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Life Sciences Industry Kickoff

Life Sciences Industry Kickoff

Bart Reitter, QAD Paul Spaulding, Sharp Packaging Services

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Life Sciences Industry Kickoff

Safe Harbor Statement

The following is intended to outline QAD’s general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QAD’s products remains at the sole discretion of QAD.

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Life Sciences Industry Kickoff

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Agenda

Introductions Industry Challenges Cloud Trends and Concerns Cloud Benefits Discussion Questions and Answers

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Life Sciences Industry Kickoff Every business process working at peak efficiency and perfectly aligned with your strategic goals An Effective Enterprise in the Life Sciences is: Patient Focused Compliant Innovative

Manufactures safe and effective products for patient care Complies with applicable global regulations and requirements Innovates to improve all aspects of their operations

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Industry Challenges

Life Sciences Industry Kickoff #QADexplore 5

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Life Sciences Industry Kickoff

16%

Cloud Adoption

14,3%

14% 12% 10% 8% 6% 4%

7,9%

2% 0%

Total ERP #QADexplore Cloud ERP 1/5 109%

The cloud software model will account for $1 of every $5 spent on software by 2016 Spend on Cloud ERP will more than double (increase by 109%) 2012-2017

6 ~50% 23% to 50% increasing

willingness to consider SaaS ERP 2009 - 2012 NETWORK.

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Life Sciences Industry Kickoff

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The Cloud is Ubiquitous

SMB and enterprises are moving to cloud Only 16% of enterprises still just watching cloud (from 32% in 2013)

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Life Sciences Industry Kickoff

Current Role of IT

PERFORMANCE IMPROVEMENT TECHNOLOGY ROADMAP INFRASTRUCTURE MANAGEMENT APPLICATION MANAGEMENT #QADexplore 8

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Core Competency

Cloud ERP allows Life Sciences organizations to focus resources on what they do best Core Competency IT Maintenance

Traditional Cloud Computing

Hardware Updates & Patches Licensing Costs

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Life Sciences Industry Kickoff

Simple

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To deploy (remote facilities) To add new users To validate To upgrade (when you want) To innovate

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Life Sciences Industry Kickoff

Flexible

Quality integration Internationalization (EOB GMP) Add new users to support M&A Flexible deployment options Use resources to innovate

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Life Sciences Industry Kickoff

Accessible

From anywhere in the world Developing nations High availability Flexible deployment options Use new resources to innovate

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Life Sciences Industry Kickoff

Low Risk

Built in security Secure data centers SSAE, HIPAA, FERPA, ISO, GMP Risk management Control over upgrades

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Predictable

Uptime Costs Support Service Ability to innovate

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Life Sciences Industry Kickoff

Life Sciences Concerns About the Cloud

Migration

Source: Challenges for Regulated Life Sciences Companies within the IaaS Cloud, 2014

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Life Sciences Industry Kickoff

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Life Sciences Concerns About the Cloud

Regulated organizations give up control Questions about security Uncertainty about data integrity Quality management system concerns Cloud solutions can’t be validated

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Life Sciences Industry Kickoff

Addressing Concerns About the Cloud

SSAE 16 SOC 1 Type 2 Certified ERP System Uptime Availability

99.5%

18 Regulatory Compliant SOPs

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The Wisdom of the Cloud

The value of cloud computing to a research-intensive industry like Life Sciences is that it can facilitate innovation  It provides a platform for collaboration and enables companies to concentrate on differentiating activities  Cloud computing is not just a more efficient way of purchasing computing power but a way of facilitating new

business models

 It enables users to engage with each other, operate and

innovate in smarter ways Source: The Wisdom of the Cloud, IBM Business Consulting #QADexplore 18

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Life Sciences Industry Kickoff

Sharp Packaging Services Perspective on Cloud

Life Sciences Industry Kickoff

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Sharp Packaging Services Background

A division of UDG Healthcare plc Global leader in contract packaging for pharmaceutical and biotechnology Operations Production Site - Conshohocken, PA Production Site and Automated Warehouse Allentown, PA Production Site – Heerenveen, Netherlands Production Site – Hamont-Achel, Belgium  ~250 employees

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Sharp Strategic Objectives

Utilize current capacity to > 70% Growth through value-added services Cold chain services and biologicals packaging Using extended supply chain services, become full service logistic service provider

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Sharp Cloud Vision

Concentrate on differentiating activities Use serialization to enable cold chain solutions and add value Redeploy key IT resources Drive greater operational efficiency

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Sharp Customer Challenges

   Sharp customers asking for better data collaboration Integration between their systems and QAD to have access to order information Status Material availability ASN triggers Link operational data with serialized data Combined reporting file is of value

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Sharp Customer Challenges

   Cold chain Time Out of Refrigeration (TOR) tracking is manual today Longest TOR exposure of a given pallet gets assigned to the whole batch 10 of 100 overexposed = scrap entire batch The ability to serialize and automate TOR tracking is of great value

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Serialization Detail

Serialize down to individual blister cavity with 2D barcodes Aim to get to 5 levels of serialization: Individual blister cavity 10 cavities 3 blister forming units 48 cartons in a case 24 cases on a pallet

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Sharp Challenge with QAD

Running QAD version 2007.1 (2012) Serialization unavailable Upgrade to make QAD “serial number aware” Upgrade discussion drove Cloud decision Concentrate on differentiating activities Redeploy key IT resources Drive greater operational efficiency

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Outcome and Cloud Benefits

Lift and Shift to QAD Cloud (2013)   Version 2007.1 moved to the Cloud Upgrade to EE2014 commenced (2014) July go-live IT team focused on customer value Enhanced reporting Differentiating capabilities    Track from issuance to finished goods for cold chain ASN reporting to customers Analysis of “mingled” operational and serial data

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Next Steps

Attend these related sessions  Tuesday  4:15-5:15 The Business Benefits of Cloud – Panel  4:15-5:15 Tracking and Product Genealogy Wednesday  11:00-12:00 Paths from On Premise to QAD Cloud ERP Stop by the Solutions Expo

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Life Sciences Industry Kickoff

Explore 2015 – Must See Presentation!

 The Challenge of the Lean Enterprise James Womack – Founder of The Lean Enterprise Institute  Author of “The Machine That Changed the World”  Author of “Lean Thinking, Lean Solutions and The Lean Turnaround” Tuesday, 1:30-2:30 Maryland Ballroom

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Questions and Answers

Bart Reitter: [email protected]

Paul Spaulding: [email protected]

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Life Sciences Industry Kickoff

www.qad.com

©QAD Inc. 2015

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