Application of BI in pharmaceutical industry

Major applications of business intelligence
software in the pharmaceuticals industry
Business Intelligence and Pharmaceuticals

1. Introduction.............................................................................................................................2
2. The Pharmaceuticals Industry: R&D and Marketing Lead the Way.............................................2
3. Industry Factors Driving Business Intelligence Solutions at Pharmaceutical Companies............. 3
4. Applying Business Intelligence to the Needs of Pharmaceutical Companies ............................. 5
4.1. Marketing and Sales Analysis ........................................................................................... 5
4.2. Regulatory Compliance .................................................................................................... 6
4.3. Other Application Areas in the Pharmaceuticals Industry ............................................... 7
6. Pharmaceutical Organization Snapshots: AmerisourceBergen, AstraZeneca, ImpactRx,
Roche Pharma España ............................................................................................................ 8
7. Conclusion............................................................................................................................ 10

MICROSTRATEGY:BESTINBUSINESSINTELLIGENCE

Business Intelligence and PharmaceuticalsBusiness Intelligence and Pharmaceuticals
Major applications of business intelligence software
in the pharmaceuticals industry
With the increasingly competitive environment in the pharmaceuticals industry and the many challenges
the industry currently faces, pharmaceutical companies need to use all the tools at their disposal to operate
more efficiently and increase revenue. Working to keep up with an expanding drug market, pharmaceutical
companies need information management solutions that allow them to make better business decisions.
With such a far-reaching scope of functions and concerns in the pharmaceuticals industry, companies
handle immense amounts of information. It’s hard to keep track of important information and even to
know which information is valuable, and pharmaceutical companies need the tools to take advantage of
the myriad information at their disposal. The information technology available today allows pharmaceutical
companies to make better business decisions and to better target performance goals. MicroStrategy offers
the pharmaceuticals industry the business intelligence software to report on, analyze, and monitor the vast
amounts of data through a business intelligence architecture that helps companies reduce costs, increase
revenue, and maximize the value of information.
The Pharmaceuticals Industry: RD and
Marketing Lead the Way
Pharmaceutical companies need to keep up with their constantly changing industry to stay viable and
competitive. These companies face the challenge of not only developing new drugs, but also trying to lead the
market in the drugs they already manufacture. Scientific advances are allowing pharmaceutical companies to
develop new drugs for previously untreated conditions. In addition, the patents on many companies’ banner
drugs have already or are about to expire. As a result, pharmaceutical companies are now facing growing
competition from an expanding generic drug market, forcing them to implement strategies to compete with
generic drugs. At the same time, as their competitors’ patents are expiring, these same companies are rushing
to develop generic-brand drugs to compete with the brand names. The race to develop new drugs, compete
with generic drugs, and put forward their own generic drugs puts companies under incredible pressure to
focus efforts on the next big thing.
All these changes in the drug market are forcing pharmaceutical companies to increase their investments in
research and development and in their marketing efforts. However, RD costs have nearly doubled in the past
five years, making it even more important for these companies to streamline their costs and increase their profit
margins. Additionally, pharmaceutical companies are focusing their efforts on marketing directly to consumers
while still trying to drive increased physician adoption. The proliferation of generic drugs and of information
available to consumers through the Internet – as well as the pressure by insurance companies and HMOs to fill
prescriptions with generic drugs – is making it increasingly important for companies to target their marketing
strategies to strengthen consumer loyalty to the brand-name drugs that previously led the market. In fact, industry
estimates indicate that pharmaceutical companies are now spending more than twice as much on marketing and
administration than they are on research and development.
Pharmaceutical companies are responding to market pressures by joining forces—with each other and with biotech
companies. A large amount of merger activity in the pharmaceuticals industry is enabling companies to reduce costs

