Axtria alignment

Axtria – Ingenious Insights

Territory Alignment

Agenda

Section 1: Trends & Challenges

Section 2: Axtria Solution

Section 3: Differentiators

Section 4: Case Studies

Copyright © 2014 Axtria and/or its affiliates. All rights reserved. | Axtria Confidential – Internal/Restricted/Highly Restricted 12/15/2015 3

Industry Trends

Life Sciences Sector Is Operating In An Era Of Significant Transformation

Rise of Specialty Markets Pharma is focusing on higher-valued specialty products in HCV, Oncology, MS, and other therapeutic areas. Biosimilars are emerging. So is important to cover them all.

Mergers and Acquisitions

Significant M&A activity is expected as industry brings forth new molecules. Effective allocation

& integration of sales force is becoming challenge for managers.

Growing Influence of B2B Models

Managed care, IDNs, group practices and institutions are influencing the treatment protocols. Doctors no longer do. Therefore, becoming important from sales perspective.

Focus towards growing markets Large Pharma companies are focusing

towards new markets and trying effective alignment strategies to maintain the

growth momentum.

Bigger Data

The rapid expansion in new data sources is all about the patient. The commercialization of a product depends on leveraging the vast amounts of data that companies are obtaining

from a wide array of current and new data suppliers & sources


Customer Landscape Now is Much More Complex

Touchpoints have increased considerably

Group Practice

KOL

Provider / IDN

Patient / Consumer

Managed Care

Prescriber

Rx / PURCHASE

Sales Rep

Key Account Manger

MSLs

Social Media

Social Media

TV Ads

Print

Communities & Websites

Regulations

Communities & Websites

Ads

eMails


And This Has Led To Some Key Challenges There is a growing need to do more with less

Even though its difficult to have an alignment that is perfectly balanced, it is reasonable to expect the 'balanced' sales

territories to fall within a range of 15 percent from the ideal workload.

Strike a perfect workload balance

Emergence of new marketing channels, rising influence of B2B Models, decreasing

access to physicians, increasing cost of sales and complex sales landscape. Amidst all , the decreasing size of sales force to ensure sales

and maintain profitability.

Managing fewer individuals across complex markets

Many uncovered accounts in high-workload territories are significantly

better than the accounts that are covered in low workload territories.

Effective coverage of all key accounts

Agenda






Typical Challenges With Territory Alignment Why it fails?

Utilization of data to define precise workload and alignment index

TERRITORY ALIGNMENT CHALLENGES

Impact on Sales Compensation

INADEQUATE FIELD BUY-IN

Manage Incremental changes

Data required for realignment are often not readily available. (sales force

data, account-territory, zip-territory….)

Critical to improve data health and utilize it to calculate the precise workload and alignment index

While performing the territory realignment with uniform workload balance & effective client coverage, the Sales force incentive compensation plans can work against achieving the best alignment

Field rep view may mismatch with the territory assigned to him because of personnel preferences.

Embedded analytics to define the alignment changes, best suited for change in strategy or product mix.


Axtria Territory Alignment Center of Excellence Best of the breed people, processes and tools

Process

Product

People

• Domain experts, data scientists & analysts well versed in multiple therapeutic areas and industry data sources (traditional, new and emerging)

• Team of professionals: 50+ Alignment COE’s with vast experience in territory alignment and personnel placement for wide range of B2B, life sciences, and CPG/FMG companies, large and small, in the US and globally

• Data-driven and collaborative process with detailed planning, project documentation, field sales discussion and sales manager review to realign territories and Specialty sales teams as per company objectives.

• Proven process covering array of cloud services for territory realignment, personnel placements and rooster management.

• AlignMAx – Cloud based alignment management solution built on proven enterprise grade technology - force.com

• Single version of truth for Alignment data; integrated with upstream (SFDC, CRM, HR Management) and downstream (IC, Sales Reporting) systems

• Pre-built APIs help in faster integration and data exchange


Solutions to handle a variety of deployment issues Helping clients bring ‘order to chaos’

Axtria Capabilities

Business need ASC - Alignment Service

Center Process AlignMAx

Alignstar / Other tools

People Placement

Ad hoc analysis

Alignment Audit

Field Request Tracking

Alignment maintenance (L1)

Local / District Redesign (L2)

Major Territory Realignment (L3)

Sales Resource Planning and tracking

Vacancy Management


Axtria’s Territory Alignment Process A strong time-bound governance process with clear decision rights

Project kick-off Data

Development Deployment

Analysis Territory Design

Field Management

Review Readiness

• Why doing this project?

