Merck Case
Pharmaceuticals: Merck Sustaining Long-term Advantage Through Information Technology
Hiroshi Amari Working Paper No. 161
Working Paper Series Center on Japanese Economy and Business Columbia Business School December 1998
Columbia-Yale Project: Use of Software to Achieve Competitive Advantage
PHARMACEUTICALS: MERCK
Sustaining Long-term Advantage Through Information Technology
Prepared by
Hiroshi Amari Research Associate, Yale University
William V. Rapp and Hugh T. Patrick Co-principal Project Investigators
Center for International and Area Studies Yale University New Haven, CT 06520 203-432-9395 (Fax: 5963) e-mail: william.rapp@yale.edu Revised December 1998
Table of Contents
1. Introduction: Objective of this Study 2. The Pharmaceutical Industry in a Global Context 3. Product R&D and Clinical Trials 4. Manufacturing and Process R&D 5. Technological Factors Structure-Based Drug ("Rational Drug") Design Structure-Based Drug ("Rational Drug") Design 6. Merck 7. Managerial Decision Making 8. Decision Making on IT projects 9. Joint Ventures 10. Information Technology and Organization
11. Appendix I - Summary Answers to Questions for Merck - Strategy & Operations 12. Appendix II - INDUSTRY AND FIRM BUSINESS DATA 13. Bibliography
2
Introduction: Objective of this Study This case study of Merck was completed under a three year research grant from the Sloan Foundation. The project 's purpose is to examine in a series of case studies how U.S. and Japanese firms who are recognized leaders in using information technology to achieve long-term sustainable advantage have organized and managed this process. While each case is complete in itself, each is part of this larger study.1 This pharmaceutical industry case together with other cases2 support an initial research hypothesis that leading software users in both the U.S. and Japan are very sophisticated in the ways they have integrated software into their management strategies and use it
Hiroshi Amari Working Paper No. 161
Working Paper Series Center on Japanese Economy and Business Columbia Business School December 1998
Columbia-Yale Project: Use of Software to Achieve Competitive Advantage
PHARMACEUTICALS: MERCK
Sustaining Long-term Advantage Through Information Technology
Prepared by
Hiroshi Amari Research Associate, Yale University
William V. Rapp and Hugh T. Patrick Co-principal Project Investigators
Center for International and Area Studies Yale University New Haven, CT 06520 203-432-9395 (Fax: 5963) e-mail: william.rapp@yale.edu Revised December 1998
Table of Contents
1. Introduction: Objective of this Study 2. The Pharmaceutical Industry in a Global Context 3. Product R&D and Clinical Trials 4. Manufacturing and Process R&D 5. Technological Factors Structure-Based Drug ("Rational Drug") Design Structure-Based Drug ("Rational Drug") Design 6. Merck 7. Managerial Decision Making 8. Decision Making on IT projects 9. Joint Ventures 10. Information Technology and Organization
11. Appendix I - Summary Answers to Questions for Merck - Strategy & Operations 12. Appendix II - INDUSTRY AND FIRM BUSINESS DATA 13. Bibliography
2
Introduction: Objective of this Study This case study of Merck was completed under a three year research grant from the Sloan Foundation. The project 's purpose is to examine in a series of case studies how U.S. and Japanese firms who are recognized leaders in using information technology to achieve long-term sustainable advantage have organized and managed this process. While each case is complete in itself, each is part of this larger study.1 This pharmaceutical industry case together with other cases2 support an initial research hypothesis that leading software users in both the U.S. and Japan are very sophisticated in the ways they have integrated software into their management strategies and use it