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I hereby declare that this dissertation work entitled “BUSINESS
INTELLIGENCE IN PHARMA SECTOR – A NEW VENTURE
TEAM BUSINESS PLAN REPORT FOR NETKRAFT SOFTWARE
TECHNOLOGY PARK” is a bonafide study, completed under the
guidance and supervision of Dr.K.V.Prabhakar, adjunct professor-MPBIM,
Bangalore (Internal Guide) and Mr.Niladri Sinha, Manager Sales-
NETKRAFT, Bangalore (External Guide) and submitted in partial
fulfillment for the award of MASTERS OF BUSINESS
ADMINISTRATION degree at Bangalore University.

I further declare that this project is the result of my own effort and that
it has not been submitted to any other university/institution for the award of
any degree or diploma or any other similar title of recognition.


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Mr.VINEETH KUMAR
02XQCM6065
MBA, Fourth Semester
M.P.Birla Insitute of Management
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I hereby certify that this dissertation work entitled “BUSINESS
INTELLIGENCE IN PHARMA SECTOR – A NEW VENTURE
TEAM BUSINESS PLAN REPORT FOR NETKRAFT SOFTWARE
TECHNOLOGY PARK” is the result of research investigation carried out
by Shri. Vineeth Kumar.V under my guidance and supervision.

I also certify that he has fulfilled all the provisions of the covenant
governing the requirements for the research investigation and that this
dissertation has not formed the basis for the award of any degree/diploma in
any University/Institution.





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This is to certify that this dissertation work entitled “BUSINESS
INTELLIGENCE IN PHARMA SECTOR – A NEW VENTURE
TEAM BUSINESS PLAN REPORT FOR NETKRAFT SOFTWARE
TECHNOLOGY PARK” is the result of research investigation carried out
by Shri. Vineeth Kumar.V under the guidance and supervision of
Dr.K.V.Prabhakar, adjunct professor-MPBIM, Bangalore (Internal Guide)
and Mr.Niladri Sinha, Manager Sales-NETKRAFT,Banaglore(External
Guide).

This dissertation is submitted to the Bangalore University as a partial

fulfillment of the requirements for the award of MBA degree.





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I am extremely grateful to all the se who have shared their views, opinions,
ideas and experiences which have significantly improved this dissertation.
I would like to express my sincere gratitude to Mr.Niladri Sinha
(External Guide) for his technical as well as moral support. He has been a
constant source of motivation and inspiration for me during my entire stay at
Netkraft Software technology Park. He deserves a well worth praise for his
guidance and sincere efforts in mentoring me throughout the dissertation. I
have benefited immensely from his vast experience and advice, without
which this dissertation would not have been completed.
I extend my sincere gratitude to the entire Marketing team at Netkraft,
especially to Mr.Srinath, Mr.Sachin, Ms.Kavita, Ms.Shailaja for their
heartfelt support and guidance in the course of this dissertation.
I am indebted to Dr.K.V.Prabhakar (Internal Guide) for his constant
encouragement throughout this dissertation. I feel short of words in
acknowledging the excellent guidance and professional support he has
provided to me during the course of the dissertation. Special thanks are due
to Prof.Srinivasan for his valuable suggestions in my research
investigations.
I would be failing in my duties, if I do not mention the support
extended by my beloved principal Dr.N.S.Malavalli and our esteemed
Directors Sri.R.Thothadri and Sri.A.Krishnamurthy without whose
guidance this dissertation would never have been a reality.

Mr.Vineeth Kumar.V
02XQCM6065
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1. NEED AND IMPORTANCE OF THE STUDY 1-3

2. PROBLEM STATEMENT & OBJECTIVES OF THE STUDY 4

3. HYPOTHESIS & LIMITATIONS OF THE STUDY 5

4. A - HEALTH CARE INDUSTRY – BRIEF 06-16

HEALTH CARE SYSTEM IN THE US 6 - 12
HEALTH CARE INDUSTRY – THE INDIAN CONNECTION 13 – 16

5. B - PHARMACEUTICAL INDUSTRY – BRIEF 17-29

GENERAL - PHARMACEUTICAL INDUSTRY 17 - 19
Pharmaceutical - key asset to the Global Neo Classical Economy? 17
What trends have been observed? 18
What Goes Into R&D Costs? 18
Why Patients Are Using More Medicines? 18
What is the Impact of Increased Medicine Use? 19
THE US: PHARMACEUTICAL MARKET 20 - 23
US pharmaceutical industry - an emerging Industry Leader? 20
Why do they have to cost so much? 20
Win-Win Situation? 21
New York: The pharma state of U.S.A 22
THE INDIAN PHARMA-MARKET 24 - 26
Does “Market India” have the sting? 24
Who are the Top players in the Indian Market? 24
Advantage India - Importance of 2005? 25
GLOBAL PHARMA-MARKET FORECASTS THROUGH -2010 27 – 29
6. C - BUSINESS INTELLIGENCE (BI) – BRIEF 30-44

