Fellow colleagues, I hope you all enjoyed this weekend with the beautiful weather we had to give us a break from the heat wave last week. Now I would like to dedicate some time later on this afternoon for us to discuss what we think of the decision given to us by KAC Consulting, Inc. We heard the side of our own, Ray D’ Alonzo, and had that decision substantiated in much further detail by our outside consultants. I think there were very strong arguments to support the decision and I feel very comfortable going forward with the implementation of the Electronic Data Capture to close the gaps in the delay of product entry.
Jon, I think as CFO, I enjoyed our discussion last Friday about how Anthony mentioned some very positive financial impacts on our Financials by switching to an EDC system. Although we would need to pay on a per-trial basis for our phase forward integration of $250-450k, our cost savings during the presentation seemed to outweigh the expenses. Savings on just the cost of monitoring a single study were projected to save $360k when using the EDC system. In addition to some of these tangible financial benefits, I loved the aspect of web-enabled EDC for the simple reason that once records were entered, they were immediately available to our sponsor for monitoring the trial. This aids in the solution of our biggest problem which is to decrease market entry time. In addition, we would be able to reduce some of our staff which would no longer be needed. This cost was estimated to be about $280k per year.
I think we may even have some further net benefits from this which will be realized in the long run. Our legacy system did not ensure accuracy because we had no way of providing our sites to incentive programs to motivate them. KAC showed us that we will have higher quality data and I think this will in turn provide a positive effect for sales.
Remember, here at P&G, we want to instill a “purpose-inspired growth” strategy. We hired KAC with the sole intent of analyzing our options and recommending what they think is best for us. I think they did a wonderful job presenting us with the facts. I felt we all agreed last week so this afternoon we can meet in conference room #4 to have some last minute thoughts or comments before we schedule our next meeting with KAC to discuss implementation.
See you all at 3:00pm.
Thank you,
Bob McDonald
CEO
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