Life Sciences for SAP Customers

The State of Health Care and Life Sciences for SAP Customers:

A Recap of our Research

March 25, 2021 About ASUG Research

The ASUG research team uses quantitative and qualitative research methods to capture a unique view of what the largest group of SAP users in North America is thinking, doing, and planning for their road maps.

Examples of Topics We Cover

cloud strategies emerging SAP S/4HANA industry tech technologies myths and ROI trends

1 Key Trends and Pressures for SAP Health Care and Life Sciences Customers

2 The Secrets Behind Satisfaction for SAP Health Care and Life Sciences Customers

3 What Does it All Mean?

Customer Trends

COVID-19 and Cost management Implementing digital telehealth technologies

Source: ASUG State of the Industry research (September 2020; n=52) Size of icon indicates amount trend was noted by respondents

Customer Trends*

Incorporating artificial Increasing costs of drugs/quality Advancements in genetics intelligence/digital control technologies

Source: ASUG State of the Industry research (September 2020; n=21) Size of icon indicates amount trend was noted by respondents *Use caution due to small sample size 6 © 2021 ASUG Pain Points for SAP Health Care and Life Sciences Customers

Pressures They’re Feeling

Adequate Building up and maintaining Finding funding needed to staffing/ensuring staff cybersecurity keep resources up-to-date is up to date on new technology

Source: ASUG State of the Industry research (September 2020; n=73) Size of icon indicates amount trend was noted by respondents

81% 76% of participants in the of participants in the life health care industry sciences industry expect expect data conversational user analytics/dashboards to interfaces/chat bots to impact their jobs impact their jobs*

Source: ASUG State of the Industry research (Health Care, September 2020; n=52) (Life Sciences, September 2020; n=21) *Use caution due to small sample size

36% 50% of participants overall are of participants overall note currently using Qualtrics intelligence on customer needs and demands as a critical factor relating to their job

Source: ASUG State of the Industry research (September 2020; n=73)

Health Care Life Sciences*

#1 Strengthening security #1 Managing the supply chain

#2 Empowering the #2 Developing cloud strategies workforce with technology

#3 Maintaining data compliance with regulations, standards, or requirements

Source: ASUG State of the Industry research (Health Care, September 2020; n=52) (Life Sciences, September 2020; n=21) *Use caution due to small sample size

We have a cloud We have a cloud strategy We do not have a cloud We do not have a cloud strategy in place. in place, but we are in strategy in place yet but strategy in place and the early stages. are exploring it. are not exploring it.

Health Care 52% 31% 15% 2%

Life Sciences* 33% 33% 33% 0%

Source: ASUG State of the Industry research (Health Care, September 2020; n=52) (Life Sciences, September 2020; n=21) *Use caution due to small sample size

We use it across our We use it in the field. We do not use it today We do not use mobile entire organization. but are planning to technology. implement it. Health Care 58% 35% 6% 2%

Life Sciences* 52% 14% 29% 5%

Source: ASUG State of the Industry research (Health Care, September 2020; n=52) (Life Sciences, September 2020; n=21) *Use caution due to small sample size

52% 50% 44% 38% 38% 37% 35% 33% 31%

SAP Integrated SAP Data SAP SAP ERP Central SAP Qualtrics SAP Ariba SAP Fieldglass SAP Fiori Business Planning Warehousing BusinessObjects BI Component (SAP SuccessFactors (SAP IBP) Platform ECC)

Source: ASUG State of the Industry research (September 2020; n=52)

52% 52% 48% 43% 38% 33% 33% 33%

SAP Integrated SAP Data SAP Fiori SAP SuccessFactors SAP ERP Central SAP Ariba SAP Fieldglass Qualtrics Business Planning Warehousing Component (SAP (SAP IBP) ECC)

Source: ASUG State of the Industry research (September 2020; n=21) *Use caution due to small sample size

% Currently using % Considering SAP S/4HANA using

Health Care 29% 21% 41% of participants overall note their SAP S/4HANA plans have Life Sciences* 14% 33% been delayed due to the COVID-19 pandemic

Source: ASUG State of the Industry research (Health Care, September 2020; n=52) (Life Sciences, September 2020; n=21) *Use caution due to small sample size

32% 23% 21% Integrating current Exploring new technologies products

Source: ASUG State of the Industry research (September 2020; n=73)

Critical Factors Hidden Motivators Minimum Expectations

Intelligence on customer needs and Data compliance with regulations Product research and development demands Environmental, safety, and Access to data/data ownership sustainability issues Workforce safety/protection procedures

Source: ASUG State of the Industry research (September 2020; n=73)

Health Care Hospital and health care Medical practices Mental health care 87% 21% 17%

Life Sciences*

Pharmaceuticals Medical devices Drug development 95% 76% 76%

Source: ASUG State of the Industry research (Health Care, September 2020; n=52) (Life Sciences, September 2020; n=21) *Use caution due to small sample size

Uncovering COVID-19 impacts and incorporating digital technologies

Leverage AI solutions, automation, and rely on enhanced data analytics to upgrade and digitize processes Solve challenges related to finding and retaining necessary skill sets, staying abreast of new technologies, and maintaining cybersecurity concerns, all while managing the funding needed

Cloud solutions and mobile technologies

Source: ASUG State of the Industry research (September 2020; n=73)

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