Knowledge is Power for Pharma Bosses!

Many of the small and medium size pharmaceutical and life sciences companies I work with have no in-house CIO, and as such don't always have a full understanding of what IT systems they've got or what value, or indeed risk, those IT systems deliver to the business.

This lack of information can leave the Board in a precarious position, as they don't have the knowledge needed to make an informed business decision over the strategic use and direction of technology within their organisation. Whether you love or loathe technology, the reality is that IT is now a vital and integral part of every business challenge, and making empowered decisions about your strategic use of technology is critical to the ongoing success of your business.

With technology ever-changing, this is an area where no pharmaceutical or life sciences business can afford to stand still, without the risk of losing out to their competitors.

So I thought it would be useful to jot down a few pointers to make sure you have the information you need to make empowered decisions over the strategic use of technology in your organisation:-

* Do you know what technology you have got and what value it adds to your business?

* Do you know which technologies your competitors have deployed or are considering implementing and how that will impact on your competitiveness in the marketplace?

* Do your IT systems maximise Salesforce productivity? Are you making effective use of e-detailing and CRM solutions? How do your IT systems compare with the systems your competitors use? Do your salesforce hide behind IT problems as an excuse for not meeting target?

* In our highly regulated industry, are you confident that your IT system is fully compliant to HIPAA / MHRA / GxP standards?

* Are your current or future IT systems geared towards improving productivity and 100% overhead absorption?

* If you are involved in M&A activity, have you considered how easy/difficult, costly/cheap it will be to integrate the IT systems of the business you are acquiring with your own business? How will this impact on timescales and payback period on your investment?

* Do you know what new technologies are available in the pharmaceuticals and life sciences industry and which ones could add value to your business?

* Do you have a clear understanding of how future proof your IT systems are? If they have a limited lifespan (and let's face it, most things in IT do!), have you considered when you will replace them, and with what?

* Are your systems geared up to maximising business value when you come to execute your exit plan? (For more on this topic please see my Pharma Business Exit Planning blog)

Hopefully this goes some way to illustrate that whether your business goals are around expanding, gaining advantage over competitors, improving salesforce productivity, making an acquisition or exit planning, that making the right IT choices are integral to success.

And that all starts with having the right information.

If you would like to find out more about effective, strategic use of IT in Pharma, or you need information about your current IT system, then please do not hesitate to contact me on (01494) 444065 or email gary.swanwick@epoq-it.co.uk.

Pharmaceutical Business Exit Planning – 6 Key IT Considerations to Maximise Value

I thought I would put pen to paper on this subject as I’ve recently been working with several pharmaceuticals clients who are now in the process of planning their exit strategy from the business and needed input to understand how their investment in IT would impact the value, and saleability, of their business.

Whilst looking forward to reaping the rewards of many years hard work, one factor that is often given little thought is that of IT systems. Of course we all take our IT for granted …. It just works (or at least hopefully it does… if not, then please ask me about our IT Support services for pharmaceuticals!). But of course with hundreds of different options for hardware, software, applications and cloud services, the reality is that every network is unique.

This isn’t an issue when running our own business, but when it comes to the potential sale of the business, then it’s something any potential acquirer is going to want to know about in detail as part of their due diligence. Integrating the IT systems of seller and acquirer is often no mean feat and may impact significantly on both the cost of the acquisition and the operational logistics and timescales of the merger.

Naturally we all want to maximise the value that we get when we realise our capital, and IT forms an important consideration, when you are going to be “dressing the business for sale”.

So here are some key considerations to think about when you start planning your exit strategy:-

• Do you understand what systems you’ve got and how they work to support, or indeed lead, the business?

• Do you have IT systems documentation to give a potential buyer that would enable them to assess the costs and complexity of integrating your IT systems with theirs?

• Do you have a clear understanding of how your IT services are maintained and supported, who the various third parties are that are involved, what contracts and notice periods are in place and the associated costs?

• Will your procedures and documentation around critical compliance issues such as cyber security and disaster recovery policies give your buyer the confidence and reassurance they need?

• Will the IT systems, processes or contracts that you have in place today negatively impact the value or saleability of your company?

• If so, what changes need to be implemented in preparation for exit?

My own experience is that these activities are best started early, as they can take significant time and effort to understand and implement, but are well worth the investment since they are a key part of forming the exit strategy and maximising the business value.

If you would like to explore pharmaceuticals exit planning further, or you need your current IT systems to be unravelled, documented or improved as part of your exit planning, then please do not hesitate to contact me on 01494 444065 or email gary.swanwick@epoq-it.co.uk.