This document summarizes an event for IT executive leaders addressing digital challenges. The agenda introduces AstraZeneca and its focus on discovery, development and commercialization of medicines. It operates globally with $26.1B in annual sales. AstraZeneca IT aims to create a world-class environment through customer focus, operational excellence, technical leadership, simplification and collaboration. The digital transformation presents opportunities for IT leaders to strategically drive innovation and growth. New skills must be developed around data, technology, channels and digital capabilities. Barriers include strategy, skills and budgets. Recommendations include engaging on digital innovation and applying technology choices to business capabilities.
Chris Day VP IT Transformation and Office of the CIO at AstraZeneca
1. IT Executive Leaders Event
Addressing the Digital Challenge
Chris Day 17 Sept 2015
2. Agenda
2
• Introducing AstraZeneca and AstraZeneca IT
• The opportunities Digitisation presents to IT leaders
• New capabilities which need to be built
• Potential challenges to be overcome
4. • Focus on the discovery, development and commercialisation of primary and
specialty care prescription medicines
• Invest in distinctive science in three main therapy areas where we believe we
can make the most meaningful difference to patients
• Operate in more than 100 countries and our innovative medicines are used by
millions of patients worldwide.
4
A global, science-led biopharmaceutical company
5. Global dimensions
• $26.1 billion annual sales
• 57,500 employees
• $4.9 billion invested in R&D with research across 5 countries
• 118 projects in clinical development and 13 new molecular entities (NMEs) in
late-stage clinical development or under regulatory review
• More than 850 collaborations and partnerships globally
• Manufacturing in 16 countries
• 3rd fastest-growing top 10 multinational pharmaceutical
company in emerging markets in 2014
As at 31 December 2014
5
6. We push the boundaries of science to deliver
life-changing medicines.
6
Our purpose
“Together, we can be confident that, by
leading in science, we will transform the
lives of patients around the world.”
Pascal Soriot
7. Focus on three main therapy areas across key platforms
Neuroscience
Infection and
Vaccines
Cardiovascular
and Metabolic
Respiratory,
Inflammation and
Autoimmunity
Main TAs
Oncology
Opportunity-driven
Protein
engineering
Biologics
Small
molecules
Immuno-therapies Devices
Personalised healthcare and
translational science capabilities
7
9. We are creating a world-class IT environment
9
What is World Class?
A company that is truly connected and empowered by technology…
Where IT provides a
lean, agile supporting
infrastructure for
everything we do.1
Where IT works with
the business and is
talked about for the
right reasons.2
Where competitive
advantage is gained
through cutting edge
innovation.3
TRANSFORMATION IS AT THE HEART OF OUR IT STRATEGY:
TO DELIVER WORLD-CLASS IT, ACHIEVING TWICE THE VALUE FOR HALF THE COST.
10. We will get there by focusing on 5 key areas
10
CUSTOMER
FOCUS:
Continued
improvement to the
overall experience of
IT at AstraZeneca,
working as a trusted
business partner
1
OPERATIONAL
EXCELLENCE:
Delivery of on-going
excellence across our
range of services;
establish a global
infrastructure that
allows us to be agile,
responsive and
efficient.
2
TECHNICAL
LEADERSHIP:
Pursue cutting-edge
technology, partner
with ground-breaking
technology companies
and utilise innovative
new tools.
3
SIMPLIFICATION:
Make life simpler for
everyone who comes
into contact with
technology at
AstraZeneca and
reduce our reliance on
3rd party suppliers
4
COLLABORATION:
Stay ahead of the game
with effective
collaboration tools and
agile working.
