from Schneider Electriciom.invensys.com/EN/SoftwareGCC14Presentations/Indu… · · 2014-10-142014 Software Global Client Conference 18 Asset Management Building Management

from

Schneider Electric

Life Sciences

Solutions

IND-03

Rakesh Mukhija

Director, Life Sciences Solutions

Industry Trends & Challenges

in the

Life Sciences Segment

Life Sciences Segment Facts and Figures

2014 Software Global Client Conference 4

R&D APIs Formulations Packaging Distribution

8% Global CAGR

10% Generics CAGR

60% Contribution of Top 20 companies to Life

Sciences revenue

>50b€ R&D investment

~20% Average operating margin

15b€ Annual revenue decline due to patent expiry

1TWh Annual Electricity Consumption

>5b€ Cost of energy consumed

65% Energy consumed by HVAC as % of total

800b€ 1.5% 85b€ 6b€ Life Sciences Segment

Revenue

Global GDP

contribution CAPEX

Schneider Electric’s

2014 Available Market

Life Sciences Segment Trends

• Aging Population

• Rising incidence of chronic diseases

• Opportunities in emerging markets

• Technological advancement

• Heightened regulatory activity

• Focus on niche products

• Healthcare reform provisions

• Increased M&A and alliances

Source: PwC

Paradigm shift of Life Sciences segment


1980-

2000

2011-

2020+

Old Environment

• Economic stability

• Focus on top 10 markets

• 6%-7% of popl. aged 65+

• Blockbuster biz. model

• Treatment for chronic

conditions

• Products marketed to

primary care physicians

New Environment

• Economic volatility

• Focus on growth mrkts.

• 7.6%-9.4% of population

aged 65+

• Spl. medicines biz. model

• Treatment for rare/acute

diseases

• Products marketed to

healthcare payers

• Globalization

• Market dynamics

• Demographic changes

• Communication technology

• Shift in R&D direction

• Healthcare reforms

Forces of Change

Ke

y

Ch

all

en

ge

s

Challenges faced by Life Sciences segment

7

Innovation-driven Market-driven

Expand aggressively

with small molecules,

generics and local

formulations

1. Margins

2. Market share

3. Portfolio

optimization

Build market

presence with

selective local

investments

1. Portfolio

optimization

2. Margins

3. Market share

Sell limited range of

proprietary

products at high

prices

1. Portfolio

optimization

2. Market share

3. Margins

Sell full proprietary

portfolio, including

biologics, at high

prices

1. Market share

2. Portfolio

optimization

3. Margins

Our Solutions Offer

for the


Customers’

Business

Goals

Our solutions connect to segment’s key challenges


Stakeholders [ Customers, Investors, Employees ]

=SE=

Solutions Goals

Execute

Report Comply Investigate Diagnose

Visualize Record Detect Govern

Right Product

Right Quality

Right Quantity

Right Time

Right Cost

Right Outsourcing

Partners

Innovation

Specialization

Critical Mass

Agile Production

Quality/Genealogy

Maintain Compliance

Reliability/Maintenance

Product Safety

Waste

Standard processes

Cycle Times (Velocity)

Traceability (Recall)

Time-to-ramp

Empowering frontlines

Flexibility

Open & Interoperable

Market share

“First to market with right

product…”

Margins

“Continuously taking waste

out of the system”

Portfolio Optimization

“Strengthening Market

position & managing risk”

Customers’

Market

Goals

Customers’

Manufacturing

Goals

Competitive pressures favor first to market with brand and allow

more time for profit prior to generic competition

Emerging markets seeking higher standards of healthcare and

driving local supply chain for drugs

Risk reduction has inhibited new technology, but companies are

now seeking more modern and efficient processes

Standardizing processes across facilities reduces regulatory

exposure and creates efficiencies in operations

Multi-product facilities are replacing dedicated facilities to limit

supply chain disruptions

New acquisitions and mergers create a landscape of disparate

systems and competing technology standards

Costs of regulatory findings can be detrimental in real dollars,

lost production and bad publicity

Segment’s challenges driving our solutions


Market share

Margins

Portfolio

Optimization

First to Market

Emerging Markets

Modernization

Standardization

Agile Production

M&A

Compliance

Our Value Propositions

for the


Building Accelerator Methodology Accelerate your return on investment


Reduce your time to market:

• Commission and validate your

plant upto 2 months in advance

• Generate an additional revenue of

upto $50M

Schneider Electric focuses on delivering Life Sciences solutions designed

and built to specification, on time, and on budget

Total Environment Management (TEM) Stay on the right side of regulatory compliance


Keep your facility safe, secure,

operational and compliant:

