Documente Academic
Documente Profesional
Documente Cultură
Statistics:
Finance:
Money is Good
Accounting:
Tax:
Org. Psych:
Corp. Strategy:
Agenda
Company Overview
Differentiating characteristics of Med Device Industry
Company strategy
Irelands attractiveness
Operational Excellence at Boston Scientific
Strategy Execution
Management Systems
Talent
Sustaining
3
Company Background
4
Quality Policy
Plant Network
In-Network Manufacturing Plants: 12
Acquired Plants: 5
Tier 1 DCs: 2
Ireland
Arden Hills
Rythmia
Bridgepoint
(Plymouth)
Quincy
Kerkrade
Cork
Spencer
Maple Grove/
Plymouth
Galway
Clonmel
Heredia,
Cost Rica
Coyol,
Cost Rica
San Jose
Valencia
Fremont
Sunnyvale (Asthmatx)
San Clemente (Cameron)
Los Gatos (Sadra)
Dorado,
Puerto Rico
Mission
We are committed
to helping patients
live healthier,
longer lives
Core Businesses
Interventional Cardiology
technologies for diagnosing and
treating coronary artery disease
and other cardiovascular
disorders.
Cardiac Rhythm
Management
solutions for treating irregular
heart rhythms and heart
failure, and protecting against
sudden cardiac arrest.
Neuromodulation microelectronic
implantable technologies for managing
chronic neuropathic pain and neurological
diseases.
Electrophysiology technologies,
such as mapping catheters and
radiofrequency energy for
diagnosing and treating heart
rhythm disorders.
2012 Performance
Worldwide Sales by
Geographic Segment ($M)
52%
21%
13%
12%
2%
United States
$3,756
EMEA
$1,568
Japan
$931
Inter-Continental
$872
Divested Businesses
$122
$2,179
$1,908
Endoscopy
$1,252
Peripheral Interventions
$774
Urology/Womens Health
$500
Neuromodulation
$367
Electrophysiology
$147
Divested Businesses
$122
30%
26%
17%
11%
7%
5%
2%
2%
Locations
Global corporate HQ: Natick, Massachusetts
Regional HQs: Singapore and Paris, France
Major technology centers: Minnesota, California,
Ireland, Costa Rica
12 manufacturing facilities worldwide
Web site: www.bostonscientific.com
11
Financials
$7.25 billion revenue
$933 million adjusted net income1
NYSE: BSX
1. Adjusted net income excludes acquisition, litigation, divestiture,
restructuring, and other charges. For reconciliations of our nonGAAP financial measures, please refer to the Investor Relations
section of our website at www.bostonscientific.com
Differentiating Characteristics
12
Flawless Quality
Integrated
Manufacturing
control
Quality Processes
Stream
Integrated
Manufacturing
Model
need to
controlend-to-end
Quality Control
Product availability - Emergency Use
13
INTELLECUTAL PROPERTY
BATTLEGROUND
Electronics
Medical Devices
Standardised work
Distribution
Clinical/Regulatory know-how
Velocity
Opportunistic
16
Company Strategy
17
BSC Strategy
18
Competition
Buying Power
Governments
Finances & Policy
JNJ
ABT
MDT
Cook
19
Why Ireland ?
20
21
Strong Clusters
Ireland has clusters of world-leaders in ICT,
software, services, pharmaceuticals and
medical devices
Irish FDI Role in the US
Irish owned firms employ 120k with $31bn
invested
Investment in Ireland
22
23
24
Investing in Ireland
Investing in Ireland
Pro-business government
Low corporate tax rate
Strong track record of stability and
predictability of FDI policies
Research Development and
Innovation grants with additional tax
credit of 25%
Strategic location within the
European Union
Skilled work force with a global
reputation for being flexible,
innovative and highly productive
Cork Profile
400,000 Population within 1 hour of
Cork
5 Technology Institutes
2 Major Universities
Access to 60,000 3rd level graduates
Direct flight connections to 41
European cities
25
Irelands Attractiveness
26
TRACK RECORD
TALENT
TAX
TECHNOLOGY
Irelands Attractiveness
T
TRACK RECORD
Best location to invest in Western Europe
1st for inward investment by value
11 of the Top 12 Medical Device companies are here
In the Top 10 Easiest Places to do business in the world
8 of the Top 10 Global IT Companies based here
9 of Top 10 Global Pharma firms based here
Irelands Attractiveness
T
TALENT
# 1 for availability of skilled people
60% of Irish people go on to higher education
Youngest population in Europe >35% under 25
Adaptive and flexible
28
Irelands Attractiveness
T
TAX
One of the lowest corporation tax rates anywhere
29
Irelands Attractiveness
T
TECHNOLOGY
8bn invested in science, technology and innovation (4% GDP)
Highest proportion of Science and Engineering graduates within the
OECD
Access to the European Market 500m consumers
30
Divisions Priorities
32
33
34
Management Systems
35
36 36
Execution
Detailed
Planning
Candidate
37
Preliminary
Planning
Complete
Definition
MMM yy MMM yy
Develop p-IBP
MMM yy MMM yy
Product Design
Refinement
Product Definition
Packaging & Label
Definition
Preliminary
Planning
Detailed
E&AS Life
Cycle for
Test Method
Equipment
Planning
GMA-VOC
Mfg.
