LS CxOs to persuade and enable all their business and operations

leaders to drive these mandates. Globally, “Business-IT alignment” as a concept

has been debated and explored for a while now. However, LS is only one of the

few industries (including banking) where CIOs need to think of business-IT

alignment as a Key Result Area (KRA). CIOs in the LS industry need to

contemplate driving this business-IT alignment by taking the profitability-

productivity-effectiveness challenge head on. The following image illustrates the

paradigm that should be explored by LS CIOs.

U.S. pharma R&D expenditure

vs. new drug approvals

E X H I B I T 2

Source: FDA; Pharmaceutical Research andManufacturers of America (PhRMA);Everest Group

37

2123

2630

38

29 29

24

31

35 3640

43

48 47 46

5149 50

27

37

2022

18

24 25

21

30

39

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

27

2013

New drug approvals (new molecularentities and biologic license applications)

U.S. pharma R&D expenditure (US$ billion)

51

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r e s e a r c h . e v e r e s t g r p . c o m 5

As can be seen, managing business service levels is becoming imperative for

CIOs. It is important to understand why this is so. This can be explained by the

following example.

Example

Situation: In an organization applications, databases, middleware, and hardware

had a 99% and above uptime service level attached to them. However, an

inventory order batch process failed three times in a month (out of a total of three

batch processes in a month), delaying the downstream manufacturing and order

replenishment process, and causing business delays and loss. The audit revealed

the following:

The first failure was due to a network downtime

The second one was due to an application error

The third one was due to a storage exception

On the surface: Overall, for the month, each of the above network, storage,

and applications still had 99% uptime

Reality check: Business service level of inventory processing failed 50% (three

out of six) of the time

The above situation brings to fore how IT service levels can be meaningless if they

do not align directly with the business service levels. Since there is no direct linkage

and dependencies between the two, such situations are bound to recur. Hence,

any thought process on business-IT alignment has to consider services integration

in a manner that directly links it to quantifiable business outputs, such as customer

requests handled, safety data reports submitted to FDA, and drug orders

processed. Hence, it is not without reason that process innovations in Infrastructure

Services are increasingly leaning towards integrated Infrastructure Services –

Business Profcess Services offerings. This integrated view can ensure that CIOs

have a handle on the entire spectrum of services levels, both IT and business.

However, CIOs thinking of business-IT integration as a KRA need to get the

following basic process improvements in place:

Simplification of the infrastructure consumption cycle (procurement,

management, and usage) to improve efficiency and process management

Improving predictability of operations to ensure business continuity and risk

management

EGR-2015-12-E-1438

LIFE SCIENCES INDUSTRY: CIO AS THE CEO OF IT LED BUSINESS

The profitability-productivity

roadmap of CIOs in the LS

industry

E X H I B I T 3

Source: Everest Group

Efficient andcommitted businessservice levels

Launch of productsand services byreduced time-to-market

Enable value-chainmandates

Automation

Integrated service levels

Domain centricity

Ease of consumption

Costs

Variability inprovisioning

Unpredictability ofdemand

Enable

Productivity

Drive

ou

tco

me

s

Re

gu

late

Pro

fits

Business-service level

expectations are increasingly

driving discussions towards

integrated Infrastructure Services

– Business Profcess Services

offerings.

Page 6: Life Sciences Industry: CIO as the CEO of IT led Business

r e s e a r c h . e v e r e s t g r p . c o m 6

EGR-2015-12-E-1438

LIFE SCIENCES INDUSTRY: CIO AS THE CEO OF IT LED BUSINESS

Without the above in place, initiatives on business-IT integration are likely to

remain a topic of pedagogy and it will be almost impossible to assign metrics

linking Infrastructure Services SLAs to business-IT KRAs. Hence, the way forward

is to build a roadmap that will enable the above.

Research shows that this roadmap consists of creating value in the following

categories of transformation, driven by increasing levels of automation enabling

both:

Technology transformation

Service transformation

Following sections of this report go through the intricacies of how CIOs can

enable this value creation.

