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Winner
Real-time data capture at Allergan
Companies often speak of empowering the lower rung of employees.
Allergan India has implemented a system to do just that. While the focus is
on presenting real time field information to field personnel, the company enables
its medical representatives to access data that helps them do better and hence
improve the companys business
For
any pharmaceutical company, the percentage of doctors that the medical representatives
cover is directly proportional to the business generated by that territory.
Allergan is a speciality pharmaceutical company and ophthalmologists are their
audience. Their current estimates show that there are over 12,000 opthalmologists
across the country. Our business requirement here was to reach this entire
population with the minimum number of representatives who were extensively trained
and certified says K.T. Rajan, Director, Operations, Information Systems
and Projects, Allergan India.
Allergan classifies doctors by their prescription potential. They
wanted to ensure that they dont miss out on any A or B class ones. The
med-reps will met the class As more often than the class Bs,
the class Bs, more often than class Cs and so on,
clarifies Rajan.
There was a cross-functional team formed covering various faculties of the organisations.
This team looked at the vital needs and developed the scope of the initiate.
These field personnel reviewed and committed to the proposed solution. The management
team approved the final specification.
A broad category of needs was identified for this initiative. Firstly, the aim
was to offer online and real time field information on daily basis. They also
wanted to track the quality and accuracy of data gathered from the nation wide
physicians who were catered to by a sales force of over 180 field personnel.
They wanted to increase the productivity by making use of the slack time between
doctor calls.
TVS-E Chennai, who also took care of the server administration and troubleshooting,
developed the software. Allergans IT team framed the functional specifications,
trained field personnel, did the implementation and the software administration.
| Tool |
Description |
| Mobile devices |
Tungsten E2, CDMA Mobile Phone with interface cable
for data connectivity |
| Database |
Oracle 8i |
| Front-end |
Internet Explorer 6 |
| OS |
Windows 2000 |
| Custom-developed software |
Menu driver software on Palm (Developed by TVS-E,
Chennai) |
Key Objectives
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There are over 12,000 opthalmologists
across the country. Allergans business requirement was to reach
this entire population with the minimum number of representatives
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Allergan wanted to enhance customer coverage, as they felt
that the percentage of doctors covered is directly proportional to a territorys
productivity. They also felt that with rising competition, being able to meet
more doctors meant more prescriptions and hence more business. Another objective
was to call on core customers more frequently, since 100 percent coverage of
A class doctors would assure 80 percent of business. Finally, the
company aimed to capture a doctors perception of its molecules and products
during the short period of interaction (normally a few minutes) that a salesperson
has with a doctor. This drives its R&D and product promotions.
Apart from these, the company wanted to capture a doctors perception of
products offered to him by its competitors and suitably redesign its own offerings.
- From a business point of view, I feel they would
be able to use this solution for business forecasting.
- Since the reps are empowered with real time
information, the PDAs, could be used as terminals to allow chemists
to place orders.
Views of Jury Member,
Sandeep Phanasgaonkar, President and Chief Technology Officer, Reliance
Capital
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The process
Initially they started by implementing a pilot program that
involved 12 medical representatives. The chosen few were those who were experienced
and who were well versed with the working of the company. Due to their immense
experience with fieldwork, these reps knew exactly what the doctors would want
and also had a good idea of the needs of the representatives. Leveraging the
requirements of both parties, Allergan came up with an initiative that would
be profitable to both. Everyone has inhibitions about new technology,
says Sridhar Ranganathan, Divisional Sales Manager, Allergan India.
A dozen people worked for six months on the pilot. All kinds of loopholes and
problems were spotted and the initiative was deployed only across the four southern
states to begin with. Later it was rolled out across the country. Allergan conducted
a one and half day launch program out of which a whole day was dedicated to
training medical representatives who were asked to bring along real time data
that they had accumulated from continuous meetings with doctors and a live demonstration
of the solution was given.
A person from the development team accompanied certain reps to the field to
train them in using the system and helped them better understand its workings.
| Allergan Inc with headquarters in Irvine, California,
is a global corporation devoted to continuous innovation in Specialty pharmaceuticals.
Their research based product range includes eye care, neuromuscular, skin
care and other speciality therapeutic areas.
Based in Bangalore, Allergan India Ltd. commenced operations
in 1996 and it has around 250 employees. A joint venture of Allergan Inc.
and Nicholas Piramal (I) Ltd. the company has a nation-wide distribution
channel supplying eye care related pharmaceutical, surgical and optical
products. The pharmaceutical products are manufactured in India while
the rest are imported from overseas plants.