5
12. Business models are not new
12
Manufacturer
Wholesaler
Retailer
Landlord
Broker
Service
Provider
Financier
13. Neither are business model innovations
13
Loss LeadersOutsourcing
Automation Bar Codes Discriminatory
Pricing
Joint
Ventures
Manufacturer
Wholesaler
Retailer
Landlord
Broker Service
Provider
Financier
Two-Sided
Markets
15. Something fundamentally new is happening …
15
Businesses Born Digital Digitally Enhanced
Business Models
Gamified Marketing
Information
Businesses
Crowdsourced Design
Servicization
Dematerialization
Hackdays
Open Source
Bounty-Based
Creation
Precompetitive Information
Commons
Quantified Self
DIGITAL ADJACENCIES
CUSTOMER
SELF-SERVICE
FREEMIUM
CUSTOMER AS
NANOFACTORY
ADVANCED ROBOTICS
AUTO DECISION MAKING
N-SIDED MARKETS
16. Widespread shift as business models are reshaped around new
digital capabilities
Information Types
• Multimedia data
• Social data
• Usage data
• Operation technology data
• Internet of things data
• Ecosystem data
• Open data
Social Groups
• Internal crowd
• External crowd
• Gamification
• Maker culture
Technology Types
• Cloud
• Social computing
• Big data analytics
• Mobile
• Robotics
• Sensors
• Thinking machines
Channel Types
• Online channel
• Mobile channel
• Social channel
Skill Types
• Data science
• Multichannel mining
• Analytics
• Customer Experience
Management
• Dark data mining
• UI expertise
• Digital mashup design
• Entrepreneurship
• Cognitive computing
18
18. The digital transformation presents great opportunities for IT
leaders …
• IT is uniquely placed to drive digital collaboration across the business
• Real opportunity to embed IT at the heart of business decision making
• Opportunity to raise the strategic importance of IT
• Vehicle to expand the role and remit of IT
• Major opportunity for career advancement and personal fulfilment
18
20. Six traits of digital ready IT leaders
Have a strategic vision of how technology will transform the business
20
1
2
3
4
5
6
Relentlessly focus on innovation
Focus on driving growth
Ensure their vision is understood
Move beyond Infrastructure and Operations
Embrace smart risk taking
21. IT skills which need to be developed
21
Information Types
• Multimedia data
• Social data
• Usage data
• Operation technology data
• Internet of things data
• Ecosystem data
• Open data
Social Groups
• Internal crowd
• External crowd
• Gamification
• Maker culture
Technology Types
• Cloud
• Social computing
• Big data analytics
• Mobile
• Robotics
• Sensors
• Thinking machines
Channel Types
• Online channel
• Mobile channel
• Social channel
Skill Types
• Data science
• Multichannel mining
• Analytics
• Customer Experience
Management
• Dark data mining
• UI expertise
• Digital mashup design
• Entrepreneurship
• Cognitive computing
22. Barriers IT digital Leaders need to overcome
• Incomplete IT strategy, lack of leadership
• Siloed business organisations
• Insufficient business-IT and technical IT skills
• Slow IT project delivery; poor innovation processes
• Ineffective business models and budgeting
• Inadequate Digital risk management thinking and processes
22
23. Recommendations
• Accept that we need to actively engage on digital innovation
• Understand how digital choices can be applied to your business capability model:
• How can we apply innovation to rethink our business capabilities?
• What new opportunities do new technology choices enable?
• What new threats have we uncovered – how can we address these?
• Work at pace to build the new skills and capabilities required
23
26. Progression towards “twice as good”
26
Area Measure 2013
Baseline
2015
Latest View
2016
Goal
Performance
No. of Severity Priority 1
incidents
19 per week <10 per week <8 per week
Mean Time to Incident
Resolution
24 hrs <4 hrs <4 hrs & reduce
repeats by 30%
Customer Satisfaction 44% 64% 75%
Simplification
No. of Applications 3,822 2,700 1,697
Regional Data Centres 21 12 3
Servers 12,765 10,965 8,920
Cloud Usage 10% 30% >50%
Key metrics
Key
enterprise
deployments
2013 2014 2015 2016
27. Progression towards “half the cost”
27
Total IT costs as a % sales trajectory 2013-2019
5.5%
4.6%
4.0% 3.9%
3.6%
3.2%
2.9%
2013 2014 2015 2016 2017 2018 2019
% Revenue
Pharma Benchmark
28. How did they do it?
What did they do?