Role of the LS CIO is to create

value for the entire value chain

through transformation

E X H I B I T 4

Source: Everest Group

Simplification

Predictability

AutomationSe

rvic

es tra

nsfo

rma

tio

n

Te

ch

no

log

y tra

nsfo

rma

tio

n

R&D

Clinical

Manufa

cturing

Sales & marketing

Supply

chain

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r e s e a r c h . e v e r e s t g r p . c o m 7

EGR-2015-12-E-1438

LIFE SCIENCES INDUSTRY: CIO AS THE CEO OF IT LED BUSINESS

Value Creation through Technology Transformation

Users of technology in the LS industry are increasingly seeking transformation

that will provide them a technology-based environment that is both simple to use

and has a variety of relevant options. This has precipitated an opportunistic move

towards value-chain digitization, which is characterized by BYOD, SaaS-based

analytics, connected enterprise and other such service requirements that have

mushroomed into a significant challenge for the LS CIOs . As CIOs try to balance

the need for technology transformation and keeping the lights on, they feel most

challenged about the resources (infrastructure and people) that are required to

manage the growing size and variety of this new demand. What is interesting is

that the need for aligning to this user-demand is closely linked to business-IT

integration and IT led business models.

The growing intra-enterprise consumerism is an outcome of the growing need

users have felt for all the technology and innovation available in the market for

their day to day business needs. This, unfortunately, does not

translate/consolidate into an “enterprise-class” technology demand – something

that CIOs have traditionally managed. However, CIOs have started to take

notice, especially in the LS industry. They have started to collaborate with the

owners of lines of business and operations to understand their technology

consumption needs. Whether it is laboratory systems, bio-informatics, genomics,

sales analytics, or global procurement, CIOs are becoming increasingly

cognizant of the demand different categories of users generate.

While users may be able to work closely with CIOs in defining the business use

cases and demand, they still rely solely on the CIOs when it comes to their

infrastructure requirements. The growing commoditization of hardware,

complexities associated with its provisioning & management, and the seemingly

business-agnostic nature of Infrastructure Services gives it low visibility in the

larger user base. The CIOs understand that it is their responsibility to hand-hold

business users in appreciating and managing their infrastructure needs. In an

ideal world, this should have fairly easy. However, in an enterprise scenario,

enabling an integrated view of all technology components would be a good

starting point in ensuring a healthy business-IT integration.

Hence, the way forward for CIOs is to collaborate with the technology industry

and service providers in enabling layers of software-based functionalities that will

not only reduce people dependence but also enable business, application,

storage, compute, and network components to interact with each other. Due to

the value-chain-driven demand in the LS industry, buyers of Infrastructure Services

are increasingly demanding usage-dependent provisioning, flexibility, and agility,

while still expecting gold standards for data security. Hence, CIOs have a lot to

consider and design for, when it comes to the right Infrastructure Services strategy.

The evolution towards simplification and predictability of infrastructure services

would have to be driven by a technology transformation roadmap based on the

following:

A growing spectrum of

contemporary user requirements

does not consolidate into

“enterprise-class” demand that

CIOs have traditionally

managed.

Page 8: Life Sciences Industry: CIO as the CEO of IT led Business

r e s e a r c h . e v e r e s t g r p . c o m 8

Converged infrastructure

If CIOs have to enable business-IT integration in Infrastructure Services, they need

to orchestrate various Infrastructure Services services through an integrated view

of storage, servers and compute; all of which could be virtualized, automated, or

both. Converged infrastructure is based on integrated provisioning and

management of the entire infrastructure stack. The convergence of the storage,

compute, and network stacks help reduce redundancies in resource utilization

and people. The mandate has to be driven by intelligent provisioning and

resource allocation based on workload pattern and organizational policies.

The job for CIOs is pretty much cut out if they have to enable integration. They

have to persuade users to make a move towards self-service catalogs, which in

turn are mapped to application & business requirements and SLAs. This is the

level of traceability that CIOs need to achieve for business-IT alignment. CIOs

understand that this can be achieved only by promoting hyper automation and

proactive management across performance, capacity, and availability. However,

users of these services cannot be practically expected to understand and

appreciate these intricacies. This is where the role of software-defined

infrastructure comes into play.

Software-Defined (SD) infrastructure

Software-defined infrastructure is revolutionizing the Infrastructure Services

landscape. This trend builds on existing technology and tools. However, it

encompasses the entire IT consumption food chain, and goes beyond just

technical implementations such as virtualization. The SD concept is based on

introducing user-focused logic in managing infrastructure, through the use of

software.

