- 5 months ago
The Speed Of Innovation : How Sanofi and McLaren Are Redefining Performance
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00:00Thank you very much, it is such a pleasure to be here and I'm sure many of you in the
00:05audience saw this on the schedule and thought there must have been a mistake, Sanofi and McLaren, pharmaceuticals and cars,
00:13what's going on here, how is this a partnership, that's certainly where my head went and at the risk of
00:19this sounding like a dating show, I would just like to know how it all began, how did this relationship
00:25blossom, how did you meet Paul?
00:28Well, it was less dating show and more we were at a sustainability dinner in Davos at the World Economic
00:34Forum and we've been talking about lots of different things and Zach raised me over the dinner, you know, have
00:41you thought about Formula One and sustainability and I said, to be frank, it's not really our thing, we're not
00:46really sponsors, we're not really, that's not where we want to be, we're in healthcare and he challenged me back
00:51and he said, you know, there's a lot of technical opportunity where you can improve efficiency, your impact on the
00:56environment,
00:57if you look at things a bit differently and we have a team that can help you reflect on that,
01:01I remember leaving thinking, that's interesting, I'm not sure, I look, what, fast forward four years and I think now
01:08we have the results to show that it really changed everything for us, so delighted we had our first date.
01:13Which means essentially Zach here made the first move. Now what is it that you saw in Sanofi because clearly
01:21there must be some shared values that you could see that would make you guys a good partnership?
01:27A tremendous amount of shared values, you know, we're into data, we're into innovation, pioneering, technology, huge operations, right, factories
01:38around the world, our factory is much smaller, but we're very nimble, so felt like in the business Paul is
01:47in that we could help with that data, that operational expertise, some of the know-how that we go racing
01:53with, which is something that when people think of McLaren, Formula One,
01:57they of course think of our racing team as they should, but there's a lot of technologies that we develop
02:02within motor racing and ways of working, that are applicable to other businesses such as Sanofi.
02:10And you're both about speed and performance, I suppose, in a way, if I was going to kind of create
02:15a link here. Tangibly, what is it that you're doing? I'm guessing data is playing a huge role. I mean,
02:23when it comes to a racetrack, walk us through what data is being collected and then how it's being used
02:29to enhance performance.
02:30Yeah, we're pulling down about one and a half terabytes of data a weekend. We're running 50 million simulations over
02:37the course of a weekend. We have 300 sensors on the car, so there's nothing that we don't know about
02:43in real time that we're grabbing off the car, how the race is playing out, the decisions that we have
02:50to make.
02:50There's everything we're looking at, including our competitive competitors. And then we ultimately, you get all this data, then you
02:59need to get the right data.
03:00That's a role that AI does play as far as bringing us the relevant data, the data that we need
03:06to look at so we can make split-second decisions.
03:10And then when you look at the size of the business that Paul's in, you know, we live in the
03:16smallest of increments with the pharmaceutical industry even more so.
03:20So we felt that our ways of working, our operational efficiency, some of the tools that we use on our
03:27Formula One car would be applicable to Paul and his business.
03:31And it's been wonderful. And I've always said that we're very proud of the partnership, that we're here to entertain
03:37people.
03:37We're in the entertainment business. We're not saving lives. But actually, now that we're working with Sanofi, you know, our
03:44team and their team coming together, we feel like we're not only entertaining people, but we're helping improve lives via
03:51our partnership with Sanofi.
03:53You're now a lifesaver. I like that. Did you say 300 sensors on a car?
03:57300 sensors on a race car.
03:58That's extraordinary. What is the equivalent, then, in the pharma world, if we're looking at sensors and data collection and
04:04how it can sort of enhance your performance?
04:08Well, the precision component of using sensors is perhaps more similar than you would realize.
04:16And, you know, our partnership began, you know, by the way, Zach, congratulations on last year and the season so
04:22far.
04:23You did, at the dinner when we first met, Zach predicted they'd be Constructors' world champion in 2024.
04:29And while he's very convincing, it proved out to be entirely correct.
04:34And it was when we went to the MTC to meet the team, the rigor and the precision was the
04:41thing we all took away.
04:42We came back to our own manufacturing, did some extensive collaborations, stole some ideas shamelessly on high-speed photography, acoustic
04:52sensors, different ways to listen.