Who should/shouldn't do it?
What is the general pattern? What are the lessons?
Leveraged their
connected car to
facilitate physical
delivery of online
shopping.
Why did they do it?
Differentiation
opportunity.
Solving a societal
problem.
Digital value
added service.
Based on
online
commerce,
cloud, IoT.
Innovation coming
out of IT organization,
based on connected
car and vehicle cloud
— thinking about how
to use that platform
more widely.
+Those with a digital
platform to leverage.
- Those not open to digital
adjacencies beyond core
business.
Opportunity to "flip
dilemmas."
Opportunity to use what
you've got to solve
persistent societal issues.
Hinweis der Redaktion
This Contents slide is for speaker reference. It would not generally be used as part of the presentation.
Important information for speakers
This Speaker Kit is designed to provide information about AstraZeneca for any audience.
Please note, however, when describing our medicines, it is important to have the wording reviewed by your local or unit nominated signatories.
For further information, all the global requirements for communications with stakeholders and others who have an interest in the company and its activities are set out in AstraZeneca’s Global Communications Policy, which can be viewed/downloaded in the Portal Policies section and compliance with which is mandatory.
27 August 2015
As a global, innovation-driven biopharmaceutical company that spans discovery, development, manufacturing, distribution and worldwide commercialisation, we are well-placed to turn innovative molecules into medicines that are life changing.
We invest in distinctive science in three main therapy areas and our science exploits our rare combination of capabilities. We build on our own capabilities by collaborating with world-renowned scientists and academic institutions and partner with like-minded, science-led companies.
Through leading in science, we are confident that we can transform the lives of patients around the world. In doing so, we will return to growth and deliver value to our shareholders.
In 2014:
$26.1 billion sales: 39% in the US; 26% in W Europe; 22% in emerging markets (12% growth during 2014) and 13% in rest of world (Canada, Japan, Australia and New Zealand.)
57,500 people:
34,000 people in our sales & marketing organisation and some 10,000 in our manufacturing and supply organisation.
22,700 are in Europe/Middle-East; 17,000 in North- South America; and 17,800 in Asia/Pacific.
We invested nearly $5 billion and employed 9,000 people in R&D. Our capabilities helped us to understand the unmet medical needs in different geographies and patient types.
At the end of 2014, our pipeline comprised 133 projects, including 118 in clinical development and 16 approved or launched. Since we set our target in March 2013 our late-stage pipeline has transformed faster than we anticipated, with 13 NMEs in Phase III/pivotal Phase II, or under regulatory review compared with the original target of eight.
Our Supply & Manufacturing resources are located to support the reliable delivery of our medicines when and where they are needed.
AstraZeneca’s purpose is to push the boundaries of science to deliver life-changing medicines. It underpins everything we do and gives us a reason to come to work every day
We believe the best way we can achieve our purpose is to put science at the centre of everything we do. Science defines who we are. It is part of our DNA.
Science begins with our Chief Executive Officer, Pascal Soriot and extends across the entire leadership team.
But this is only half the story. We know we do not have all the answers. We want to share ideas because we believe it results in better medicines. We want the way we work to be inclusive, open and collaborative. This approach runs through all we do, from the people who work for us, and those who work with us, to the buildings we construct and the very way we carry out our research.
We aim to be leaders in three therapeutic areas: Cardiovascular and Metabolic diseases (CVMD); Oncology; and Respiratory, Inflammation and Autoimmunity (RIA). Â Across each of these areas we aim to discover and develop innovative medicines that are the best treatment in their class and/or the first of a new class of medicine.
We have an opportunity-driven approach to the Infection, Neuroscience and Gastrointestinal (ING) disease areas with our teams working in an entrepreneurial way to bring medicines to patients.
To put ourselves in the best position to push the boundaries of science, we seek to exploit our combination of capabilities which encompass both small molecules and biologics, and include immunotherapies and developing innovative delivery devices that can offer choice to patients.
