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Roche Laboratories (the U.S. operation
of Hoffman La Roche) had an initiative
to automate its pricing and contract
generation functions.
Business
Benefits:
This was to be done with the
goal of reducing contract turnaround
time, creating standardization
across product lines, and developing
more accurate analysis in the
contract generation phase. Due
to frequent changes in contracting
policies, Roche also required
the ability to have full control
over the behavior of the application
-- free from software developers.
Challenges:
Upon engagement, the pricing
and contracting process at Roche
was extremely fragmented. The
process was manually done through
complex spreadsheets that varied
across different product lines.
The complexities with the Roche
project surfaced from several
constraints. Roche had complex
rules and sophisticated analysis,
with frequent changes to policies.
Additionally they faced multiple
types of contracting entities,
each with different rules. The
business rules and intelligence
were to be centralized within
their pricing, contracting and
legal groups, but implemented
in the sales force. Additionally,
the contracting team had to
face compliance issues and maintain
control and standardization
over the contracts that were
delivered to the client,including
a complex workflow process in
order to approve different contracting
options. Above all, the application
had to be configurable from
a business owner through some
modeling environment, because
the policies and workflow could
potentially change from month
to month or week to week.
Outcome:
Core Concept business analysts
were called into action and
first went to work documenting
the current manual process.
The principal business problems
we faced were to capture the
business intelligence from their
contracting, pricing, and legal
departments. Following the initial
analysis, CCI professionals
worked in conjunction with decision
makers at Roche to refine their
processes for automation.
Given these steps, Core Concept implemented
a fully customized version of
Contract Prodigy™ (a module
of the Concert™ Suite) that
provided five fundamental functionalities:
-
Complex decision making for contract generation across multiple entities and product lines.
- Complex and configurable workflow that allowed significant offloading of reviews and approvals for straightforward contracts to the field based on the business intelligence. This meant that only complex and exception contracts needed the full attention of the corporate groups.
- Document generation which resulted in standardized pdf and html contracts that have already been approved by the legal team.
- Full integration with IMS and CARS (using the allowed for the contracts to be dynamically generated using data from IMS and uploaded into CARS automatically.
- Reporting functionality that allowed for close watch on contract activity and performance. Roche also required the reporting feature to be flexible, therefore the Ad Hoc reporting functionality was also incorporated to provide this flexibility.
The first version of the project
was successfully implemented
in 4 months. The full web based
version allowed analysis and
rules to be managed by the Roche
pricing group, reducing the
need for developers. Implementation
of the project resulted in a
significant improvement in contract
turn around time from 2-4 weeks
to 2-3 days, with over thousand
contracts fully generated by
the customized version of Contract
Prodigy™. This not only
resulted in improved turn around
for Roche, but also greater
accuracy of information when
generating contracts, contract
standardization, and an easy
implementation of contracting
policies that mitigated pricing
risks. All this was done through
the coordination of several
departments through a seamless
and easily configurable workflow.
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