Kathleen Donahue Damodar Rao Gummadapu

1. Business Process Intelligence Aspiring High. Above and Beyond, Our Journey to “Be the Best” Kathleen DonahueDamodar Rao Gummadapu

2. Introductions • Name • Company • Areas of Interest

3. Company Profile Pfizer is headquartered in Manhattan, New York Global leader in; Prescription Pharmaceuticals Non-prescription Consumer Health Care Products Pharmaceuticals for Animal Health Acquired Wyeth Pharmaceuticals in 2009

4. Working together for a healthier world “One Team, One Goal” We share a common mission: apply science and our global resources to improve health and well-being at every stage of life. 

5. Era of Opportunity for Pharmaceutical Industry Changing regulatory environment New technologies Growth of manufacturing platforms Enlightened operating mindset Robust IT tools and systems Step Changes Are Not Enough…. A Paradigm Shift is Required

6. Legacy Wyeth Vision for TO&PS Focus on product quality Leaders in cGMP & compliance 100% customer service Patient, stakeholder & shareholder value “Be the Best” • Site Network & Plant Investments • Sustainable Compliance • Organizational Effectiveness • Integrated Standard Processes and Systems • Business Analytics

7. ERP Facilitates Business Strategy • Goals • Improve operating efficiency • Facilitate execution of business strategy • Achieve targeted financial return • Strategy • Standardize and integrate key business processes, data and controls globally • Improve timely access to consistent, reliable information to run and manage the business

8. ERP Value Drivers • Enables One View of the Company • Single consistent source of enterprise data; facilitated by standard processes and master data across all business units, functions and divisions • Provides Robust Analytics • Online financial analysis with multiple views of business results as needed • Cross-functional, drill down capabilities from management reporting through source transactions

9. SAP ERP Landscape Reporting and Analytics Planning Direct Procurement and Manufacturing Quality Sales Order Management and Logistics Finance SAP CRM(Customer Relationship Management) SAP SRM(Supplier Relationship Management) CRM data SRM data SAP NW BI(Business Intelligence) SAP SCM (Supply Chain Management) SAP ECC (ERP Central Component) SAP SNC (Supply Network Collaboration) ERP OPS BI data PP(Production Planning) SAP APO(Advanced Planning & Optimization) Integration SD(Sales & Distribution) MM(Materials Management) SAP NW PI(Process Integration) SAP GTS (Global Trade Services) QM(Quality Management) SAP EWM(Extended Warehouse Management) LE (Logistics Execution) SAP MII(Manufacturing Integration & Intelligence) Cross Application Components BASIS Components SCM data To other Systems and Devises Currently Not in Use ERP data

10. 10 Roadmap • Agility based on Business Drivers • Continuous Improvement • Knowledge Management • Performance Monitoring Align Processes and Metrics. Improve Processes Process Focused Organization Assess Process Maturity Form Process Focused Networks Continuous Improvement via OE Institute Process Governance Process Performance Monitoring Functional Organization Implement Process Architecture in Improvement Processes 10

11. Functional Matrix Organization: Functions x Businesses President Director Design Mfg Marketing Procure- ment of Product Vice President Vice President Vice President Controller Operations Manager Product Manager A Product Manager B Product Manager C Product Manager D

12. Process Management:A 3rd Dimension in Management BUSINESSES [Business Unit, Region, focused on P&L’s & markets] FUNCTIONS [Departments, Centers of Excellence) FUNCTIONS [Departments, Centers of Excellence] WORK Business Units own customers and profitability Functions own the people and cost centersProcess Owners own work designs and IT spending PROCESSES [Source, Make, Fulfill, etc.]

13. 13 Process Metrics • Agility based on Business Drivers • Continuous Improvement • Knowledge Management • Performance Monitoring Align Processes and Metrics. Improve Processes Process Focused Organization Assess Process Maturity Form Process Focused Networks Continuous Improvement via OE Institute Process Governance Process Performance Monitoring Functional Organization Implement Process Architecture in Improvement Processes 13

14. Process Metrics enableDecision Excellence and Operational Excellence RUN THE BUSINESS Aligning processes with metrics to monitor and deliverreliable information, produce timely actionable results, and support Decision Excellence - enabling efficient and effective operations. IMPROVE THE BUSINESS Providing fact based information to support the operational, tactical and strategic reporting and analysis needs of OE initiatives - delivering continuous improvement of processes.

15. Metrics Measure Enterprise Excellence Operational Excellence 2/3 of Benefit Additional Net Income Reduced Materials Costs Business Process Standardization Operating Expense Reduction 500 450 400 350 300 Benefits ($M) 250 200 150 100 50 0 Source: AMR Research “Leveraging ERP for Ongoing Business Benefit”

16. Balance Scorecard Methodology Construct & Deploy Re-assess Re-assess Metrics Development Design Analyze & Plan Launch Metrics Report Metrics • Collect data from Affiliates/OPUs • Calculate the Metrics • Provide the Metrics through single access mechanism along with the necessary details • Understand the revised TO&PS Vision • Gather additional input from thought leaders • Proposed revised Metrics • Gain Consensus • Deploy revised Metrics Analyze the vision and Input Determine Selection Criteria Understand TO&PS Vision Identify Thought Leaders Gain Consensus with Thought Leaders Gather Input Propose Metrics

17. Analytics Categories Used to understand value creation and to improve the business. • High Level Metrics - translate strategy into measurable goals, includes: • Fist time quality • Product availability • End to end cycle time • Operational Analytics - Leading and lagging indicators such as trending, process control charts and simulation, includes: • Inventory levels • Inventory targets • Process Performance Monitoring – monitors use of standards vs non-standard processes across functional teams, includes: • Production Schedule • Stability • Adherance to supplier lead times • Adoption measures – measure the use of standard sub processes in a functional team • Number of times reports are run • Time saved on each report • Use of emergency purchase orders

18. Improving Compliance Inspection Results 2004 - 2007

19. Increasing Efficiency Net Sales / Employee 40% Improvement $

20. Reducing End-to-End Cycle Time Across Sites

21. The Power of Business Analytics… • Leverage all data – and advanced statistical tools – to achieve Quality By Design • Continuous process-performance monitoring • Reduction in review time for product release by providing a single access point for information • Leverage data for operational excellence • Six sigma analysis • Lean principles • End to end process optimization • Provide tools for Decision Making Excellence at all levels of the organization … Is Limited Only By Your Imagination

22. Questions