okay we're back this is Dave vellante I'm with Wikibon organ this is silicon angles the cube the cube is a live mobile studio we come into events we're here at knowledge service now's big customer event we're here at the aria hotel in Las Vegas and we've got wall-to-wall coverage today tomorrow and part of thursday as many of you know we were at sapphire now the big SI p customer show were simulcasting that on SiliconANGLE too but we're here in Las Vegas the ServiceNow conference is all about transformation transforming from no to now we've kind of got a double whammy segment here virtually every industry is transforming and certainly Big Pharma is transforming quite dramatically as well as the IT components of many industries Ross rexer is here he's the managing director at kpmg the global consultancy and T Juan Lumpkin who's an IT practitioner for Eli Lilly gentlemen welcome to the cube okay thanks for you so Ross let's start with you at a high level what's happening in the pharmaceutical industry in general Big Pharma how is the industry itself transforming and then we'll get into the I TPS sure so many of the Big Pharma's find themselves today in a situation that is unique to their their business industry and market where a lot of blocked blockbuster drugs which have been significant sources of revenue over the years are starting to come on with that it brings competition and a loss of revenue so the big farmers are all in a very coordinated methodical process right now to resize their business and at the same time enable the R&D function to bring new drugs to market focusing on patient outcomes that will happen in different ways in them they probably ever done before so the business model itself has changed and along with it all the support functions like ITA of course too so in that so it's all about the pipeline right and and the challenge if I understand it is that historically you got the big pharma companies they would you know go do about go about their thing and develop these drugs and they get a blockbuster and it was a relative today a relatively slow paced environment that's that's changing if I understand it correctly what's driving that change so the the innovation around medicines today is much different than it has been over the last 10 20 years in that composition around in the use of different biotech components to create a to create medicines is now being sourced in different ways historically Pharma built itself and really invested and was really a research and development company almost entirely in-house right so all the support systems and everything the way that the business was run was around that nowadays these the farmers are collaborating with smaller providers many of them in ways that again they just historically have never done everything was done in house to build to bring drugs to market and now it's it's shifted absolute to the opposite side where big farmers are relying on these providers these third-party providers for all stages of R&D and ultimately FDA and the release of these so t1 I introduced you as an IT practitioner and Lily so talk about more specifically about your role there you focused on infrastructure I teach em a list or more about them yeah so my rules are about service integration think about those services that we deliver to our internal customers within lily and how do we do that across our complex ecosystem where you have multiple different IT departments you have multiple suppliers who have different rigs and complexities in that space and so our job is how do we minimize that complexity for our internal business partners and making sure that the way we build variety is seamless for our internal customers okay so we heard Ross talking about the the pressures in the in the industry from a from an IT practitioner standpoint what how does that change change your life what are the drivers and what's the business asking you to do but just like anyone we need more volume but we also have to do that under under constraint and so for us how do we get more fishing so you think about this basically gone under you can only do so much outsourcing you only do so much change and so you have to see how do I start running my business more efficiently and I think that's the big shift and I tias you're moving from a from an internal infrastructure towers are truly looking at how do we deliver IT services and part of living IT services and making sure that we're a value-added partner and also being assured that we're competitive with other sources of our businesses have to get services from an IT perspective yeah so 10 years ago we used to talk a lot about demand management and to me it's that's why i love this from now from know to now because demand management is actually ended up just being no we just can't handle the the volume so you mentioned constraints you've got constraints you've got to be more efficient so so talk a little bit about what you did to get more efficient for us it was all about standardization so how do we how do we build standardization across our IT infrastructure nikka system within our IT partners empower external partners what that does it gives us flexibility so that we can deliver our systems and be more agile they think about our internal space we had a lot of complexity we had multiple procedures multiple processes different business units operating or delivering IT services in a consistent manner what we've been able to do it being able to streamline that we've been able to be more consistent internally in a line on the comments that are processes and how we deliver those ikea services to our customers so Ross you're talking about the sort of changing dynamic of what I would call sort of the pharmaceutical