Allergan India has manufacturing arrangements with NPIL
to source its eye care pharmaceutical product range. In addition to its
focus areas of eye care pharmaceuticals, Allergan India currently also
handles the distribution and marketing of eye care surgical and lens care
products through a distribution arrangement with AMO Inc.
Allergan's Indian operation guides operations in Sri
Lanka, Bangladesh, Pakistan and Nepal.
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Benefits
Examining the business users perspective would give a clearer view of
the aftermath of the implementation. Ranganathan seems satisfied with the returns
that this initiative has provided.
To track the returns from this initiative, exactly a year after its implementation,
a detailed study of each product viz. the sales progress was conducted. This
study revealed that in those territories where a detailed description of the
project was given to doctors sales were better. Another factor that impaired
the provision of better service was the fact that each medical representative
had over 10-12 doctors to deal with. Understanding the specific needs of the
doctors helped reps sell the right kind of product to doctors enhancing sales.
Another benefit of this implementation was that it helped managers track continuity.
Reps will have to report back after they meet with the doctors. This would
help managers keep track of how each sales rep is performing, says Ranganathan.
| Company Name |
Allergan India |
| Initiative |
Sales force automation to provide field
personnel with a better view of relevant data and analysis. |
| Project started |
January 2006 |
| Investment |
Rs 50 lakh |
| Objective |
- Improve customer coverage
- Enhance frequency of coverage
- Call on core customers more frequently
- Improve customers' perceptions of Allergan's products
- Get precise information on a customer's perceptions of the competition
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| Challenges faced |
- Connectivity from some remote areas was a problem.
Reliable cellular communication was not available, hence online data
upload caused a few snags
- PDAs were unable to withstand the hot and dusty environments in some
locations
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| Major benefits |
- The company earned its RoI in less than six months
- Increase in the number of doctors called upon by a salesman per day
- Proportionate increase in overall sales, which in absolute figures
is Rs 7.2 crore per year. The contribution margin on increased sales
works out to Rs 1.44 crore per year
- The reduction in expenses in percentage terms is 13.33 per year;
in absolute figures it works out to Rs 96 lakhs per year
- Over the next three years, this initiative is expected to reduce
costs by Rs 3.4 crore and boost the company's bottom-line by Rs 1.98
crore
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Challenges
The software developed had to be menu driven and simple to learn and use. The
hardware needed to be rugged and robust to withstand the rustic field conditions
in which it would be put to use. Allergan had to ensure countrywide connectivity
for timely data transfer. Also, the solution had to offer extensive analysis,
provide quick query facilities and enable flexible reporting. Connectivity
from some remote areas was a problem as reliable cellular communication was
unavailable. Hence online data upload caused a few snags. Apart from this, PDAs
were unable to withstand the heat and dust at some locations, says Rajan.
Highlight of the project
This project has ensured better connectivity. Earlier, capturing vital information
on transactions that occur in a doctors chamber took seven to ten days
and only partial information was available. Now it is captured in its entirety
in near real-time.
Earlier medical reps were unable to connect to their supervisors and the head-office
in real time. This project solved the problem by providing details of a territory
to the concerned sales rep on his PDA.
This deployment allowed online, near real time information dissemination and
permitted high quality, precise and accurate information capture at the point
where it is generated. It helped reduce the reporting time of the sales force,
increasing productivity in the process. Allergan is now in a position to organise
and manage its territories and fieldwork and precisely organise current and
historic data for rapid access. This initiative allowed for quick decision-making.
Roadmap
Sandeep Phanasgaonkar, President and Chief Technology Officer, Reliance Capital,
who was a member of the Intelligent Enterprise Award jury says, There
is nothing more that I can comment on this initiative from the IT perspective.
However, from a business point of view, I feel they would be able to use this
solution for business forecasting. Also, since the reps are empowered with real
time information, the PDAs, could be used as terminals to allow chemists to
place orders. Having said that, I think it would depend upon their processes
and plan of action and the working of the pharmaceutical industry. From the
IT perspective, and from a standpoint of an Intelligent Enterprise, it seems
complete.
Allergan plans to integrate this PDA system with its supply chain management
system to provide a seamless integrated information flow from the factory to
the field. It also plans to push secondary sales data from distributors to the
field forces PDAs. The use of Bluetooth or Infrared for syncing data from
the PDA is also on the anvil.
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