You are required to form a group of four students to review an organisation case study including information about the organisation’s internal structure, market research techniques, and R&D methodology. The case study will also include information regarding relevant regulation and economic conditions affecting the organisation. Your group must then record a Disruptive Innovation Group Video Presentation reflecting on the organisation’s capacity to innovate from the following perspectives:
A. Internal perspective Prepare an analysis of the key internal structures impacting the organisation’s innovative capacity and offer
recommendations supported by explanation for improvement
B. External perspective Prepare an analysis of the key external factors impacting the organisation’s innovative capacity and offer recommendations supported by explanation for addressing them
C. Marketing perspective Prepare an analysis of the key marketing l factors impacting the organisation’s innovative capacity and offer
recommendations supported by explanation for addressing them
D. Technology perspective Prepare an analysis of the organisation’s innovative processes and whether they enhance the organisation’s innovative capacity and offer recommendations supported by explanation for improvement
MBA501: Dynamic Strategy and Disruptive Innovation
Assessment 3 Organisation Case Study – FutureMed
Future Med is a large, listed Australian company that develops and markets radiopharmaceuticals.
Radiopharmaceuticals are pharmaceutical drugs that are radioactive. They are unique medicinal formulations containing radioisotopes which are used in major clinical areas for diagnosis and therapy. Radiopharmaceuticals are used in the field of nuclear medicine as radioactive tracers in medical imaging and in therapy for many diseases.
The company is governed by a board of seven directors that oversee the senior management team. The board of directors expect the senior management team to be vigilant and quick to spot potential new innovations in nuclear medicine but there is no systematic approach in place for the identification or creation of potential disruptive technologies.
The senior management team is made up of the heads of each of the company’s large departments including operations, finance, marketing, and research a development. The team meets regularly to review and debate the merits of new company projects which are assessed primarily on their potential to generate profit for the company.
This has been a relatively successful approach so far and the company has been able to consistently pay increasing dividends to its shareholders who have developed an expectation of better than average returns as a result.
A recent employee survey indicated that FutureMed has a very conservative corporate culture. The staff on average demonstrated a high resistance to change in their survey responses.
One bold employee referred to the senior management team as the ‘senior citizens
club’ pointing out that the youngest senior manager was 55 years old.2
FutureMed’s market research is conducted solely by the Research and Development Department and comprises mostly of focus group activity directed towards the centre of the company’s target market, doctors and physicians. Despite their efforts, the Research and Development Department have only a limited understanding of what doctors and physicians actually need.
To be lawfully supplied in Australia, new pharmaceuticals must be registered on the Australian Register of Therapeutic Goods (ARTG) administered by the Australian Department of Health. It is very difficult to successfully register
radiopharmaceuticals on the ARTG. Neighbouring countries such as Indonesia and New Zealand have fewer
regulations for developing radiopharmaceuticals. It is also difficult to raise capital to fund the development of new radiopharmaceuticals in Australia because it is still a developing science that few business financiers understand and feel comfortable with.