• Whom to engage ? • What degree buy-in ? • How fast / slow ? • Business rules /

design • Territory/Reporting

structure? • Clean-slate ? • White space ? • Span of control ? • State integrity ?

• What data assets will be needed to address all project phases ? Is it complete & Correct ?

• Index: how do we want to allocate / deploy sales resources ? • By brand / market • Market potential ? • Product Sales ? • Workload ?

• How should we allocate the chosen headcount geographically ?

• Based on the chosen allocation of headcount, where are the best territory HQ locations ?

• What is the best design for each territory ?

• How balance workload, geography and other considerations ?

• How minimize disruption ?

• What information to share with Field Managers to get their input ?

• How refine territory based on local market insight ?

• Timing and outputs required for key stakeholders: • Field Sales • HO Operations • IT – data files • HR - Recruitment

Deliverables:

• Updated project plan and data requirement

Deliverables:

• Data inventory

• Data summaries reports

• Data gap (if any)

Deliverables:

• Alignment Index

• Headcount allocations

• HQ Locations

Deliverables:

• Territory Design

• District & Region Configuration

Deliverables:

• Appropriate naming of territories

Deliverables:

• Zip Codes realigned to the territories for sales effeciency

KEY

DEC

ISIO

NS


Axtria’s Personnel Placement Process The process can run in parallel to ensure quick sales force alignment rollout

Project kick-off Database

Development Placement

Criteria Analysis Prelim Rep Placement

Final Rep Placement

Readiness

• Clarify sales force strategy and the people implications

• What are guiding principles ?

• What is the logical flow of personnel given promotions/ eligibility / selection?

• What is the timing of decisions and announcements ?

• What data assets will be needed to address all project phases ? Is it complete & Correct ?

• Reps Information and business details? • Reps Home

location • Territory

Footprints • Ratings • Tenure

• What should be the Decision Criteria?

• Who should be considered 1st?

• Appropriate preference/weightage defined for various factors like:

• Business Overlap • Distance from home

to territory centroid. • Performance ratings • Competence • Tenure

• Do the criteria select the personnel consistently ?

• Test (and re-test) placement algorithms to ensure no unintended consequences

• Evaluate placements from perspectives: • HR • Legal • Field Sales

• Statistical validation • Exception reporting

• Timing and outputs required for key stakeholders: • Field Sales • HO Operations • IT – data files • HR - Recruitment

Deliverables:

• Updated project plan and data requirement

Deliverables:

• Data inventory

• Data summaries reports

• Data gap (if any)

Deliverables:

• Criteria for personnel placement

Deliverables:

• Reps Placements review and testing

Deliverables:

• Reps aligned to the territories

Deliverables:

• Assigned territories for call planning

KEY

DEC

ISIO

NS


Axtria’s Alignment Maintenance & Roster Management Axtria Sales IQTM (AlignMAx module) - Enables us to deliver the “Golden Thread” of commercial operations

Sales Performance Management

Incentive Comp Plans & Quota Compensation Management

IC Goal Feedback IC Calculation (What - if Analysis)

Sales Analytics

Operation Analytics Disruption Analysis What- if Analysis`

Sales Planning & Forecasting

Local Resource Planning Territory & Quota Planning

IC Planning Sales Forecast

Sales Deployment

Territory Management Roster Management Account Assignment Sales Eligibility and Crediting

Sales Targeting

Sales Plan Feedback Workload Management Affiliation Management Profile Management


SalesIQ™ Is Integrated With Veeva CRM Configure push and pull of data from Veeva to SalesIQ and vice versa using common API structure

Addresses Operational Challenges

Sustainable Enterprise Grade Platform

Expert Team

Improved Field Experience

Focus on Continued Innovation

Reduced Total Cost of Ownership

• Cross functional senior leadership (thought & delivery) involvement

• Domain, functional, change management, product / solution accelerator experts

• Familiar, intuitive user interface • Data consistency across processes • No lost changes, EVER! • Limited training required

• Fully integrated sales force deployment business process in a single platform

• Ability to maintain multiple universes, mirrored teams, historical view etc

• Reduced cycle time for adjustments for existing teams and rapid onboarding of new products/teams

• Move from ‘custom code’ to industry standard technology – Force.Com

• Configured, not customized platform able to adapt to evolving business needs

• Ongoing innovation program, and ability to leverage the Force.com and SalesIQTM roadmap

• Local resource planning & product assignments • Enable multi-channel planning & operations

• No need for multiple systems and labor intensive processes

• Minimize cost for ongoing changes • Enhanced capability to transition to the right delivery

model (platform + on/off shore capability mix)

