Business Model Innovation in the Pharmaceutical Industry: The Supporting Role of Organizational Design
32 Pages Posted: 25 Feb 2014
Date Written: February 24, 2014
Based on interviews in LEO Pharma, UCB Pharma and Novo Nordisk, we document how deep-seated changes in the pharmaceutical industry related to increasing demands from payers, the strengthening of the role of patients, changing legal demands, and declining technological opportunity, drive a process of experimenting with business model. We distinguish between three ideal types, namely a traditionalist model (exemplified by Novo Nordisk), the full-blown service-oriented model (UCB Pharma) and the in-between model (LEO Pharma). We describe the changes to the organizational design and management processes that accompany the ongoing process of changing business models in these firms.
Keywords: pharmaceutical industry, business model innovation, organizational design
JEL Classification: D22, I11, L65
Suggested Citation: Suggested Citation