The reconfiguration
of the value chain and the widening gap between the expectations of
shareholders and current productivity trends has led to the emergence of a new
paradigm in the pharmaceutical industry. The pharmaceutical industry is
evolving into a truly competitive environment in which companies create value
through innovation. Opportunities for companies to capture value from
innovation will be extended right across the value chain, breaking up the
traditional dominance of the integrated pharmaceutical in the capitalization
of innovation.
The
new paradigm is defined by three key shifts in the way in which value is
created and captured across the pharmaceutical value chain:
q
Premium value margins are assigned to the process of innovation;
q
value created across the value chain is attributed to
independent innovation assets;
q
companies realize premium returns through the ownership of
portfolios of innovation assets.
The
emerging paradigm
Companies
must continue to drive operational effectiveness through improvements in
knowledge management, better integration of therapeutic and functional
expertise, and the fostering of more effective autonomy and motivation across
the organization. However, to compete through innovation, companies must build
an organizational structure that effectively embeds the company’s core focus
of expertise and capabilities into each and every activity and function.
Mintzberg's
taxonomy of organizational forms
The pharmaceutical innovator will
employ an adhocratic organizational structure in order to foster the
generation of innovation assets. The structure will rely on mutual adjustment
between ad-hoc teams ensuring companies build the required organizational
focus across its expertise and capabilities.
Independent Strategic Decision
Analysis 