VALUE PROPOSITION


Territory Alignment using Axtria Sales IQ ™ Single version of truth for Alignment data; integrated with upstream (SFDC) & downstream (IC, Sales Reporting) systems

Ad hoc approach Structured IT enabled process

Unstructured Alignment change process

Inconsistent and limited business rules

Too many case based exceptions to the business rules

High volume offline process with no clear audit trail

Multiple version of alignments leading to sales crediting issues

Well defined Alignment process with necessary approval workflows

Cloud based high feature AlignMAx application for alignment

Robust and configurable business rules engine

Defined exception handling process with audit management

Single version of truth for alignment information feeding downstream


Alignment Design Territory design changes broadly fall into the following Four Levels

01 ROUTINE

MAINTENANCE

03 REGIONAL CHANGES

02 LOCAL

CHANGES

04 MAJOR

REALIGNMENT

Level 1 and Level 2: Alignment scenarios are handled through the Alignment Maintenance Module

Level 3: Handled as a part of the Territory Modelling capabilities in SalesIQTM AlignMAx Level 4: A multi-phased approach for the execution of the Alignment optimization and sales personnel placement process


Alignment Maintenance Fine tune the current alignment and manage multiple customer universe versions

ALIGNMENT MASTER CAPABILITIES: System provides capabilities to admin users define multiple versions universes through a business rule management system

SCENARIO ANALYSIS: Users can create different scenarios to see impact of alignment changes

PLANNING AND COLLABORATION

SEAMLESS INTEGRATION WITH VEEVA

ACCESSIBLE THROUGH MOBILE DEVICES

INTEGRATION WITH OTHER DOWNSTREAM


Territory Alignment Sample Deliverables

ILLU

STR

ATI

VE DETAILED ASSESSMENT OF WORKLOAD

DRIVERS

WORKLOAD DEFINITION USING PRIMARY & SECONDARY DATA

ILLU

STR

ATI

VE

WELL BALANCED TERRITORIES FOR CORPORATE AND REGIONAL AES

Agenda






How We Differentiate And Win An eco-system to enable “everything-as-a-service” with data, processes & analytics in the cloud

Analytical Innovation

We have the ability to model various functional forms, as might be appropriate for a given situation. Pioneers of multiple new analytical advancements

Golden Thread of Commercial Planning

Sales IQTM Platform allows clients to leverage the Golden Thread of Commercial Planning – Linking Strategy to Tactics to Operations that offers seamless integration of data flow across various processes.

Depth of leadership

Experience and expertise in Pharma commercial operations management

aiming to answer critical business issues faced by commercial leaders and

embed capabilities into our client organizations

Change Management

Success is not just about the Silicon (the data, the analytics,

the “wiring”), but about the people, the Carbon.


Innovation – A Way Of Life At Axtria Ability to switch the lights on/off for any one of the processes within the platform at any given time

Allows users to review KPIs across alignment, call

planning and IC while making movements

Smart Decision Support

View underlying customers & their affiliations with key

attributes such as Specialty, Sales, Calls etc

Full Support for Parent Child Affiliation

LOGO PLACEHOLDER

Create new territories to manage excess workload.

View the Territory structure and assign reps to territories

as per the latest roster

Perfect Workload Balance

Agenda






Some Case Studies We have excelled in the typical work you expect from a management science advisory

Sales Force Deployment using AlignMAx

Single version of truth for Alignment data; integrated with upstream (SFDC,

HR Management) and downstream (IC, Sales Reporting) systems

Managed Care AE Territory Alignment

Leading global Pharma company sought to build-up workload with buy-in from

management and account managers and define effective territories

Alignment to reduce sales inefficiencies Utilized Salesforce.com based territory management solution support mass territory realignments to increase sales

Sales force deployment for new market Identify top market potential areas and good workable territories in order to promote products making the best use of the limited resources.

Effective Territory Alignment Balanced territories on workload by assigning 15% fewer agencies to AEs,

tele-sales team for non-performing agencies, reduced geographic overlap


Case – Deployment leveraging Could based alignment solution Single version of truth for Alignment data; integrated with upstream and downstream systems

Objectives A global diagnostic services company leveraging large sales forces with 23 team , 1300+ sales reps covering 0.5 Mn accounts across US wanted an automated alignment solution for sales effectiveness. Client’s Commercial Ops team managed the deployment process offline and were facing significant challenges in managing the alignment changes , maintaining data sanctity and audit trail.

