 Okay, we're back. This is Dave Vellante. I'm with wikibon.org and this is SiliconANGLE's The Cube. The Cube is a live mobile studio. We come into events. We're here at Knowledge, ServiceNow'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 SAP customer show. We're simulcasting that on SiliconANGLE too. But we're here in Las Vegas. The ServiceNow conference is all about transformation, transforming from no to now. And 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 Tewan Lumpkin, who's an IT practitioner for Eli Lilly. Gentlemen, welcome to The Cube. Thank you, Jeff. Thanks for being here. 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 ITPs. Sure. So many of the Big Pharmas find themselves today in a situation that is unique to their business and their industry and market, where a lot of blockbuster drugs, which have been significant sources of revenue over the years, are starting to come up. And with that, it brings competition and a loss of revenue soon. So the Big Pharmas 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 than they've probably ever done before. So the business model itself has changed, and along with it, all the support functions like IT are forced to. So it's all about the pipeline, right? And the challenge, if I understand it, is that historically, you've got the Big Pharma companies, they would go about their thing and develop these drugs, and they'd get a blockbuster. And it was a relatively today, a relatively slow paced environment. That's changing, if I understand it correctly. What's driving that change? So the innovation around medicines today is much different than it has been over the last 10, 20 years in that the composition around and the use of different biotech components 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. So all the support systems and everything in the way the business was run was around that. Nowadays, the Phamas are collaborating with smaller providers and many of them in ways that, again, they just historically have never done. Everything was done in-house to bring drugs to market. And now it's shifted absolutely to the opposite side, where big Phamas are relying on these providers, these third party providers for all stages of R&D and ultimately FDA and the release of these drugs. So T1, I introduced you as an IT practitioner at Lilly. So talk more specifically about your role there. You focused on infrastructure and IT generalist, or talk a little more about that. Yeah, so my roles are about service integration. The thing about those services that we delivered to our internal customers within Lilly and how do we do that across our complex ecosystem? Well, you have multiple different IT departments. You have multiple suppliers. You 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 deliver IT is seamless for our internal customers. Okay, so we heard Ross talking about the pressures in the industry from an IT practitioner standpoint. How does that change your life? What are the drivers and what's the business asking you to do? Just like anyone, we need more volume, but we also have to do that under constraints. So for us, how do we get more efficient? So you think about the space we've gone under. You can only do so much outsourcing. You can 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 in IT is you're moving from an internal infrastructure tower. So truly looking at how do we deliver IT services? And part of delivering IT services is making sure that we're a value-added partner and also making sure that we're competitive with other sources that our businesses have to get services from an IT perspective. Yeah, so 10 years ago, we used to talk a lot about demand management. It's not so I love this from now, from now because demand management essentially ended up just being no, we just can't handle the volume. So you mentioned constraints, you've got constraints, you've got to be more efficient. So talk a little bit about what you did to get more efficient. For us, it was all about standardization. So how do we build standardization across our IT infrastructure and ecosystem within our IT partners and for our external IT partners? And what that does, it gives us flexibility so that we can deliver our systems and be more agile. When we 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 an inconsistent manner. What we've been able to do is we've been able to streamline that, we've been able to be more consistent internally and align on the comments that are processes and how we deliver those IT 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 that sounds like it's relatively new in pharma. It used to be sort of a go at alone, the big guys, hey, we're multi-billion dollar companies, we don't need these little guys. And you see all these startups coming out, they're really innovative, they're 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 mentioning as well, this pushing to IT service integration as 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 be able to interact with these smaller, more agile, more tech savvy, if you will, partners and be able to not overburden them. So the little provider who has maybe 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 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 outsourcing arrangement with that provider in a way that doesn't overburden them but provides the company, the big pharma, the ability to have transparency, ability to see risks before they're happening and to manage the cost. So talk about your practice a little bit. How do you, what role do you play? It's obviously you've got this increasingly complex ecosystem evolving. They've definitely got different infrastructures. How do you sort of mediate all this? So KPMG, what our go to market offering and our solution set is based around a set of leading practices 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 bring to a project like engagement 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 don't require years and years of consultancy process engineering the way we do it 20 years ago type of thing. So our role in that is to provide the basis for the operating model that's gonna go forward and allow the core customer as well as these other providers to get their fast, to get operating fast. So T1, we've been hearing a similar pattern from the customers that we've talked to. A lot of stealth pipes, a lot of legacy tools, a lot of uncoordinated sort of activities going on. Is