04:54And if you're making 600 vials a minute on a manufacturing line and one breaks, the line is shut down
05:01for minutes or hours while everything is reset.
05:05But if you can hear the first signs of a crack in a vial, for example, and you can stop
05:11the line in a predictive manner, you can reduce the downtime on a manufacturing line to seconds or minutes.
05:18That has a material impact.
05:20For us in 2024, we did the calculation.
05:23One of the reasons why we talk a bit more publicly now is that we had more than a 300
05:28million euro return on the investment, much more modest with McLaren by adopting technology and ways of working that we've
05:38collaborated on with Zach's engineers in our manufacturing sites,
05:42doing things as simple as monitoring how we change over between lines and taking the pit stop mentality to try
05:51and shorten that downtime on a line from, say, 50 minutes to less than 20 minutes.
05:57The productivity gain is so significant.
05:59And whilst I think I have amazing people, many of them in the audience, incredible people who lead and inspire
06:06to work on those programs,
06:07is something different when a team of former race engineers from McLaren are working on the line engineer to engineer
06:15to inspire people to want to set new records.
06:20And that's what we've been doing together ever since.
06:23And every year, it's just got stronger.
06:25That's extraordinary.
06:26So you're seeing real tangible impacts in developing sort of the technology that you're using with your pharmaceuticals.
06:34Huge savings, huge productivity.
06:36Well, I think we mentioned the number, but in terms of time with over 300 manufacturing lines, we reduced the
06:41change over time between shifts by 40%.
06:45And given that we have almost 20,000 people in manufacturing, that is a material upside in terms of efficiency.
06:53At the same time, we've reduced our carbon footprint impact by 10% on the lines we've been working with
07:00McLaren.
07:01So, you know, it's a partnership, not a sponsorship.
07:05We don't have our name on the car.
07:07We have less interest in that unless it's for a cause.
07:10Maybe we'll get to that with Le Mans.
07:12But it's much more about how we transformed, how we do manufacturing.
07:16And I think our people are excited to do it.
07:17And even the teams in Italy, diehard Ferrari fans, have welcomed McLaren into our manufacturing sites to do better.
07:27I mean, it's such an exciting collaboration.
07:29And it makes you question whether more sectors need to do some of this cross-collaboration.
07:35Zach, from your perspective, having now, you know, worked more deeply with Sanofi, have you been inspired by anything that
07:41they do?
07:41Maybe the culture?
07:43Oh, a ton of the culture.
07:44I think at the end of the day, we're all in the people business.
07:47And I think that's what's been very exciting is to walk in from the journey that we've been on, you
07:53know, kind of day one when Paul kind of introduced the concept.
07:56I think, understandably, a lot of raised eyebrows of how's a Formula One team going to help us here.
08:02When you look at the journey that we've been on and where we are now together and you see the
08:08enthusiasm and the difference that we've helped contribute to make to their growing business,
08:15the enthusiasm from the employees, the passion that they have, the support they give us is very energizing to us.
08:22And as I said earlier, you know, we're in the entertainment business, but to know that our technology and our
08:29platform can help do things even better and change lives and improve lives, something we're very, very proud of.
08:37The ViverTech stage is one of those places where you suddenly realize that every single company these days is actually
08:42a technology company, whether you like it or not.
08:45How is artificial intelligence also playing into what both of you are doing in terms of enhancing performance?
08:51I'll start with you, Paul.
08:52I'll give you an example.
08:53I mean, of course, on the manufacturing lines, but we've improved our forecasting accuracy in partnership with an AI business,
09:02a McLaren, by more than 3% or 4%.
09:05We've taken our forecasting accuracy to beyond 90%, which is critical when you think that if we get those things
09:11wrong,
09:12there won't be medicines that are needed when they're needed by patients who perhaps are sick.
09:16So that accuracy has a material value, has a moral and ethical value to getting that right, and we're very
09:23proud of the work we do.
09:24We've moved to a new level now, which is preparing for launches.
09:29We have such a rich pipeline that we're preparing to launch 40 medicines over the next five years.
09:36It takes a lot of work and preparation.
09:38It takes a lot of time.
09:40And what we learned from McLaren is time as a currency, time as the ultimate measure on how well prepared
09:47we are at any given moment.
09:48And we've been running some incredible work in launch simulation, multiple scenarios like you do, and trying to make sure
09:55that we compress time wherever we can.
