1. HEC Executive Education & Ecole des Mines ParisTech HEC Executive Education & Ecole des Mines ParisTech Friday, 26th April 2013 1 ©2013 Frédéric Pennerad

2. 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)"

3. “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

4. 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)"

5. Smart vehicles 5 ©2013 Frédéric Pennerad - "Examining convergence between IT and OT (pharma and biotech industries)"

6. Select iBall™ promises to change soccer refereeing 6 ©2013 Frédéric Pennerad - "Examining convergence between IT and OT (pharma and biotech industries)"

7. Smart medication 7©2013 Frédéric Pennerad - "Examining convergence between IT and OT (pharma and biotech industries)"

8. Smart surgery 8 ©2013 Frédéric Pennerad - "Examining convergence between IT and OT (pharma and biotech industries)"

9. Image aided surgery 9 ©2013 Frédéric Pennerad - "Examining convergence between IT and OT (pharma and biotech industries)"

10. 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)"

11. 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)"

12. 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)"

13. 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)"

14. 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)"

15. 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)"

16. Benefits justifications were identified through interview records 16 ©2013 Frédéric Pennerad - "Examining convergence between IT and OT (pharma and biotech industries)"

17. Leaders tends to “operationalize” investment justifications Top expectationRegulatory compliance Increased product and process knowledge Better risk management Operational costs reduction Increase in research and development productivity Lowest expectationIncrease in revenues Most frequentOperational costs reduction Increased product and process knowledge Increase in revenues Increase in research and development productivity Regulatory compliance Least frequentBetter risk management Strategic Operational 17 ©2013 Frédéric Pennerad - "Examining convergence between IT and OT (pharma and biotech industries)"

18. Focusing on strong operational benefits would secure the long term investment Operational benefits “The lever” Strategic benefits “The actual target” 18 ©2013 Frédéric Pennerad - "Examining convergence between IT and OT (pharma and biotech industries)"

19. 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

20. 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)"

21. 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

22. Operating procedures are fully traceable 22 ©2013 Frédéric Pennerad - "Examining convergence between IT and OT (pharma and biotech industries)"

23. 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)"

24. 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

25. 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)" PerceptionPerception

26. 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)"

27. 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)"

28. 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

29. 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)"

30. “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

31. HEC Executive Education & Ecole des Mines ParisTech HEC Executive Education & Ecole des Mines ParisTech Backup slides 31 ©2013 Frédéric Pennerad - "Examining convergence between IT and OT (pharma and biotech industries)"