In the LS industry, where the business service levels are driven by various value-

chain elements, skills and software required for infrastructure management

services will have to invariably link back to these service levels. This is going to be

especially true in resource-intensive analytics that clinical trials and the helpdesk

services surrounding each stage of the trial require. It is not without reason that

EGR-2015-12-E-1438

LIFE SCIENCES INDUSTRY: CIO AS THE CEO OF IT LED BUSINESS

Technology transformation

should bring the systems layer

closer to the business layer

E X H I B I T 5

Source: Everest Group

High performance access

Real-time visibility (cost and care)

Simplified provisioning

Totally software-controlled

Linked to business applications

Standardized and simplified

Integrated view of Infrastructure

Services

Highly collaborative environment

Combined SLAs

Convergedinfrastructure

Software-definedinfrastructure

Cloud-basedinfrastructure services

Business layer

Systems layer

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r e s e a r c h . e v e r e s t g r p . c o m 9

R&D and clinical services are going to be key areas to significantly define how

infrastructure services will evolve towards “verticalization” in the LS industry. One

of the aspects of this move towards software-defined datacenters will be the open

standards and APIs that will allow niche and innovative players in the key areas

of LS value chain to come and code for efficiencies in managing the

Infrastructure Services resources. As components become standardized and

simplified, Infrastructure Services management will evolve towards total

virtualization and software-driven control.

This will allow CIOs within the LS value chain, whether R&D, manufacturing, or

supply chain, to keep a tab on the health of their entire applications-cum-

infrastructure portfolio through a single dashboard. Such an evolution would

create robust audit trails and visibility, linking all technology components directly

to the business components they are supporting.

Cloud-based infrastructure services

Software-enablement opens up vistas for transformation in Infrastructure Services

adoption. The key opportunity area for CIOs is to devise the right kind of

provisioning strategy based on a mix of public and private cloud. Many large

enterprises, including LS firms, are actively considering or have taken concrete

steps towards a long-term cloud-based Infrastructure Services strategy.

The key aspects that CIOs need to ensure are creating a demand map consisting

of the workloads (based on the requirements CIOs see emanating out from

various lines of operations/business such as manufacturing operations, clinical

trials, CRM. This is required in order to create a workload-based cloud adoption

strategy. A public, private, or hybrid cloud strategy will then entail working

through these workloads and identifying the right cloud partner for each.

EGR-2015-12-E-1438

LIFE SCIENCES INDUSTRY: CIO AS THE CEO OF IT LED BUSINESS

Transitioning to a future of

software-defined infrastructure

E X H I B I T 6

Source: World Bank

Increasing number of buyers

consider cloud services to be a

strategic differentiator

E X H I B I T 7

Source: Everest Group Cloud ConnectEnterprise Cloud Adoption Survey2014

Tuned for infrastructure towers

Significantly virtual yet labor-intensive

Heterogeneous and complex

Significant proprietary solutions

Present virtualization-defined infrastructure

Tuned for applications and services

Totally virtual and software-controlled

Standardized and simplified

Largely open standards

Future software-defined infrastructure

Cloud as a strategic differentiator2014; Percentage of responses

Cloud is a strategicdifferentiator

Cloud is an “IT opportunity”

100% = 52

56%44%

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r e s e a r c h . e v e r e s t g r p . c o m 1 0

While flexibility, scalability, and agility are the primary asks in any cloud

strategy, data privacy and security will be hygiene mandates that CIOs need to

drive in order to ensure a technology transformation that is both helpful and

secure. However, any successful technology transformation initiative will have to

be managed through the right tweaks in the services model.

Value Creation through Service Transformation

The key themes driving CIOs to think of a services maturity framework should

be based on the following business cases:

Service portfolio expansion: Demand value-added services and upskilling of

resources who work on Infrastructure Services

Services Integration And Management (SIAM): Reducing complexities arising

out of fragmented service management and multiple service providers

LS value-chain-specific Infrastructure Services: Align Infrastructure Services

to the need of users whose work requires intensive utilization of

Infrastructure Services

Service portfolio expansion

Commoditization of hardware has invariably led to sluggishness when it comes

to innovative service models in Infrastructure Services. As we noticed earlier,

disparate resource units and infrastructure categories, with their own SLAs, have

created enough challenges for CIOs to think of converged infrastructure as a

resort. However, creating an innovative technology infrastructure is one thing,

while efficiently managing it is something altogether different. There are

redundancies that need to be managed in incident management, helpdesk

services, application portfolio management, and business services. CIOs should

actively look at service providers who are willing to innovate on the following:

Upskilling: Reduce TCO through resources who can manage multiple layers

of services, rather than paying for multiple resources (even though cheaper

on an hourly basis). The growing demand for integrated L1.5 utility model is

a case in point, where the same service providers are upskilling L1 resources

to take up a large portion of L2 requests also. This not only reduces

redundancies but also makes incident management more efficient from the

perspective of better SLAs and/or response times

Application-infrastructure integration: The disconnect between application

and infrastructure management has been one of the key hurdles in driving

business-IT integration. CIOs should actively look at service providers who

can host and manage the entire stack – right from applications down to

infrastructure services, in a managed services model. In the LS industry, there

is a lot to be achieved when it comes to hosted application management, as

there is still a lot of work happening in the T&M model

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LIFE SCIENCES INDUSTRY: CIO AS THE CEO OF IT LED BUSINESS

Service portfolioexpansion

Serviceintegration &management

LS value-chain-driven

InfrastructureServices

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r e s e a r c h . e v e r e s t g r p . c o m 1 1

Service integration and management

The need for service integration and management in the LS industry is

increasingly becoming palpable. Multi-vendor and multi-sourcing environments

across geographies and value-chain elements have created a behemoth

challenge for LS CIOs.

