Bayer Health Care Delivers a Dose of Reality

Bayer Health. Care Delivers a Dose of Reality for Cloud Payoff Mantras in Multinationals Till J. Winkler, Marc Piper, Alexander Benlian and Henry Hirsch / December 2014 (13: 4) Bayer Health. Care Delivers a Dose of Reality for Cloud Payoff Mantras in Multinationals To ensure payoffs from the cloud, multinationals must adopt strategies for coping with the inhibitors identified in this article. Page 1/20

Bayer Health. Care Delivers a Dose of Reality for Cloud Payoff Mantras in Multinationals Till J. Winkler, Marc Piper, Alexander Benlian and Henry Hirsch / December 2014 (13: 4) Agenda Ø Accepted Beliefs about Cloud Payoffs Ø BHC overview Ø Cloud Mantras at BHC Ø Inhibitors to Realizing Cloud Payoffs Ø Lessons Learned: Coping Strategies for Achieving Cloud Payoffs at Multinationals Page 2/20

Bayer Health. Care Delivers a Dose of Reality for Cloud Payoff Mantras in Multinationals Till J. Winkler, Marc Piper, Alexander Benlian and Henry Hirsch / December 2014 (13: 4) Beliefs about Cloud Payoffs 1/3 Ø Forrester Research estimates that the total global cloud computing market will grow from $61 billion in 2012 to $241 billion in 2020. Ø Small and mid-sized companies have been at the forefront of cloud service adoption. Ø Their accumulated experience has created a set of often-repeated cloud payoff mantras (or assertions). Page 3/20

Bayer Health. Care Delivers a Dose of Reality for Cloud Payoff Mantras in Multinationals Till J. Winkler, Marc Piper, Alexander Benlian and Henry Hirsch / December 2014 (13: 4) Beliefs about Cloud Payoffs 2/3 Page 4/20

Bayer Health. Care Delivers a Dose of Reality for Cloud Payoff Mantras in Multinationals Till J. Winkler, Marc Piper, Alexander Benlian and Henry Hirsch / December 2014 (13: 4) Beliefs about Cloud Payoffs 3/3 Ø Should IT and business leaders simply accept these mantras as true? Ø Given the complex realities that large and multinational companies face today Ø with business process idiosyncrasies, Ø numerous legacy systems Ø and regulatory differences across the geographies, Ø A one-size-fits-all approach to realizing cloud benefits will simply not work. Page 5/20

Bayer Health. Care Delivers a Dose of Reality for Cloud Payoff Mantras in Multinationals Till J. Winkler, Marc Piper, Alexander Benlian and Henry Hirsch / December 2014 (13: 4) Agenda Ø Accepted Beliefs about Cloud Payoffs Ø BHC overview Ø Cloud Mantras at BHC Ø Inhibitors to Realizing Cloud Payoffs Ø Lessons Learned: Coping Strategies for Achieving Cloud Payoffs at Multinationals Page 6/20

Bayer Health. Care Delivers a Dose of Reality for Cloud Payoff Mantras in Multinationals Till J. Winkler, Marc Piper, Alexander Benlian and Henry Hirsch / December 2014 (13: 4) BHC overview Ø BHC operates in over 100 countries with a vision to improve the health of people and animals. Ø BHC’s four divisions employ more than 55, 000 people. Ø BHC’s business strategy places strong emphasis on innovation and expansion into emerging markets, targeting above- industry, profitable and sustainable growth. Ø Most important stakeholders: producers, professionals and consumers. Page 7/20

Bayer Health. Care Delivers a Dose of Reality for Cloud Payoff Mantras in Multinationals Till J. Winkler, Marc Piper, Alexander Benlian and Henry Hirsch / December 2014 (13: 4) BHC IT overview Ø Shared services model with both global and local IT units. Ø 7 Global IT units are divided into demand IT functions at the subgroup level (i. e. , BHC, Bayer Crop. Science and Bayer Material. Science) and supply IT functions provided by an independent service company at the group level (Bayer Business Services). Ø BHC’s demand IT function sees itself as a partner to the business and provides IT expertise through dedicated centers of excellence (Co. Es). Page 8/20

