Radical Product Innovation

8/18/2019 Radical Product Innovation

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Radical Product InnovationRadical Product Innovation

For Assignment or Dissertation Help, PleaseContact:

Muhammad Sajid Saeed

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Table of Contents

Abstract.................................................................................................................................................2

1. Introduction.......................................................................................................................................2

2. Literature Review..............................................................................................................................3

3. Methodology.....................................................................................................................................4

4. Lonza Case tudy! Radical "roduct Innovation.................................................................................4

#.1 Idea $eneration%&iscovery tage.................................................................................................4

#.2 Idea creening.............................................................................................................................#

#.3 "roduct &evelo'(ent and )esting...............................................................................................*

#.4 Mar+et Launch.............................................................................................................................,

-. &iscussion.......................................................................................................................................1

/. Conclusion.......................................................................................................................................12

Re0erences...........................................................................................................................................13

A''endi A.........................................................................................................................................1#

A''endi .........................................................................................................................................1-

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Astract

Innovation is a +ind o0 buzzword and 'erceived as vital to achieve in the worldwide business

environ(ent in the 21st century. )his 'a'er is based on a case study o0 Lonza Ltd that wants

to 'ro(ote radical innovation and reuires entering new less co('etitive (ar+ets withoutlosing its 0ocus in o'erating business. y addressing the ga' in the co('any the author

designed an initiative 0or Lonza to develo' a new i('lant with "olyglactine%"oly'ro'ylene

Mesh technology 0or hernia surgery to 0oster long5ter( radical innovation. In this regard the

secondary data is collected 0ro( various authentic sources about (anage(ent tools and

(odels that su''ort radical 'roduct innovation 'rocess. )he 0indings o0 the 'a'er suggest that

to enable radical innovation it is very i('ortant 0or Lonza to collaborate with other

organisations or universities to e('loy latest R6& 0acilities and tools that will allow

co('any to strengthen the innovative s+ills o0 engineers scientists and doctors wor+ing in

the co('any. Also the co('any needs to intensi0y their 'roduction ca'abilities 0or develo'ing 'rototy'es o0 their new 'roduct by e('loying e'erienced and s+illed 'eo'le and

scienti0ic%engineering techniues and ti(ely integrate the( into their 'roduction o'erations.

Keywords! Lonza innovation (anage(ent radical innovation

") Introduction

A ra'id growth and innovation in healthcare 'roducts and 'rocesses is one o0 the (a7or

challenges 0or 'har(aceutical co('anies today. )his 'a'er is based on a case study o0 Lonza

Ltd. which is a leading su''lier o0 healthcare li0e science and 'har(aceutical 'roducts

worldwide. )he co('any can be considered custo(er5oriented (ainly due to its

organisational structure and also due to su''lying its 'roducts to giant (ultinational

co('anies. )here is no doubt that co('any is very success0ul today but the case study o0

Lonza reveals a (a7or ga' in the co('any which is the 8lac+ o0 0ocusing on long5ter( radical

innovation9. )he author 0ound 0ollowing three core reasons 0or this ga'! :1; incentives to

(iddle (anage(ent< :2; contract (anu0acturing< and :3; LI=) :Lonza Innovation 0or =uture)echnology; initiative which is not 0unctioning well. It is believed that above (entioned

reasons are the 0ore(ost barriers to radical innovation in the co('any. =urther(ore the

>?) analysis o0 Lonza Ltd in a''endi A highlights core strengths wea+nesses

o''ortunities and threats to the organisation.

)his 'a'er ai(s to design an initiative 0or Lonza that can strengthen incre(ental and

'articularly radical innovation by recognising the need o0 new 'roduct develo'(ent. In this

regard a stage5gate 'roduct innovation (odel is selected to describe the stages and activities

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that enable innovation in Lonza Ltd. In addition ris+ assess(ent through ris+ register and

ris+ 'robability (atri lean (anu0acturing and "orter9s 0ive 0orces analysis are e('loyed as

innovative (anage(ent techniues.