In such a scenario, LS buyers are unable to extract maximum value from their

multi-vendor relationships due to lack of integration and limited visibility and

accountability in their portfolio. Large pharma, especially those with operations

across U.S., Europe, and APAC, face this big challenge. Service Integration And

Management (SIAM) provides an effective option to CIOs to granularly manage

the overall sourcing activity and strategy.

EGR-2015-12-E-1438

LIFE SCIENCES INDUSTRY: CIO AS THE CEO OF IT LED BUSINESS

Tackling challenges in

multi-vendor and sourcing

environments

E X H I B I T 8

Source: Everest Group

Comparingperformance across

providers

Limitedstandardization across

tools and processes

Divergence frombusiness objectives

Assigning well-defined

accountability

Significantmanagement

overheads

Challenges inmulti-sourcing

High cost ofgovernance

Poor businesssatisfaction

Subscaled bestpractices

Value leakage

SIAM as an enabler to manage

complexity

E X H I B I T 9

Source: Everest Group

Ma

na

ge

me

nt

co

mp

lex

ity

Cyclical swing between consolidation and best-of-breed strategies

Consolidate providers, fragmented SIAM

ComprehensiveSIAMimplementation

Fragmented SIAM

Tipping point

Preferred / best-of-breedproviders

Ad-hoc VMO

Sole-source

Service demand

Past Present Future

Management complexity

Cost

Compliance

Documentation

Provider management

Service demand

Volumes

Technology

Agility

User experience

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r e s e a r c h . e v e r e s t g r p . c o m 1 2

While implementing SIAM, CIOs need to be cognizant of the following:

Provider responsibility: Buyers need to clearly demarcate and incentivize

SIAM provider to ensure neutrality of the SIAM function

Incentivizing providers: Incentive alignment should ensure collaboration

among service providers

Scope of services: Not all services may be amenable to SIAM. Buyers need

to carefully earmark services that should be part of the SIAM framework

SIAM risk management: It is imperative to ensure that SIAM providers

should not have disproportionate influence on buyer’s sourcing strategy or

provider relationships

Value-chain-driven Infrastructure Services

LS is one of the industries which presents a unique challenge for Infrastructure

Services because of its data storage, management, and analysis requirements.

Clinical data management especially, has created significant niche requirement

for helpdesk services associated with clinical data management systems such as

Oracle Clinical, Inform, Clintrial, and RAVE. Infrastructure Services

requirements in the LS industry are becoming unique because of the following

themes within the LS industry:

Clinical trials and data management

Pharmacovigilance analytics

Laboratory device management and automation

Drug RFID solutions and inventory management

Many LS companies actively engage with service providers to set up dedicated

LS Infrastructure Services CoEs. As the business-IT story matures, these

intricacies become more and more salient. Hence, CIOs will be required to

think of their Infrastructure Services strategy purely in terms of how their different

lines of business think about their operations and business outcomes.

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LIFE SCIENCES INDUSTRY: CIO AS THE CEO OF IT LED BUSINESS

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r e s e a r c h . e v e r e s t g r p . c o m 1 3

Automation as the Enabler of Transformation

Key tenets of technology and services transformation are critical in creating the

links required for business-IT integration. However, enabling predictability and

efficiency of services is a key ask in LS Infrastructure Services that needs to be

driven through automation. Automation is the key enabler that will drive the

mandate towards predictability and efficiency. The automation imperative has

to be driven by the following tenets of service transformation that CIOs need to

design and provision for:

Intelligent incident management: This requires ticket automation, event

automation, cognitive computing, and resource virtualization. CIOs in

various industries are driving adoption of autonomics (virtual engineers that

can capture and solve bottom-of-the-heap predictable incidents) that

introduce self-healing components into the incident management processes.

