Digital Transformation & Internal

Audit’s Impact

Digital Transformation at Novartis

John Olwal
Director Novartis Internal Audit,
Global Head IT Audit
Agenda

Innovation and Digital Transformation

Terms and Technologies

Digital Transformation @Novartis

Challenges, Risks and Conclusion

2
Conversation on digital in everyday life (Bitcoin example)
• 2.5 minutes video

3
Innovation and Digital Transformation
A digital start-up story
1. Sister challenge turns into a business idea,
she uniquely addresses the need of many.
Est. 2009

2. Through experiments she develops a

business model based purely on digital &
innovation
3. Platform/ecosystem where the designers
participate.

Jennifer Hyman
4
Jennifer on CBS RTR
• Short video on RTR

5
The digital journey for non-start up
Digitalization
Digital Transformation
Digitization Digitized data and
Systematically creating
Data and Business Processes empowered
value across the
processes via Technology to
Organization
create business value

Some technologies enabling Digital Transformation @ Novartis

Advanced Artificial
Block chain
Analytics Intelligence
Application
Internet of Things
Automation Programming
(IoT)
Interface (API) Cloud Computing
Cloud Computing

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Business Use Only
In the CORE of digitalization is Computing power

Source: http://content.time.com/time/interactive/0,31813,2048601,00.html

7
Your industry's digital-quotient!

Source : QuantumBlack a Mckinsey company

Executive Ownership
Customer Centric
Success
Innovation Factors

Digitalization

8
Digital Transformation Framework
(1) - Cultural
• Digital Framework by
Cultures Prof. Charlie Galunic at INSEAD
• Mindset Business School.

Organization’s
Digital Journey
(2)
s •M - Peo
c t ure •C eani ple &
n
tru •D apab g M Skill
s &S igit ility ach s
e al L bu ine
es s s ead ildi s
P roc Storm ne ers ng
-
(3) cking Routi r)
e
• Tra ation (Fast ents
e
• Id ang e tm
h mmi res
•C o u
p C uct
• To x Str
• Fle

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Digital Transformation – Cultural
Mindset Novartis actions
A learning journey • Empowered - «un-boss»
empowered via design • Culture change - try - fail or succeed
thinking, agile or lean start-
up. • Methodologies

Internal Audit action/impact

• Agile trainings
• Assess smart risk taking
• Assess culture change together with HR
10
Digital Transformation – People & Skills
Meaning Machines Novartis actions
Extract deeper meaning • Twelve digital programs (light houses)
from existing data. empowered by Tech & Data

Internal Audit action/impact

• Early engagement in the pilots.
• Sharing learnings across programs & functions

11
Digital Transformation – People & Skills
Capability building Novartis actions
Touch, feel, experience • Digital Hubs ( platforms )
digital • Digital Academy & Labs
• External hiring

Internal Audit action/impact

• Digital awareness workstream
• Push for digital champions
• Swaps and rotations
12
 Digital Transformation – People & Skills
Digital Leaders Novartis actions
Technical expertise, network • CEO sponsor
and brokers • Executive level CDO
• Digital emersion for leaders and awareness
trainings
Source :University of Oxford

Internal Audit action/impact

• Creation of digital audit team
• Relationship management

13
Digital Transformation – Processes & Structure
Ideation Routine Novartis actions
Diversity enables innovation • Product teams
& ideation • External & Internal idea generation
• Ecosystems e.g. start-ups

Internal Audit action/impact

• Aligned team structure with the organization
• Diverse team composition/experience
• X-pollination of best practices and pitfalls
14
Digital Transformation – Processes & Structure
Organization Change Novartis actions
Management • Leaders of Leaders as change agents.
Develop effective change • HR/External support
agents
• Change management trainings and tools

Internal Audit action/impact

• Change agents
• Assessment of culture
• Assessment of organization change in digital
programs
15
Digital Transformation – Processes & Structure
Flex Structures Novartis actions
enables innovation and • Product organizations
speed • Expedited approvals

PROD 1 PROD 2 PROD 3 …

Internal Audit action/impact
• Forward looking reviews
Source :Gartner

• Continuous advisory through shadowing,

workshops etc.
EA
IS
PMO
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How to provide insights
Potential scope
Traditional value
Forward looking value
based assurance in pre-
• Governance
based assurance
- Procumbent
implementation review: • Methodology (e.g. agile)
- Digital programs
• Digital scope - the use cases
Impact on Organization Value

- Information Sec. - ERP

- Core banking platform (business risks)
• Technology risks
• Scalability readiness
Complementary
• Organization’s change
Source :Gartner/CEB

assurance
Cyclical assurance
-Tax
-Planning of Real
Estate
management
- Payroll
-Regulatory
Compliance

17 Instability of processes
 Novartis digital programs(Light Houses) Internal Audit
provide insights
Program (Light House) AA RPA B-Data API IoT Cloud
ACT- end-to-end commercial model x x x x x
Patient-centric disruptive trial models x x x x x x
Science of Medicine – D42 x x x x
NBS 2.0 Automation x x x x
NTO Digital x x x x x
Source :ComputerworldUK

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Challenges and Risks
• Technology black-box with Artificial Engage to protect
Intelligence (AI) Models organization
• Digital goals vs data reality
• Organizational readiness for agile
• Transition risks
• New enterprise technology risks – e.g.
cloud risks, bots, lack of shared
learnings across the Organization
• Speed of change
• Capability building

19
Conclusion
• Executive Leadership
• Technology is our 2nd
nature
• Digitalization is a journey
• Don't narrow our imagination
• Start now, learn fast & accept mistakes
• Embrace ecosystems
• The people makes it real

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Q&A
John Olwal
Novartis
Director - Digital, NBS and GF Audit
Global Lead (Head) IT Audit
T:+4179612822
Email: [email protected]
linkedin.com/in/johnolwal
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