ecosystem right so so that's that sounds like it's relatively new in pharma it used to be sort of a go-it-alone the big guys hey we're multi-billion dollar companies we don't need these little guys you see all these startups coming out there really innovative there faster so take us through sort of how that's evolving how companies are dealing with the ecosystem and what kind of pressures that puts on IT what are you seeing out there so as t1 was was mentioning as well this was pushing to IT service integration as a kind of one of the next frontiers of now right being able to have the single pane of glass single system of record of IT and our ability to bring standardized services up and down in a coordinating consistent way has allowed for the bigger more monolithic type companies in be able to interact with with these smaller more agile more tech-savvy appeal partners and be able to not overburden them so the little provider who has maybe less less overhead of IT infrastructure and their processes would find it hard to be able to collaborate electronically with a big pharma if we had to adopt the big pharma's old-style processes so service integration is all about allowing for the the easy plug-and-play of these providers and establishing the reference set of processes and the supporting data that's needed to govern those transactions or the length of the of the outsourcing arrangement with with that provider in a way that doesn't get overburden them but provides the company Big Pharma the ability to have transparency ability to see risks before they're happening and to enter manage the cause so talk about your practice a little bit how do you what's role do you play it's obviously you've got this increasingly complex ecosystem evolving they've definitely got different infrastructures um how do you sort of mediate all this so Kim G what are our go-to-market offering and our solution set is based around a set of leading practices that that we have established over the past 17 years for example that we've been in the IT service management consulting and advisory business so we have these accelerators that we can we bring to a project and engagement like like the one we're at Eli Lilly where we can quickly faster than ever establish a common ground for those processes the operational processes first and foremost that would don't require years and years of consultancy process engineering 20 years ago type of thing so our role in that is to provide the basis for the are the operating model that's going to go forward and allow the core customer as well as these other providers to get there fast to get operating faster so t1 we've been hearing a similar pattern from the customers that we've talked to a lot of stovepipes a lot of legacy you know tools a lot of uncoordinated sort of activities going going on is that what what Lily with you would you describe that as an accurate depiction of the pasture i think i think that i think you're being kind yeah I'm sure we kind on the cheer we don't like to feed our guests up what I think it not to over use the ERP for IT term but this is something I t we've done for our business partners over the years we haven't done for our so if you think about the essay peas of the world where you get your CI CFO a one-click look at the the financial assets of the company you think about from a CRM perspectively doing that for our sales force we've done that from an HR perspective but we haven't taken the time to look at from an IT perspective and how do i give the cio that same visibility across our portfolio services so that he can ask those same questions you can have that same visibility so i want to add a little color to this whole erp for IT though of course on the one hand you know the sort of single system of record that's a positive but when you think of erp i say we were at SI p sapphire there's a lot of complexity in erp and with that type of complexity you'd never succeed but so what's your experience been thus far with regard to you know the complexity in my senses it's not this big monolithic system it's a cloud-based SAS based system talk about that a little bit well for us it's getting to a set of standards it actually helped reduce the complexity where you have complexity when you have multiple business procedures across the organization delivering services and so to get to that single source that single record it is actually help to reduce a lot of complexity on our part help it make it easier for us to deliver customer service for customers the other piece of that to which is the the singularity of vision of how we deliver I team so right now within our business we're depending on what area in you may get IT servers that delivers slightly differently from each area we've been able to streamline that and say this is how you're going to receive IT services and make it a more predictable experience for our internal users I saw Rus I want to talk about this notion of a single system of record before I ask you why it's so important what are we talking about here because today you've got a single system of record for your transactions you might have a single system of record for your your data warehouse all these single systems are at a record so what do you mean by a single system of record so when we're talking with service now and specifically in the IT Service Management domain what we're talking about is having integrated the capability to see data across the different data domains if you like so operational data performance data service level data with that coupled with the IT finance data as well as a zesty one put 360-degree vision of your assets as well so linking all those sources of data together in a way that can be used for analytics