Friday, 26th April 2013

HEC Executive Education &
Ecole

des Mines
ParisTech




Friday, 26th April 2013

1

©2013
Frédéric

Pennerad


Information and
Operational

technologies
were

used

all
along

our

journey

to Paris

2

©2013
Frédéric

Pennerad

-

"Examining convergence between IT and OT (
pharma

and biotech industries)"

“Examining convergence
between

Information
and Operational Technologies
:

Benefits
and challenges

for
pharmaceutical and biotechnology industries
”

Professional thesis


Executive
Mastère

Spécialisé

(EMS)
-

Technologies
and Information System management (MSIT
)

Frédéric

Pennerad

–

Class of
2013


HEC Executive Education &
Ecole

des Mines
ParisTech


3

©2013
Frédéric

Pennerad


Smart applications
resulting

from

the convergence
can

be

found

everywhere


Transportation


Military

and armement


Healthcare


Drug
industry


Sport and
entertainment


Energy


Manufacturing


Retailing

4

©2013
Frédéric

Pennerad

-

"Examining convergence between IT and OT (
pharma

and biotech industries)"

Smart
vehicles


5

©2013
Frédéric

Pennerad

-

"Examining convergence between IT and OT (
pharma

and biotech industries)"

Select
iBall
™ promises to change
soccer
refereeing


6

©2013
Frédéric

Pennerad

-

"Examining convergence between IT and OT (
pharma

and biotech industries)"

Smart
medication


7

©2013
Frédéric

Pennerad

-

"Examining convergence between IT and OT (
pharma

and biotech industries)"

Smart
surgery


8

©2013
Frédéric

Pennerad

-

"Examining convergence between IT and OT (
pharma

and biotech industries)"

Image
aided

surgery


9

©2013
Frédéric

Pennerad

-

"Examining convergence between IT and OT (
pharma

and biotech industries)"

The
surgery

room of the future


http://www.ircad.fr/ihu/

10

©2013
Frédéric

Pennerad

-

"Examining convergence between IT and OT (
pharma

and biotech industries)"

Convergence between IT and OT
aggregates many other trends

IoT

M2M

Cloud

Smart

11

©2013
Frédéric

Pennerad

-

"Examining convergence between IT and OT (
pharma

and biotech industries)"

Waves

of IT
investment

follow

a 2
-
stages
model
(
Forrester

research
, 2012)

Average

CAGR

between

+5% and +10%

Average

CAGR

below

+ 1.5% or
negative

Innovation
and

growth

Refinement

and
digestion

12

©2013
Frédéric

Pennerad

-

"Examining convergence between IT and OT (
pharma

and biotech industries)"

IT/OT convergence
is

the new
wave

of
technological

innovation and
growth

“Smart computing is the new wave of tech innovation and growth”

(Figure sourced from (Forrester Research, 2012), reproduced with authorization)

13

©2013
Frédéric

Pennerad

-

"Examining convergence between IT and OT (
pharma

and biotech industries)"

Life
-
science industry is careful about
risks generated by changes

Risks

Benefits

14

©2013
Frédéric

Pennerad

-

"Examining convergence between IT and OT (
pharma

and biotech industries)"

Our panel is representative of the top
pharma

and biotech industries

15

©2013
Frédéric

Pennerad

-

"Examining convergence between IT and OT (
pharma

and biotech industries)"

Benefits justifications were identified
through interview records

Identify

Categorize

Group

Count

Compare

16

©2013 Frédéric Pennerad
-

"Examining convergence between IT and OT (pharma and biotech industries)"

Leaders tends to “
operationalize
”
investment justifications

Top expectation

Regulatory compliance

Increased product and process knowledge

Better risk management

Operational costs reduction

Increase in research and development productivity

Lowest expectation

Increase in revenues

Most frequent

Operational costs reduction

Increased product and process knowledge

Increase in revenues

Increase in research and development productivity

Regulatory compliance

Least frequent

Better risk management

Strategic

Operational

17

©2013
Frédéric

Pennerad

-

"Examining convergence between IT and OT (
pharma

and biotech industries)"

Focusing on strong operational
benefits would secure the long term
investment

Identifica
t
-
ion

Creation

Realizat
-
ion

IT value

Operational benefits

“The lever”

Strategic benefits

“The actual
target”

18

©2013
Frédéric

Pennerad

-

"Examining convergence between IT and OT (
pharma

and biotech industries)"