-) .iterature Revie/

ir+inshaw et al. :2*; de0ine innovation (anage(ent as @the invention and

i('le(entation o0 a (anage(ent 'ractice 'rocess structure or techniue that is new to the

state o0 the art and is intended to 0urther organizational goals. :'. *2#;. Managing innovation

is a controversial debate in the (anage(ent literature and e'erts and theorists are not agreed

on one or two 'ractices that can allow 0ir(s to (anage technological innovation e00ectively

:Mogee 1,,3;. )his 0act hinders organisations to recognise the issue o0 innovation(anage(ent that should be addressed syste(atically.

Managing innovation is a co('le and (ulti0aceted 'rocess and it is essential 0or the

(anage(ent to understand di00erent ty'es or 'atterns o0 innovation. )his understanding can

hel' (anage(ent to choose a''ro'riate 'atterns which will result in low cost less

uncertainty less ti(e and less s'oradic during innovation 'rocess :Leigh 2;. )wo

di00erent ty'es o0 innovation are di00erentiated in table 1 on the basis o0 their underlying

0eatures.

Table 1: &i00erence between radical innovation and incre(ental innovation

Radical Incremental

o )echnology5driven

o Bigh uncertainty

o &iscover innovative technology

o Custo(er5driven

o Low uncertainty

o 'loits eisting technology

o &ra(atic changes in eisting (ar+ets or

creates new (ar+ets

o &evelo's or i('roves co('etitiveness

within current industry or (ar+eto =ocuses on service 'roduct or 'rocesses

with etraordinary 'er0or(ance attributes

o =ocuses on cost reduction or i('roving

eisting 'roducts services or 'rocessesSource: Leigh (2000, p. 19)

It is evident in the above table that initiating radical innovation is co('letely di00erent than

i('le(enting incre(ental innovation. In 0act radical innovation reuires lots o0 e'eri(ents

dedicated develo'(ent tea( se'arated structure 0ro( the eisting business (odel and huge

invest(ents :Leigh 2;.

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)oday co('anies use a variety o0 (anage(ent techniues and conce'tual (odels to initiate

and (anage the innovation 'rocess. o(e 'o'ular (odels and techniues include! stage5gate

0ra(ewor+ bench(ar+ing 'ractices MAR) 0ra(ewor+ chec+lists ris+ assess(ent D"E

assess(ent uality 0unction de'loy(ent value engineering $antt chart wor+ brea+down

structure "R) and C"A. )hese tools also hel' organisations to decide how good or bad

they are in (anaging innovation. In addition they also enable the( to i('rove their

'er0or(ance by considering ti(e uality and budget constraints :rady 1,,#;.

%) Methodolog+

In this 'a'er a case study o0 Lonza Ltd is considered to design an initiative 0or the co('any

that wants to 'ro(ote radical innovation and reuires entering new less co('etitive (ar+etswithout losing its 0ocus in o'erating business. In this regard ualitative a''roach is ado'ted

to develo' the initiative 0or Lonza that can hel' the co('any to 0oster long5ter( radical

innovation. In addition the secondary data is collected 0ro( various (anage(ent boo+s

7ournals and authentic internet sources about (anage(ent tools and (odels that su''ort the

radical 'roduct innovation 'rocess.

!) .on0a Case Stud+: Radical Product Innovation

A stage5gate 0ra(ewor+ is used in this 'a'er 0or radical 'roduct innovation 0or Lonza to

overco(e long5ter( radical issues. )he stage5gate 0ra(ewor+ is a 'ro7ect (anage(ent

techniue which is develo'ed on the basis o0 lean (anu0acturing 'rinci'les :Coo'er 2-;. It

assists the organisations to develo' new innovative 'roducts or i('rove current 'rocesses at

di00erent stages se'arated by gates. )he 'roduct%'rocess continuation decision is ta+en at

each gate by the 'ro7ect (anager or a steering co((ittee :Coo'er 2*;. )he recent research

reveals that *#F Dorth A(erican organisations develo'ed a co('lete 'roduct innovationsyste( using stage5gate (odel in the 'ast two decades :ibid;. A ty'ical stage5gate (odel is

'resented in 0igure 1 in a''endi .