09:58They talk in hundreds or thousands of a second.
10:01It's not quite like that for us.
10:02It might be days or weeks shaved off the time.
10:05But as we can reduce the time it takes to get that medicine to a patient on a 10-year
10:11cycle, if we can take a month, six months, eight months off that,
10:15that's people getting a medicine much sooner than they ever would have thought about it.
10:18And kudos to the culture you've created, the obsession with trying to do these things correctly.
10:25You know, it's really, we've benefited, I think, greatly from that.
10:28You are seeing huge success right now in McLaren.
10:32Congratulations.
10:33How much of that is down to not just data, but how you're going to be harnessing artificial intelligence?
10:39And how important will that be for companies like yours to have that edge?
10:44All of the above.
10:45To win in Formula One, you need everything to be firing on all cylinders, forgive the pun.
10:52But I think for AI, we're using it in two different ways.
10:55From a technology standpoint, we get all this data in, but, you know, the human can't take in one and
11:02a half terabytes of data and make split-second decisions.
11:05So AI is helping then bring forward the relevant data that we do need to look at.
11:10As an example, tire wear is a big part of the race strategy in the race.
11:16We're all listening to each other's radio communications.
11:19So we're all speaking in code.
11:21We're trying to throw each other the different signs, the draw-in, the different strategies.
11:26So a lot of that is around tire wear.
11:28We'll hear a driver make a comment around tire.
11:31Then we have to go look at the data.
11:32And then AI will help go, actually, look at these four sets of tires.
11:36Don't look at the other 200 sets of tires because we need to make some split-second decisions because we
11:41might want to pit next lap or abort from pitting next lap.
11:45So that is helping us in when we get the data in, look at what we need to because we
11:51need to literally make split-second decisions, which is why we run 50 million simulations during a race.
11:58If it takes 20 seconds to come into the pits, 18 seconds, let's say, to get the tires out of
12:04the tire blankets because you need to make a decision, and an incident happens on the track and the driver's
12:10two seconds from pit lane, you need to make a decision in two seconds.
12:15We don't have time to call up and have a conversation.
12:18You need to make a decision.
12:19Then you have another two seconds to decide what tires do you want.
12:23So when you have seen over the years teams not ready, tires not ready, it looks terrible on television, but
12:30you can see how it happened, and it was someone hesitated or didn't have enough confidence to make decisions.
12:35So you need great data, and AI will help bring that together.
12:39Then on the fan front, we have hundreds of millions of fans.
12:42Now in today's digital age, we're able to have a two-way communication with our fans versus the good old
12:48days where you push out information and you get some research done, and six months later, you kind of find
12:53out how you're doing.
12:54Now we can use AI to feed to our fans what we know they like about the sport because some
13:00it's about the track, some it's about the technology, some it's about the drivers or a specific driver, a specific
13:06team.
13:06And once you get to know what that fan enjoys about Formula One, you can use AI to customize the
13:13experience so what I'm seeing might be different than what you're seeing, what Paul might be seeing, because we all
13:18have different things we like about Formula One.
13:21I think you've just created one new Formula One fan through technology.
13:25That sounds so exciting.
13:27And it's a huge week.
13:28It's not just Vivitech, of course.
13:3024 Hours of Le Mans is here, and you both are heading there, so you'll be having a nice time.
13:35And 300,000 spectators will be there.
13:38140 million people will be watching around the world.
13:42And this is a great opportunity to share some branding or a message.
13:47What are we going to see on one of the McLaren cars, Paul?
13:50Well, I think, firstly, out of the 300,000, we'll take a few hundred people from our incredible manufacturing sites
13:58across France.
13:59We'll go and participate.
14:00Lucky them.
14:01Lucky them.
14:03It's the 140 million that is the most important.
14:06We, of course, are one of the world's leading vaccine makers, and meningitis is a huge deal.
14:12And people think that it would never happen to them, for example.
14:16But every 15 seconds, somebody contracts meningitis.
14:19And the first 24 hours are critical to determine whether they will suffer, perhaps even sadly pass away, or whether
14:28there could be an intervention.
14:29And we were looking for a symbol that could be communicated worldwide in our home of France to be able
14:36to say, hey, meningitis, still make sure you get vaccinated.
14:40Don't take any risks.
