Case Study

Leading pharmaceutical manufacturer transforms contract management through Data-to-Action AnalyticsSM

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Leading global pharmaceutical manufacturer

Life sciences

Business need addressed:

  • Plug leakages in contract management and chargeback operations
  • Timely updation of membership and contract data
  • Mitigation of deficiencies in process and technology systems

Genpact solution:

  • Robust controls, standardization and governance processes to ensure timely aggregation of contract management information and updating membership and contract changes
  • Analytics driven fail-safe processes to validate eligibility, class of trade and membership
  • Re-calibration of data collection tools (queues, allocation, next-best action) and analytics (predictive analysis)
  • Best-in-class master data and data preparation capabilities for enhanced visibility

Business impact:

  • 100% of membership updates processed in less than 24 hours
  • Near 100% data accuracy assured at all times
  • Multiple checkpoints implemented at the contract level, eliminating errors while processing chargebacks

Business challenge

One of the world’s largest global pharmaceutical manufacturers was struggling to plug leakages in its contract management and chargeback operations.

Fragmented internal systems and processes frequently resulted in improper or unauthorized wholesaler deductions, while multiple databases storing mismatched data caused disjointed information flows, with electronic data transfer interfaces encountering an unacceptably high level of exceptions.

Genpact approach

Genpact reimagines contract management operations through advanced operating models that holistically harness technology, analytics, process design, and global talent sourcing. We engineer Systems of EngagementTM technology to complement older systems of records, and industrialize Data-to-Action Analytics.SM 

Using Smart Enterprise Processes (SEPSM), Genpact’s proprietary business process management framework, critical factors were identified that influence contract management business outcomes, and then targeted to achieve maximum impact with minimum disruption. This unique methodology employs granular data analysis, sophisticated diagnostics and cross-functional benchmarks to maximize process effectiveness enabling business impact in a more agile and time effective way.

Genpact solution

Genpact’s solution took a holistic approach across the contract management process, employing Data-to-Action AnalyticsSM to enable continuous learning from the Data-to-Insight and Insight-to-Action processes which were then crystallized through powerful analytical tools (Figure 1). With this embedment of analytics into reimagined processes, the ability to collect and use meaningful data is enhanced, enabling higher revenue and cost forecasting accuracy across multiple usage scenarios for clients.

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The Data-to-Insight and Insight-to-Action loops were enabled by looking at the three clusters of analytical and related operational processes that exists virtually in any business process.

Provide visibility (Data-to-Insight) The Data-to-Insight loop provided an initial assessment of the contract management process and an understanding of the key metrics that drive business outcomes (Figure 2). With this knowledge, robust controls and clearly defined service levels for updating membership and contract changes could be significantly improved. Failsafe measures were built in by proactively researching contracted customers to validate eligibility, class of trade and membership.

Implementation of the initial analytics process achieved:

  • Real-time visibility into each process through collected data
  • Robust controls/standardization/governance to ensure timely aggregation of cleaner information
  • Granular, operator-level understanding of the underlying processes to enable rule-based data analysis and follow-up

For this client, considerations included:

  • Data consolidation, master data, periodic measurement of balances
  • Correlation between performance and variables such as agent skill, case priority and client profile
  • Refined output to pharmaceutical companies who use contract management analytics to determine eligibility

Enhance effectiveness (Insight-to-Action) The end-to-end process view across Data-to-Insight and Insight-to-Action can help design effective analytics solutions and provide targeted change management to embed them into business processes (Figure 3). These included:

  • Systems of EngagementTM: Re-calibration of data collection tools (queues, allocation, next-best action) and analytics (predictive analysis)
  • Case routing to differently skilled collectors based on complexity and workflow
  • Enablement of peer support self-help groups
  • Improvement of master data and data preparation capacity for more frequent adjustment and supervision
  • Use of outsourced data specialists and offshore collectors for lower-sensitivity cases

Through continuous learning, using Lean Six Sigma processes, the client was able to refine analytical models, optimize reporting metrics, enable machine learning and continuously improve processes. Ongoing recalibration of analytics enhances insight, and improved technology aids performance.

Business impact

To date, the company has realized the following impacts:

  • 100% of membership updates are now processed in less than 24 hours, ensuring near 100% data accuracy at all times
  • Implementation of multiple checkpoints, such as maintaining valid membership and eligibility data at the contract level, has led to elimination of errors while processing chargebacks
  • Timely availability of accurate information enables short- and long-term enhancements to the contract management process

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