Technological convergence increases
applications value

Highest
value

Electronic
procedures

Electronic
batch
records

ISA
-
88

ISA
-
95

Ethernet

Proprietary
protocols

Data
acquisition

Data
collection

Data
exchange

PC

Panel PC

Thin client

Tablets

Electronic
work
instructions

Electronic
operational
notebooks

19

©2013
Frédéric

Pennerad

-

"Examining convergence between IT and OT (
pharma

and biotech industries)"

Event driven
process

Industrial
ethernet

Predictive
control

Industrial
wireless
standards

ISA
-
101

Review by
exception

ISA
-
99

A few
examples

of new applications


Tomography


Model
predictive

control


Electronic

operating
procedures


Product
serialization


Medication

personalization


20

©2013
Frédéric

Pennerad

-

"Examining convergence between IT and OT (
pharma

and biotech industries)"

Product
quality

can

be

controlled

without

process

disruption


21

©2013
Frédéric

Pennerad

-

"Examining convergence between IT and OT (
pharma

and biotech industries)"

Online
product

inspection
without

loss

Predictive

control

Operating
procedures

are
fully

traceable

22

©2013
Frédéric

Pennerad

-

"Examining convergence between IT and OT (
pharma

and biotech industries)"

Products

are
tracked

at

the single
commercial unit


Product
serialization

100%
product

control

23

©2013
Frédéric

Pennerad

-

"Examining convergence between IT and OT (
pharma

and biotech industries)"

Best
medications

are
selected

for
each

individual

case

24

©2013
Frédéric

Pennerad

-

"Examining convergence between IT and OT (
pharma

and biotech industries)"

Genetic

assessment

Personal

monitoring

The perception of the
boundary

of
IT/OT
evolves

with

integration

experience

25

©2013
Frédéric

Pennerad

-

"Examining convergence between IT and OT (
pharma

and biotech industries)"

S
t
r
a
t
e
g
y

P
e
r
c
e
p
t

i
o
n

Pharma

and
Biotechs

could leverage
current trends

Cloud
Computing

Smart
Computing

BYOD

Shadow

IT

Internet
Of
Things

Big

data

26

©2013
Frédéric

Pennerad

-

"Examining convergence between IT and OT (
pharma

and biotech industries)"

3
factors

for
successful

adoption
(
Forrester

Research
, 2012)

Reduction

in
features

cost

Inter
-
operability

Rich

User
Experience

27

©2013
Frédéric

Pennerad

-

"Examining convergence between IT and OT (
pharma

and biotech industries)"

Organizations needs to develop new skill
sets to maximize benefits get from IT/OT
convergence

IT/OT
Convergence

Officer

CIO skills

•
Application development

•
Middleware

•
IT Infrastructures

•
Portal
development

•
Logical

security

New
skills

•
User experience

•
Portfolio management

•
Program management

•
Ecosystem/Service centered
architecture design

•
Agile development process

CTO skills

•
Hardware engineering

•
Embedded software

•
Operational process
understanding

•
Product/Process engineering

•
Safety

28

©2013 Frédéric Pennerad
-

"Examining convergence between IT and OT (pharma and biotech industries)"

Adapted

from
:
Forrester

Research

and Gartner

Take

away


Convergence between IT and OT is a fundamental trend,
already delivering value
accross

all business sectors


Convergence between IT and OT is accelerating, supported
by other well
-
know IT trends


This convergence is the new wave of innovation and growth
(Forrester research, 2012)


Leaders tends to secure long
-
term investments with strong
operational benefits


New applications resulting from the convergence have a huge
benefit potential but organization need to properly manage
cost, user experience and interoperability


Development of new skill sets will support efficient
management of IT/OT convergence and development of
organizations’ vision

29

©2013
Frédéric

Pennerad

-

"Examining convergence between IT and OT (
pharma

and biotech industries)"

“Examining convergence
between

Information
and Operational Technologies
:

Benefits
and challenges

for
pharmaceutical and biotechnology industries
”

Professional thesis


Executive
Mastère

Spécialisé

(EMS)
-

Technologies
and Information System management (MSIT
)

Frédéric

Pennerad

–

Class of
2013


HEC Executive Education &
Ecole

des Mines
ParisTech


30

©2013
Frédéric

Pennerad


HEC Executive Education &
Ecole

des Mines
ParisTech




Backup
slides

31

©2013
Frédéric

Pennerad

-

"Examining convergence between IT and OT (
pharma

and biotech industries)"