These are reinforced by a strong focus on personalised healthcare capabilities, which aim to match medicines only to those patients who will benefit from them. More than 70% of the medicines in our pipeline are being developed according to this approach.Â
Our teams also work alongside the world's leading academic and biotech research institutions to stimulate innovation and evaluate emerging technologies such as Modified RNA, CRISPR genome editing.
All this gives us an integrated capability that can be matched by few others.
We aim to be leaders in three therapeutic areas: Cardiovascular and Metabolic diseases (CVMD); Oncology; and Respiratory, Inflammation and Autoimmunity (RIA). Â Across each of these areas we aim to discover and develop innovative medicines that are the best treatment in their class and/or the first of a new class of medicine.
We have an opportunity-driven approach to the Infection, Neuroscience and Gastrointestinal (ING) disease areas with our teams working in an entrepreneurial way to bring medicines to patients.
To put ourselves in the best position to push the boundaries of science, we seek to exploit our combination of capabilities which encompass both small molecules and biologics, and include immunotherapies and developing innovative delivery devices that can offer choice to patients.
These are reinforced by a strong focus on personalised healthcare capabilities, which aim to match medicines only to those patients who will benefit from them. More than 70% of the medicines in our pipeline are being developed according to this approach.Â
Our teams also work alongside the world's leading academic and biotech research institutions to stimulate innovation and evaluate emerging technologies such as Modified RNA, CRISPR genome editing.
All this gives us an integrated capability that can be matched by few others.
In 2014:
$26.1 billion sales: 39% in the US; 26% in W Europe; 22% in emerging markets (12% growth during 2014) and 13% in rest of world (Canada, Japan, Australia and New Zealand.)
57,500 people:
34,000 people in our sales & marketing organisation and some 10,000 in our manufacturing and supply organisation.
22,700 are in Europe/Middle-East; 17,000 in North- South America; and 17,800 in Asia/Pacific.
We invested nearly $5 billion and employed 9,000 people in R&D. Our capabilities helped us to understand the unmet medical needs in different geographies and patient types.
At the end of 2014, our pipeline comprised 133 projects, including 118 in clinical development and 16 approved or launched. Since we set our target in March 2013 our late-stage pipeline has transformed faster than we anticipated, with 13 NMEs in Phase III/pivotal Phase II, or under regulatory review compared with the original target of eight.
Our Supply & Manufacturing resources are located to support the reliable delivery of our medicines when and where they are needed.
In 2014:
$26.1 billion sales: 39% in the US; 26% in W Europe; 22% in emerging markets (12% growth during 2014) and 13% in rest of world (Canada, Japan, Australia and New Zealand.)
57,500 people:
34,000 people in our sales & marketing organisation and some 10,000 in our manufacturing and supply organisation.
22,700 are in Europe/Middle-East; 17,000 in North- South America; and 17,800 in Asia/Pacific.
We invested nearly $5 billion and employed 9,000 people in R&D. Our capabilities helped us to understand the unmet medical needs in different geographies and patient types.
At the end of 2014, our pipeline comprised 133 projects, including 118 in clinical development and 16 approved or launched. Since we set our target in March 2013 our late-stage pipeline has transformed faster than we anticipated, with 13 NMEs in Phase III/pivotal Phase II, or under regulatory review compared with the original target of eight.
Our Supply & Manufacturing resources are located to support the reliable delivery of our medicines when and where they are needed.
In 2014:
$26.1 billion sales: 39% in the US; 26% in W Europe; 22% in emerging markets (12% growth during 2014) and 13% in rest of world (Canada, Japan, Australia and New Zealand.)
57,500 people:
34,000 people in our sales & marketing organisation and some 10,000 in our manufacturing and supply organisation.
22,700 are in Europe/Middle-East; 17,000 in North- South America; and 17,800 in Asia/Pacific.
We invested nearly $5 billion and employed 9,000 people in R&D. Our capabilities helped us to understand the unmet medical needs in different geographies and patient types.
