UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Nguyen Thi Phuong Thao CHANGE MANAGEMENT DURING CRM IMPLEMENTATION THE CASE OF GSK VIETNAM MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2020 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Nguyen Thi Phuong Thao CHANGE MANAGEMENT DURING CRM IMPLEMENTATION THE CASE OF GSK VIETNAM MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: DR. PHAN THI MINH THU Ho Chi Minh City – Year 2020 1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com EXECUTIVE SUMMARY Nowadays, we live in the heavily tech-focused world where technology plays as an important role in developing and growing business. As such, pharmaceutical industry is facing these challenges too, step up to this change and take it seriously. For the ten last years, marketing activities in pharmaceutical organization focus on personal selling through visits of MR.
Free samples, brochures, brand reminder, gift, event travel,…are offered to HCPs as well. The reporting and tracking for these activities are carried out manually and un-systemized. However, nowadays, pharmaceutical industry has many SOPs to ensure that marketing activities do not too impact HCP‘s recommendation and prescription. By accessing technology, focusing on CRM on this case, pharmaceutical companies pay attention to both comply SOPs related to customer relationship and increase these relationship, comprehend customer‘s insight toward prescription and recommendation.
Customer intelligence, data collection, tracking and reporting become easier and systemized through CRM implementation. Besides, through CRM support, MRs can deliver effective presentations and communications via visual aids. Realizing the potential benefits of CRM implementation in pharmaceutical industry, GSK first launched Veeva – a CRM application in 2018. However, on audit report in Sep 2019, auditors has findings that there has been the high gap between KPIs and actual on Veeva system.
Thus, the thesis tend to explore potential problems in order that author can understand and find out causes for underperformance of Veeva report. Through in-depth interview and theory-informed, the crucial problem has been figured out as change management failure. The finding of thesis highlights that change management failure happened during Veeva implementation and deeply impacted to performance on Veeva system, employee‘s resistance increase and financial investment effect toward Veeva‘s investment. Based on research findings, the potential causes have been revealed, including insufficient training and education, lack of top and middle management support, insufficiency technical support and resistance to change.
In a further investigation, root causes of this situation are identified as employee‘s resistance. Alternative solutions are also made with regards to improve performance on Veeva system. This thesis also will help to take further steps towards developing solutions such as training and performance measurement. LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Acknowledgement Firstly, I would like to express my very special thanks and gratitude to my supervisor - Dr.
Phan Thi Minh Thu for her expert advice, encouragement and motivation weekly throughout thesis process. This thesis wouldn't have been implemented without her guidance and support. Secondly, to my committee member, I'm sincerely grateful to Dr. Ly Thi Minh Chau and Dr.
Doan Anh Tuan who gave suggestion during proposal in order that I can improve my thesis Thirdly, a thank you to colleagues of GSK and DKSH, they gave me insights and data to complete the thesis. Finally, I would like to send thankfulness to my family who encourage and motivate me to complete my Master program LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF ABBREVIATION BM - Brand manager BU - Business unit CD – Customer development CH/Cx - Consumer Healthcare CRM - Customer relationship management DOIT - Department of Industry and Trade EM - Expert Marketing GSK - GlaxoSmithKline HCP - Healthcare Professional HIV - Human immunodeficiency virus HOD - Head of department HR – Human resource ILT - International leadership team KOL - Key opinion leader KPIs - Key Performance Indicators MR - Medical Representative NU - Nutrition OH - Oral Healthcare OTC - Over-the-counter PR - Public relations Rx - Medical prescriptions SH - Skin Healthcare SOP - Standard Operating Procedure VLT - Vietnam Leadership Team WN - Wellness LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Table of figure Figure 1 GSK organization chart. 2 Figure 2 Expert Marketing activities. 5 Figure 3 Expert Marketing Organizational chart.
5 Figure 4 Detailing team structure - DKSH. 5 Figure 5 Number of samples between scorecard and Veeva report from Apr to Aug 2019. 8 Figure 6 Initial cause – effect map. 9 Figure 7 Number of samples on scorecard from 15 Apr to 1 May 2019.
13 Figure 8 Number of samples on scorecard – Da Nang area. 14 Figure 9 Updated cause – effect map. 16 Figure 10 Financial investment - Veeva. 19 Figure 11 Costs for alternative solution 1 (author synthesis).
28 Figure 12 Costs for alternative solution 2 (author synthesis). 31 Figure 13 Costs for alternative solution 3 (author synthesis). 33 Figure 14 Evaluation among solutions. 35 Figure 15 Action plan – Pre deployment.
37 Figure 16 Action plan – During deployment. 37 Figure 17 Action plan - Implement. 37 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Table of Contents 1 Problem context. 1 Overall Expert Marketing .1 Old version of Veeva .2 Lack of willing to use from MRs .3 Lack of Veeva super-user .4 Insufficient Veeva training .5 Argument for removing ―Period gap of DOIT‘s permission‖ .6 Argument for removing ―Lack of medical representative‖ .1 Updated cause and effect map .2 Main problem definition .3 Importance and consequence of main problem .1 Insufficient education and training .2 Technical support failure .3 Resistance to change .4 Lack of top management support.
24 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.1 Alternative solution 1: Setting on top incentive toward Veeva report.2 Alternative solution 2: Have Veeva Super user by utilizing internal human resources .3 Alternative solution 3: Special coaching. 39 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 1 Problem context 1.1 Company background GlaxoSmithKline PLC GlaxoSmithKline also known as GSK is British multinational pharmaceutical corporation headquartered in London. In 2000, GSK is established by merging between Glaxo Wellcome and SmithKline Beecham. Its business began in 1715 with the opening of an apothecary shop.