14:41And while I said earlier, we were never going to put our name on a race car, but with Zach's
14:49generosity, we said that we would raise awareness for putting the meningitis flag on the car so that it got
14:58people talking.
14:58It got people raising awareness and reminding themselves to get immunized and to be protected.
15:06And we think it's one of the most watched things that in the right age group for people to really
15:12benefit.
15:12And if we can save a few lives out of that, it'll have been well worth it.
15:16So we're super excited.
15:18I've never been to Le Mans.
15:19I'm not driving, obviously, but I will be there.
15:22And I'm excited to see what it looks and feels like.
15:25And the debate will create on social media.
15:27Well, you're going to have a great host for your first Le Mans, I have to say.
15:31I imagine your inbox is filled with people wanting to put slogans, brand names, all sorts on your cars.
15:38So what convinced you here?
15:40We want to work with the best.
15:41And if you look at our partners, they're industry leaders, category leaders, either in the big industries, the big leaders,
15:53or companies that are coming up and innovating.
15:55Obviously, Sanofi is a massive pharmaceutical company, a leader in their space, sit alongside great, the Googles, the MasterCards, the
16:04Dells, that we have the greatest roster of partners.
16:07And so we want to work with companies that, obviously, we think can help us from a technology, morale, support
16:13us, but also companies that we think can make a difference to help them grow their business and whatever those
16:20various agendas are, right?
16:23And we deploy their technology inside of our business because it helps make us smarter.
16:30So coming back to your earlier question, we learn a lot from our partners that we apply to our racing
16:36team.
16:37This is a beautiful relationship that has blossomed over the last few years.
16:41Clearly, your businesses share a lot in terms of values and culture.
16:46What inspires you, though, about each other in terms of leadership?
16:50Paul?
16:51Well, I think, you know, when we first started talking in the beginning of 20, it's fair to say, Zach,
16:58it was not the best time for McLaren in terms of performance.
17:01And also, similarly for our own organization, rebooting a big pharma company and pivoting to innovation, R&D, science, is
17:09a multi-year program with successes and failures in that.
17:13And we sat and talked about two great institutions, companies, legends, like McLaren, about our own journeys and when they
17:22would get there roughly at the same time.
17:24We're not world champions, but we think that we're building the credibility to make a declaration that we could become
17:31the most important healthcare company in Europe over the next few years, if not even globally.
17:35And Zach has never wavered.
17:39From the very first day I met him, he's been religious around, it's going to take this amount of time.
17:45Keep the faith.
17:47Keep the team motivated.
17:49And it's a long journey multi-year, particularly when you may not do well in a race or we may
17:54have a drug that fails.
17:55And I found a kindred spirit in building something important of value for the long term and his relentless energy,
18:03massive resilience, you know, he's been inspiration to many, not least me.
18:07Cool.
18:09Zach, sorry.
18:10A couple things.
18:11One, I know how hard it was to get 1,300 people rowing the same direction.
18:18So anytime I meet a big CEO as the amount of employees in different countries is, I know how hard
18:27it is to get 1,300 people rowing the same direction.
18:29I can't imagine what it takes to get an organization that size rowing the same direction.
18:34But the way Paul brought this opportunity forward to his team but wanted them to own it, so it was,
18:42I have an idea.
18:43But watching the journey of, at the start, kind of eyebrow raised to just look into this.
18:50And the team did.
18:51And then the way it's grown, every time we've had success, every kind of stop along the way, Paul's been
18:56very quick to go, right, that worked.
18:58Double down again.
18:59Double down again.
19:00Double down again.
19:01So the way you've introduced it into the organization, the way you got everyone to embrace it, and then once
19:10it got momentum, kind of put the throttle down to get to where we are now.
19:14And I think we're still early in the journey.
19:18So it's a 24-hour race, and we're not halfway through.
19:22And that's been very, very impressive.
19:26Well, it's been really inspiring to hear both of your insights and to learn more about this partnership.
19:30And I think it's really inspiring for all the different companies, all the different sectors out there who can actually
19:35learn so much from each other.
19:37I hope that's what you take away from it.
19:39Thank you very much.
19:40Good luck to McLaren this weekend.
19:42Good luck this season, Zach.
19:43Thank you very much.
19:43Thank you, guys.
19:44Thank you, guys.
19:45Thank you very much.
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