Innovation management –
samenvatting
Innovation
Technological innovation
Origen of innovation
Ingenious ideas
Searching actively for new opportunities
o Within the organization/company:
Unexpected (serendipity…): IBM, single chain antibodies, post-it
Product- or process needs: Linotype, incorporation of advertising
Changes in industry or market: investors stockbrookers
o Outside the organization/company:
Demographic evolution: robotics, age-related diseases new medicines and apps to
monitor therapy compliance
Changes in perception: worried about health status
Breakthrough knowledge (scientifically/technically/socially): the computer,
biotechnology
Some basic principles
Innovations with high impact are sometimes:
o Simple
o Focused
o Why haven’t I thought about this
o Clear, specific and easy to communicate application
o Often start small
o Try to set standard from the start and remain the standard
Technology/knowledge driven innovation in industry
The framework:
o Evolution and dynamics
o Performance and product cost = dominant
o Development of assembled products
Economic growth: capital, labor, technological evolution
Technological innovation: creator AND destroyer at same time
o Competition policy
The ice industry
Ice wells – ice plow – ice harvesting business – transport
New technology: ice machine destroyed old technology and companies which use it
The ice machine was not developed by companies active in the ice harvesting industry
,Typewriters
Remington no. 1
Remington no. 2
Underwood no. 5
Electrical typewriter (!)
o By IBM, is outsider and introduced as well portable PC (also new standard)
Observations – technology driven innovation
A novel radical technology has the potential to:
o Improved performance, or
o Lower cost products, or
o Novel products
General pattern: performance of established versus invading product (graph)
o Improvements – initial phase
o Dominant design
o Improvements become marginal
o Burst of improvement = delay of execution
Radical innovations come from outsiders
o Examples: typewriters, word processors, lighting technology, incandescent lamp, classical
pharma, biotech
o Explanation: established no reason (<-> young companies little to loose when developing
radical, novel technology
Economically,
Emotionally,
Technically,
Management
Abernathy-Utterback model
The fluid phase
First product, not perfect, many competitors
Production process not optimized
No fixed idea
Many companies
The dominant design
Retrospectively
Dominant position in market, others have to adapt in order to have market share
Factors determining: technological qualities, collateral qualities company, regulation government,
strategic positioning company
The transition phase
Innovation shifting towards process innovation
Number of companies down
The specific phase
, Improvements of product and process are only marginal
Focus now on cost, volume and capacity
The biotech industry: an overview
Some historical facts
Timeline
First gene sequenced (Fiers, Belgium, 1975)
Innovation in the healthcare industry
Pharma industry is commercially attractive but is in trouble
Pharma companies occupy the bulk of the top 50 life sciences & chemical companies
“Big pharma” is big
Healthcare is composed of several markets where most profits lie with the pharmaceutical industry
The prescription drug market has experienced a major growth slowing with the financial crisis
Pharma industry has faced sales loss due to patent expiry between 2011-2016
Patent expiry has a dramatic effect on sales, esp. in the US, the biggest market
New drugs have only come slowly, resulting in a Pharma Innovation Gap
Terminology:
o NME = New Molecular Entity vs BLA = Biologics License Applications
o First-in-class
o Orphan diseases
o Accelerated approvals
Specific innovations:
o New and expanded uses of already FDA-approved drugs
o New dosage forms
o Biosimilars
o Other new formulations and notable approvals
o Digital medicine
Pharma R&D efficiency is severely questioned
Healthcare success rates are dropping
Reasons for failure
Need to recoup more costs in shorter time
Pharma is also facing a hostile payer’s climate
What are the most important challenges of our healthcare systems?
