Global biotech transformation drives innovative medicine
Global biotech transformation drives innovative medicine
Client
A global biotech company
Sector
Life sciences
Project
Business transformation with SAP S/4HANA integration
Client challenge
Sustained excellence rests on leadership, innovation, focus, and detail. This $10 billion global leader in the field of biotechnology is on a mission to provide innovative medical solutions for patients with rare conditions. The company had rapidly grown both revenues and reputation through an emphasis on high product standards. Of course, rapid growth brings challenges. The organization faced dispersed global operations and regionally autonomous decision-making, global legacy IT applications with disparate business processes, requirements for scalable enterprise resource planning (ERP) solutions, as well as qualitative mandates to achieve sustainable leading-practice levels of reporting, metrics, and analytics for operations and performance.
KPMG was with our client all of the way on this global transformation initiative. Tackling thousands of details for more than three years, KPMG has helped reimagine and transform these global functions and the organization for long-term growth, allowing our client to continue its relentless pursuit of providing breakthrough medical therapies for patients whose lives depend on them.
This years-long effort to achieve sustainable business excellence is expected to deliver annual benefits at 1% of revenue and position the company for further growth.
Approach
KPMG collaborated with our client on this three-year, “process-led, process-first, process-driven” program, in order to achieve sustainable business excellence. KPMG:
1
Leveraged the KPMG Powered Enterprise target operating model, based on life sciences industry leading practices, to design, build, and test the global SAP S/4HANA solution in an FDA validated environment, across 200 Level 3 business processes.
2
Focused the global greenfield business transformation across five key end-to-end business process areas: account-to-report (ATR), order-to-cash (OTC), plan-to-inventory (PTI), integrated business planning (IBP), and source-to-pay (STP); this also included the process areas of indirect/direct tax, global trade and customs, and operational transfer pricing (OTP).
3
Successfully deployed the solution across six manufacturing plants and R&D facilities, 30 countries, 30 commercial affiliates, and 5,000 end users in four phased, regional deployments across Europe, the Americas, Asia, and China, with zero days of disruption.
4
Developed a training curriculum and delivered training to support 5,000 end users; the Sustain and Improve teams remained in the regions to identify ongoing improvements after the initial Hypercare support.
5
Teamed with alliance partner Thomson Reuters to implement and scale ONESOURCE Indirect Tax technology to integrate with S/4HANA in more than 30 countries, including Brazil.
Benefits to client
KPMG has advanced our client’s commitment to life sciences industry leading practices so that they can fulfill their promise to patients by aligning their processes and enhancing collaboration to achieve sustainable business excellence. Specific benefits include:
1
Efficient, scalable, risk-mitigated, globally standard, and sustainable SAP S/4HANA platform, enabling five end-to-end business processes to support the anticipated aggressive and expeditious business growth during the next 10 years.
2
Annual business case benefits are estimated to be 1 percent of annual revenues.
3
Advanced technology powered by a global greenfield single instance of SAP S/4HANA, is enabling and supporting bolt-on solutions.
4
Common leading metrics and analytics to report upon and globally manage business performance, while driving return on investment value.
5
An automated, standardized, and centralized global approach put in place for indirect tax (VAT, SUT, and GST) that improved turnaround times for tax reporting; facilitated accurate tax calculation in each country, particularly in complex taxing regimes such as Brazil.
6
Global shared services framework including selection protocols and leading-practice vendor management.
Why KPMG?
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We know SAP S/4HANA-enabled business transformation
KPMG leverages the collective experience of over 2,400 SAP-trained professionals to help clients harness the capabilities of S/4HANA to enable their business transformations.
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Organizations need a business value, leading-practice perspective
We realize that in order for our clients to achieve true business value from their SAP S/4HANA investments, we need to help foster a transformational mindset and approach, as opposed to solely a technology implementation mindset.
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Gleaned from years of similar projects, KPMG brings a wealth of cross-industry insight to specialized business process challenges
Account-to-report (ATR), order-to-cash (OTC), plan-to-inventory (PTI), integrated business planning (IBP), and source-to-pay (STP), as well as tax, governance, risk, compliance, and controls including indirect/direct tax, global trade and customs, and operational transfer pricing (OTP), further round out our extensive business process and technology knowledge and experience, enabling even stronger business returns.
Meet our team
Charles Arnold
U.S. Lead, Procurement and Business Services, KPMG US
Charles Arnold
U.S. Lead, Procurement and Business Services, KPMG US