ChemistTODA

Y’S

A T W O R K N O V E M B E R 2 0 0 4

Sample PrepAnalysisData Handling

www.tcawonl ine.org

Published by theAmerican Chemical Society

FOOD SCIENCENIST “STANDARDIZES”CHOCOLATE

FARMING PHARMACEUTICALS

Instruments & ApplicationsIon Mobility Spectrometry

Chemistry ChroniclesThe Bhopal Tragedy

Technology & ToolsMS for Isotope Ratios

Product ProfileLabware Washers

As

printed in

Today's

Chemist at

Work

NOVEMBER 2004 TODAY’S CHEMIST AT WORK 13©2004 AMERICAN CHEMICAL SOCIETY

SYSTEMS & DATA HANDLING

Laboratory scientists are encounter-ing increasing pressures to meettightening time-to-market require-

ments and higher quality standards. Inan effort to achieve these objectives,companies have relied on laboratory infor-mation management systems (LIMS) toplay a major role in improving efficienciesin their laboratories. Over the past fewyears, labs have benefited from signifi-cant technological advances in LIMS,including industry-specific functionality,enhanced security options, and client–server architectures that have considerablyimproved throughput and laboratoryproductivity.

Some multi-lab organizations continueto use a range of different LIMS solu-tions resulting from independent, lab-driven purchasing decisions and corpo-rate-led merger and acquisition activities.Unfortunately, companies using thisapproach to LIMS procurement andmanagement miss out on the opportuni-ty to gain organizational, enterprise-wideefficiencies.

In the absence of a uniform LIMSstrategy, local processes and decision-making criteria dominate, and the abili-ty to harmonize processes across theorganization is nearly impossible. In addi-tion, incompatible file formats signifi-cantly hamper activities such as report-ing and information sharing, and may evenimpair decision-making regarding produc-tion, product quality, resource allocationand process optimization. In short, whileLIMS have improved efficiency at thelab level, an uncoordinated LIMS strat-egy often causes these gains to be lost inan evaluation of overall company-wideefficiency.

An audit of the many LIMS in placeacross an organization, whether commer-cial or homegrown, will most likely revealthat they were developed to meet the

specific functional requirements of indi-vidual labs and the specific instrumentscontained in each. As a result, in addi-tion to limiting business efficiency, these

disparate LIMS present a potential drainon IT resources. Activities such as upgrad-ing, validating, and developing instru-ment interfaces are much more difficultand time-consuming with multiple LIMSin place. Consequently, end users faceslow response times from an IT depart-ment burdened by administering andsupporting multiple LIMS across theorganization.

A Global ApproachRecognizing the potential inefficiencies ofmultiple LIMS, many companies nowview LIMS as an essential component oftheir enterprise IT strategies.

Implementing a standardized LIMSstrategy, however, involves far more thansimply selecting a standard solution thatcan be rolled out repeatedly to multiplesites. Instead, many initial challenges needto be overcome, including the develop-ment of consistent procedures, processes,and methodologies.

Scientists may resist process harmo-nization and centrally dictated policies,thinking these could stifle innovation andlimit creativity. It can therefore be difficultto convince these individuals of the bene-fits of sharing best practices across theorganization and developing more consis-tent processes at the expense of giving uplocalized, established processes. To addressthis problem, it is important to involve arepresentative group of end users as earlyas possible in the process and to ensurethey fully understand the potential bene-fits of a standardized solution. In addition,good project management, with localchampions and a dedicated project manag-er, is critical to ensuring the implementa-tion process runs smoothly and efficient-ly. Selling select end users on a one-LIMSconcept in advance will result in distrib-uted proponents who can help convinceany dissenters at the local lab level of theproject’s merits. End-user involvement willalso ensure that the final result reflectsthe needs and requirements of the broad-er organization.

Benefits of a Global LIMSDespite the challenges associated with aglobal LIMS, the trend toward standard-ization is anticipated to grow as the indus-try considers the financial and operationalbenefits of such a strategy.

Standardizing on one LIMS has thepotential to not only reduce hardware andsoftware costs but also simplify activitiessuch as internal support, training, upgrades,and administration—key drivers in reduc-ing the total cost of ownership (TCO) ofa LIMS. Moreover, a universal LIMS strat-egy enables a consistent validation approach,enabling companies to assure complianceinspectors that LIMS implementationscompany-wide conform to the sameprocesses and controls.

One integrated LIMS also reduces

LIMS Goes GlobalStandardization and its effect on reducing the total cost of ownershipJim Neville

Figure 1. Reductions in nonproductive hours byusers through LIMS standardization.

0.60

0.50

0.40

0.30

0.20

0.10

0.00Downtime Help desk

useTrouble-shooting

BeforeAfter

Hour

s pe

r mon

th p

er u

ser

TCAW1104_SysData.qxd 11/19/04 8:43 AM Page 13

14 TODAY’S CHEMIST AT WORK NOVEMBER 2004 www.tcawonline.org

SYSTEMS & DATA HANDLING

downtime and increases productivity forthe end user. With one solution, ITdepartments can develop more knowledgeof a particular LIMS and identify and solveproblems faster, even anticipating thembefore they occur. Standardization alsostreamlines vendor relationships, improvespurchasing power, and frees up IT staff tofocus on other activities.

