Compliance data analytics can provide more value to life sciences organizations than most people realize. Since many companies invest heavily to conduct transparency and compliance programs, they may as well maximize the potential of the information they are collecting.
This idea is at the heart of what I discussed when I spoke at the 2nd Annual CBI Data Analytics and Decisions Conference in Philadelphia on Jan. 23. In “Demonstrating the Value of Data Analytics to Your Business,” I outlined ways compliance officials can convince others in the organization to make transparency a priority because of the ways it can improve business results.
Where Is the Value in Compliance Data Analytics?
Once a life sciences company has established a set of processes and standards for compliance, it can begin to truly demonstrate how the collected information, along with external data, can influence strategy or help manage risk. Discover the ways to derive value:
What we’re seeing nowadays is a motivation to take action and be proactive about compliance. In fact, many life sciences organizations are opting to approach agencies about potential risks before they are hit with a violation. In many cases, this can help secure a lesser repercussion or none at all. It is a way for the pharmaceutical or biotechnology company to say, “We’re monitoring, we’re seeing it, and we have processes to handle it.”
This is obviously valuable because it helps organizations resolve a problem in real time in coordination with the authorities seeking to monitor them. As a result, the organization saves money and saves face.
Reduce PR Debacles
Clearly, being proactive allows companies to avoid scandals, which cause public relations nightmares. This is particularly important as companies aim to maintain the trust of consumers. Transparency, in a way, has become a marketing tool. The public demands an open dialogue with organizations regarding their processes and values. Compliance data analytics is one way to both avoid a scandal and demonstrate commitment to following the law and even exceed legal requirements by sharing ethical spend practices at all levels of the organization.
Provide Insights to the Business
Compliance officers can collaborate with the commercial side of the organization to assess the data for business implications. The aim should be to show senior executives that through compliance data analytics they can identify ways to performance, reduce costs, and increase efficiencies in their activities. It can also be a way to identify and remove bad actors.
In addition, compliance officers can combine internal data with publicly available data, such as what is published by the Centers for Medicare & Medicaid Services (CMS) to compare and contrast with competitors. For example, you can compare spend on meals for healthcare professionals (HCPs) with other companies of the same market, size and maturity. This allows you to see if you’re spending too much or are on par with your peers. Such data could, for example, help you better plan your budget.
Ultimately, compliance data analytics provides value to your business in a number of ways. It allows the organization to manage risk, reduce the possibility of public scandal or embarrassment, and improve business performance. As long as compliance officers maintain a solid set of standard procedures, obtain data from trusted internal and external sources, and double-check input of information, the data will have the potential to improve business results.