During 300 years, GSK had been experiencing over three centuries of innovation to help people do more, feel better, live longer. Their values include patient focus, transparency, respect, integrity. GSK always expect courage, accountability, development and teamwork in its organization Recent impressive milestones include: - In 2015, GSK has reached agreement to acquires the Norvatis global Vaccines business and divests its marketed Onconlogy portfolio business to Novartis. - In 2018, continued creating joint venture with Pfizer into a new world-leading Consumer Healthcare GSK‘s product portfolio is diversified including three business units (BUs): - Pharmaceutical medicines: has a broad portfolio of innovative and established medicines, with leadership positions in respiratory and HIV.
We are strengthening our pipeline through a focus on immunology, human genetics and advanced technologies to help us identify the most promising new medicines. - Vaccines: leading Vaccines company in the world, delivering over 2 million vaccine doses every day to people living in 158 countries. Their portfolio and pipeline help protect individuals throughout lives. - Consumer healthcare: develops and markets a portfolio of globally recognized consumer preferred and expert-recommended brands in the oral health, pain relief, respiratory, skin health, nutrition and digestive health categories.
These category-leading brands include Sensodyne, Parodontax, Poligrip, Voltaren, Panadol, Otrivin and Theraflu. GlaxoSmithKline Vietnam In 2002, representative office of GSK was established in Vietnam. Until now, GSK Vietnam also operates as representative office. GSK‘s business in Vietnam which includes approximately 400 employees, also focuses on bringing prescription medicines, vaccines and consumer healthcare products to Vietnamese patients and consumers.
1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com GSK Vietnam product portfolio, including two BU: - BU Cx: responsible for • OTC medicine: WN (Panadol, Voltaren, Otrivin,…) and NU (Calsource,.) • Cosmeceuticals: OH (Sensodyne, Aquafresh,…) and SH (Acne Aid, Spectraban,…) - BU Rx: responsible for pharmaceutical medicines and vaccines These business units operate as independent entities with different SOP, different structure. Therefore, in this case, author will focus BU Cx only to explore symtomp and main problem Consumer Healthcare business unit General Manager - Indochina Brand HOD – Expert HOD – Modern Trade Other operation dept team Marketing team HOD – HOD BM – BM – Trade Detailing Marketing CD Regulatory WN NU MKT manager manager Planning Legal HR team manager & Affairs BM – team OH&SH e- Assistant Assistant Veeva super user Assistant commerce Manager Manager – Manager – Manager – Manager – - OH SH&CamLao WN&NU CD Assistant North & South & Operation Southern Manager Northern central central Assistant Assistant Assistant Figure 1 GSK organization chart Overall Expert Marketing Expert Marketing roles and responsibility Category and brand - Lead the Expert Marketing Indochina team to deliver the Expert Marketing objective for the three markets - Partner with regional Expert marketing function to ensure strategic alignment, provide input into strategy, and ensure flawless execution of centrally created expert materials - Develop a local tactical plan based on strategy and a deep understanding of local insight and path to purchase, including robust efforts for both sales force and non-sales force activation 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com - Deliver localized expert marketing materials together with local insights for sales force implementation (which is aligned with centrally created materials) - Deliver localized expert marketing materials together with local insights for activation of other marketing touch points (advertorials, e-platforms, press releases, PR, symposia etc) for non-sales force implementation - Collaborate with Brand marketing team to shape the healthcare environment to endorse GSK brands to consumers Commercial Execution - Work with the VLTs and the cross functional team to deliver the business goals - Involve in the financial planning process to build commercial and financial knowledge - Partner with local expert and trade selling teams to ensure strategic alignment and flawless execution with HCPs including those in retail setting – including launching both commercial and product innovation in a market - Closely manage local expert agency or a global affiliate to leverage maximum impact on local marketing initiatives - Partner with medical and regulatory (and regional as needed) to deliver a local HCP advocacy plan which drives brand recommendation and is compliant with scientific engagement - Work closely with local communication/PR team to execute medically relevant PR set and track benchmark KPIs, draw insights and course correct based on learning in a timely manner Expert Marketing activities Expert Marketing is specific department which has core target customer includes: hospital, healthcare association, clinic, pharmacy and medical school. Each customer will toward different purpose and different activities. In general, Expert Marketing has targets and activities which are in below table.
Purpose: - Tender: this is key purpose which effect to EM performance. Besides, this activity only happen in hospital. In hospital Vietnam, pharmaceutical procurement is used to purchase drug from supplier (pharmaceutical company) to meet the treatment need for patients. Moreover, this method will be implemented by tender.
In other ways, hospital will invite bids for many packages to buy medicine. Pharmaceutical companies will try to gain the 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com the winning bid. Products for bidding process in hospital include OTC (Panadol, Otrivin, Voltaren,…) and prescription medicine - HCP‘s recommendation. Cx is in charge of OTC and cosmeceutical.
Hence for medical channels, HCP will give recommendation to patients about specific products. And then patients can buy themselves in future. - Build relationship with KOL. KOL in hospital channel includes experienced, trusted and famous HCP can give recommendation or feedback to other HCPs or patients,….
- Sale performance: In Expert marketing, due to nature of channel, WN and NU has higher sale target comparing to SH and OH.