This article is the fifth in a series intended to share insight and provide guidance for the pharmaceutical industry through a proven set of best practices and case studies within the strategic consulting, business intelligence, data warehousing and data management disciplines. The series focuses on Drug Discovery and Development as the pressure intensifies for bringing newer, safer and appropriate drugs to the market—in a cost-efficient, effective and timely manner.
An internal survey of our pharmaceutical clients—conducted in the fall of 2005—reaffirmed a growing trend that started in 2004, carried over into 2005, which will continue into 2006: a 13 to 15 percent annual increase in business intelligence and data warehousing spending. This increase demonstrates that clients are acknowledging the inherent value in providing consistent, accurate and trusted views of integrated Drug Discovery and Development data to key stakeholders; and addressing shortcomings with their business intelligence and data warehousing environments – most notably within their deployed architectures.
The business drivers and desired business value supporting this multi-year trend and investment are sound. From a business driver perspective, clients are ensuring the safety and efficacy of drugs being discovered, developed and approved for the market; enabling drug candidates to be accelerated through the discovery and development cycle; and “killing” underperforming candidates from either entering clinical programs or continuing in the cycle. From a business value perspective, clients are enhancing decision-making capabilities for managerial processes (e.g., planning, budgeting, controlling, assessing, measuring and monitoring) and ensuring that critical information is being exploited in a timely manner. As a result, after-tax cash flows are being increased through earlier revenue recognition and cost avoidance. Two examples include:
The aforementioned investment is also being targeted to address shortcomings with existing business intelligence and data warehousing environments. We are finding that clients are transitioning from stovepipe data mart and data warehouse architectures, and making strategic commitments to invest in consolidated data warehouse architectures.
Stovepipe Data Marts versus Consolidated Data Warehouse Architecture
Stovepipe data mart and warehouse architectures (see Figure 1) are prevalent within the cross-functional Drug Discovery and Development process. They enable line functions and underlying departments to independently address their information and reporting needs (e.g., formalizing results for review and distribution) without having to secure a cross-functional consensus on business rules, business definitions and report/analytical views.
Although this architecture is widely-embraced, it is being done at a significant cost and risk to the operational environment. Consider the following:
Figure 1: Stovepipe Data Mart/Warehouse Architecture
As shown in Figure 2, the consolidated data warehouse architecture addresses the high risk and costs associated with the stovepipe data marts, and delivers other desirable benefits. These benefits include:
Figure 2: Consolidated Data Warehouse Architecture
Practical Case Study
Early last year, one of the global pharmaceutical giants mitigated the risk associated with data inconsistency and inaccurate reporting, as well as the escalating cost of ownership of its business intelligence and data warehousing environment by implementing a consolidated data warehouse architecture. This architecture provides a global view of consistent, accurate and reliable clinical trial management information to more than 300 medical and regulatory stakeholders.
They had originally implemented a stovepipe data mart/data warehouse architecture, which extracted data from 20+ source systems to three segregated data marts. The architecture framework was causing numerous challenges within the operational environment. Some of these challenges were:
The transition to the consolidated data warehouse architecture took less than eight months to complete. The realized benefits—inherent in the features and functions of the consolidated environment—are being lauded by both executive management and medical and regulatory stakeholders. Besides addressing shortcomings of the past business intelligence and data warehousing environment, the investment has reduced clinical program costs, increased operational efficiencies, and accelerated all decision-making processes with planning, managing and financing global clinical management activities.
Conclusion
Clients who are making the multi-year strategic commitment to provide consistent, accurate and trusted views of integrated Drug Discovery and Development data and addressing shortcomings within their business intelligence and data warehousing environments are significantly increasing their business value and reaping the rewards/benefits of their business investment.
Recent articles by Tim Furey
Tim, former Vice President and Chief Technology Officer for CSI, was responsible for ensuring the most appropriate business intelligence, data management and data warehousing solutions were delivered to CSI’s Global 2000 clients. These innovative solutions were designed, developed and enhanced through Tim's leadership of CSI's Technology Advisory Committee (TAC) and Centers of Excellence. Tim has 24 years of experience implementing business strategies and strategic solutions for the pharmaceutical segment and other industries. Furey has architected large-scale Drug Development Data Warehouses aimed at reengineering the development process for bringing new, safer drugs to market sooner. For more information on this article, please contact CSI at info@csiwhq.com..
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