CIOs need to appreciate that such a move towards automation will have to

be driven via service orchestration – enabling an aggregated service

interface that can coordinate and manage multiple services and processes

Process automation: This in LS Infrastructure Services will result in increasing

usage of DevOps alongside the adoption of agile methodologies that can

result in faster time-to-market for initiatives that various value-chain-driven

lines of business are driving. LS CIOs need to drive this process automation

mandate in order to develop a business view of IT transformation

Change lifecycle management: This will entail taking an integrated view of

the change management lifecycle – from the introduction of change

requirements, to the implementation of configuration and release

management. The focus here should be on the evolution of the ITSM

practice, driven by reduction in manual effort. The CIOs’ mandate should

be on adopting technologies and products that understand and appreciate

the intricacies of the change management lifecycle within the LS industry

value chain

EGR-2015-12-E-1438

Incidents

Process

Lifecycle

LIFE SCIENCES INDUSTRY: CIO AS THE CEO OF IT LED BUSINESS

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r e s e a r c h . e v e r e s t g r p . c o m 1 4

Building a Roadmap for Integration

As CIOs think of owning and enabling the IT led business models, business-IT

interplay and deliver on business service levels, they will have to think of their

organization as a microcosm of the broader ecosystem. As the life sciences

industry goes digital in every sense, the value chain will increasingly demand

technology to partner its key strategic objectives. Hence, the dashboard of

imperatives that any LS CIO would need to look at has to be a value-chain

view of the organization. Even for Infrastructure Services, the picture of

adoption in Exhibit 1 should evolve into a next-generation view of how LS

enterprises would think of infrastructure services – not only what lies beneath

the boxes of server, storage, and network, but also what lies close to the

business objectives being aspired for by the value-chain elements.

Finally, the key imperatives that CIOs need to drive in order to achieve the

above would be the following:

Draw a corporate roadmap for creating direct linkage and put in place an

audit mechanism to link Infrastructure Services service levels with business

service levels, and eventually, business service levels with growth parameters

Evaluate and identify strategic partner(s) who can not only collaborate in the

services and technology transformation but also understand the business

domain well enough to guide in the IT led business model and business-IT

integration journey

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LIFE SCIENCES INDUSTRY: CIO AS THE CEO OF IT LED BUSINESS

Dashboard for a CIO thinking of

Infrastructure Services as a

business strategy enabler

E X H I B I T 1 0

Source: Everest Group

Cloud-based simulationmodels

Electronic data-capturesystems

Synchronizing ERP andinformation systems

Facilitate regulatorycompliance

Electronic product code

Usage-basedinformation managementsolutions

Social-media presenceand engagement

Mobile anti-counterfeitdrugs identification

Real-time tracking oflogistics andtransportation

Predictive modeling tooptimize order fulfillment

Mobile apps

Informationdissemination

Mobility initiatives andpromotional campaigns

RFID solutions

Pharmacovigilance-driven processmonitoring

Unified planning, setup,& execution of clinicaltrials

Social collaboration withstakeholders

Model-outcomes testing

Centralized batchmonitoring

Patient and physicianoutreach

Mobility-driven real-timeelectronic research dataexchange

Mobile clinical-trialmanagement

Behavioral marketing

Tracking sales activity

Remote productmonitoring

Context-based services

Cloud-based portals for assembly/testing remotely-collected research and trial data

BYOD

Social media integration

Bundled PaaS solutions

Cloud-driven collaboration tools to engage stakeholders

Enterprise mobility

Information backup and recovery

Drug discovery/research

Clinical and pre-clinical trials

Manufacturingoperations

Marketing and salesSupply chain &distribution

NOT EXHAUSTIVE

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The business – Infrastructure Services dashboard for CIOs

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r e s e a r c h . e v e r e s t g r p . c o m 1 5

About Everest Group

Everest Group is an advisor to business leaders on next generation global

services with a worldwide reputation for helping Global 1000 firms dramatically

improve their performance by optimizing their back- and middle-office business

services. With a fact-based approach driving outcomes, Everest Group counsels

organizations with complex challenges related to the use and delivery of global

services in their pursuits to balance short-term needs with long-term goals.

Through its practical consulting, original research and industry resource

services, Everest Group helps clients maximize value from delivery strategies,

talent and sourcing models, technologies and management approaches.

Established in 1991, Everest Group serves users of global services, providers of

services, country organizations, and private equity firms, in six continents across

all industry categories. For more information, please visit www.everestgrp.com

and research.everestgrp.com.

EGR-2015-12-E-1438

LIFE SCIENCES INDUSTRY: CIO AS THE CEO OF IT LED BUSINESS

For more information about Everest Group, please contact:

+1-214-451-3110

[email protected]

For more information about this topic please contact the author(s):

Jimit Arora, Vice President

[email protected]

Abhishek Singh, Practice Director

[email protected]