If merging and acquiring a company is a challenge for the office of the CFO, spinning off an internal organization also poses major complications for both the parent company and the spin-off. It’s particularly daunting when your organization is totally reliant on shared services from the parent company. This is exactly the situation Indivior faced when it became an independent company in December 2014 after 20 years as a unit of consumer goods giant Reckitt Benckiser.
Today, Indivior PLC is a specialty pharmaceutical company that manufactures products for the treatment of opioid dependence, sold in over 40 countries. To ensure a smooth beginning for the new stand-alone entity, transition service agreements were put in place that gave Indivior two years to establish its own infrastructure.
This might sound like a long time. But when you consider that it meant migrating from seven different ERP instances and six other systems for invoice management, finance management and consolidation, data warehousing, and demand management, there was an awful lot of hard work to do. And that was in addition to setting up an underlying infrastructure that included email, telephony, desktop management, human resources, and a help desk.
Across-the-board transformation in 18 months
Despite the enormous undertaking ahead, the Indivior management team decided early on to put in place a modern, scalable, and agile platform to support the company’s growth strategy. What transpired was an across-the-board transformation of its digital core, not just in finance, but also in supply chain and all lines of business, breaking down silos in a way that has produced synergies throughout the organization.
With help from Deloitte, Indivior now has a single global platform for its operations worldwide. The implementation, undertaken in two waves, involved moving all manufacturing, supply chain, logistics, procurement, invoicing, financial, and other back-end operations in 11 different countries onto the new platform.
Started in January 2015, the two waves were completed in June 2016, with zero impact on the supply and delivery of medication, and well before the transition agreements expired in December. Besides the main platform, two mobile apps went live at the same time, one for tracking purchase orders and the other for approving them.
Accountability, collaboration, change management
How did Indivior manage such a fast deployment? Here are some key success factors:
- Putting in place finance and supply chain project leaders and giving them the responsibility to make tough decisions that were best for the newly established company
- Close collaboration between the project management office – which included Indivior, Deloitte, and other systems integrator resources – and the functional and technical teams spread around the globe
- Leveraging preconfigured templates that supported 90% of the company’s business processes out of the box
- Recognizing that moving to a global instance wasn’t just a change in the system processes, but also in the business processes for the personnel who stepped into the newly formed roles – requiring a continuing training, education, and business change-management program
Integrated data for decision support
Indivior now has an enterprise-wide, scalable platform that supports the business strategy in terms of operations, finance, and enterprise mobility. With one global instance, all the company’s data is aligned and readily accessible for analysis and reporting, providing new ways to view and manipulate information to support better decision-making.
With the core processes running smoothly, Indivior is now in a position to step back and determine how else the new platform can help achieve its business goals. Long-term strategic planning is already well underway, and the company is also exploring how it can gain further benefit from the improved access to data made available with the new system.
Want to learn more? Read the full case study on insiderProfile.