HEC Executive Education & Ecole des Mines ParisTech HEC Executive Education & Ecole des Mines...

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HEC Executive Education & Ecole des Mines ParisTech

Friday, 26th April 2013

©2013 Frédéric Pennerad

http://www.exed.hec.fr/

https://www.facebook.com/photo.php?fbid=128020504083&set=a.434101669083.237605.124650154083&type=1

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Information and Operational technologies were used all along our journey to Paris

©2013 Frédéric Pennerad - "Examining convergence between IT and OT (pharma and biotech industries)"

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“Examining convergence betweenInformation and Operational Technologies:

Benefits and challenges for pharmaceutical and biotechnology

industries”

Professional thesis

Executive Mastère Spécialisé (EMS) -

Technologies and Information System management (MSIT)

Frédéric Pennerad – Class of 2013





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Smart applications resulting from the convergence can be found everywhere

TransportationMilitary and armementHealthcareDrug industrySport and entertainmentEnergyManufacturingRetailing©2013 Frédéric Pennerad - "Examining convergence between IT and OT (pharma and biotech

industries)"

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Smart vehicles


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Select iBall™ promises to change soccer refereeing


Smart medication

7©2013 Frédéric Pennerad - "Examining convergence between IT and OT (pharma and biotech industries)"

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Smart surgery


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Image aided surgery


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The surgery room of the future

http://www.ircad.fr/ihu/©2013 Frédéric Pennerad - "Examining convergence between IT and OT (pharma and biotech industries)"

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Convergence between IT and OT aggregates many other trends

IoT

M2M

Cloud

Smart©2013 Frédéric Pennerad - "Examining convergence between IT and OT (pharma and biotech industries)"

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Waves of IT investment follow a 2-stages model (Forrester research, 2012)

Average CAGR between +5% and

+10%

Average CAGR below + 1.5% or

negative

Innovation and

growth

Refinement and

digestion


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IT/OT convergence is the new wave of technological innovation and growth

“Smart computing is the new wave of tech innovation and growth” (Figure sourced from (Forrester Research, 2012), reproduced with authorization)


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Life-science industry is careful about risks generated by changes

Risks

Benefits


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Our panel is representative of the top pharma and biotech industries


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Benefits justifications were identified through interview records

Identify

Categorize

GroupCount

Compare


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Leaders tends to “operationalize” investment justifications

Top expectation Regulatory complianceIncreased product and process knowledge

Better risk managementOperational costs reduction

Increase in research and development productivityLowest expectation Increase in revenues

Most frequent Operational costs reduction

Increased product and process knowledge

Increase in revenues

Increase in research and development productivity

Regulatory compliance

Least frequent Better risk management

Strategic

Operational


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Focusing on strong operational benefits would secure the long term investment

Identificat-ion Creation Realizat-ionOperational benefits

“The lever”Strategic benefits

“The actual target”


Technological convergence increases applications value

Highest value

Electronic procedure

s

Electronic batch

records

ISA-88

ISA-95Ethernet

Proprietary

protocols

Data acquisition

Data collection

Data exchange

PC Panel PC Thin client Tablets

Electronic work

instructions

Electronic operationa

l notebooks

19©2013 Frédéric Pennerad - "Examining convergence between IT and OT (pharma and biotech industries)"

Event driven

process

Industrial ethernet

Predictive control Industrial

wireless standards

ISA-101

Review by exception

ISA-99

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A few examples of new applications

TomographyModel predictive controlElectronic operating proceduresProduct serializationMedication personalization


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Product quality can be controlled without process disruption


Online product inspection without loss

Predictive control

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Operating procedures are fully traceable


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Products are tracked at the single commercial unit

Product serialization

100% product control


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Best medications are selected for each individual case


Genetic assessment

Personal monitoring

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The perception of the boundary of IT/OT evolves with integration experience


Strategy

Perception

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Pharma and Biotechs could leverage current trends

Cloud Computing

Smart Computing

BYOD

Shadow IT

Internet Of Things

Big data©2013 Frédéric Pennerad - "Examining convergence between IT and OT (pharma and biotech industries)"

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3 factors for successful adoption (Forrester Research, 2012)

Reduction in features cost

Inter-operability

Rich User Experience


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Organizations needs to develop new skill sets to maximize benefits get from IT/OT convergence

IT/OT Convergence

Officer

CIO skills•Application development•Middleware•IT Infrastructures•Portal development•Logical security

New skills•User experience•Portfolio management•Program management•Ecosystem/Service centered architecture design

•Agile development process

CTO skills•Hardware engineering•Embedded software•Operational process understanding

•Product/Process engineering

•Safety


Adapted from: Forrester Research and Gartner

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Take away Convergence between IT and OT is a fundamental trend,

already delivering value accross all business sectors Convergence between IT and OT is accelerating,

supported by other well-know IT trends This convergence is the new wave of innovation and

growth (Forrester research, 2012) Leaders tends to secure long-term investments with

strong operational benefits New applications resulting from the convergence have a

huge benefit potential but organization need to properly manage cost, user experience and interoperability

Development of new skill sets will support efficient management of IT/OT convergence and development of organizations’ vision


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“Examining convergence betweenInformation and Operational Technologies:

Benefits and challenges for pharmaceutical and biotechnology

industries”

Professional thesis

Executive Mastère Spécialisé (EMS) -

Technologies and Information System management (MSIT)

Frédéric Pennerad – Class of 2013





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Backup slides




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