Bayer Health. Care Delivers a Dose of Reality for Cloud Payoff Mantras in Multinationals Till J. Winkler, Marc Piper, Alexander Benlian and Henry Hirsch / December 2014 (13: 4) Agenda Ø Accepted Beliefs about Cloud Payoffs Ø BHC overview Ø Cloud Mantras at BHC Ø Inhibitors to Realizing Cloud Payoffs Ø Lessons Learned: Coping Strategies for Achieving Cloud Payoffs at Multinationals Page 9/20

Bayer Health. Care Delivers a Dose of Reality for Cloud Payoff Mantras in Multinationals Till J. Winkler, Marc Piper, Alexander Benlian and Henry Hirsch / December 2014 (13: 4) The Cloud CRM Program 1/2 Ø The initial thrust for cloud CRM at BHC originated from a new CEO. Ø A program organization headed by the marketing and sales Co. E in BHC’s demand IT function was created to define a global template for future CRM processes, select the provider, check compliance and security requirements, and decide on the global rollout approach. Ø Seduced by the cloud payoff mantras and vendors’ promises about the benefits of cloud- based systems pressed for the program to move forward quickly, Ø Significant pressure to deliver fast. Page 10/20

Bayer Health. Care Delivers a Dose of Reality for Cloud Payoff Mantras in Multinationals Till J. Winkler, Marc Piper, Alexander Benlian and Henry Hirsch / December 2014 (13: 4) The Cloud CRM Program 2/2 Page 11/20

Bayer Health. Care Delivers a Dose of Reality for Cloud Payoff Mantras in Multinationals Till J. Winkler, Marc Piper, Alexander Benlian and Henry Hirsch / December 2014 (13: 4) Cloud Mantras at BHC 1/3 Page 12/20

Bayer Health. Care Delivers a Dose of Reality for Cloud Payoff Mantras in Multinationals Till J. Winkler, Marc Piper, Alexander Benlian and Henry Hirsch / December 2014 (13: 4) Cloud Mantras at BHC 2/3 Page 13/20

Bayer Health. Care Delivers a Dose of Reality for Cloud Payoff Mantras in Multinationals Till J. Winkler, Marc Piper, Alexander Benlian and Henry Hirsch / December 2014 (13: 4) Cloud Mantras at BHC 3/3 Page 14/20

Bayer Health. Care Delivers a Dose of Reality for Cloud Payoff Mantras in Multinationals Till J. Winkler, Marc Piper, Alexander Benlian and Henry Hirsch / December 2014 (13: 4) Agenda Ø Accepted Beliefs about Cloud Payoffs Ø BHC overview Ø Cloud Mantras at BHC Ø Inhibitors to Realizing Cloud Payoffs Ø Lessons Learned: Coping Strategies for Achieving Cloud Payoffs at Multinationals Page 15/20

Bayer Health. Care Delivers a Dose of Reality for Cloud Payoff Mantras in Multinationals Till J. Winkler, Marc Piper, Alexander Benlian and Henry Hirsch / December 2014 (13: 4) Inhibitors to Realizing Cloud Payoffs 1/2 Page 16/20

Bayer Health. Care Delivers a Dose of Reality for Cloud Payoff Mantras in Multinationals Till J. Winkler, Marc Piper, Alexander Benlian and Henry Hirsch / December 2014 (13: 4) Inhibitors to Realizing Cloud Payoffs 2/2 Page 17/20

Bayer Health. Care Delivers a Dose of Reality for Cloud Payoff Mantras in Multinationals Till J. Winkler, Marc Piper, Alexander Benlian and Henry Hirsch / December 2014 (13: 4) Agenda Ø Accepted Beliefs about Cloud Payoffs Ø BHC overview Ø Cloud Mantras at BHC Ø Inhibitors to Realizing Cloud Payoffs Ø Lessons Learned: Coping Strategies for Achieving Cloud Payoffs at Multinationals Page 18/20

Bayer Health. Care Delivers a Dose of Reality for Cloud Payoff Mantras in Multinationals Till J. Winkler, Marc Piper, Alexander Benlian and Henry Hirsch / December 2014 (13: 4) The Need for Coping Strategies Page 19/20

Bayer Health. Care Delivers a Dose of Reality for Cloud Payoff Mantras in Multinationals Till J. Winkler, Marc Piper, Alexander Benlian and Henry Hirsch / December 2014 (13: 4) Coping Strategies for Achieving Cloud Payoffs at Multinationals Page 20/20