that what Lilly, would you describe that as an accurate depiction of the past? I think you're being kind. I'm sure we're kind on the cue. We don't like to feed our guests up. I think, and not to overuse the ERP for IT term, but this is something that IT, we've done for our business partners over the years, we haven't done for ourselves. You think about the SAPs of the world where you get your CFO, a one-click look at the financial assets of the company. You think about it from a CRM perspective, we've done that for our sales force, we've done that from an HR perspective, but we haven't taken the time to look at it from an IT perspective, and how do I give the CIO that same visibility across our portfolio of services so that he can ask those same questions, he can have that same visibility? So I want to add a little color to this whole ERP for IT. Now, of course, on the one hand, the sort of single system of record, that's a positive, but when you think of ERP, I say we were at SAP 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 the complexity? In my senses, it's not this big monolithic system, it's a cloud-based SaaS-based system. Talk about that a little bit. Well, for us, getting to a set of standards has 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 has actually helped reduce a lot of complexity on our part, help it make it easier for us to deliver services to our customers. The other piece of that, too, is just the singularity of vision of how we deliver IT. So right now, within our business, we're depending on what area you're in, you may get IT services delivered 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. So Ross, 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 data warehouse, you have all these single systems of record. So what do you mean by a single system of record? So when we're talking with the 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 will. So operational data, performance data, service level data with that, coupled with the IT finance data, as well as T1, 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 use the analogy of IT intelligence. So what we've given our business partners is business intelligence over the years. IT's never had that. So the ability to provide IT intelligence that allows for the leadership to have data, have information that they can take decisions and then ultimately become predictable, right? So be able to 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 demand side, right? Which we really never got 100% right over the years. We've talked about it a lot, but having the ability to understand the consumption and have the levers to influence demand and see it down the road. I want to go back to this business process discussion. You were sort of referenced the 20 years ago, the whole BPO movement and business process reorganization. It seems to me that 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. Are you seeing that change? Are 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 in our experience, it is starting to happen. And I think ServiceNow with their platform is one of the emerging leaders in this space that's allowing for that to happen quite certainly. So 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, has the common workflow set and all wrapped in an 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, I was starting to see success out there today that the platform question is solved and that we're now able to get to the process. Yeah, I mean historically we delivered value, plenty of value, the problem is so much of that value was sucked up by the infrastructure and not enough went into the innovation around it. Jim, my question to you is so, people don't like change naturally. Now maybe it's different in IT, maybe they want change in IT, but did you see initial resistance? Oh no, we have this way of doing it, we don't want the change or are people enthusiastic about change? Talk about that a little bit. Yeah, you hit a spot on and absolutely the technology is the easy part of it, it's really the change part, that's the most difficult piece of it and I would say we've gone through a lot of work just to align organization and we've had a lot of support for not only our internal IT people but also our senior leadership team and so we've gotten support, we've seen a lot of buy-in and I'm saying it's still not going to be easy, not going to be easy, but I feel that we've got the right momentum now to make this type of change, to get the business ball in. Part of it is being able to articulate the value that we're going to receive from this initiative. So it's early days for Lily, I mean you guys just got started on this journey, not yesterday, but you're in far enough that you've got enough experience to give some advice to your fellow practitioners. I'm going to 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've got to have the business alignment so I need to make sure that you can clearly articulate the value of the change in the company so 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 of what's the work that's going to take to get there. It's not an easy journey, so I need to be able to paint that picture accurately 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 paint the picture of the journey, we're also going to tell you how we're going to support you throughout that process. Okay Ross, you're talking to CIOs, what's your main point of advice for CIOs in this regard? Is look at the transformation as transformational, right? So it can be a set of tactical projects and tactical wins based on outcomes that you're looking for. However, in order to truly change the way your IT functions, runs as a business, do all these great things that we're talking about today is you have to have the vision and understand that there are a series of building blocks that will get you incremental value along the way, if this is not a quick product slam that 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 to transformation. So it's about transformation, it's about the metrics to be able to prove that you are transforming and continuous improvement. Ross Tewant, thanks very much for coming on theCUBE and sharing your story. We could go on forever, we're getting the hook, but really appreciate you guys coming on. Thanks for having us. All right, thanks for watching everybody. We're 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 theCUBE, I'm Dave Vellante, we're right back.