Biotechnology is a highly competitive industry, and biotech companies face innumerable challenges when catering to the global marketplace. Due to being such a dynamic and high-growth industry, budgeting and forecasting is a challenging process.
In a recent webinar, How Fast-Growing Biotech Companies Manage Corporate Performance in the Cloud , Robbie Tantoco, the Associate Director and FP&A at Keryx Biopharmaceuticals, and Robert Entwistle, the Financial Systems Manager at Sigma-Tau Pharmaceuticals, Inc had a conversation. The webinar focuses on the difficulties that high-growth biotech companies face in the planning and forecasting process. With cloud-based EPM software, both Tantoco and Entwistle were able to drastically improve their approach to modeling and forecasting, while accessing a highly scalable platform that catered to their rapid growth.
Biotechnology is a dynamic industry that is constantly adapting to global needs. Biotech companies face a number of distinct challenges including:
These challenges make the planning and forecasting process even more difficult, which ultimately led Tantoco and Entwistle to search for more viable alternatives.
In the webinar, O’Rourke asked Entwistle and Tantoco what the planning and forecasting process was like at their organizations prior to cloud-based EPM software. According to Tantoco, prior to cloud-based EPM, their organization was buried in spreadsheets, which led to the budgeting and forecasting process being conducted manually. This was incredibly tedious and time-consuming.
According to Tantoco, “Scenario planning and forecasting became a challenge because every additional change required us to redo the rollup and consolidation which takes hours if not a whole day to do.” In addition to being labor-intensive, Tantoco emphasized that their former system was prone to errors. Not only is the propensity toward human error increased, but the two-dimensional spreadsheets were harder to read and analyze.
Entwistle said his organization experienced many of the same difficulties as Tantoco’s company. He went on to add that the system made it difficult to ensure everyone within the organization had the information they needed, and oftentimes certain employees couldn’t access certain spreadsheets. Entwistle also said that, “Compiling the spreadsheets to create an aggregated budget was very difficult, and often that exercise had to be repeated,” which inevitably resulted in a highly tedious process.
Both Entwistle and Tantoco decided that cloud-based EPM software provided the ideal solution to the issues their organizations were experiencing. Some of the key benefits that led them to adopt cloud-based EPM software include:
Since adopting cloud-based EPM software, both Tantoco and Entwistle have been satisfied with the results. Entwistle said that the greatest advantage was escaping the two-dimensional view of spreadsheets. “With our current system, using the multi-dimensional setup has enormous benefits.” He said the ability to slice and dice data and gain that added visibility has helped improve the analysis and decrease human error, while allowing his organization to make decisions more confidently. Additionally, now all employees at his organization can access the data from anywhere and at any time, which has tremendously improved their operation.
Tantoco added that the rollup process is countless times more efficient than before. Also, having a centralized system to store all data has simplified their lives, while eliminating the hassle of organizing an endless quantity of spreadsheets. Tantoco also noticed that cloud-based EPM software has made it much easier to integrate all of their models across all finance functions, while expediting the reporting process considerably.
Biotech companies face innumerable obstacles in planning and forecasting. With the harsh competition, the endless public demand, and the fluctuating nature of the industry, biotech companies need modeling and budgeting software that is scalable, agile, and flexible. With cloud-based EPM software, biotech companies can reduce costs, improve the accuracy of modeling and forecasting, integrate their plans between departments, and access the information from any device.
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