Accenture helps Piramal

Healthcare develop the formula

for growth in contract research
and manufacturing services
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Client profile
Piramal Healthcare Ltd. is an
integrated health care company that
generated more than Rs 2,000 crores
(about US$444 million) in revenues
in fiscal year 2011. Pharma Solutions,
Piramal Healthcares Contract
Research and Manufacturing Services
(CRAMS) business, is a leading service
provider across the drug life cycle
from development to commercial
manufacturing and off-patent supplies
of active pharmaceutical ingredients
(APIs). In fiscal year 2011, Pharma
Solutions reported revenues of Rs
1,020 crores (about US$226 million).
Business challenge
In 2010, Piramal Healthcare divested
its domestic formulations and
diagnostics business. These actions
reflected the companys desire to
not only consolidate its business,
which had grown inorganically over
the years, but also focus on making
Pharma Solutions a mainstay of the
organization and one of the worlds
top three CRAMS players by 2016.
As Piramal Healthcares management
committee embarked on this ambitious
journey, one of its key goals was to
build a strategic road map for Pharma
Solutions to grow in the next three
to five years. This strategic road map
would need to address the stagnant
growth the company had experienced
from 2008 to 2010 driven by the
volatile global economic climate
and reduction in demand from key
customers. Equally important was
to build internal process, people and
technological capabilities in Pharma
Solutions to achieve the strategic
growth road map.
Piramal Healthcare turned to
Accenture for help in developing
this strategic road map that would
place Pharma Solutions on a growth
trajectory. Accenture had been
working with the Piramal Group on
design and deployment of multiple
strategic and operational initiatives
across corporate restructuring, sales
force effectiveness and supply chain
management. This strong relationship
of more than three years had
enabled Accenture to develop a deep
understanding of the Piramal Groups
business objectives, operations
and challenges.
How Accenture helped
Accenture deployed a team of
professionals with deep industry
expertise and a solid understanding
of Piramal Healthcares business
to help develop Pharma Solutions
road map for sustained growth
and profitability. According to
Gerhard Klement, director of Pharma
Solutions, Accentures functional
expertise, strategic acumen and
commitment to success were
instrumental in helping us establish
a strong foundation for change.
The multiyear engagement aimed
at driving profitable growth in
each of the five Pharma Solutions
businesses: early and late-phase API
and formulations and API generics.
The Accenture team revalidated the
business strategy for each of the
business units and helped develop
capabilities across the functional
areas, including sales and marketing,
service delivery, finance, supply chain
management, and human resources.
To maintain a structured and
manageable pace of change,
Accenture adopted a two-phase
approach to solution delivery. In
Phase I, the team evaluated the
current state of Pharma Solutions
business strategy and capabilities.
The team also identified opportunities
for profitable growth and pinpointed
areas of operational improvement for
each business unit.
Accenture worked closely with
Piramal Healthcares leadership team
to establish a differentiated market
positioning that would resonate
with customers and highlight the
relationship-oriented culture of
Pharma Solutions. This new market
positioning, which was grounded in
the concept of customer centricity,
was then used to underpin and guide
the development of seven necessary
solution themes for business success:
A robust go-to-market strategy
that, along with a dedicated
Strategic Marketing Cell, enabled
clear customer segmentation and
targeting and provided a key account
management focus
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1
The Era of Outcomes: Emerging Pharmaceutical Business Models for High
Performance, Accenture 2009
A fully redesigned sales process
from new customer enquiry inflow
to response generationto increase
win rate by creating high-quality
proposals with competitive pricing
An improved approach to service
delivery, which included redefining
processes and incorporating timely
checks to ensure consistent and
on-time delivery of projects
A robust and comprehensive
capability-development road map
for critical workforces in the areas of
business development and research
and development (R&D)
A new operating model, which
created three distinct business units
with independent profit and loss
(P&L) accounting and clear roles and
responsibilities and key
performance indicators
A structured governance and
performance monitoring mechanism
that allowed Pharma Solutions to
assess the state of the business,
monitor progress against key metrics
and carry out root cause analyses of
issues, as needed. Additionally, key
metrics and targets around customer
enquiry inflow and conversion rates
were developed to help Pharma
Solutions stay on course as it pursued
new business opportunities
In Phase II, the implementation phase,
one of the key goals was to embed all
the solution themes into the culture
of Pharma Solutions, effectively
making them a way of life in the
organization. As N. Santhanam,
executive director and chief operating
officer of Piramal Healthcare, points
out, We are pleased by the revenue
potential that Pharma Solutions
new strategy road map makes
possible. The results achieved so far,
along with the strong collaborative
environment that Accenture had
established, confirmed our decision
that Accenture was the right
provider to help us bring the new
strategy to life.
To achieve this goal, the team
objectively assessed the readiness
of Pharma Solutions employees and
rolled out the solution themes in
a structured manner to enable the
identified process owners to adapt
to the new ways of working. The
team also ensured a high degree of
collaboration and involvement of key
business stakeholders through the
design and implementation phases via
multiple workshops and discussions. As
Aidan Walker, president of Formulation
Services noted, Accentures focus
on driving collaboration and team
activities has not only helped make
the delivery of Pharma Solutions
improvements more flexible and
responsive, but also catalyzed our
employees commitment to the
projects success.
High performance delivered
Accentures research into
the characteristics of leading
pharmaceutical companies has
revealed that high performance is
increasingly dependent on a companys
willingness to reexamine its business
model, decide for which business it
is best positioned and restructure
its operations to support the chosen
focus. Pharma Solutions is an excellent
example of what is possible when a
company not only thinks big, but
also thinks different.