• Avoid Form 483 notices from

US-FDA

• Avoid opportunity cost upto

$1M/day by preventing involuntary

plant shut-down

Establish and maintain a desired environmental state through the

integrated monitoring and control of all events and parameters

Raise your sustainability Comprehensive approach to energy management


Improve your bottom-line and

get listed on DJSI:

• Energy savings of upto

$1.5M/year for an average size

production plant

• Reduced carbon foot-print: upto

5‘300 MTe reduction of CO2

Improving your Dow Jones Sustainability Index score has been shown to

increase your company's stock valuation by 1.48%

Batch Standardization to meet Business Goals Empower your operators to make real-time decisions

2014 Software Global Client Conference

Grow your top-line:

• Increase your productivity by

upto 5%

• Additional revenues upto

$15M/year due to automation of

MES / Workflow

Automated support of real-time decisions and actions to reduce planned

and unplanned downtime

ABB GE Emerson RA Siemens =SE=

Batch Automation Integration Layer

MES Enterprise Data Presentation

15

Site-Executable Recipe

EXECUTION

Data Generated

in S-88 format

with site details

CONTENT

Critical Parameters

& Steps Structured

in S-88 format

VISUALIZATION

Critical Parameters

& Steps in

Context-rich data

Reduced scope of compliance - EMS The importance of high-quality data


Reduce the scope of

validation:

• Decease the scope of validation

by using dual EMS+BMS

solutions, instead of single BMS

• Reduced operational expenses,

leading to savings of upto

$500‘000/year

Recorded data must be accurate, repeatable and secure and represent

the actual environmental conditions

16

Our Solutions Offer

for the


Sustainability

Planning

Energy

Management

IT

Management

Process

Management

Our solutions for Life Sciences


Asset

Management

Building

Management

Site

Supervision Simulation &

Optimization

Security

Management

Operation

Management

Power

Management

Sustainability

Planning

Energy

Management

IT

Management

Process

Management



Asset

Management

Site


Optimization

Security

Management

Operation

Management

Building

Management

Power

Management

Room control

Building products

Building Services

Building

management

Building Systems

HVAC control

Environ. Monitoring

Lighting control

Sustainability

Planning

Energy

Management

IT

Management



Asset

Management

Building

Management

Site


Optimization

Security

Management

Operation

Management

IT room power distrib.

IT products

IT Services

IT management

IT Systems

Racks & Enclosures

Uninterruptible

power supply (UPS)

Cooling

Environmental Monitoring

Network connectivity

Business Networks

Power

Management

Process

Management

Sustainability

Planning

Energy

Management

IT

Management



Asset

Management

Site

Supervision

Security

Management

Operation

Management

Power

Management

Building

Management

Simulation &

Optimization

Process

Management

Plant & Infrastructure

Automation

Automation products

Automation services

Process

management

Automation Systems

Instrumentation

Process Safety

Process Automation

Machine automation • General machines control

• Pump & Fan control

• Hoisting control

• Material handling

• Packaging control

• Material working

Sustainability

Planning

Energy

Management

IT

Management



Asset

Management

Site

Supervision

Security

Management

Operation

Management

Video security

Security products

Security Services

Security

management

Security Systems

Emergency lighting

Intrusion detection

Access control

Fire and life safety

Power

Management

Building

Management

Simulation &

Optimization

Process

Management

Sustainability

Planning

Energy

Management

IT

Management



Asset

Management

Site

Supervision

Security

Management

Operation

Management

Building

Management

Simulation &

Optimization

Process

Management

Power

Management

MV distribution, substations, feeder

Power Products

Power services

Power management

Power Systems

Power protection/control

iPMCC

Power availability & reliability

Renewable energy conversion

Electrical storage

Electric vehicle charging

Sustainability

Planning

Energy

Management

Power

Management

IT

Management



Asset

Management

Site

Supervision

Security

Management

Operation

Management

Integration Toolkits

System Platform

Integration services

Site Supervision

System Platform

HMI (inTouch, Citect)

Information Servers

Application Servers

Historian

Enterprise Integration

Building

Management

Simulation &

Optimization

Process

Management

Sustainability

Planning

Energy

Management

Power

Management

IT

Management



Asset

Management

Site

Supervision

Security

Management

Operation

Management

Building

Management

Simulation &

Optimization

Process Simulation

Simulation & Optimisation


services



Systems

Operator Training

Advanced Process Control

Supply Chain Optimisation

Commodity trading &

Producer information

Process

Management

Sustainability

Planning

Energy

Management

IT

Management



Asset

Management

Site

Supervision

Security

Management

Operation

Management

Power

Management

Building

Management

Simulation &

Optimization

Process

Management

MES • Production Execution

• Performance

• Quality

• Traceability

Operation Management

Operation services



Batch

Intelligence

Business Process Mgt.