$)" Idea 1eneration2Discover+ Stage

)his stage re0ers 'reli(inary activities reuired to e'lore o''ortunities and a desire to

generate new 'roduct ideas :Coo'er 2-;. )he 0ollowing discussion is based on how the

idea o0 new innovative 'roduct is generated 0or Lonza Ltd.

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Opportunity recognition: ?ver the 'ast 0ew decades hernia 'atients are 0acing (any

'roble(s related to the growth o0 scar tissue due to traditional i('lants in hernia surgery. In

1,,- a leading surgeon "ro0essor chu('elic+ develo'ed a new i('lant with bioco('atible

characteristics to overco(e this issue :chu('elic+ and Glinge 23;. ioco('atible

i('lant is an innovative idea that enables o'ti(al tissue re5growth a0ter hernia surgery :ibid;.

Need recognition: ut the latest research reveals that the bioco('atible i('lant discovered

by chu('elic+ has not resulted in reducing the 0reuency o0 chronic 'ain in hernia 'atients

:Ghan et al. 21;. Additionally it also causes a higher a 0reuency o0 recurrence and

in0ection. )here0ore there is a strong need to develo' "olyglactine%"oly'ro'ylene Mesh to

overco(e issues in hernia surgery :ibid;.

Initial entrepreneurial activitie! In order to

address this issue Lonza can a''roach

leading tetile engineering co('anies and

research institutes to develo' 'rototy'es 0or

"olyglactine%"oly'ro'ylene Mesh o0 the new

i('lant. In addition the co('any can

contact (anu0acturers 'roducing bioco('atible

(aterials and (edical i('lants. In order to validate the (edical relevance o0 this idea Lonza

also reuires a co('rehensive ca(era syste( to chec+ 'articular 0eatures o0 the abdo(inal

wall. It is believed that to e('loy above technologies Lonza (ay develo' an innovative

i('lant 0or the hernia surgery :Lettl et al. 2*;.

$)- Idea Screening

A0ter success0ully generating innovative 'roduct idea this stage re0ers to a uic+ and

ine'ensive assess(ent o0 (a7or ris+s associated with the new 'roduct develo'(ent :Coo'er

2-;. ut be0ore this it is the best 'ractice to +now sta+eholder reuire(ents in detail. Lonza

can conduct sta+eholder analysis to build user stories by e('loying the 'ower%interest grid

0or sta+eholder 'rioritization. )he 'ower%interest grid 0or sta+eholder 'rioritization a''lied on

Lonza case study is 'resented in 0igure 3 in a''endi . i(ilarly the co('any also reuire

to set interaction standards to deter(ine how "olyglactine%"oly'ro'ylene Mesh i('lant will

be used in order to avoid issues o0 recurring 'ain and in0ection.

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)he (ost i('ortant ste' in idea screen is the ris+ assess(ent o0 new 'roduct. In this regard

the 0irst ste' is to establish ris+ assess(ent criteria to analyse 'ossible ris+s related to

"olyglactine%"oly'ro'ylene Mesh i('lant. )able 2 'resents si('le criteria 0or assessing

'robable ris+s 0or Lonza Ltd.

Table 2 H Ris+ assess(ent criteria

Ris*

Rating

Proailit+

3P4

Impact 3I4 Score 5 P 6

I

5 Almost

Certain

Catastrophic Very high

4 Likely Major igh

3 Possi!le Mo"erate Mo"est2 #nlikely Minor Lo$

1 %are &nsigni'cant Very lo$

Source: Cooper (2005)

)he above assess(ent criteria is translated into a ris+ register in table 3. Ris+ register is

co('osed o0 several ualitative and uantitative techniues that can assist Lonza to ran+ each

ris+ according to its li+elihood o0 occurrence and degree o0 i('act. In table 3 total 11

'ossible ris+s in develo'ing "olyglactine%"oly'ro'ylene Mesh i('lant are identi0ied and

ran+ed according to their 'robabilities and i('act. )hese ris+s are also categorised into three

signi0icant categories such as Manu0acturing )echnology Ris+ :M)R; "roduct )echnology

Ris+ :")R; and Intellectual "ro'erty Ris+ :I"R;.

