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GSK – Successful Internal Innovation
Question 1
Based on GSK’s past performance, what do you believe are the critical implementation issues for GSK with regards to internal innovation?
Figure 4, 2, pg 132, The management of technology and innovation (White & Brighton)
GSK key reason of success lies in its continuous radical change, by constantly inventing new drugs. Critical to the implementation issues of its internal innovation are raised below:
Leadership
GSK leadership needs to assure a successful implementation of the R & D restructuring as a mechanism that will boost innovation. Key issues to be considered by GSK leadership are cross departmental efforts, procedures and policies, and rewards tight to employee performance regarding innovation and most important empower the persons in charge of their new Development Product Units.
Another critical issue to be considered by GSK leadership is allocation of resources considering the challenging number of 70 DPU working on eight therapy areas.
In addition GSK has a vital challenge of managing a company with huge vertical integration, starting from invention of product to distribution.
Finally leadership has to solve the issue of how to use the existing capacities and structures with regard to the change. After the merger GSK has created CEDD structure giving the necessary importance and focus to innovation, and continued to do so by restructuring again in later stage through the DPU, which where wisely created inside the CEED existing Structure.
Engagement
One of the most critical issues regarding innovation implementation in GSK is to achieve engagement of a massive team of 100,000 employees coming mainly from 3 different cultures (US; UK; New Zeeland) and lead them through change (change management). In addition because of the restructuring there might be issues with disengagement because of