CONCEPTUAL FRAMEWORK OF BI 30 - 38

What is the essence Of BI? 30

Business Intelligence workflow 31
What issues need consideration? 32
Bi tool selections: General considerations 33
So how much can it cost on an average? 34
Data warehouse Project Requirements 35
Companies’ eye web-based bi tools 36
BENEFITS OF BI 39 - 44
Scope of BI: 39
What are the Benefits of BI? 41
Why BI Applications must be the next step? 42
Industry Pulse 44
7. D - NETKRAFT – COMPANY PROFILE 45 - 49
Background & Industry verticals 45
Technology & Processes 47
Alliances 49
Recent news: Adea solutions of US to acquire netkraft 50
8. E - RESEARCH METHODOLOGY 53 - 58

Scope of Industrial Marketing Research 54

A typical Industrial Research Process 55
Research Methodology for the Study undertaken: 56
Type of research 56
Sampling technique 57
Sample size 57
Sample description 57
Sampling procedure 58
Tools used for testing the hypothesis 58
Software used for data analysis 58
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9. MARKET OPPURTUNITY ANALYSIS 59 - 79

Industry trend analysis 60 - 66
Regression analysis 67 - 68
Industry requirements analysis 69 - 79
Competitor analysis 81 – 83
Swot analysis 84 – 86

10. DEDUCTIONS FROM THE ANALYSIS 87 – 89

11. CONCLUSIONS FROM THE STUDY 90 - 93

MARKET ENTRY PLAN 91
Segmentation of the Pharmaceutical Market: 91
Targeting of the right segment: 91
Positioning in the Right Segment 92
Simultaneous Plan of Action 93

12. IMPLICATIONS FROM THE STUDY 94

13. SUGGESTIONS FOR FURTHER RESEARCH 95

14. BIBLIOGRAPHY 96 – 98

15. ANNEXURES 99 - 111

PHARMA CHARTS 99 - 104
PHARMA TABLES 105 – 108
BI – CASE STUDY REPORT FROM NICHOLAS PIRAMAL 109 - 111
BI COLLATERAL FOR NETKRAFT’S NEW VENTURE 112 – 117

-----------------------------------
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PARTICULARS PAGE NO.

United States Health Care System In A Nutshell 11

BI Loop from an Organizational Perspective 31

BI Tools 36

Data Warehouse Stages 38

Data Warehouse Project Execution Phases: 38

Scope of BI 39

Research Paradigm 56

Enterprise Information Portal 76

External Information Technology Environment 79








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PARTICULARS PAGE NO.

G2.1: Bar Chart Showing The Total Pharmacy Market 99

(At Ex Factory Prices) Average Growth Rate (1991-2001)

G2.2: Pie Chart Showing The Breakdown Of 99

Global Pharmaceutical Industry In 2002

G2.3: A Pie Chart Showing The Amount Spent 100

On Pharmaceuticals Drugs And Other
Healthcare Services In Terms Of A Dollar.

G2.4: A Bar Graph Showing The Continuous Growth 100

In The R&D Expenses In The Us From 1980 To 2002

G2.5: A Bar Graph Showing The R&D Expenses Per Drug 101

G2.6: A Chart Showing The Time Taken For The 101

Entire Process From R&D To Marketing Of A Drug

G2.7: A Special Bar Graph Showing An Example 102

Of Higher Patient Spending On Drugs Results
In Lower Medical Spending

G2.8: A Line Graph Showing The Pharma State: 102

The Growth In Pharmaceutical Jobs As Compared
To The Manufacturing Jobs In The State Of
New York Between 1980 & 2000

G2.9: A Bar Graph Showing The Growth Of 103

The Indian Pharmaceutical Industry (2000-2003)
G2.10: A Chart Showing The Pervasive Connectivity 103
With Patients Which Will Enable Cost-Effective In-Life Surveillance

G2.11: A Chart Showing The Disease-Led Approach 104

To Drug Development, Which Will Massively,
Reduce The Time And Resources That Are Required

G2.12: A Diagram Showing The New Business Model 104

Will Require Dramatic Changes at Every Step in The Pharma Value Chain

GENERAL GRAPHS WITHIN THE REPORT

Pie Chart Showing Global Pharma Market Share % 63

A Bar Graph Showing Generics Share Of 63

Us-Prescription Drug Market (1984 And 2006)

A Bar Graph Pharma-Industry Level Expenditure 64

Forecast Are Encouraging Signs.

A Bar Graph Showing The Continuous Growth In 64

The R&D Expenses in The US From 1980 To 2002.