Workflow

Sustainability

Planning

Energy

Management

Power

Management

IT

Management



Asset

Management

Site

Supervision

Security

Management

Operation

Management

Energy Management services • Data Analysis

• Global Utility Bill Mgt.

• Market Intelligence

• Energy Rates and Tariff Analysis

Energy Management Projects • Audits & Integration

• µgrid and renewable

• Performance Guarantee

Energy Management

Energy Management

Corporate Energy Mgt

Energy Operation EnMIS

Demand Response Mgt.

Building

Management

Simulation &

Optimization

Process

Management

Sustainability

Planning

Energy

Management

Power

Management

IT

Management



Asset

Management

Site

Supervision

Security

Management

Operation

Management

Maintenance Mgt.

Asset Mgt. services

Asset Management

Asset Management

Maintenance & Reliability

decisions

Document Approval

Workflow

Asset Intelligence

Condition Management

Continuous Monitoring Building

Management

Simulation &

Optimization

Process

Management

Sustainability

Planning

Energy

Management

IT

Management



Asset

Management

Site

Supervision

Security

Management

Operation

Management

Power

Management

Building

Management

Simulation &

Optimization

Process

Management

Environmental

Sustainability Mgt.

Sustainability Services • Sustainability Roadmap

• Strategic Energy Roadmap

• ISO 50001 certification

Compliance Consulting • Qualification

• Validation

• Compliance

Sustainability

Planning

Sustainability Planning

Sustainability

Planning

Energy

Management

IT

Management

Process

Management



Asset

Management

Building

Management

Site


Optimization

Security

Management

Operation

Management

Power

Management

Sustainability

Planning

Energy

Management

IT

Management

Process

Management


Asset

Management

Building

Management

Site


Optimization

Security

Management

Operation

Management

Power

Management

ArchestrA System Platform

Designed-in Security

Field Instruments

Building

Management

Systems

Electrical sub-systems:

• Drives

• MCC

• VFD

Software System Platform

A system of systems

Non-SE Devices PLCs

Life Sciences

Applications

Large System

Controllers

Small System

Controllers

Common

Infrastructure

Vis

ualizati

on

(HM

I)

Co

nfi

gu

rati

on

To

ols

ER

P

Inte

gra

tio

n

His

tori

an

So

ftw

are

Ap

ps

End-users

and/or

Partners

Ecosystem

ME

S

Ba

tch

Op

tim

i-

za

tio

n

Ap

ps

Ap

ps

As

se

t

Pe

rf.

Application

Space Real-time

Operations

Management

DCS

Control

Room

Process

Connected

Solution Architecture



Selected Success Stories

of

Life Sciences Solutions

Almac Clinical Services Lower Salford, PA, USA


Customer Benefits:

• Streamlined commissioning and

qualification process in

accordance with ASTM E2500

• Reduced the project timeline by

2 months & saved more than

1,000 man hours

New facility delivering full service, integrated clinical packaging and

drug supply management with solutions from Schneider Electric

34

MIT Koch Institute for Cancer Research Camridge, MA, USA


Customer Benefits:

• 10% decrease in the cost of the

building automation system. The

BMS design was >75% complete

before contract award

• LEED sliver-certified facility

delivered on time & on budget

World class facility attracts top researchers in the battle against cancer,

using solutions from Schneider Electric

35

Novartis Singapore


Customer Benefits:

• More than 50% savings in detail

engineering and documentation

• Total savings of 9,400 man-hours,

amounting to >SGD 500,000

Streamlined solid dosage production facility with integrated solutions from

Schneider Electric

Genentech (Roche) Vacaville, CA, USA


Customer Benefits:

• Resumption of GMP production

within 2 weeks, instead of

stipulated 6 weeks downtime

• Additional revenue of >$50M due

to fast execution of project

One of world’s largest biotechnology manufacturing plants, with integrated

software solutions from Schneider Electric

Johnson & Johnson Fort Washington, PA, USA


Customer Benefits:

• Open and interoperable platform,

avoiding any need to rip & replace

existing systems

• ~50% savings in implementation

costs, due to platform capability of

supporting different production

models

LEED silver-certified pharmaceutical production facility, with InBatch

software solutions from Schneider Electric

Proud Partnerships


http://corporateportal.ppg.com/ppg







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Documents

from Schneider Electriciom.invensys.com/EN/SoftwareGCC14Presentations/Indu… · · 2014-10-142014 Software Global Client Conference 18 Asset Management Building Management