PHARMACEUTICAL INDUSTRY WIDE

BUSINESS INTELLIGENCE KPIS

A Data Science Company

PHARMACEUTICAL INDUSTRY WIDE BUSINESS INTELLIGENCE KPIS

PAPER OVERVIEW
As market pressures demand increased innovation and shorter product lifecycles, pharmaceutical companies are
evaluating alternative business models, focusing on technologies such as business intelligence (BI).
Key Performance Indicators (KPIs) help Pharma corporations highlight successes and identify program areas for
continuous improvement, which helps provide a picture of its pharmaceutical benefit management operations.

These critical components of any Pharma business intelligence platforms deployed is to assist pharmaceutical
companies to realize the accurate, relevant information that can make the difference. Pharma KPIs on a high level
could be categorized into Financial, Operational, and Clinical areas. This paper will talk in detail about the various
KPIs that are essential in building a BI platform for pharmaceutical companies.
The Pharmaceutical industry has been focusing most of its resources on the next blockbuster drug. With changes
in regulations, declines in drug approvals, and a shift toward developing high value biologics, todays manufacturers
must begin to refocus and to address current processes, practices and systems, and take a hard line on improving

their overall quality and compliance efforts. Key Performance Indicators (KPIs) help Pharma corporations highlight
successes and identify program areas for continuous improvement, helping provide a picture of its
pharmaceutical benefit management operations.
This white paper will focus on various KPIs that are essential in building a BI platform for pharmaceutical companies.

WHAT IS KPI?
In simple words, Key Performance Indicator (KPI) is a measure of something that is strategically important to the
business. To identify the correct KPI, strategic business discussions need to take place with leaders across the
organization. This will involve assessing the organization's high-level strategy, short and long-term goals, and
business drivers impacting the execution of the strategy. KPIs should enable decision makers to have the right
information at the right time, to make and execute the right decisions aligned with corporate goals.

An example of a simple KPI is:

Average time for response to a customer inquiry is less than two days.

Where Average time for response is the measure, and days is the metrics associated with the KPI. KPIs can be
made up of one or more metrics. The calculated results of the metrics during process monitoring are used to
determine whether the target of the KPI has been met. Determining which KPIs are useful, based on the business
objectives, and is one of the most important tasks involved in the design of effective business dashboards. Each
KPI can have an associated target with margins, or lower and upper limits. The limits and margins indicate a range
that the KPI should remain within. What you see in the business dashboards is affected by how you specify the
KPIs. You can also add situation events that can be generated when specific conditions are met, and these in turn
can trigger business actions. For example, apart from specifying an exact target and acceptable target variations
using percentages below and above the target as the margins, you may also specify a safe range using specific
numeric values as the limits.

With this information, it is easy to determine ones ability to offer regular payments on the loan and the capacity
to afford the costs associated with that loan

KPI Identification Guideline

Below is a brief guideline towards identifying your KPIs
Work with the business to determine the KPIs and where they fit in the overall business process
Identify the process owners to determine how the KPIs should be grouped
Work with IT to determine data sources
Work with the business & IT to determine any common coding structures (Part numbers/GL codes etc)
Work with business & IT to document any standard business calculations (e.g. Gross Margin, etc.) to build the
data dictionary
Identify data and its relationships to other data, logical groups & sub groups required for analysis and drilldown
Work with IT to determine the correct data structure within the database (e.g. how the data is accessed and
viewed directly affects how its stored).
Work with the business to design the dashboard layout and the best way to visualize the data (tends to be
interactive and iterative and has a direct impact on P7).
Build, Test and Deploy

Pharma KPI - Samples

Below listed are some Financial, Operational, Clinical areas KPIs that are applied in the Pharma Sector

Category
Financial

Financial

KPI
Overall Drug Trend

Average Prescription Cost

Value Add

Identifies drug trends over time.

Aids in formulary reconstitution and management

Tracks average cost per prescriptions for generic,

branded and specialty drugs.

Forecasts cost incurred in new enrollment

scenarios.

Delivers a complete perspective of drug usage

through representations for each therapeutic
category

Financial

Drug Utilization

Provides an insight into the efficiency of drug use

(i.e. whether a certain drug therapy provides
value for money).

Evaluates performance compared to

geographically relevant benchmarks

Financial

Generic Dispensing Rate

Monitors changes in utilization of generic drugs

and the associated savings.

Offers multiple drill-downs by geography,

therapeutic class, or age/gender to uncover
potential cartel formation, unethical dispensing
trends, disease patterns and consumer
preferences.

Category
Financial

KPI
Generic Substitution Rate

Value Add

Tracks the percentage of all multisource drugs

that were dispensed as generics. The overall level
of generic drug utilization is determined both by
the frequency of generic substitution at the
pharmacy counter and by physician prescribing
patterns.

Enables pharmacy benefit managers to spot

undesired trends in drug utilization.

Financial

Channel Tracker

Aids in understanding the channel conversion

from retail

pharmacy to mail order, as well as the associated

savings resulting from this conversion

Medical

Therapeutic

Efficacy/Success Rate

Enables PBMs to understand the effectiveness of

a drug (therapeutic class wise) by analysing the
Medical Claims with the Pharmacy claims.

Medical

Specialty Drug Utilization

Provides a complete picture of the total

utilization of injectable, infusible and oral drugs.

Tracks the HCPCS codes with regard to each

therapeutic class, enabling assessment of
specialty drug spending on the medical benefit
side.

Operational

Prescription Turn-around
Time

Measures the average time between prescription

generation and drug delivery, enabling pharmacy
managers to track customer experience and
identify potential pharmacy load issues across
regions.

Wrapping it up
Today, a successful company is not measured by the data it produces and stores, but how it measures and uses
that data for ongoing business operations. KPIs play a critical role in that process if you wait to react, your
peers could outperform you.

INTELLECTYX DIFFERENCE
GLOBAL REACH

MISSION

Intellectyx is a global data science and analytics

company focused on empowering business with
innovative solutions.

Intellectyx mission is to DO THE RIGHT THING RIGHT

and we take the long-term view to ensure that solutions
are adaptable, extensible with new capabilities
combining the right amount of change and delivered in
the shortest duration possible allowing our clients to
be a market leader.

Intellectyx is headquartered in Denver, USA with

additional location in Los Angeles, CA and oshore
development centers India and Ukraine.
Intellectyx develops innovative software solutions
using web, mobile, social, business intelligence and
analytics that traverse the organizations journey from
data to decisions.
We work with market leading organizations across
multiple industry solving high impact business
problems in key verticals such as Retail, Media and
Entertainment, Banking and Financial, Manufacturing
and Insurance.
Together, these capabilities mean we deliver, time
and again, reliable, cost-eective and consistently
high-quality services that generate measurable
business value and provide the same client experience
anywhere in the world.

VALUES

Unbiased technology use with a touch of

innovation.
Take pride in developing people before
developing software.
Dramatically Improve Customer Engagement.
Lean Principles and Best Practices part of our
DNA.
Highest Standard in Productivity and
Collaboration.

CORE SERVICES

Strategic Consulting
Visualization
Business Intelligence
Analytics
Application Development
Enterprise Mobility

CONTACT
600 17th Street 2800
South, Denver, CO 80202,
U.S.A

87 N. Raymond Ave #221,

Pasadena, CA 91103,
U.S.A.

info@intellectyx.com | (720) 295 3513 | www.intellectyx.com