At the end of 2014, our pipeline comprised 133 projects, including 118 in clinical development and 16 approved or launched. Since we set our target in March 2013 our late-stage pipeline has transformed faster than we anticipated, with 13 NMEs in Phase III/pivotal Phase II, or under regulatory review compared with the original target of eight.
Our Supply & Manufacturing resources are located to support the reliable delivery of our medicines when and where they are needed.
In 2014:
$26.1 billion sales: 39% in the US; 26% in W Europe; 22% in emerging markets (12% growth during 2014) and 13% in rest of world (Canada, Japan, Australia and New Zealand.)
57,500 people:
34,000 people in our sales & marketing organisation and some 10,000 in our manufacturing and supply organisation.
22,700 are in Europe/Middle-East; 17,000 in North- South America; and 17,800 in Asia/Pacific.
We invested nearly $5 billion and employed 9,000 people in R&D. Our capabilities helped us to understand the unmet medical needs in different geographies and patient types.
At the end of 2014, our pipeline comprised 133 projects, including 118 in clinical development and 16 approved or launched. Since we set our target in March 2013 our late-stage pipeline has transformed faster than we anticipated, with 13 NMEs in Phase III/pivotal Phase II, or under regulatory review compared with the original target of eight.
Our Supply & Manufacturing resources are located to support the reliable delivery of our medicines when and where they are needed.
In 2014:
$26.1 billion sales: 39% in the US; 26% in W Europe; 22% in emerging markets (12% growth during 2014) and 13% in rest of world (Canada, Japan, Australia and New Zealand.)
57,500 people:
34,000 people in our sales & marketing organisation and some 10,000 in our manufacturing and supply organisation.
22,700 are in Europe/Middle-East; 17,000 in North- South America; and 17,800 in Asia/Pacific.
We invested nearly $5 billion and employed 9,000 people in R&D. Our capabilities helped us to understand the unmet medical needs in different geographies and patient types.
At the end of 2014, our pipeline comprised 133 projects, including 118 in clinical development and 16 approved or launched. Since we set our target in March 2013 our late-stage pipeline has transformed faster than we anticipated, with 13 NMEs in Phase III/pivotal Phase II, or under regulatory review compared with the original target of eight.
Our Supply & Manufacturing resources are located to support the reliable delivery of our medicines when and where they are needed.
In 2014:
$26.1 billion sales: 39% in the US; 26% in W Europe; 22% in emerging markets (12% growth during 2014) and 13% in rest of world (Canada, Japan, Australia and New Zealand.)
57,500 people:
34,000 people in our sales & marketing organisation and some 10,000 in our manufacturing and supply organisation.
22,700 are in Europe/Middle-East; 17,000 in North- South America; and 17,800 in Asia/Pacific.
We invested nearly $5 billion and employed 9,000 people in R&D. Our capabilities helped us to understand the unmet medical needs in different geographies and patient types.
At the end of 2014, our pipeline comprised 133 projects, including 118 in clinical development and 16 approved or launched. Since we set our target in March 2013 our late-stage pipeline has transformed faster than we anticipated, with 13 NMEs in Phase III/pivotal Phase II, or under regulatory review compared with the original target of eight.
Our Supply & Manufacturing resources are located to support the reliable delivery of our medicines when and where they are needed.
In 2014:
$26.1 billion sales: 39% in the US; 26% in W Europe; 22% in emerging markets (12% growth during 2014) and 13% in rest of world (Canada, Japan, Australia and New Zealand.)
57,500 people:
34,000 people in our sales & marketing organisation and some 10,000 in our manufacturing and supply organisation.
22,700 are in Europe/Middle-East; 17,000 in North- South America; and 17,800 in Asia/Pacific.
We invested nearly $5 billion and employed 9,000 people in R&D. Our capabilities helped us to understand the unmet medical needs in different geographies and patient types.
At the end of 2014, our pipeline comprised 133 projects, including 118 in clinical development and 16 approved or launched. Since we set our target in March 2013 our late-stage pipeline has transformed faster than we anticipated, with 13 NMEs in Phase III/pivotal Phase II, or under regulatory review compared with the original target of eight.