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The solutions designed by Accenture
and Piramal Healthcare will enable
Pharma Solutions to grow at a
compounded annual growth rate of
18 percent over the next three to
four years.
Lead indicators have already started
showing an improvement in first half
of fiscal year 2012. The request for
proposal (RFP) win rates have gone
up from approximately 19 percent to
more than an approximate 35 percent
across the business.
Go-to-market
Strategy
Delivery
Excellence
Sales
Processes
and Pricing
Customer
Centricity
Capability
Enhancements
Governance and Organization
Structure
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Accenture helped Pharma
Solutions to increase:
Customer enquiries by
setting up a Strategic
Marketing Cell
To propel new business generation
and provide more customer and
market intelligence, Accenture
recommended creation of a
Strategic Marketing Cell (SMC) at
Pharma Solutions. The SMC would
enable the Business Development
team to target potential customers
and offer customized solutions
to them.
Given the specific skills required to
run the SMC, which did not exist
internally at Pharma Solutions,
Accenture took over the role of the
SMC. The team ran the SMC for
more than six months undertaking
key activities and transitioned it to
Pharma Solutions employees after
providing extensive support
The SMC is a big and important
change at Pharma Solutions and
has enabled the business to:
Identify the right target
customers40 large and midsized
and more than approximately
400 small size pharma companies
through rigorous segmentation
and targeting exercise
Create a targeted value
proposition for each of the targeted
large and midsized customers
Initiate the process of cold
calling more than 400 small
companies identified as potential
customers and generating leads
Streamline marketing collateral
including the Pharma Solutions
website and customer pitch packs
(The website provided more than
15 leads within two months
of launch)
Improve the channel strategy,
delivering immediate cost savings
in excess of US$100K
Streamline the monthly
review process for the business
development team
RFP win rate
To increase the RFP win rate,
Accenture redesigned the entire
RFP pricing and response process
of Pharma Solutions to make
it more market relevant and
consistent across businesses.
The team:
Developed a consistent and
comprehensive mechanism to
capture all relevant customer
expectations in the newly designed
opportunity evaluation form (>90
percent adherence by Business
Development Managers (BDMs)
Implemented an enquiry
qualification process to reject
misfit enquiries and allocate the
fit ones to the most suitable sites
Defined standard enquiry
turnaround times and flexibility
for customer enquiries requiring
quicker response
Developed a standard costing
method and defined margins levels
for all businesses based on the
concept of return on
capital employed
Standardized the proposal
documents for consistent branding
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Apart from the tangible benefits,
Accenture has also helped Pharma
Solutions develop capabilities
that shall enable it to work more
effectively and efficiently by:
Improving effectiveness of business
development teams through focused
segmentation and targeting for each
business and delivery site
Improving cross-selling and
up-selling across businesses
Enhancing efficiency and
effectiveness in the delivery
of projects
Implementing a robust governance
and performance-monitoring system
According to Nandini Piramal,
executive director of Piramal
Healthcare, Accenture played
an important role in setting a
strong future direction for Pharma
Solutions. With Accentures
functional expertise and skillful
guidance, Pharma Solutions has
established and implemented a
go-forward strategy that will
enable it to achieve its ambitious
growth objectives.
In short, these improved capabilities
form the basis of Pharma Solutions
renewed formula for growth.
Equally important, the results these
improvements deliver will create a
new and exciting formula for high
performance in Contract Research
and Manufacturing Services (CRAMS).
As Ajay Piramal, Chairman of the
Piramal Group summarizes, Given
our companys long-standing
relationship with Accenture, its
deep industry knowledge and the
caliber of subject matter experts
in India and around the world,
we were confident that Accenture
was the right service provider to
help Pharma Solutions develop a
road map for growth in CRAMS. In
our long history of working with
consulting firms, I can confidently
say that this project for Pharma
Solutions has had the maximum
impact in terms of setting up a road
map for this business, aligning our
senior leadership and driving change
across functions. These, in addition
to the expected value benefits from
the project, will help us achieve
our objective of global leadership
position in CRAMS.
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About Accentures
Life Sciences Practice
Our Life Sciences industry group
works with pharmaceuticals,
biotechnology, medical products,
medical technology, regulators,
distributors, wholesalers and
other companies to help bring
life-enhancing health solutions
to people around the globe. We
provide consulting, technology and
outsourcing services across the
entire life sciences value chain,
from large-scale business and
technology transformation to post-
merger integration. Our key offerings
include: Research and Development,
including pharmacovigilance and
regulatory outsourcing; Supply Chain
and Manufacturing Optimization;
and Marketing and Sales, including
commercial services, analytics and
digital marketing.
To learn how Accenture can help your
company achieve high performance in
the life sciences industry,
please contact:
Deepak Malkani
deepak.malkani@accenture.com
Sriram Shrinivasan
sriram.shrinivasan@accenture.com
Rishabh Bindlish
rishabh.bindlish@accenture.com
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About Accenture
Accenture is a global management
consulting, technology services and
outsourcing company, with more than
246,000 people serving clients in
more than 120 countries. Combining
unparalleled experience, comprehensive
capabilities across all industries and
business functions, and extensive research
on the worlds most successful companies,
Accenture collaborates with clients to
help them become high-performance
businesses and governments. The company
generated net revenues of US$25.5 billion
for the fiscal year ended Aug. 31, 2011. Its
home page is www.accenture.com.
Copyright 2012 Accenture
All rights reserved.
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