In this Acceleration Economy Case Study, learn how Insulet Corporation, a medical device manufacturer, responded to increased customer demand. By implementing a new ERP system, not only were business processes customized for the healthcare industry, it also empowered the business to overcome significant regulatory challenges. Their technology transformation increased revenue potential and expanded customer reach. It even contributed to the opening of a new manufacturing facility. Read about their story and how a new ERP system made it possible.
Business Challenge – Upgrading to a New ERP System
As a manufacturer of medical devices, Insulet Corporation develops products that make it easier for people to manage their diabetes. Many know them for their Omnipod System, which is a tubeless insulin pump offering up to three days of insulin delivery without using a needle. Keeping up with demand, the company realized they needed to upgrade their ERP system to better support their growth.
Insulet Corporation was following a strategic five-year growth plan. Due to it being over ten years older, they needed to upgrade thier Microsoft Dynamics AX ERP system. In helping them reach their goal, it was a top priority to find a method that better supports the company’s growth. These plans included going direct to market throughout Europe. Additionally, it involved constructing a brand new manufacturing plant in the United States.
However, because of past failure in 2013, Insulet remained hesitant in upgrading its ERP system. After a couple of years, change in management and two different AX partners forced Insulet to cancel their previous project. Eventually, they decided to partner with Alithya to help them upgrade to a new ERP system.
Software Implementation Partner – Alithya
Because of the depth and strenght of their team, Insulet Corporation chose to work with Alithya as an implementation partner. A main reason they made this decision was due to the vast experience Alithya has in the industry as well as their ability to use the system itself. The upgrade process was complex at Insulet. This was because of the reimplementation process from the prior upgrade that went on for three years before it was canceled.
However, partnering with Alithya made it possible to complete the upgrade process in only six months. Insulet was able to simultaneously roll out its state-of-the-art medical billing system and integrate AX with SalesForce to improve patient intake. Many implementations of new software encounter various unforeseen problems. But the team’s strength at Alithya enabled them to overcome these issues without causing significant delays. Because of their skills and experience, Alithya could handle any problem they encountered.
Upgrading the ERP System
Insulet created a strong internal team to help prepare for the upgrade. Everyone was committed to working together and spending much time on the project from start to finish. Communication between team members was crucial in ensuring everyone was on the same page while implementing a new ERP system.
Eventually, the team at Insulet chose to move ahead with less customization in the new version of AX. The old system was highly customized, as they had hundreds of customization options that were challenging to scale. On the other hand, the new system uses out-of-the-box functionality that enables the team to scale for new marketing opportunities, new processes, and new lines of business easily. The new system was also required to overcome two significant regulatory challenges due to it being a publicly traded company specializing in medical devices. The first obstacle was to meet the requirements for a fully validated system. It also needed to be SOX compliant, as they worked with two accounting companies during the project to meet these regulations.
Using the new platform made it possible to enter different markets while also providing supply chain and manufacturing functionality that wasn’t available on the other system. Using Microsoft Dynamics AX also helped to prepare Insulet in going direct-to-market within Europe. It played an essential role in opening its state-of-the-art manufacturing facility in the United States.
The implementation process included numerous features, such as procurement and sourcing for custom workflows and purchase orders. Other features include:
- Master planning and production control
- Integration with FedEx
- SKG Treasury Automation for Positive Pay and AR
The new data collection process became more manageable. Sales and marketing can now use custom sales order templates to meet their needs better.
Key Benefits of Working with Alithya
With Alythia helping them with this unique business challege, the completion of Insulet’s project met their timeframe and budget requirements. The solution standardized with a Microsoft Dynamics AX system, as they needed it to. Additionally, this upgraded system supports a five-year growth plan, this inlcudes expanding into European markets and building a manufacturing facility. They were able to optimize Microsoft Azure to minimize infrastructure expenses and business risks. Meanwhile, this enabled their improvement in flexibility. It successfully integrated with their medical billing system. The default functionality easily scales for new market opportunities, new processes, and new lines of business. Finally, they now have supply chain and manuacturing functions available.
Delighted with the ongoing support, the team at Insulet had a very positive experience. Alithya made it possible for them to stay within their budget while meeting deadlines during a complex upgrade process.