Stallion IT Update

Elanco IT Team,

As you all know, planning and activities are underway as we prepare for full divestiture from Lilly and the exit of our Temporary Service Agreements (TSAs) through which Lilly continues to provide services as we develop our own systems and processes.

From the ground, up. Let’s build it better than ever.

We have an opportunity few 64-year-old companies have: to build IT from the ground up. It’s an exciting endeavor – and it’s a lot of work. As with all Elanco functions, IT is working to make sure our new company is “built to last”– fast, agile, collaborative, inclusive and focused on our vision and the business strategy to achieve it.
Today, I want to provide an overview of our Program Management Office (PMO), our accomplishments to date and our focus for the near future. This is the first of a series of updates we’ll share. We’ll also continue to host IT town halls, including one on Dec. 12, to keep you informed and answer your questions.

Introducing our IT PMO
Elanco’s business Program Management Office (PMO) currently led by Stuart Easley (to be replaced after his retirement on January 1 by Charles Fisher) is responsible for managing the many projects and activities involved in separating from Lilly and creating our future as an independent company. Many Elanco functions and businesses have established similar structures to lead this work, integrate plans for all project streams and standardize project reporting to Elanco management. Here in IT, we will experience the most change and scope in our path to independence and have established a highly functional IT PMO to lead us through this process.

PMO Overview
I am leading the IT PMO, which includes six workstreams and active support from KPMG and IT team members.  In addition, the ERP program under Ben Hall belongs to the PMO due the major demands cross-functionally and heavier PMO needed support.

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To ensure a smooth IT TSA separation for Elanco and support successful future-state design and implementation, the IT PMO is focused on:  

• Evolving, developing and refining processes over time – with minimal disruption to current work
• Driving one source of truth on dates and decisions
• Controlling and prioritizing data requests out to functional leads
• Standardizing and aligning key templates across the IT organization (e.g., costs, applications, logs)
• Providing transparent, simple processes and clear communications within IT and across the enterprise
• Providing administration and tracking for the IT organization to allow others to focus on their workstreams

 
Key Accomplishments to Date
Over the recent weeks, the IT PMO has:

• Submitted the IT TSA transition schedule for 2019
• Officially kicked off the TSAs on Day 1
• Engaged organizational change management (OCM) resources (FleishmanHillard in collaboration with Elanco Global Corporate Communications), an internal applications lead and KPMG
• Delivered and began on-time execution of ERP program planning phase
• Kicked off the Office of the CIO (OCIO) build with KPMG (the OCIO will be responsible for IT strategy, governance, policies and methodologies)
• Established risk management mechanisms
• Developed initial draft of overall IT plan plus 90-day plan

 
Other updates from our teams include:
Commercial IT

• ERP deep dive sessions to be conducted by week of December 3
• Complex pricing requirements (mainly U.S.) remain a key topic for ERP design or potential add-on tool
• Projects will begin to be scoped in late Q2 of 2019

 
M&Q IT

• MQIT Application Strategy Alignment gained with MQ Leaders (EMPC, Site Heads and Functional Leaders)
• Veeva Quality Documents project approved

 
R&D IT

• R&D Lead team prioritization completed
• Unique Identifier Project kick-off complete
• Scientific Disclosure Phase 1 (business process definition) project in execution
• Electronic Lab Notebook Project core team identified and kick-off scheduled for December
• Sample Registration & Management Project core team identified and kick-off scheduled for December
• Portfolio, Project & Capacity Management Project core team identified and kick-off planning in progress
• Regulatory Information Management (One Source) Project execution planning in progress

 
GS

• HR: Held vendor presentations for selected HCM system Workday
• Legal: All TSA Stepdown work streams have been kicked off
• Boardvantage: Held second successful Elanco Board of Directors meeting
• Corp Affairs: Service Now demo for ETS planned
• Procurement: Engaging KPMG to help facilitate platform review and indirect procurement tool selection
• Ethics & Compliance: First GRC scope meetings scheduled

 
ETS

• Procurement items will now be initiated for Internet circuit aggregator, mobile phone operator & Co-Lo (data center)
• Infrastructure Lab build at WWT to test and deploy our future infrastructure has been approved and equipment purchased. Lab to be ready by 21/12/2018
• Real Estate and Site services cutover discussions initiated. Q2 affiliate moves already planned

 
IS

• Creating the Elanco Identity user experience
• Framing “first mover” projects, expecting key central logging infrastructure & Operations Center to monitor the early application environment
• Essential security awareness topics to be shared soon and scheduled with divesture date around (mailbox, identity)

 
ERP

• ERP Implementation partner and final ERP contract to be in place by December
• Rapid build of ERP project in January 2019
• Hosting & SAP Basis RFP to be released in December

 
Current Areas of Focus
Looking ahead, the IT PMO is focused on the following areas:

1. Prepare for split
2. Select ERP solution and implementation partner
3. Implementation of Elanco IT-wide portfolio tool
4. Develop full IT plan with all interdependencies including 30-day, 90-day, six-month, and one-year views
5. CIO transition
6. Implement collaboration tools for working with PMO and within function
7. Align on Project Management approach including use of Critical Chain and overall PMO support
8. Finalize Greenfield office space for 100+ consultants
9. Conduct activities and workshops to achieve a transition schedule for 2020 and 2021; first draft due in March, final submission to Lilly in June

 
We sincerely appreciate the long hours and focus of the many colleagues and consultants who are helping build Elanco IT from the ground up. We look forward to providing another update in January.
 
Fred Wenzel
IT PMO/Director