In table 3 the ris+s with (ore than 1 score are considered as high ris+s 0or Lonza in

develo'ing new 'roduct< and there0ore reuire a''ro'riate ris+ res'onse strategy. According

to Cha'(an :21; and $arlic+ :2/; ris+s can be treated by ado'ting 0our ty'es o0 ris+

res'onse strategies such as ris+ avoidance ris+ reduction ris+ trans0er or ris+ acce'tance. In

the ris+ register to' three ris+s are critical and reuire ris+ avoidance strategy< and due to the

severe i('act o0 those ris+s Lonza can either engage in alternative activity or otherwise can

sto' the 'roduction o0 the new 'roduct. ?n the other hand the conseuence o0 net 0our ris+s

i.e. R4 R# R- and R/ can be reduced by arranging adeuate resources 0or 'roduction and

ado'ting sa0ety and uality 'rocedures during (anu0acturing storage and trans'ortation. )he

re(aining ris+s can also be treated e00ectively i0 Lonza can acuire co('rehensive

+nowledge o0 the new i('lant develo'(ent 'rocess and 'atent issues.

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Table 3 H Ris+ register 0or Lonza new 'roduct :"olyglactine%"oly'ro'ylene Mesh i('lant;

R a n

k

R i s k C a

t e g o r y

Risk Description

L i k e

l i o o

d

C o n s e ! " e n c e

# c o r e $

% &

I

Risk Response

#trategy

R1 M)R Availability o0 desired raw (aterial

:"olyglactine%"oly'ro'ylene;4 # 2 Avoid

R2 ")R Dew bioco('atible i('lant 0ul0ils intended

'ur'ose4 # 2 Avoid

R3 ")R Acce'tance o0 new bioco('atible i('lantin (edical industry

4 4.# 1* Avoid

R4 ")R "roduct stability in ter(s o0 storage

i('lant or trans'ortation4 4.# 1* Reduce

R# M)R a0ety and uality reuire(ents o0

'roduction syste(4 4 1- Reduce

R- ")R "er0or(ance 'arity li+e other success0ul

'roducts3 4 12 Reduce

R/ M)R

Availability o0 'roduction resources :e.g.

tools and eui'(ents; 4 3 12 Reduce

R* M)R =ully +nown and understood 'roduct

develo'(ent 'rocess3 3 , Reduce

R, I"R "otential o0 )rade(ar+ registration 3 3 , )rans0er

R1 M)R All ti(e availability o0 reuired 'roduction

ca'acity2 3 - Reduce

R11 I"R nderstanding o0 signi0icant 'atent issues 2 2 4 Reduce

M)R H Manu0acturing )echnology Ris+ Source: !reated "y author (2012) ")R H "roduct )echnology Ris+

I"R H Intellectual "ro'erty Ris+

)he ris+s (entioned in the ris+ register are also rated in the ris+ 'robability (atri in table 4

by considering the ris+ assess(ent criteria as a thu(b o0 rule.

=urther(ore all 'ossible ris+s to Lonza 0or develo'ing "olyglactine%"oly'ro'ylene Mesh

i('lant are 'lotted on a ris+ (a' in 0igure 2 in a''endi .

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Table ' H Ris+ 'robability (atri

%robability

Impact

$)% Product Development and 7esting

&uring this stage Lonza needs to build a basic 'rototy'e 0or "olyglactine%"oly'ro'ylene

Mesh i('lant 0or the 'atients. )oday lean 'roduct develo'(ent is gaining 'o'ularity a(ong

(edical device (anu0acturers in order to reduce costs by identi0ying and eli(inating waste

0ro( the entire develo'(ent 'rocess. Miscitelli :2-; considered lean 'roduct develo'(ent

as 'hiloso'hy rather than a technology because it includes several disci'lines and 'rocedures.

In develo'ing 'rototy'es 0or "olyglactine%"oly'ro'ylene Mesh i('lant Lonza (ust consider lean (anu0acturing i('le(entation 0or success0ully co('leting the develo'(ent 'rocess by

eli(inating waste. li(inating waste in bioco('atible i('lant (eans avoiding issues that

can cause a higher 0reuency o0 recurrence o0 hernia 'ain or in0ection a0ter the surgery.