Core TM
Product Design
Verification
Clinical Design
Sponsor
Staff
Team
StaffClinical Planning
Team
Preclinical
Project Strategy
Supply Chain
Validation & Scale-up
HE&R Strategy
Business Review
Continuous Improvement
Programs
Production Scale-up
Clinical Execution
Clinical
Close-out
IP Generation
38
Market Rollout
Regulatory Filing
HE&R Screening
/ Assessment
Supply Chain
Staff
Development
Clinical Preparation
Regulatory Strategy
1st Launch
dd-MMM-yy
Launch Readiness
Manufacturing
Site Selection
Scaling
Report
dd-MMM-yy
Design Transfer
Global Market
Launch Strategy
Team
dd-MMM-yy
DHF Review
Process
Validation
E&AS Life Cycle for Design E&AS Life Cycle for Process &
Verification Equipment
Design
Validation Equipment
Execution
Project
Close-out
Post Market Vigilance /
Field Assessment
Design Validation
Process Development
Market Specification
MMM yy MMM yy
Update IBP
dd-MMM-yy
Product Specification
Candidate
MMM yy MMM yy
Update IBP
Develop IBP
PD
Core TM
Development
MMM yy MMM yy
IP Management
Business Review
Business Review
Business Review
Business Review
PLCP Overview
39
40
2012
Adaptable,
Flexible
Workforce
BSC NPD
Product
Established
Transfers
16 Years
Broad
Technical
Acumen
RD& I
Grants
PD & NPE
Essentials
Value
Improvement
Process
Rotablator
Core
Technology
Product Transfers
41
Acquisition
Integration
Target Coils
Product
Development
New Product
Excellence
42
Complete
DV
Complete DV
& &
PV in
in 99mths
PV
mths
US Approval
Approval by by
US
19-Oct-2010
19-Oct-2010
Target
NPD Challenge
Artefact issue Feb 2010
European
Production
ramp
Production ramp
in 5
in
5 mths
mths
European
Approval
Approval by
by
21-Sep-2010
21-Sep-2010
25% cost
25%
cost
reduction
reduction
11 mths
11 mths
43
Parallel PV / DV activities
Completed by Sep 2010
30 projects completed
5 design change opportunities
Target Coil
How did we get here?
Target Detachable Coil
Launch
3 months early!
Built 161k units in the 1st year
25% COGS Value Improvements in 11 months
44
45
2.
3.
46
6.
5.
4.
1996 - 2000
2009 - 2013
Feb 96
Maple
Grove
Product
Launch
Feb 01
Transfer to
Tullamore
Tullamore
Semi-automate
packaging
Sep 09
Transfer to Cork
Gauge redesign
Key
Breather bag
removal
Production Event
Cork
Re-design
insertion tool
Switch to
GW Plastics
Full automation
Sales
(units)
100
153
Std Cost
100
81
221
Std Cos +
110
BusinessEssentials
Inflation
47
276
333
368
395
56
53
48
43
137
139
421
39
Operational Excellence
Results
48
Operational Excellence
Rates of Improvement
Manufacturing Related Complaints
CPM
Scrap
Scrap
-15%
-15%
Materials Cost $
-28%
-28%
-3.5%
-6.9%
-40%
-10%
-40%
2010
2011
2012
2010
2011
2010
2012
2011
2012
Overhead Cost $
Materials
Cost $
VIP Expectations
Rate
Rate of
of Expected
Expected Improvements
Improvements
31%
22%
-9%
%
%
-16%
12%
2010
-24%
2011
2012
2010
2011
2012
2010
2010
2011
2011
2012
2012
Talent
50
People
Best
Cost
Credibility
Vision
Best
Quality
Best
Service
52
Employee Profile
Living the BSC Values
Winning Spirit
Meaningful
Innovation
Value Improvement
Programme
- Savings over 5 yrs
High Performance
Big Q
- Celebrates CI 60 projects
in 2013
NV Divestiture
Boston
Scientific
Values
Caring
What I do matters, how I
do matters
Global
Collaboration
Quality Policy
53
Diversity
Over 30 nationalities on
site
Sustaining
54
Certainty
Talent
Competitiveness
International
Reputation
55
Talent
Stem the talent drain build viable employment prospects for young people through targeted investment
Reform our education system:
Position and grow great, international leaders in our Higher Education system
More internationally renowned scientists and professionals
Create top ranking universities
Education reform must be relevant to the needs of industry and underpin the on-going transformation of the workforce
We need to rationalise the education system in order to reduce costs and improve quality
56
Competitiveness
International Reputation
Create a renewed sense of belief for investors emerge successfully from our
economic reform challenges
57
58
In conclusion
Remain Relevant !
Stay Competitive !
Thank You
59