Selecting a Global LIMS as a StandardStandardizing on one LIMS representsa significant investment of time andmoney, and without careful selection andproper planning, it can carry consider-able risk.

Key requirements for a global standardinclude the ability to become an integral

part of a company’s IT infrastructure andto provide easy access to data through Webservice architecture and XML processingcapabilities. The solution must also behighly scalable for a large number of usersand capable of operating in multiplelanguages. Access logs and electronic signa-tures are also critical features needed toaccommodate users operating acrossmultiple time zones.

Selecting a vendor capable of imple-menting a global standard is potentiallymore important than selecting the appro-priate technical solution. Companies seek-ing a LIMS standard need to select avendor experienced in LIMS standardiza-tions who can track project milestones,communicate progress reports, and enforceregular project reviews for the long-termviability of an enterprise deployment. Inaddition, the ability to offer local supporton a worldwide basis is a necessity.

Vendors must be able to serve as a glob-al partner and be prepared to accommo-date any local considerations as they arise.They must be equipped to involve andengage key decision-makers, users, andsubject-matter experts from across thecustomer’s business during the entire plan-ning and implementation phases. Withthe level of investment at stake, and thehigh potential for encountering pitfalls,the importance of choosing the rightvendor cannot be underestimated.

SummaryChanging economic conditions are driv-ing life and analytical science organiza-tions to curb expenses, and at the sametime improve product quality. Thesecompanies are closely examining theirLIMS strategies and exploring opportu-nities for harmonizing processes and stan-dardizing on one LIMS in an effort toreduce the TCO of LIMS and improveefficiency. By deploying one integratedLIMS instead of many disparate appli-cations, companies can reduce costs,IT departments can gain productivity,and end users can become more effi-cient. With independent research toconfirm the value of LIMS standardiza-tion, companies can now make the deci-sion to standardize on one LIMS withconfidence.

Jim Neville is the director of marketing and business devel-opment for Informatics & Services,Thermo Electron Corp., inWoburn, MA. ◆

Despite the growing trend of implementingLIMS as a corporate standard, and the manybenefits standardization offers, implement-ing a global LIMS is potentially expensive andrisky. The financial benefits of standardizingon one LIMS have been largely anecdotal and,to date, there has been no independent studyto measure the economic impact of LIMSstandardization.

However, a new study conducted by IDC,a Framingham, MA-based research andconsulting firm, entitled Standardizing onLIMS: TCO and ROI for the Multi-Lab Setting,is the first to examine the financial implica-tions of LIMS standardization in depth. Spon-sored by Thermo Electron, the study includesinterviews with senior LIMS and IT managersat leading companies in industries such aspharmaceuticals, chemicals, food and bever-age, and oil and gas that either have stan-dardized or are in the process of standardiz-ing on one LIMS solution.

TCO provides a useful means of estimat-ing total costs incurred throughout the lifecycle of a particular IT asset, from originalacquisition through retirement. Since TCOanalysis extends beyond procurement costsand incorporates ongoing support and ITmanagement cost implications, it also offersa meaningful metric for evaluating the bene-fits of standardization.

In terms of TCO, the companies includedin the study realized benefits of approximately$300,000 per lab annually from implement-ing a standardized LIMS. Companies derivedbenefits from three areas: a reduction in LIMS-associated costs, increased IT productivity, andenhanced LIMS user productivity.1. Reduction of LIMS costs. The IDC study

showed that companies that standardizedon one LIMS derived significant savings fromequipment purchase avoidance, improve-ments in IT staff efficiency, and a reductionin training expenses.On average,among theparticipating companies, every dollar spent

on deploying a standardized LIMS was offsetby $1.50 in savings on hardware and soft-ware. In addition, by standardizing, compa-nies lowered the cost of support per user andwere able to reduce their IT staff support-ing LIMS by 57% on average. Standardiza-tion also saved companies the cost of IT anduser training for multiple LIMS, estimatedat up to $250 per user per year. In largeorganizations with multiple labs, this couldrepresent savings of more than $100,000.

2. Increased IT productivity. Throughstandardization, companies also experi-enced reductions in the amount of down-time and the level of IT activities requiredto resolve problems related to LIMS. Usersupport activities, applications manage-ment and validation, time devoted to trou-bleshooting activities, and data manage-ment were typically reduced by more than50%, and in some cases as much as 90%.

3. Increased LIMS user productivity.LIMS users, as well as those outside thelab who required access to data, benefit-ed the most from standardization. Theseindividuals were able to build reportsdynamically and conduct analysis moreefficiently, dramatically impacting theirproductivity. In fact, over half the partici-pating companies in the study creditedLIMS standardization with reducing theirtime-to-market, while 77% thought thata standardized LIMS improved productquality, which freed up, on average, 6.3hours of productive time to each LIMS userper month.This number becomes particu-larly significant when multiplied by the fewhundred LIMS users a large global compa-ny would typically license.Within the first year of implementing a stan-

dardized LIMS, companies also saw their LIMSsystems, applications, and network downtimedrop 77% (see Figure 1). Users also devotedless time to troubleshooting and contacting thehelp desk to resolve problems.

Evaluating the Impact of LIMS Standardization on TCO

TCAW1104_SysData.qxd 11/19/04 8:43 AM Page 14