BusinessIntelligenceandPharmaceuticals

by integrating their manufacturing and RD infrastructures and by eliminating redundancies in their administration,
sales, and marketing functions. Many large drug companies are also joining forces with biotech companies by
forming research alliances, allowing them to take advantage of the biotech industry’s scientific advances and
expertise in drug delivery. Finally, the pharmaceuticals industry is increasingly outsourcing the manufacture of drugs,
thereby enabling greater allocation of funds to RD and marketing while also raising the stakes for ensuring the
quality of outsourced production.
As a result of all these mergers, alliances, and outsourcing initiatives, pharmaceutical companies are inheriting
a wealth of information on consumer and corporate activity, as well as new systems and networks that require
quality control. These companies are now dealing with overwhelming amounts of information from many
sources thrown together into one giant pool—a pool that’s becoming increasingly difficult to manage. All this
merger activity also gives companies the opportunity to greatly reduce overhead costs by integrating operational
processes. To make the most of this opportunity, these companies must identify areas where they can increase
efficiency and reduce redundancies, and they must figure out the most cost-effective ways to integrate their
RD and manufacturing infrastructures.
Amidst these scenarios, companies must also keep up with changing regulations and compliance issues.
Pharmaceutical companies face the challenges of simultaneously reducing costs, increasing revenue, improving
operational efficiencies, getting new products to market more quickly, lowering supply chain costs, driving brand
awareness and consumer loyalty, and meeting regulatory and security requirements.
Industry Factors Driving Business Intelligence
Solutions at Pharmaceutical Companies
To stay ahead of the competition, it is essential for pharmaceutical companies to be proactive in managing
and utilizing enterprise data. That’s where Business Intelligence comes in. Business Intelligence software gives
pharmaceutical companies the ability to analyze the vast amounts of information they already have to make
the best business decisions. The software allows these companies to tap into their huge databases and deliver
easy-to-comprehend insight to improve business performance and maintain regulatory compliance.
The applications of business intelligence in the pharmaceuticals industry are far-reaching. First, pharmaceutical
companies must manage large volumes of data from many sources, including their research and development,
marketing, sales, manufacturing, and distribution departments, as well as patient care and prescriptions.
MicroStrategy’s integrated architecture allows companies to easily pull and correlate vast amounts of information
from multiple sources, identify relationships among the information, and learn how different factors affect each
other and the company’s bottom line. MicroStrategy offers support for complex pharmaceutical data schemas,
characterized by their large number of elements, requiring a higher degree of analytical flexibility that only
MicroStrategy provides.
In addition, a pharmaceutical company will have many people in different locations with different skills who
need to use this information for varying purposes—everyone from executives who need high-level customized
summary data with drill-down capabilities to power users who need to create and design custom reports to
data analysts who must identify and communicate market trends. MicroStrategy offers a single, easy-to-use
Web interface that allows multiple users to access the information relevant to them. MicroStrategy’s intuitive
analytical capabilities allow different users to manipulate the data to glean the most from the information that


affects their decision making. MicroStrategy’s extensive reporting capabilities also enable multiple users to
easily run queries to meet rapid reporting requirements.
Finally, pharmaceutical companies must work to increase revenue while maintaining or reducing costs.
Business intelligence software allows these companies to analyze profit and loss, identify trends, monitor
pipeline information, and track the success of their marketing efforts. Companies can grow revenue by
increasing physician and consumer loyalty, speeding the time to market for new products, and maximizing
sales performance. At the same time, companies can reduce costs by monitoring the clinical trial process,
managing their supplier networks, and improving operational efficiency.
Pharmaceutical companies must strive to better serve their customers, increase profitability, and meet corporate
governance requirements while experiencing increasing amounts of data and changing user requirements.
MicroStrategy facilitates regulatory reporting, vigorous compliance and risk analysis, and monitoring of clinical
trial and other critical data for these companies. MicroStrategy’s Business Intelligence architecture simultaneously
accesses all this information, enabling analysis from many sources at once and providing the most thorough
and integrated reporting. MicroStrategy then presents this information in user-friendly reports, scorecards, and
dashboards and allows users to look at the information in different ways, offering the simplest and most useful
ways to analyze the information to get the desired results—business strategies that increase profits.


Applying Business Intelligence to the Needs of
Pharmaceutical Companies
Pharmaceutical companies can use business intelligence in many ways, creating smart business solutions across the
myriad challenges in the pharmaceuticals industry.
Marketing and sales analysis
With huge expenditures in their marketing efforts, pharmaceutical companies must closely track sales performance
and consumer behavior to better target their marketing strategies and ensure the proper allocation of marketing
funds. MicroStrategy’s BI platform allows companies to identify which products are most profitable, monitor
consumer behavior in terms of prescription renewal and product purchases, track the success of marketing
campaigns, and analyze profitability by product, customer, geographical area, or other factors.
Relevant KPIs:
Sample Report :
Drug Market Share Analysis
As part of their ongoing analysis of the market and the competitive landscape of the industry, pharmaceutical
companies will regularly track the market share of individual drugs and drug groups. As the above report shows,
extra focus is applied to how the market share or number of prescriptions has changed period to period, showing
changes and possible trends in the market.
• Demographic analysis
• Customer Segmentation
• Campaign Analysis
• Payer Analysis
• Prescriber Analysis
• Sales Force Analysis
• Sales Force Support
• Detailing Analysis
• Samples Analysis
• Factory Sales
• Market Share Analysis
• Competitive Market Analysis
Month Area Region
Drug
Group
Product Metrics
Drug
Market
Share
% Change
in Drug
Market
Share
Avg Number
Prescriptions
per
Prescriber
% Change in
Avg Number
Prescriptions
per Prescriber
2006-03 USA West
Liboofarins
Peroxeral 73.00% 1.25% 24 2.40%
2006-03 USA West Tribuferinol 64.43% -3.43% 13 -8.00%
2006-03 USA West Subliminarin 19.02% -25.45% 2 -60.70%
2006-03 USA West Alutriflourinide 48.52% 4.50% 28 13.48%
2006-03 USA West Dichlorooxine 62.09% 56.00% 24 24.54%
2006-03 USA West Methylflourinide 24.10% 13.45% 29 41.23%
2006-03 USA West
Sartropans
Trisargorin 84.56% 14.50% 54 9.30%
2006-03 USA West Sarlipinide 11.45% -57.23% 6 -72.43%
2006-03 USA West Luoxx 45.68% 2.40% 24 9.45%