maybe for the first time ever so we we we use the analogy of IT intelligence right so what we've given our business partners and business intelligence over the years mmm it's-- never had that so the ability to provide IT intelligence that allows for the leadership due to to have data have information that they can take decisions and then ultimately become predicted with that right so be able have the knowledge to know what we're doing to make the right choices and in the future be able to do some predictive analysis again back to the point about the demands really never got one hundred percent right over the years we've talked about a lot but having the ability to understand the consumption and have the levers to influence demand and see it grow I want to go back to this business process discussion you were sort of reference the 20 years ago the whole VPO of movement and you know business process reorganization it seems to me that what what occurred was you had let's say a database or some kind of system and maybe there was a module and then you build a business process around that and so you had relatively inflexible business process they were hard to change is are you seeing that change it we at the cusp of the dawn of a new era where I can actually create whatever business process I want to around that single system of record is that truly a vision that's coming to fruition we believe it is and our experience it is it is starting to happen and I think service now with their platform is one of the emerging leaders in this space that's allowing for that to happen percent of the day so you have you have a concise platform that allows you enough flexibility to build new processes but has the common data structure has the common user interface as the common workflow set in a and all wrapped in and easy to maintain type of platform is what I think 20 years ago we wished we had and we tried to build in many different ways and ended up mostly cobbling things together but we really believe that and again our starting to see success out there David the platform question is solved and that we're now able to get to the prosecutor historically we you know delivered value plenty of value the problem is so much of that value was sucked by the infrastructure and and and not enough went into the innovation around it do you want my question to you is so people don't like change naturally now maybe it's different and nit maybe they want change in IT but did you see initial resistance I'll know we have this way of doing it we don't want to change or are people enthusiastic about change talk about that a little quite you hit it spot-on and absolutely the technology is the easy part of it it's really the change part that that's the most difficult piece of it and I would say we've done to a lot of work just a line organization and we've had a lot of support for from not only our internal IT people but also our senior leadership team so we've gotten support we've seen a lot of buy-in not saying still them not going to be easy not gonna be easy but I feel that we've got the right momentum now to make this type of change to get the business volume part of its been able to articulate the value that we're going to receive from from from this initiative so it's early days for for Lily and you guys should just get started on this journey not yesterday but you know you you're in an inference perience to give some advice to your fellow practitioners so my ask you guys both start with t1 what advice would you give to fellow practitioners that are looking to move in this direction great I would say first of all you have to have the business alignment so I need to make sure that you can clearly articulate the value of the change of the company so I can I can talk not in terms of process but in terms of outcomes that we're going to drive for our business partners once you're able to describe those outcomes then you can have the conversation on what's the work it's going to take to get there it's not an easy journey to be able to paint that picture accurately for for our teams and also talk about how we're going to support them through the process and so we're going to talk about the value we're going to we're going to paint the picture the journey we're not going to tell you how I want to support you throughout that process okay Ross you're talking to CIOs what's your what's your main point of advice for CIOs in this regard is look at the transformation as transformational right so it's it's it can be a set of tactical projects and tactical wins based on outcomes that you're looking for however to in order to truly change the way your IT functions runs as a business do all these these great things that we're talking we're talking about today is you have to have the vision and understand that it is there are series of building blocks that we will get you incremental value along the way but this is not a quick you know product slam then again maybe 20 years ago was about let's swap this software for that software and we're going to be good it's not about that and that's not going to get you the transformation so it's about transformation it's about the metrics to be able to prove that you are transforming and continuous improvement Ross do you want thanks very much for coming on the cube and sharing your story we could go on forever we're getting the hook but really appreciate you guys coming up thanks thanks for having right thanks for watching everybody we right back with our next guest Chris Pope is here who's the director of product management for service now so we're going to double-click on the platform and share with you some greater information about that this is the cube I'm Dave vellante we're right back