Survey Results: Life Sciences Leadership Says Advanced Operating Models Can Generate a Billion Dollars of Impact Annually
Independent research commissioned by Genpact shows operating leaders’ focus on compliance, transformation challenges, versatile value of shared organizational structures, and selectively strong impact of technology
NEW YORK, NY, December 17, 2014 – Genpact Limited (NYSE: G), a global leader in designing, transforming, and running intelligent business process operations, has released the life sciences industry findings excerpted from its survey of 920 senior executives. These life sciences insights come from 233 senior executives in the life sciences industry and primarily based on the responses of 120 respondents engaged in R&D and 69 in commercial operations, respectively. The majority of these executives come from large companies with North American operations with more than 10,000 employees.
This global study reveals how senior leaders across industries are prioritizing key operational initiatives to materially address the critical challenges that their companies face. While 72% of executives surveyed see regulatory compliance as a top challenge in an environment of increased government scrutiny, cost reduction, innovation and growth are also among the top priorities for life sciences companies.
Most R&D and commercial operations executives see compliance as the top challenges but R&D executives are more focused on innovation while commercial operations executives consider growth more often as a top challenge. One-third of R&D organizations are not fully prepared to evolve functions further; among commercial operations, multi-channel marketing, CRM is least mature and prepared to evolve. Compliance is regarded as important but has the least impact on broad strategic challenges among commercial operations and R&D functions.
Three levers of operating model transformation came into focus: technology, process reengineering, and advanced organizational structures such as shared services and outsourcing are material levers that many use and generate significant positive impact in life sciences operations. Both R&D and commercial operations executives see advanced organizational structures as more broadly applicable, but technology can generate greater dollar impact where appropriate. The respondents estimated that these advanced operating models have the potential to generate $1 billion dollars in positive dollar impact annually, comprising $600 million for commercial operations and $400 million for R&D operations.
“Regulatory compliance continues to be an important focus area for life sciences as is innovation and growth,” said BK Kalra, senior vice president and business leader, Life Sciences, Genpact. “To solve both sides of the equation, life sciences executives, whether on the commercial operations or R&D or finance sides of the business, are increasingly recognizing the value of advanced operating models that use technology and combines it with shared organizational models to address these priorities.”
The executive summary of Genpact’s life sciences commercial operations study is available at genpact.com/docs/resource-/transforming-life-sciences-commercial-operations-through-advanced-operating-models and the R&D study is at genpact.com/docs/resource-/transforming-life-sciences-r-and-d-through-advanced-operating-models.
For the full reports, interested parties may access go.genpact.com/COO-life-sciences-commercial-advanced-operating-models-research14-reg.html?source==Gbanner (commercial) and go.genpact.com/COO-life-sciences-R-and-D-advanced-operating-models-research14-reg.html?source==Gbanner (R&D) while the infographics can be viewed at genpact.com/docs/resource-/transforming-life-sciences-commercial-operations-through-advanced-operating-models-ig and genpact.com/docs/resource-/transforming-life-sciences-rnd-operations-through-advanced-operating-models.
Genpact (NYSE: G) stands for “generating business impact.” We design, transform, and run intelligent business operations including those that are complex and specific to a set of chosen industries. The result is advanced operating models that foster growth and manage cost, risk, and compliance across a range of functions such as finance and procurement, financial services account servicing, claims management, regulatory affairs, and industrial asset optimization. Our Smart Enterprise Processes (SEPSM) proprietary framework integrates effective technology and data-driven insight into the fabric of enterprise processes to help our clients be more competitive. Our hundreds of long-term clients include more than one-fourth of the Fortune Global 500. We have rapidly grown to over 67,000 people in 25 countries with key management and corporate offices in New York City, but our global critical mass doesn’t dilute our flexible and collaborative approach and our management team still drives client partnerships personally. Our clients attribute much of our success to our unique history – behind our passion for process and operational excellence is the Lean and Six Sigma heritage of a former General Electric division that has served GE businesses for more than 16 years. Follow Genpact on Twitter, Facebook, LinkedIn, and YouTube.
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For more information:
Gail Marold (Genpact Media Relations)
Dan Wilson (For Genpact U.S.)
Quintin Keanie (For Genpact Europe)
+44 (0)207 309 1053