Navigating FP&A Challenges in the Dynamic World of Life Sciences and Healthcare with Workday Adaptive Planning
FP&A teams in the Life Sciences and Healthcare sector grapple with a unique set of pressures. Navigating a maze of stringent regulatory compliance and reporting requirements, they must also judiciously allocate substantial funds to research and development, where returns are uncertain due to the unpredictable nature of drug development and approvals. Add to this the challenges of setting optimal pricing in a landscape of intense public scrutiny and managing the financial intricacies of frequent mergers and acquisitions. All these factors culminate in an environment where FP&A teams are constantly balancing high-risk investments with the need for profitability and growth.
In this complex environment, you need clear, quick insights to make smart decisions. That’s why finance teams choose Workday Adaptive Planning.
To learn more about our FP&A Solutions for Life Sciences and Healthcare companies with Workday Adaptive Planning, arrange a call with one of our Consultants.
WORKDAY ADAPTIVE PLANNING
Life Sciences & Healthcare
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Helping you address the key FP&A challenges in Life Sciences and Healthcare
Regulatory Compliance and Reporting
The Life Sciences and Healthcare sectors are among the most heavily regulated. FP&A teams must ensure that financial planning and reporting comply with various regulations, including those related to drug approvals, clinical trials, patient privacy, and more. This requires a deep understanding of industry-specific rules and constant vigilance to stay updated with regulatory changes. Workday Adaptive Planning offers multidimensional reporting capabilities, allowing companies to slice and dice financial data based on different dimensions and generate reports to meet regulatory requirements.
R&D Investments and Returns
Life Sciences particularly depends heavily on research and development (R&D). FP&A teams must allocate significant funds towards R&D, often without a guaranteed return, given the uncertainties of drug development and approval processes. Balancing the budget while accounting for these high-risk investments is a major challenge. With Workday Adaptive Planning new what-if scenarios can be created on-the-fly in minutes. Businesses can model the impact of changes to future investment plans such as new products and expansion into new markets.
Pricing and Reimbursement Pressures
With increasing scrutiny on healthcare costs and drug pricing, organisations face pressures from payers, governments, and the public. FP&A teams need to forecast and plan for potential pricing restrictions and changing reimbursement models, all while ensuring profitability. Workday Adaptive Planning allows companies to model different pricing and analyse profitability based on various pricing models, providing deeper insights into financial performance.
Mergers and Acquisitions (M&A) Activity
The Life Sciences and Healthcare sectors see frequent M&A activity. FP&A teams play a crucial role in evaluating potential acquisition targets, integrating financial systems post-acquisition, and ensuring that financial synergies are realised. This requires detailed financial modelling, scenario analysis, and post-merger integration planning. By reducing manual effort and errors, Workday Adaptive Planning significantly reduces production time allowing FP&A professionals to spend more time understanding the story behind the numbers and providing insight led recommendations to senior stakeholders.
Why Workday Adaptive Planning is the Best Choice for Life Sciences and Healthcare companies
- Automated Reporting – Workday Adaptive Planning offers automated reporting features, ensuring consistent and timely financial reports that adhere to regulatory standards.
- Audit Trails – With built-in audit capabilities, the tool tracks all changes, offering transparency and helping institutions demonstrate compliance during audits.
- Scenario Modelling – The tool enables teams to model various R&D investment scenarios, forecasting potential returns based on different outcomes like successful drug approvals or clinical trial results.
- Real-time Data – Workday provides real-time data access, allowing for immediate adjustments in R&D allocations based on current financial positions or changing R&D priorities.
- Collaborative Planning – Ensures that financial plans are aligned with R&D goals and facilitates input from cross-functional teams, leading to more informed investment decisions.
- Dynamic Pricing Models – FP&A teams can use Workday to create dynamic pricing models that factor in potential pricing restrictions, insurance negotiations, and other variables, allowing for optimal pricing strategies.
- Reimbursement Tracking – The platform facilitates tracking of reimbursement rates and patterns, aiding in predicting future revenue streams and adjusting strategies accordingly.
- Integration Features – Post-acquisition, the tool aids in integrating financial data from different systems, ensuring a smooth transition and consolidated financial views.
- Performance Tracking – After an acquisition, FP&A teams can monitor the performance of the new entity against projected outcomes, ensuring the desired synergies are achieved.
By providing a robust, flexible, and user-friendly platform, Workday Adaptive Planning empowers Life Sciences and Healthcare companies’ FP&A teams to navigate their sector’s unique financial challenges with confidence and foresight.
SUCCESS STORIES
With Workday Adaptive Planning we can reforecast so much more quickly. That’s something the management team hugely values because it allows them to make decisions about what they spend their money on or where they need to reallocate. Big decisions are being made as a result of our ability to do regular reforecasts.