&evelo'ing "olyglactine%"oly'ro'ylene Mesh i('lant is a sensitive 'ro7ect and need to cover

several as'ects such as bioco('atible characteristics sa0ety and regulatory co('liance and

(iniaturisation. Lonza as a (edical device (anu0acturer can drive (ore and (ore wor+0low

o'ti(isation in order to achieve its strategic goals. In 0act the co('any (ust be de(anding

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Al(ost Certain

J*F :#;5 1+ 15 1)

,%3- %4.

25

Li+ely# H *F :4;

4 ) 12,%(.

16,%5.

2+,%1- %2.

"ossible

3 H #F :3;3 6 *

,%)- %*.

12,%6.

15

nli+ely

1 H 3F :2;2 4 6

,%1+.

) 1+

Rare

K1F :1;

1 2 3 4,%11.

5

Risk CriteriaInsigni0ican

t :1;Minor

:2;Moderate

:3;Ma7or

:4; or :4.#;Catastro'hi

c :#;

Bigh Moderate Low


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when it co(es to e'ectations around develo'ing 'rototy'es 0or "olyglactine%"oly'ro'ylene

Mesh i('lant.

A0ter develo'ing the 'rototy'e success0ully it is inherent to veri0y the new 'roduct9s vision

with the +ey sta+eholders. )his (eans that the 'rototy'e will be tested by the doctors and

scientists in the lab and then on living creatures. )he cost o0 develo'ing 'rototy'e is low at

this stage as co('ared to the whole 'ro7ect so Lonza can still absorb issues with the new

'roduct without losing a large 'ortion o0 develo'ed (aterial and sun+ costs.

$)! Mar*et .aunch

Mar+et launch is the last ste' in a stage5gate 0ra(ewor+ which re0ers to the beginning o0 0ull

'roduction and co((ercialisation o0 the 'roduct :Coo'er 2-;. Mar+et launch is a critical

ste' and reuires dee' industry analysis be0ore co((ercialising the end 'roduct. "rior to 0ull

(ar+et launch o0 "olyglactine%"oly'ro'ylene Mesh i('lant Lonza (ay e('loy "orter9s 0ive

0orces 0ra(ewor+ 0or analysing the (edical industry in ter(s o0 0ive governing 0orces such as

su''lier 'ower barriers to entry buyer 'ower substitute threat and co('etitive rivalry

:"orter 1,*#;. A general "orter 0ive 0orces analysis 0or Lonza9s new 'roduct is 'resented here

(ainly assu(ing radical innovation in i('lanted devices.

In the beginning buyer 'ower will be etre(ely high as the 'hysicians are care0ul in instantly

ado'ting new innovative technology es'ecially when they are un0a(iliar with 'roduct9s

0eatures and long5ter( conseuence. In contrast the 'ower o0 buyers tends to be (ediu( i0

hos'itals or other healthcare organisations will 'urchase in bul+ on the basis o0 're0erences o0

doctors and surgeons. Lonza (ay have substantial negotiating 'ower 0or its new innovative

'roduct to ca'ture the (ar+et share and owing li(ited (ar+et control to so(e etent.

$enerally (edical device (anu0acturers buy ordinary (aterials and trans0or( the( into a

valuable 'roduct :Mehta 2*;. In this case the su''lier9s i('ortance and 'ower are

relatively low. ut Lonza reuires s'ecial (aterials i.e. "olyglactine%"oly'ro'ylene (odern

eui'(ent such as ca(era syste( and latest bioco('atible technology to develo' its new

'roduct. In this regard the 'ower o0 su''lier9s will be high to 'roduce s'ecialised 'roducts

on de(and. ut the use o0 very latest eui'(ent technology and (aterials will be (a7or

barriers 0or the new 0ir(s want to enter into the industry. i(ilarly the co'yright issues also

cause to restrict new entrants as well as lessen the rivalry a(ong eisting 0ir(s. )here0ore

Lonza can ta+e bene0it by 'rotecting 'atent rights o0 new 'roduct in order to establish

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te('orary controls in the (ar+et :ibid;. In this way new 'roduct will be recognised until the

'atent will be e'ired and co('etitors can enter into the (ar+et.