Approach Results

• The AlignMAx application is an integral part of client’s Commercial Operation ecosystem acting as a single version of truth for Alignment data; integrated with upstream (SFDC, HR Management) and downstream (IC, Sales Reporting) systems

• Axtria proposed to implement a robust alignment maintenance process in collaboration with client’s Commercial Ops team and implement its AlignMAx – Alignment Management solution

• Axtria consulted with client to design the alignment management process and then configured its AlignMAx application enabling – alignment management workflows, business rules and exception handling engines and reporting

• Axtria deployed the application on its cloud infrastructure and enabled SSO feature to enhance user experience

From an ad

hoc

approach..

.. to a structured

IT enabled

process


Case – Managed Care AE territory realignment Workload build-up with buy-in from management and account managers

Objectives A big pharma client wanted to realign the territories for their managed care organization. Client wanted to migrate its organizational structure from an orientation around “type” of customer to a structure aligned towards National and Regional Accounts

Approach Results

Database and Index

Development Preliminary Alignment

Management Review Files and Reports Delivery

Secondary data gathering, Account profiling model creation, Index methodology creation, Data Review Meeting, Alignment Index, Headcount finalization, Database integrity

Incorporate business rules Index finalization Design proposed alignment Headcount allocation AE HQs # AE regions

1:1 Review sessions with AE Directors Lock-down alignment Assign AEs to accounts Account alignment AE assignments

Communication Maps, Reports and files, Alignment summary report Rollout packet

ii. Workload definition using primary and secondary data i. Detailed assessment of workload drivers

Result: Well balanced territories for Corporate and Regional AEs


Case – Effective Territory Realignment Leading healthcare insurance company sought to leverage cloud based alignment for a balanced plan

Objectives The client wanted a quick and an effective way to conduct territory realignment exercise to balance Account Executive (AE) work load, market potential and minimize investment on non-performing agencies. Also, honor the important AE-agency relationships, where possible.

Approach Results

The new tool helped the client in establishing transparent analytical processes with thoughtful guiding principals. New rollout helped the client in:

• Balancing territories on workload along with agency assignment to manager

• Assigning 15% fewer agencies to AEs with minimized investment on non-performing agencies.. Low or non-performing agencies were assigned to tele-sales team

• Reducing geographic overlap

• Keeping record of details for each

previous or newly assigned agency

• In rolling-out and providing each

AE with a workbook with complete

details of its assignments.

Axtria followed a structured methodology and provided the following to the client:

• Database Development

• GIS mapping based tools

• Tool development for preliminary Agency Assignments

0

50

100

0 2000 4000 6000

Broker1

Broker2

Broker3

Broker4

Broker5

Broker6

Broker7

Broker8

Current Assignment New Assignment

In-depth Market Analysis to support investment decisions

Territory alignment tool to balance the workload

New agency alignment balances across all the managers


Case – Sales force deployment for new market

Identified good workable territories and top priority market areas

Objectives The Client, a leading cancer diagnostics company, wished to commercialize its bladder cancer diagnostic test product in US. The client wanted to identify top market potential areas and good workable territories (both outside and inside sales territories) in order to promote its product in those markets making the best use of the limited resources.

Approach

Results

• Axtria’s analysis helped the client identify territories to market the bladder cancer diagnostic test product. The analysis also helped the client prioritize top market areas for commercializing the product.

Database development Workload Assessment Deployment Analysis Territory Design Delivery

Practitioner segmentation by recognizing important criteria to estimate market potential

Assign call frequency to practitioner segments based

on market potential

Prioritize markets based on potential and workload

Design territories based on geographical constraints and

sales rep capacity assumptions

Delivery of maps and ZIP level files of designed territories (both inside and outside)

Outside sales territories

Inside sales territories

Axtria used its in-house analytical capabilities and its alignment mapping software Alignstar to help the client:

− Target markets with the most potential

− Estimate sales force size and

− Design territories


Case – Alignment to reduce client inefficiencies Axtria introduced analytical methods, processes, and best practices to reduce sales inefficiencies

Objectives U.S. based, Auto Aggregator Major wanted Salesforce.com based territory management solution to Manage Territory Alignment for each Business Unit, Update alignment changes for Salesforce team including mass territory realignments , Support alignments in other geographies like Canada and Offer Map based rich user interface for territories.

Approach Results

• Client currently utilizes Axtria’s model across the organization for territory alignment and maintenance purposes

• Shows account based alignment on a rich mapping interface • The functionality provides insights and enables better decision

making by evaluating impacts of assignment changes • Archival feature of past changes and accessible for reporting &

analysis purpose

• Designed a metric based on relevant business inputs to create data-driven territory management solution

• Analytically structured territory management solution resulted in optimized and balanced territories

• Identified areas of improvement by diagnosing current state of territories


Questions Next Steps

Documents

Axtria alignment