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1 AN EDUCATIONAL ebook FROM IMS HEALTH Making intelligence actionable: No longer mission impossible
2 2 Making Intelligence Actionable Infolust demands a new way of doing business One of the defining forces of our time is infolust a term coined by Trendwatching.com to describe our seemingly insatiable need to have information whenever and wherever we want it. The ease with which we can instantly access information as consumers has raised our expectations as business decision makers. Basic reporting will no longer suffice. If life sciences companies are to use business intelligence (BI) for strategic advantage, information must be: Actionable Alert-based and visual Self-service and interactive Integrated with other systems Advances in analytic technologies and business intelligence are allowing CIOs to go big, go fast, go deep, go cheap, and go mobile with business data. David F. Carr, 5 Business Analytics Tech Trends and How to Exploit Them, CIO Magazine, March 23, 2012 Delivered via mobile apps It s time to move beyond a spreadsheet culture to one where analytics provide evidence-based insights and automated alerts drive improved business performance.
3 3 Making Intelligence Actionable The evolution of business intelligence Most pharma leaders intuitively understand the value of enabling a fluid exchange of timely, actionable information that meets the needs of discrete users spanning many roles and functions. Yet, few companies have re-engineered their entire information architecture, and most are still working in a sub-optimal environment. They depend heavily on IT, address information needs in silos (usually with near-raw data or list formats) and contend with significant lag times in delivering data to Marketing and Sales teams. Considering the complex and comprehensive data that are available today (the scope of which is expanding almost exponentially), the time has come to embrace change. Yesterday s BI Model Difficult-to-use IT-intensive Proliferation of data; lists Redundant data marts with siloed information Cube farms Rigid BI tools Data latency Lagging indictors PC-based Long deployments Today s BI Model Always on, always available Mobile Device/platform agnostic Integrated Intuitive Single source of the truth Actionable Timely, relevant Business-centric Forward-thinking, based on leading indicators Modular deployment
4 4 Making Intelligence Actionable What makes intelligence actionable? Data are what is pushed out to users via lists, lists and more lists. When given data, a rep may have to scan hundreds of lines in multiple reports simply to find a kernel of useful information for the week ahead. Data become insights when the important findings are highlighted visually such as in dashboards that display key performance indicators (KPIs) common to the entire commercial organization. 1 Tell me when something 2 is wrong alert attainment below threshold What s causing the problem? Single click to get to details competitor taking market share Insights become actionable when there s a business process wrapped around each KPI so that: Users are alerted to findings that warrant their attention; With a single click, users can drill into details that explain what has triggered the alert; Instructions and contextual navigation lead the way to a plan of action; and The insights integrate seamlessly with other information and tools 4 3 Integrate with call plan via SFA What can I do about it? Contextual navigation suggested call list who can I call on?
5 5 Making Intelligence Actionable A role-based approach Many diverse users across the organization consume BI on a daily, weekly and/or monthly basis. Addressing the specific requirements of each is important, although the guiding principles of what will make intelligence actionable are the same: A self-service approach to accessing and consuming data and information Alert-based insights and data visualizations that point to next steps Mobile connectivity A single source of the truth (no discrepancies over whose numbers are right) A combination of leading and lagging indicators More sophisticated analytics that incorporate all performance influencers and drivers (e.g., payer, patient, prescriber) When these conditions are met with the right infrastructure, companies benefit from a lower cost of ownership, higher user adoption, and improved, faster decision making. Move toward role-based insights Deliver timely information to support critical business decisions Where are the opportunities to drive more scripts in my territory? Sales Reps Does it make sense to co-promote our new product? Executives How would a change to Tier 1 formulary status affect revenue? Analysts What payers are driving brand performance? Brand Managers What are top performing districts doing that underperforming ones are not? Field Managers
6 6 Making Intelligence Actionable An example of actionable intelligence for field users Deliverable Data Example A spreadsheet with all 150 doctors in my call plan and the last 12 months of data. Insights My lead product is underperforming compared to last quarter. Competitor X is outperforming me by five market share points. Watch Making Intelligence Actionable Actionable Intelligence Alert Process Oriented Enable Inform To reverse the current trend and improve performance, proactively suggest 20 doctors I can call on this quarter to message against competitor X.