Regulatory compliance
Pharmaceutical companies have extensive security and reporting requirements, necessitating repeated and reliable
collection and presentation of information. MicroStrategy’s analytical and reporting capabilities allow companies to
gather and integrate information from across the enterprise and present it in easy-to-run and easy-to-understand
reports. In addition, MicroStrategy’s bullet-proof security protects sensitive corporate and customer information as
required by law.
Relevant KPIs:
Sample Report :
Scorecard of Bill Compliance
Pharmaceutical companies, in addition to being in compliance regarding drug testing and health certification,
must also comply with often rigid insurance and government standards for payment and billing. The above
dashboard is an example of a tracking dashboard focused on bills received and those that needed to be
converted for compliance.
# Bills
Received
# Bills
qualified
# Bills
converted
conversion
effectiveness
# Unique bills
received
# Unique bills
qualified
# Unique bills
converted
unique
conversion
effectivness
Direct
Compliance
5,970 841 329 39.12% 2,156 586 288 49.15%
Direct RX 21,547 13,184 1,859 14.10% 7,970 5,764 929 16.12%
• Government Drug Standards
• US FDA Standards
• Clinical Trials Reporting
• Insurance Billing Compliance
• Government Payment Compliance
• Internal Reporting Compliance
• Clinical Trials Fast Track
• Drug Compliance Limits

39.12% 14.10% 49.15% 16.12%
DIRECT COMPLIANCE
CONVERSION EFFECTIVNESS
DIRECT RX CONVERSION
EFFECTIVNESS
DIRECT COMPLIANCE
UNIQUE CONVERSION
EFFECTIVNESS
DIRECT RX UNIQUE
CONVERSION EFFECTIVNESS
0%
10%
20%
30%
40% 50%
60%
70%
80%
90%
100% 0%
10%
20%
30%
40% 50%
60%
70%
80%
90%
100% 0%
10%
20%
30%
40% 50%
60%
70%
80%
90%
100% 0%
10%
20%
30%
40% 50%
60%
70%
80%
90%
100%


Other Application areas in the Pharmaceuticals
Industry where Business Intelligence enables
enhanced competitive standing:
Clinical data analysis
With intense pressure to speed products to market while keeping costs down, pharmaceutical companies must
monitor and effectively manage the clinical data process. MicroStrategy’s in-depth analytical capabilities enable
companies to track the large amounts of information stemming from clinical trials, identify the most efficient practices,
and optimize resource allocation. By integrating data from multiple sources, MicroStrategy also helps companies
identify trends and anomalies and analyze risk during product development and launch.
Financial analysis
Closely monitoring financial performance is essential for pharmaceutical companies to maintain costs and create
effective budgets. MicroStrategy’s BI platform integrates both financial and operational information, enabling companies
to monitor and forecast financial performance and produce statutory financial reports from the same platform that
enables clinical data and quality control analyses.
Operational analysis
To increase profit margins, pharmaceutical companies must monitor huge amounts of information from across the
enterprise and turn it into useful, actionable knowledge. MicroStrategy enables companies to track their supplier
networks, inventory stocks, product quality, and production levels. In addition, MicroStrategy’s ability to simultaneously
analyze information from multiple sources allows companies to monitor costs and operational efficiency across the
enterprise, examine employee productivity, and allocate resources more effectively.


