Independent research commissioned by Genpact shows operating leaders' focus on compliance, transformation challenges, versatile value of shared organizational structures, and selectively strong impact of technology
Genpact Limited (NYSE: G), a global leader in designing, transforming, and running intelligent business process operations, has released the life sciences industry findings excerpted from its survey of 920 senior executives. These life sciences insights come from 233 senior executives in the life sciences industry and primarily based on the responses of 120 respondents engaged in R&D and 69 in commercial operations, respectively. The majority of these executives come from large companies with North American operations with more than 10,000 employees.
This global study reveals how senior leaders across industries are prioritizing key operational initiatives to materially address the critical challenges that their companies face. While 72% of executives surveyed see regulatory compliance as a top challenge in an environment of increased government scrutiny, cost reduction, innovation and growth are also among the top priorities for life sciences companies.
Most R&D and commercial operations executives see compliance as the top challenges but R&D executives are more focused on innovation while commercial operations executives consider growth more often as a top challenge. One-third of R&D organizations are not fully prepared to evolve functions further; among commercial operations, multi-channel marketing, CRM is least mature and prepared to evolve. Compliance is regarded as important but has the least impact on broad strategic challenges among commercial operations and R&D functions.
Three levers of operating model transformation came into focus: technology, process reengineering, and advanced organizational structures such as shared services and outsourcing are material levers that many use and generate significant positive impact in life sciences operations. Both R&D and commercial operations executives see advanced organizational structures as more broadly applicable, but technology can generate greater dollar impact where appropriate. The respondents estimated that these advanced operating models have the potential to generate $1 billion dollars in positive dollar impact annually, comprising $600 million for commercial operations and $400 million for R&D operations.
"Regulatory compliance continues to be an important focus area for life sciences as is innovation and growth," said BK Kalra, senior vice president and business leader, Life Sciences, Genpact. "To solve both sides of the equation, life sciences executives, whether on the commercial operations or R&D or finance sides of the business, are increasingly recognizing the value of advanced operating models that use technology and combines it with shared organizational models to address these priorities."
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