A Special Bar Graph Showing The Research Based 65

Pharmaceutical Industry – R&D Spending Exceeding The Promotional Dollars

Graph Showing No. Of Industry Players 82

In Various Health Care Domains




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T2.1: A Table Showing The Top 20 Global Pharmaceutical Industries 105

Based On Their Revenues In 2002

T2.2: A Table Showing The Top Ten Most Selling Drugs 105
In The Year 2001 Based Of Their Sales

T2.3: A Table Showing The 25 Major Players 106

In The Indian Pharmaceutical Market

T2.4: A Table Showing The Sales Of Major Domestic 107

And Foreign Multinational Companies In India

T2.5: Swot Analysis On The Indian Pharmaceutical Industry: 108

GENERAL TABLES WITHIN THE REPORT

Netkraft Skills Matrix 49

Difference between Industrial & Consumer Marketing Research 53

Table Showing Total Spending On Healthcare 60

As A Percentage Of Its Gdp (1970 – 2000)

Table Showing G7-nations Total Spending On Healthcare 60

As A Percentage Of Its Gdp (1970 – 2000)

Healthcare Sector Investment potentiality 61

H/C among The Top 3 List Of Global Investment Market.

Role Of Pharmaceutical In Healthcare Domain 61

The United States Healthcare Services Market Split Up 62

Global Pharma Market Share Percentage 63

Global Pharma Sales Have Been A Success Story (Upto 2003) 66

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The business world today is seeing massive turnaround in almost every sector -
thanks to rapid advancements in technology and infrastructure, growing industry
requirements, increasing cut-throat competition, market fragmentation, escalating desires
for overall cost-cutting and faster time-to-market etc. One such industry is the Healthcare
services market that has seen dramatic transformation in the past decade. United States
of America controls the adrenaline flow of this market with three key components of this
market being Healthcare Providers, Insurance companies and the Pharmaceuticals.
Health care presents a Multi $ billion market world wide currently of which more than 50%
comes from US and of which more than 50% is currently being outsourced in INDIA in
some form or the other. Against such a backdrop, there is now a new dimension to this
industry with the introduction of Information Technology solution providers in the form of
Enterprise Business Intelligence Solution providers/consultants.

Healthcare-Pharma industry is the most rapidly changing market scenario with US

heading the market share and India being identified as a global healthcare-Pharma
Outsourcing hub for its competitive advantage in industry services. In such a setting, an
Indian IT-company like Netkraft (which is Health care services domain expert) seeks to
stamp its presence as a Pharma-BI player. As an endeavor in this direction the company
is pursuing a string of IT-related projects in the Pharma domain in order to be a domain
expert in pharma sector and slowly transform into a Pharma-BI player.
Keeping the above in mind, this study was undertaken in order to unravel the
ground realities of this highly fragmented yet opportunistic Pharma-market and device
suitable suggestions and recommendations based on the research findings. As an
endeavour in this direction the company agreed to constitute us as an integral part of the
New Venture Development Team to conduct a market opportunity analysis based
research study that would aid in mapping the industry trends and requirements, which
would be then translated into an efficient market entry plan in due course of time. This
would aid in Netkraft’s process of devising an efficient “Go-To-Market strategy”.
 During the course of the study, the relevance of BI in Pharma domain was tested
through a hypothesis using chi-square test. Sample clusters were drawn from the Pharma
industry population, which were designed using suitable clustering criteria based on the
researcher’s discretion. For the purpose of study, the report was ideally divided into two
main sections namely Research Background study and Research Findings. Background
study aimed at performing a brief industry study that was purely based on secondary
data. Once the initial data mining process was over, further work was carried out in
digging further into the Pharma industry requirements with regards to BI thereby finding if
there was any service gap anywhere. For this purpose, trends, regression, requirements,
Competitor analysis and SWOT analysis were carried out and data were suitably
represented using graphs and tables.

Conclusions from the study indicated that, the industry - “BI solutions provider for
the Pharma markets” was still relatively untapped at the SME level and that the market
was shaping up for a brighter future for the IT companies involved in this business
specially India being established as a global Pharma-Outsourcing hub.
Key Opportunities areas for the application Business intelligence in the Pharma sector
exists in Data warehousing, Research & Development, Clinical Data Management,
Enterprise Information Portal, Supply chain and E-business related issues.
The competitor analysis (domestic) clearly showed that the window of opportunity exists
in the Small and Medium segment (SME) and hence incremental to Netkraft’s growth in
this sector as an established “BI player in pharma”.

As a part of suggestions, a suitable market entry plan was devised keeping

in mind the various analysis performed. As a sequel to the go-to-market strategy solution
a carefully designed “Business collateral” was prepared which could aid Netkraft in its
endeavour to stake claims as a “Bi player in pharma” in the near future. This would also
create further scope for research and investigation for them in this direction.

– Wishing them all the best in their efforts.