pharmaceutical organization snapshots
Reducing Administrative Costs at AmerisourceBergen
AmerisourceBergen, one of the largest pharmaceutical services companies in the U.S., uses MicroStrategy to support its
Enterprise Business Intelligence program, which provides reporting and analytics for multiple areas across its enterprise.
Using MicroStrategy’s technology, thousands of users perform reporting and information analysis related to sales,
suppliers, customers, supply chain management, finance, and other critical areas. MicroStrategy was selected for its
ability to handle large database environments and provide real-time analytics.
“With MicroStrategy, we will have a true enterprise view across our value chain, providing management with
greater operational insights and actionable data to help us more effectively navigate through our dynamic industry.
We have been highly productive using MicroStrategy for several years and found MicroStrategy’s single metadata
and object reuse has reduced our administrative costs. MicroStrategy is a natural fit for our analytic reporting
environment at the enterprise level.”
High-Volume Reporting at AstraZeneca
London-based AstraZeneca is using MicroStrategy to report on and analyze data in its sales prescriber data warehouse.
Approximately 250 employees use MicroStrategy’s Web-based analytical tools to determine market share, easily explore
cost and profit data, and track the performance of new products. As a result, employees are making more effective
business decisions that increase sales and drive market share gains.
The global pharmaceutical company uses the MicroStrategy platform to distribute 70,000 reports within a 24-hour
window each month. AstraZeneca employees can pull up reports through a sales force portal or run queries, with
20-second average response times, against a one-terabyte Oracle data warehouse. As a result, end users can view critical
pharmaceutical sales information in a matter of seconds and quickly make decisions that seek to optimize market share
with a particular HMO or prescription benefit management organization.
“MicroStrategy business intelligence gives us a better understanding of the market and helps us meet expected market
share goals for our products. In addition, the performance and scalability of our MicroStrategy-based application is
remarkable, allowing our users to be more productive and efficient.”



Enhanced Data Analysis and Reporting at ImpactRx
ImpactRx, a leading provider of market and sales force effectiveness insight to the pharmaceutical industry,
has selected MicroStrategy for reporting and analysis of pharmaceutical data for top drug companies and Wall
Street firms. ImpactRx account service analysts use MicroStrategy as a reporting and analysis tool to enhance
the quality of data they provide to customers. The analysts tap into the data warehouse using MicroStrategy
to ensure quality control of data and to improve turnaround time on special information requests. ImpactRx
selected MicroStrategy for its ability to handle large, complex analytical models and its product suite integration.
“We evaluated other business intelligence products, including Business Objects and Cognos, and we chose
MicroStrategy because of its advanced technology, integrated platform, and data scalability. ImpactRx delivers
timely, accurate, and sensitive market intelligence data to the pharmaceutical industry, and MicroStrategy
enables us to work more efficiently and to promptly respond to customers’ complex data requests with
improved data quality and consistency.”
Widespread Information Distribution at Roche
Pharma España
Roche Pharma España selected MicroStrategy to deliver mission-critical information on sales and profitability
to employees every day. A wide range of employees—including sales, marketing, production, and credit and
collections personnel—are using MicroStrategy technology to perform intuitive query and reporting analyses
against a SQL Server data warehouse. The solution provides Roche end users with needed sales analysis, statistical
information, and financial reports to more effectively manage debt. Roche Pharma España is also relying on the
MicroStrategy platform to proactively deliver personalized information to its employees and sales force.
“Roche Pharma España was able to easily develop and deploy three business intelligence applications on the
MicroStrategy platform in record time, and we expect to deploy additional BI applications in the coming
months. The MicroStrategy platform offers Web-based query and reporting capabilities, intuitive and rapid
access to critical information, and personalizes and distributes relevant information to all of our employees.
The company’s outstanding services and its commitment to perfecting its platform are additional reasons
we chose to work with MicroStrategy.”

10
MicroStrategy: The Choice of Leading
Pharmaceutical Companies
At MicroStrategy, we are fully dedicated to helping pharmaceutical companies stay competitive in a challenging
industry. We believe that business intelligence properly applied to corporate data provides pharmaceutical companies
with the insight they need to increase revenue, reduce costs, and comply with industry regulations and standards.
Today, nine of the top ten global pharmaceutical companies rely on MicroStrategy’s business intelligence
architecture for their reporting, analysis, and monitoring of corporate data. MicroStrategy’s BI platform offers
pharmaceutical companies far-reaching opportunities for ever-expanding business intelligence. Whether starting
with one or several applications, pharmaceutical companies can evolve to utilize MicroStrategy’s unique
capabilities: a unified Web interface with access for thousands of users, reporting and analysis of tremendous
amounts of data across multiple sources, graphical dashboards and boardroom-quality reports, unconstrained
analytical flexibility, and industry-leading security.
With the increasing challenges the pharmaceuticals industry is facing, pharmaceutical companies need to stay one
step ahead of the competition. MicroStrategy equips companies with the software platform they need to make the
best use of the vast amounts of information available to them, allowing them to operate more efficiently and increase
revenue. At MicroStrategy, we are committed to helping your company increase its competitive advantage by devising
smart business solutions and making better business decisions every day.

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Application of BI in pharmaceutical industry

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