7 7 Making Intelligence Actionable Variations on a theme Since the goal of business intelligence is to empower people to do their jobs more effectively, each different user group within the commercial organization from senior executives to sales reps naturally has different information needs. These diverse needs can be met through role-based dashboards, access parameters and capabilities. That doesn t mean, however, that each type of user should operate on a different platform, rely on different source data and follow different business rules. Ideally, the entire commercial organization should: Consume insights derived from the same data sources and shared market definitions Focus on the same KPIs those identified as important to the brand Popular types of alerts Top-ranked prescribers/targeted prescribers who were not called on in past 30 days Prescribers increasing in NRx for top competitor over past 60 days Over-sampled prescribers Prescribers associated with payer pull-through/ formulary Product performance fluctuations beyond pre-established thresholds Prescribers decreasing in TRx for my product over past 60 days Reps/DMs/RMs not meeting call plan adherence targets Updates on monthly incentive comp goal attainment Mined insights/campaign segmentations with specific messages Operate on the same data infrastructure and technology platform
8 8 Making Intelligence Actionable A framework that supports insights The expectation is that your BI system will be easy to deploy, flexible enough to grow and change with your business needs, and integrated with your other business systems. How can this be achieved? The first step is to adopt an investment strategy aimed at creating: A scalable and efficient enterprise-wide technology platform (using cloud-based, software-as-a-service models) A single, consolidated data infrastructure An integrated suite of BI tools Tools that are platform agnostic, i.e., able to be delivered on different devices The goal will be to put a business-rules engine on top of information to scan for trends that are important to the brand. BI METADATA LAYER Metrics KPIs Hierarchies User Security MODULAR ANALYTIC DATA MODEL EXTRACT TRANSFORM LOAD (ETL) DATA SOURCES Watch Thinking Beyond Traditional KPIs Rx DDD CRM LRx
9 9 Making Intelligence Actionable Why haven t companies made the transition? In theory, delivering BI is easily done. But the unfortunate reality is that most companies aren t doing it yet for a myriad of reasons. Often it often comes down to organizational culture, long-held beliefs within functional areas, and the company s size, structure, and budgetary constraints. However, these challenges can be easily overcome given strong collaboration, well thought-out plans, and a willingness to change the status quo. Organization Type Characteristics Methods to Address Matrixed Believe that departmental BI needs require unique solutions; leads to siloed thinking and systems Have little or no common data governance or infrastructure Circulate data (not BI) around the organization Captive Utilize outdated, proprietary BI packages that offer little flexibility Feel that business users cannot handle any change Consolidate data management under one umbrella to serve common needs Establish a common data infrastructure that works with any BI platform Apply the 80/20 rule: the majority of BI requirements across departments are usually the same, and can be met with a common solution Use a standards-based BI platform Trust the user community Ocean Boilers Attempt to meet every business need at once; embark on 12+ month projects Collect requirements by the ton Think that one BI tool can meet every need Newbies Tend to be small/mid pharma Have limited internal resources and capabilities Get limited exposure to industry best practices Deploy in phases and architect for change, knowing that in two months, there will be new requirements Build consultative relationships with experts outside the organization Leverage out-of-the-box solutions where possible
10 10 Making Intelligence Actionable The DIY vs. partner debate Companies certainly can build their BI solutions from scratch, but they usually face a steep learning curve and significant investment in time and costs to do so. It s common for an initial release to take eight months and more than $1 million to develop, and even then, the release often does not meet objectives or truly address users needs. It is all too easy to underestimate the knowledge required to: Set up processes to provision syndicated data Design and build a data model Design and build processes to extract, transform, and load data from third-parties Establish a BI infrastructure Tips for success Consolidate data management under one umbrella to serve common needs Provision and store data in one place Adopt a data infrastructure that can accommodate multiple BI tools (don t lock yourself into a rigid data model) Architect for the long term, but deliver in phases, starting with the basics Consider pre-built offerings as accelerators Use as much off the shelf software as possible Use standards-based BI platforms Develop consultative relationships with external partners Design and build BI metadata Build reports, dashboards and alerts Partnering with software and service vendors accelerates the process, reduces stress on the organization and avoids the pitfalls of learning as you go. Read how one company was able to deploy an IMS-hosted BI solution in just 14 weeks.
