Insights

Transformation through Technology and Advanced Analytics

Business Issue


 

  Medtech companies have always known the challenge of dealing with government regulations and cost pressures. In 2013, when the federal government reduced the level of reimbursement for Medicare-subsidized devices, many companies had to quickly react. Companies needed to find ways to cut costs, many worked to increase efficiencies and restructure their teams.

For commercial organizations especially, restructuring the organization can be a significant challenge. Sometimes the process can open up gaps that affect their ability to carry out their core functions: managing commercial data for analytics, providing actionable insights and/or executing sales planning and compensation administration. When also looking to improve efficiencies overall, the entire initiative can seem daunting.

The Problem


A leading medical manufacturer for home and clinical use responded to severe cost pressures after the federal government reduced Medicare subsidies. The manufacturer restructured its commercial operations organization, with a goal of creating greater operational and economic efficiencies.

Changes to the commercial team however, revealed gaps in business processes, ranging from compensation administration to data analytics. The company knew additional changes were needed to increase the efficiency and quality of its commercial team.

At the same time, the company realized that its legacy data solution was limiting its ability to add and analyze new data sources, which in turn made it harder to deliver up-to-date, accurate information to its managers and sales force. It also realized that – to stay competitive – it needed to update the business processes and data analytics it employed to handle sales planning and sales compensation.

Leadership began looking for a partner that could identify how to manage these processes at a lower cost and also improve them. They wanted to build a dedicated analytics solution within six months. They also needed to inexpensively improve data outcomes from their legacy platform. Similar to many companies, time and money were important factors to the project. 

The Solution


ZS helped the manufacturer identify gaps in its analytics solution and presented a comprehensive program that allowed the manufacturer to reduce cost, improve the effectiveness of its commercial team, and improve the quality of its data. The ZS solution leveraged proprietary Business Intelligence technology, ARTiS™ and sales planning technology, Javelin™, to create a managed services model for sales and marketing analytics, reporting and data management, incentive compensation, and sales planning. ZS worked with the manufacturer to define, create, and improve business insights for each workflow, including developing mobile analytics across five disparate commercial sales teams.

The result was an end-to-end hosted data solution that integrated dozens of data sources, providing an end-to-end analytics solution. The solution delivered dashboard reports both internally and to the iPads of more than 250 salespeople. ZS created a suite of sales planning applications, including a roster manager, an exceptions management tool, samples allocation, and an incentive compensation administration solution. As part of the solution, ZS deployed a dedicated team of analysts working with both executives and sales teams to provide deeper consultative insights, thereby also fostering collaboration and transparency.

Impact


The manufacturer now has improved quality and efficiency in analytics and business processes across multiple facets of the organization.

Within the allotted six months, ZS was able to deploy a solution that provided:

  • Realized cost savings of over $1 million per year, with continued savings projected year over year 
  • Created collaborative working relationships with Commercial Analytics and business customers to establish priorities and maximize the value of existing data sources – ultimately improving sales performance 
  • Produced enhanced analytics solution that allowed business users to make proactive, informed decisions, as well as the ability to measure and assess performance against business goals 
  • Enabled actionable insights on the go, through delivery of 30 personalized mobile reports to 250 reps across 5 commercial teams 
  • Facilitated new insights and value to all stakeholders by integrating 56 different sources of data 
  • Streamlined and accurate compensation administration cycles, saving hours of manual work 
  • Reduced vendor management overhead 
  • Increased employee and sales force morale