Evolution of ERP in BioTech and Integration Challenges

As BioTech companies grow, they often juggle multiple software solutions, including ERP, that don’t always work well together, leading to disconnected data and inefficiencies. In a recent webinar hosted by Auxilius and Sikich, we tackled two key questions: How do you integrate multiple software solutions to avoid a data mess, and how can you manage the full financial picture of clinical trials with existing tools? The answers to these questions can significantly benefit anyone facing similar issues in the BioTech industry. You can watch the full webinar here.

Now, let’s explore practical solutions to overcome these integration challenges and simplify clinical financial planning.

Question:

“As the number of software solutions grows, we end up with a mess of disconnected data. Could you comment on integration of all these products?”

Answer:

In the BioTech industry, the way we manage our finances and operations has evolved significantly. Imagine starting small, just jotting things down on sticky notes. Then, as you grow a bit, you start using Excel spreadsheets to keep track of more detailed information. As your business expands, you move to QuickBooks for accounting, then to a comprehensive solution like NetSuite, which integrates various business functions beyond accounting. At the highest level, for large-scale operations, you might use SAP, a powerful tool for managing all aspects of your business.

However, as we adopt more and more software solutions, each serving a specific purpose, we often face a situation where these tools don’t communicate well, leading to a mess of disconnected data. This makes it hard to get a complete picture of your operations.

To solve this, integration tools and platforms come into play. These tools help connect different software solutions so that they can share data seamlessly. Imagine it as building bridges between different islands of information. When done right, integration ensures that all your data flows smoothly from one system to another, providing a unified view of your business operations.

At Sikich, we have seen this firsthand. In addition to ERP solutions, we partner with other tools like Auxilius to extend functionality for the BioTech industry. We’ve also expanded our services to include regulatory quality compliance and data analytics, ensuring that clients have comprehensive support for integration and data management.

Clinical Financial Planning Challenges and Solutions

Question:

“One challenge as regards Clinical Financial Planning is the incapability of existing tools to plan the holistic picture—Direct Fees, Pass-Throughs, and Investigators Grants. Is there a solution on the horizon that a potential single tool will be able to provide all?”

Answer:

In clinical trials, managing finances can be really complex. You have different types of costs to track:

• Direct Fees: These are straightforward payments, like paying for lab tests or consulting fees.
• Pass-Throughs: These are expenses that you initially cover but later get reimbursed for, such as travel expenses for clinical trial participants.
• Investigators Grants: These are funds given to researchers to conduct parts of the trial.

The problem is that existing tools often can’t handle all these different types of costs together. You end up using multiple tools, which don’t always integrate well, making it hard to see the full financial picture of your clinical trials. But there’s good news! There’s ongoing development in creating comprehensive tools that can manage all these aspects in one place. These new solutions aim to provide a single platform where you can track direct fees, pass-through costs, and investigator grants all together. This holistic approach simplifies financial planning, reduces errors, and gives you a clearer view of your trial’s financial health.

At Sikich, we’ve noted that clinical trial financial management is crucial. Many companies initially rely on QuickBooks, which might be sufficient for early stages but falls short as complexity grows. We offer solutions within NetSuite to handle pre-accrual accounting, prepaids, and accruals, which are effective until multiple clinical trials come into play. At this stage, full automation and tools like Auxilius become necessary.

Adam Wiseman from Auxilius emphasized that they built their platform to address the inefficiencies in managing clinical R&D accruals, budgeting, and vendor accountability. Auxilius aims to provide a comprehensive tool that can manage the holistic financial picture of clinical trials, and they continue to develop features to cover all aspects of financial planning in this area.

Next Steps

While we currently face challenges with fragmented data and inadequate financial tools, advancements are on the horizon, promising better integration and more comprehensive solutions to manage operations and finances efficiently.

To take the next step in optimizing your financial and operational management with ERP designed for BioTech companies:

1. Watch the Full Webinar: Gain deeper insights by watching the full discussion here.
2. Read the Related Blog: For additional insights, read our blog on Navigating the Biopharma Finance & Accounting Tech Landscape from Pre-Clinical to Commercial Success.
3. Reach Out for Assistance: If you have specific questions or need further assistance, please contact us.