o Aging population: drugs and HC costs are the only house-hold costs that keep increasing with
age and the continuing aging demographics will increase the pressure on drug prices
Population of Japan
Diseases of aging push HC systems to the extreme
Elder pharmacology
o Rise of chronic disease
o New technology too often increases rather than lower costs
o Focus on treating rather than preventing disease
o Moving from cost-based systems to value-based, away from one-size-fits-all
Pharma players are pushed for more value at lower costs
The crunch: higher value needed at lower cost
samenvatting
Innovation
Technological innovation
Origen of innovation
Ingenious ideas
Searching actively for new opportunities
o Within the organization/company:
Unexpected (serendipity…): IBM, single chain antibodies, post-it
Product- or process needs: Linotype, incorporation of advertising
Changes in industry or market: investors stockbrookers
o Outside the organization/company:
Demographic evolution: robotics, age-related diseases new medicines and apps to
monitor therapy compliance
Changes in perception: worried about health status
Breakthrough knowledge (scientifically/technically/socially): the computer,
biotechnology
Some basic principles
Innovations with high impact are sometimes:
o Simple
o Focused
o Why haven’t I thought about this
o Clear, specific and easy to communicate application
o Often start small
o Try to set standard from the start and remain the standard
Technology/knowledge driven innovation in industry
The framework:
o Evolution and dynamics
o Performance and product cost = dominant
o Development of assembled products
Economic growth: capital, labor, technological evolution
Technological innovation: creator AND destroyer at same time
o Competition policy
The ice industry
Ice wells – ice plow – ice harvesting business – transport
New technology: ice machine destroyed old technology and companies which use it
The ice machine was not developed by companies active in the ice harvesting industry
,Typewriters
Remington no. 1
Remington no. 2
Underwood no. 5
Electrical typewriter (!)
o By IBM, is outsider and introduced as well portable PC (also new standard)
Observations – technology driven innovation
A novel radical technology has the potential to:
o Improved performance, or
o Lower cost products, or
o Novel products
General pattern: performance of established versus invading product (graph)
o Improvements – initial phase
o Dominant design
o Improvements become marginal
o Burst of improvement = delay of execution
Radical innovations come from outsiders
o Examples: typewriters, word processors, lighting technology, incandescent lamp, classical
pharma, biotech
o Explanation: established no reason (<-> young companies little to loose when developing
radical, novel technology
Economically,
Emotionally,
Technically,
Management
Abernathy-Utterback model
The fluid phase
First product, not perfect, many competitors
Production process not optimized
No fixed idea
Many companies
The dominant design
Retrospectively
Dominant position in market, others have to adapt in order to have market share
Factors determining: technological qualities, collateral qualities company, regulation government,
strategic positioning company
The transition phase
Innovation shifting towards process innovation
Number of companies down
The specific phase
, Improvements of product and process are only marginal
Focus now on cost, volume and capacity
The biotech industry: an overview
Some historical facts
Timeline
First gene sequenced (Fiers, Belgium, 1975)
Innovation in the healthcare industry
Pharma industry is commercially attractive but is in trouble
Pharma companies occupy the bulk of the top 50 life sciences & chemical companies
“Big pharma” is big
Healthcare is composed of several markets where most profits lie with the pharmaceutical industry
The prescription drug market has experienced a major growth slowing with the financial crisis
Pharma industry has faced sales loss due to patent expiry between 2011-2016
Patent expiry has a dramatic effect on sales, esp. in the US, the biggest market
New drugs have only come slowly, resulting in a Pharma Innovation Gap
Terminology:
o NME = New Molecular Entity vs BLA = Biologics License Applications
o First-in-class
o Orphan diseases
o Accelerated approvals
Specific innovations:
o New and expanded uses of already FDA-approved drugs
o New dosage forms
o Biosimilars
o Other new formulations and notable approvals
o Digital medicine
Pharma R&D efficiency is severely questioned
Healthcare success rates are dropping
Reasons for failure
Need to recoup more costs in shorter time
Pharma is also facing a hostile payer’s climate
What are the most important challenges of our healthcare systems?
o Aging population: drugs and HC costs are the only house-hold costs that keep increasing with
age and the continuing aging demographics will increase the pressure on drug prices
Population of Japan
Diseases of aging push HC systems to the extreme
Elder pharmacology
o Rise of chronic disease
o New technology too often increases rather than lower costs
o Focus on treating rather than preventing disease
o Moving from cost-based systems to value-based, away from one-size-fits-all
Pharma players are pushed for more value at lower costs
The crunch: higher value needed at lower cost