Our Supply & Manufacturing resources are located to support the reliable delivery of our medicines when and where they are needed.
In 2014:
$26.1 billion sales: 39% in the US; 26% in W Europe; 22% in emerging markets (12% growth during 2014) and 13% in rest of world (Canada, Japan, Australia and New Zealand.)
57,500 people:
34,000 people in our sales & marketing organisation and some 10,000 in our manufacturing and supply organisation.
22,700 are in Europe/Middle-East; 17,000 in North- South America; and 17,800 in Asia/Pacific.
We invested nearly $5 billion and employed 9,000 people in R&D. Our capabilities helped us to understand the unmet medical needs in different geographies and patient types.
At the end of 2014, our pipeline comprised 133 projects, including 118 in clinical development and 16 approved or launched. Since we set our target in March 2013 our late-stage pipeline has transformed faster than we anticipated, with 13 NMEs in Phase III/pivotal Phase II, or under regulatory review compared with the original target of eight.
Our Supply & Manufacturing resources are located to support the reliable delivery of our medicines when and where they are needed.
In 2014:
$26.1 billion sales: 39% in the US; 26% in W Europe; 22% in emerging markets (12% growth during 2014) and 13% in rest of world (Canada, Japan, Australia and New Zealand.)
57,500 people:
34,000 people in our sales & marketing organisation and some 10,000 in our manufacturing and supply organisation.
22,700 are in Europe/Middle-East; 17,000 in North- South America; and 17,800 in Asia/Pacific.
We invested nearly $5 billion and employed 9,000 people in R&D. Our capabilities helped us to understand the unmet medical needs in different geographies and patient types.
At the end of 2014, our pipeline comprised 133 projects, including 118 in clinical development and 16 approved or launched. Since we set our target in March 2013 our late-stage pipeline has transformed faster than we anticipated, with 13 NMEs in Phase III/pivotal Phase II, or under regulatory review compared with the original target of eight.
Our Supply & Manufacturing resources are located to support the reliable delivery of our medicines when and where they are needed.
In 2014:
$26.1 billion sales: 39% in the US; 26% in W Europe; 22% in emerging markets (12% growth during 2014) and 13% in rest of world (Canada, Japan, Australia and New Zealand.)
57,500 people:
34,000 people in our sales & marketing organisation and some 10,000 in our manufacturing and supply organisation.
22,700 are in Europe/Middle-East; 17,000 in North- South America; and 17,800 in Asia/Pacific.
We invested nearly $5 billion and employed 9,000 people in R&D. Our capabilities helped us to understand the unmet medical needs in different geographies and patient types.
At the end of 2014, our pipeline comprised 133 projects, including 118 in clinical development and 16 approved or launched. Since we set our target in March 2013 our late-stage pipeline has transformed faster than we anticipated, with 13 NMEs in Phase III/pivotal Phase II, or under regulatory review compared with the original target of eight.
Our Supply & Manufacturing resources are located to support the reliable delivery of our medicines when and where they are needed.
In 2014:
$26.1 billion sales: 39% in the US; 26% in W Europe; 22% in emerging markets (12% growth during 2014) and 13% in rest of world (Canada, Japan, Australia and New Zealand.)
57,500 people:
34,000 people in our sales & marketing organisation and some 10,000 in our manufacturing and supply organisation.
22,700 are in Europe/Middle-East; 17,000 in North- South America; and 17,800 in Asia/Pacific.
We invested nearly $5 billion and employed 9,000 people in R&D. Our capabilities helped us to understand the unmet medical needs in different geographies and patient types.
At the end of 2014, our pipeline comprised 133 projects, including 118 in clinical development and 16 approved or launched. Since we set our target in March 2013 our late-stage pipeline has transformed faster than we anticipated, with 13 NMEs in Phase III/pivotal Phase II, or under regulatory review compared with the original target of eight.
Our Supply & Manufacturing resources are located to support the reliable delivery of our medicines when and where they are needed.