11 11 Making Intelligence Actionable Sustaining high adoption How do you ensure that the BI approach you ve introduced is really used within your organization? Before designing the system, discuss with each user group: The KPIs that are most important to the business and how they should be expressed for each function What the end user should do in response to a specific type of alert Then, ensure that the tools and information you provide are: Intuitive. Tools should be as easy to use as the leading e-commerce sites. Adoption advice Empower users to ask questions themselves, without the need for IT or analyst support View e-commerce sites as an analogy for the user experience Deliver actionable intelligence, not data Keep it fresh Draw users into the system rather than push out reports Tie into incentive compensation data Actionable. Give users role-based insights that help them succeed at their job. Fresh. Offer ever-changing information rather than static data. Integrated. Present one dashboard not a dozen reports. Stored with information of personal interest. Nothing draws people in like real-time reporting on their incentive compensation. Read how one company improved compliance with POA directives.
12 12 Making Intelligence Actionable The benefits of the new BI model Creating a dynamic BI environment in which users are empowered to access the information they need when, where and how they choose is good business practice although not simply because employees now expect such convenience and immediacy. It also drives results. Providing actionable, role-based intelligence to every function within the commercial organization: Supports timely, critical decision making at all levels Correlates with increased revenue Improves sales productivity Relieves users of having to make sense of the data Eliminates debate over whose numbers are right Key questions to ask as you re getting started Is your organization a spreadsheet culture? Do you deliver data or insights? What are your KPIs? Do you have KPIs? Are you able to inform action? How is your blocking and tackling? Do you have the right foundation to grow? Is your data infrastructure tied to your BI platforms? Are your business users empowered to ask questions? Where should you build vs. partner? Removes redundant IT processes Frees IT and analysts for other business priorities These are aspirations of most companies, and achieving this state need not be difficult, time consuming, expensive, or overly burdensome to any one functional area. Read how one company enhanced performance via self-service BI.
13 13 Making Intelligence Actionable Mission accomplished Over the past five years, business intelligence capabilities have advanced dramatically. It is now possible to move beyond a spreadsheet culture to one in which decision makers from the C-suite all the way through the field force have access to the information they need to further the company s business goals. The keys to success are to begin with the right investment strategy and architect for the long term but deliver in the short term and to ensure that the intelligence provided is visual, alert-based and points to a specific course of action. When data infrastructure and BI tools are designed properly, users will access the insights they need and will be able to say, I know what this means and I know what to do with it. If there is a magic bullet to optimizing business performance it is just that: empowering people at every level of the organization to take the initiative in pursuing the company s objectives. Access a replay of the IMS webinar, Making Intelligence Actionable: No Longer Mission Impossible
14 IMS Health One IMS Drive Plymouth Meeting, PA USA Tel: IMS improves the efficiency and value of clients commercial analytics and information processes through a broad range of services: Sales and marketing analytics and reporting KPI design and implementation CRM implementation Managed markets contract management Data warehousing, integration and management Drawing from our extensive industry experience with methodologies honed over hundreds of client engagements, we recommend approaches, guide analytics, design processes and deploy systems even manage these activities on an ongoing basis to lower operating costs, provide staffing flexibility and improve overall performance. In turning to IMS specialists located both onsite and offshore, clients tap into our extensive global industry experience, deep domain expertise and knowledge of precisely how their commercial organizations operate. The result? Faster speed to insight and better business performance IMS Health Incorporated or its affiliates. All rights reserved Q
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