Tag Archives: AMR Research
A few months ago we blogged about how so many state-level governments are adopting legislation limiting or mandating disclosure of payments to physicians. This spend compliance is now top of mind for many pharmaceutical and medical device companies.
With their physician data spread across the enterprise among accounts payable, expense reporting, ERP, and CTMS systems, it is no wonder that many companies are struggling to conform to the ever stricter reporting requirements differing from state to state.
Not surprisingly, many are turning to Master Data Management as a way of gaining a unified view of physician data across these disparate sources. Many are also discovering that multidomain MDM solutions not only improve compliance but lead to increased sales. Through a single MDM hub they are now able to manage and track critical product master data elements, such as drugs, devices in addition to physician data, and the added quality, accuracy and relationships they uncover has allowed them to optimize and improve their business processes and resulting sales.
This intriguing topic certainly deserves more attention than our simple blog post. Which is why we are delighted to say that on September 24th, there will be a webinar panel moderated by William Looney of Pharmaceutical Executive magazine. Featured panelists will include:
• Hussain A. Mooraj, Vice President, Healthcare & Life Sciences, AMR Research, Inc.
• Anurag Wadehra, Sr. Vice President of Marketing & Product Management, Siperian
• Dan Goldsmith, Partner, IBM GBS
• David J. Eiben, Director, Business IS Consulting – PM Compliance, Boehringer Ingelheim Pharmaceuticals, Inc.
The event is free and anyone can register at www.Pharmexec.com/valuable.
In my previous post, I cited a recent AMR Research report, Trade Promotions: Are You Getting What You Pay For?, to make the point that business-as-usual is no longer adequate when it comes to CPG industry trade promotion efforts. What decision-makers are realizing is that the key to managing TPM programs in a more cost-effective and profitable way lies not in systems, but in the data itself. Indeed, what good are analytics if your data is incomplete, inaccurate, outdated, duplicated, and unrelated? In business terms, if you’re going to make the right decisions on which promotions to run next year, you need to be able to trust the data from last year’s reports.
Clearly the way forward lies in integrated data. The most effective way for sales and marketing executives to decide which programs to run is by identifying the correlation between sales results and aggregated information from previous trade promotion initiatives (including pricing, brand and demand metrics, plus competitive analysis from third party vendors, e.g., IRI & ACNielsen). Likewise, accurate insight into past performance helps enormously in predicting future trends and maximizing results. If you can recognize, relate, and resolve customer and product data across distributed systems, then improved sales planning and demand forecasting becomes possible. With the right framework, trade promotions can be analyzed across the full value chain.
For CPG companies that “right framework” is a master data management implementation. Master data management (MDM), long recognized a strategic business driver, enables organizations to unify and consolidate data about their customers, brands, pricing, and their distribution networks. MDM is particularly effective at integrating data that is fragmented across different systems and offline tools such as TPM, ERP, planning, CRM, financial systems, and yes, ad hoc spreadsheet files.
Additionally, MDM is effective for consolidating information from external data providers, such as IRI, TDLinx, and ACNielsen. Reconciling internal and external information from the field into a single repository for analysis improves decision-making and facilitates tracking of promotions across all functional areas. Through the creation of a centralized master data hub, CPG organizations can deliver the most reliable, complete views of key business data within their existing business processes and, more importantly, leverage these data assets within analytical business processes to improve trade promotion efforts. Return on investment in trade promotion is notoriously weak, with AMP reporting that fewer than 30 percent of trade promotion programs are profitable. CPG companies adopting MDM solutions can dramatically improve their TPM success rates because MDM drives boosts trade promotion effectiveness in concrete ways:
• Accurate customer data improves performance within operational systems and legacy applications for better planning, tracking, and measuring.
• Clearer visibility into a unified distribution network improves supply and demand efficiencies.
• Cleansed, consolidated customer master data helps improve demand planning, forecasting, and account management, which in turn lowers invoice disputes, write-offs, order defects, and returned shipments.