Kathleen DonahueKathleen DonahueDamodar Rao GummadapuDamodar Rao Gummadapu

Aspiring High. Above and Beyond, Our Journey to “Be the Best”

Business Process IntelligenceBusiness Process Intelligence

2

Introductions

Name

Company

Areas of Interest

3

Company Profile

Pfizer is headquartered in Manhattan, New York

Global leader in;

Prescription Pharmaceuticals

Non-prescription Consumer Health Care Products

Pharmaceuticals for Animal Health

Acquired Wyeth Pharmaceuticals in 2009

4

“One Team, One Goal”

We share a common mission: apply science and our global resources to improve health and well-being at every stage of life. 

Working together for a healthier world

5

Era of Opportunity for Pharmaceutical Industry

Changing regulatory environment

New technologies

Growth of manufacturing platforms

Enlightened operating mindset

Robust IT tools and systems

Step Changes Are Not Enough….Step Changes Are Not Enough….A Paradigm Shift is RequiredA Paradigm Shift is Required

6

“Be the Best”

Legacy Wyeth Vision for TO&PS

Focus on product quality

Leaders in cGMP & compliance

100% customer service

Patient, stakeholder & shareholder value

Site Network & Plant Investments

Sustainable Compliance

Organizational Effectiveness

Integrated Standard Processes and Systems

Business Analytics

7

ERP Facilitates Business Strategy

Goals

Improve operating efficiency

Facilitate execution of business strategy

Achieve targeted financial return

Strategy

Standardize and integrate key business processes, data and controls globally

Improve timely access to consistent, reliable information to run and manage the business

8

ERP Value Drivers

Enables One View of the Company

Single consistent source of enterprise data; facilitated by standard processes and master data across all business units, functions and divisions

Provides Robust Analytics

Online financial analysis with multiple views of business results as needed

Cross-functional, drill down capabilities from management reporting through source transactions

9

SAP ERP Landscape

SAP CRM (Customer

Relationship Management)

SAP SRM (Supplier Relationship

Management)

CRM data SRM data

SAP NW PI (Process Integration)

SAP MII (Manufacturing Integration & Intelligence)

To other Systems and Devises

Integration

BI data

SAP NW BI (Business Intelligence)

SAP ECC (ERP Central Component)

ERP data

ERP OPS

SD (Sales &

Distribution)

PP (Production Planning)

QM (Quality

Management)

MM (Materials

Management)

LE (Logistics Execution)

Cross Application Components BASIS Components

SAP SNC (Supply Network Collaboration)

SAP SCM (Supply Chain Management)

SAP APO (Advanced Planning & Optimization)

SAP GTS (Global Trade Services)

SAP EWM (Extended Warehouse

Management)

SCM data

Currently

Not in Use

PlanningDirect

Procurement and

Manufacturing

Reporting and Analytics

Quality

Finance

Sales Order Management and

Logistics

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• Agility based on Business Drivers

• Continuous Improvement

• Knowledge Management

• Performance Monitoring

Assess Process

Maturity

Form Process Focused

Networks

Institute Process

Governance

Functional Organization

Align Processes and Metrics. Improve

Processes

Implement Process Architecture in Improvement

Processes

Process Performance Monitoring

Continuous Improvement

via OE

Roadmap

Process Focused Organization

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Product

Manager A

Product

Manager B

Product

Manager C

Product

Manager D

Directorof ProductOperations

DesignVice

President

MfgVice

President

MarketingVice

PresidentController

Procure-ment

Manager

President

Functional Matrix Organization: Functions x Businesses

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FUNCTIONS[Departments, Centers of Excellence)

Process Management:A 3rd Dimension in Management

WO

RK

PROCESSES[Source, Make, Fulfill, etc.]

Business Units own customers and profitability

Functions own the people and cost centers

Process Owners own work designs and IT spending

BUSINESSES[Business Unit, Region, focused on P&L’s & markets]

FUNCTIONS[Departments, Centers of Excellence]

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• Agility based on Business Drivers

• Continuous Improvement

• Knowledge Management

• Performance Monitoring

Assess Process

Maturity

Form Process Focused

Networks

Institute Process

Governance

Functional Organization

Align Processes and Metrics. Improve

Processes

Implement Process Architecture in Improvement

Processes

Process Performance Monitoring

Continuous Improvement

via OE

Process Metrics

Process Focused Organization

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Process Metrics enableDecision Excellence and Operational Excellence

RUN THE BUSINESS

Aligning processes with metrics to monitor and deliverreliable information, produce timely actionable results, and support Decision Excellence - enabling efficient and effective operations.

IMPROVE THE BUSINESS

Providing fact based information to support the operational, tactical and strategic reporting and analysis needs of OE initiatives - delivering continuous improvement of processes.

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Metrics Measure Enterprise Excellence

Business Operating Expense

Reduction

Additional Net Income

0

50

100

150

200

250

300

350

400

450

500

Ben

efit

s ($

M)

Process Standardization

Operational Excellence

Reduced Materials Costs

2/3 of B

enefit

Source: AMR Research “Leveraging ERP for Ongoing Business Benefit”

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Balance Scorecard Methodology

Analy

ze t

he v

isio

n a

nd Inp

ut

Und

ers

tan

d T

O&

PS

Vis

ion

Launch Metrics

Iden

tify

Though

t Le

aders

Gath

er

Inpu

t

Dete

rmin

e S

ele

ctio

n C

rite

ria

Pro

pose

Metr

ics

Gain

Conse

nsu

s w

ith

Thought

Leaders

Metrics Development

Re-assess

Re-assessDesign

Analyze& Plan

Construct& Deploy

Understand the revised TO&PS Vision

Gather additional input from thought leaders

Proposed revised Metrics Gain Consensus Deploy revised Metrics

Collect data from Affiliates/OPUs

Calculate the Metrics Provide the Metrics

through single access mechanism along with the necessary details

Report Metrics

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Analytics CategoriesUsed to understand value creation and to improve the business.

High Level Metrics - translate strategy into measurable goals, includes: Fist time quality Product availability End to end cycle time

Operational Analytics - Leading and lagging indicators such as trending, process control charts and simulation, includes:

Inventory levels Inventory targets

Process Performance Monitoring – monitors use of standards vs non-standard processes across functional teams, includes:

Production Schedule Stability Adherance to supplier lead times

Adoption measures – measure the use of standard sub processes in a functional team Number of times reports are run Time saved on each report Use of emergency purchase orders

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0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

2004 2005 2006 2007

Ob

serv

atio

ns

/ In

spec

tio

n

Improving Compliance

Inspection Results 2004 - 2007

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Increasing Efficiency

$

40%40%ImprovementImprovement

40%40%ImprovementImprovement

Net Sales / Employee

20

Reducing End-to-End Cycle Time Across Sites

456

320

245

197

0

50

100

150

200

250

300

350

400

450

500

2004 2005 2006 2007

Cyc

le T

ime

in D

ays

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The Power of Business Analytics…

Leverage all data – and advanced statistical tools – to achieve Quality By Design

Continuous process-performance monitoring Reduction in review time for product release by providing a single

access point for information Leverage data for operational excellence

Six sigma analysis Lean principles End to end process optimization

Provide tools for Decision Making Excellence at all levels of the organization

… … Is Limited Only By Your ImaginationIs Limited Only By Your Imagination

Questions