8) Discussion

Radical innovation reuires (any changes at structural and organisational levels 'articularly

in three areas o0 concern! s+ills develo'(ent 'roduction (eans and business (odel. In this

regard Lonza can use the idea o0 8Ca'ability )riad9 which recently e(erges in the 'roduct

develo'(ent do(ain 0or gaining co('etitive advantage. )he conce't is given by est :21;

which is based on achieving brea+through advances in the business (odel 'roduction

ca'abilities and s+ill 0or(ation 0or radical innovation. )he ca'ability triad is an innovative

and co('rehensive 0ra(ewor+ that highlights syste(ic as'ects o0 organisational change at 'roduction and enter'rise levels. )he intersecting circles in 0igure 4 in a''endi

de(onstrate that these three areas are not se'arable and they are eually de'endent

subsyste(s o0 a new 'roduct develo'(ent 'rocess. )he 0ollowing discussion 7usti0ies the

uestions what Lonza reuires to develo' these new innovation ca'abilities.

Innovative +ills 0or(ation is inherent 0or Lonza as the co('any has redundancies in

innovation (ainly due to lac+ o0 eternal networ+s with universities and other organisations

in the biotech industry. Also LI=) 0ra(ewor+ o0 Lonza is not 0unctioning well. )here0ore it

is a''ro'riate 0or Lonza to collaborate with other organisations or universities to e('loy

latest R6& 0acilities and tools that will allow co('any to strengthen the innovative s+ills o0

engineers scientists and doctors wor+ing in the co('any. In this regard the co('any can

also e('loy a s+ills (atri to veri0y the s+ills +nowledge and interest o0 the tea( (e(bers.

A sa('le s+ill (atri 0or Lonza tea( (e(bers is 'resented in 0igure # in a''endi where

le0t colu(n contains the +nowledge and s+ill areas and to' row contains the na(e o0 the tea(

(e(bers. )he intersection o0 colu(ns and rows identi0ies the level o0 each tea( (e(ber9s

+nowledge s+ills and interests.

Lonza case study also de(onstrates that the co('any lac+s in entre'reneurshi' thin+ing and

behaviour. )he business (odel as'ect o0 the ca'ability triad illustrates how 0ir(s can

generate entre'reneurshi' thin+ing based on technological ca'abilities 'roduct s'ecialisation

and o'en syste( :est 21;. )he business (odel o0 Lonza with re0erence to the success o0

the new 'roduct reuires structural changes in the organisation. In addition the new business

(odel o0 Lonza (ust be based on the inde'endent 'roduction syste( rather than contract

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(anu0acturing where o''ortunities 0or innovation are li(ited. )able # contains new roles o0

+ey individuals in Lonza 0or the success0ul i('le(entation o0 radical innovation.

At 'resent Lonza is etre(ely (ar+et5oriented co('any. In order to intensi0y their

'roduction ca'abilities 0or develo'ing 'rototy'es 0or "olyglactine%"oly'ro'ylene Mesh o0 the

new i('lant the co('any needs to access or e('loy e'erienced and s+illed 'eo'le and

scienti0ic%engineering techniues and ti(ely integrate the( into their 'roduction o'erations.

Also Lonza can encourage e('loyees to increase their 'roduction ca'abilities by 'roviding

the( latest eui'(ent and conducting training 'rogra(s 0or the(. In addition co('any can

'rovide a 'lat0or( to their e('loyees to enrich their 'roble( solving s+ills.

Table (: Gey roles o0 individuals

Key indi)id"al Role

Tecnical inno)ator Lonza (ay hire or identi0y technical innovator in the organisation

who is s'ecialised in one or two areas o0 concern. )his will hel'

the Lonza in generating new innovative ideas in the 0uture

Tecnical*commercial

scanner

Currently Lonza has lac+ o0 eternal networ+s with universities

and other organisations in the biotech industry. )he role o0

technical%co((ercial scanner is critical 0or Lonza as he%she

acuires use0ul in0or(ation 0ro( outside organisations o0ten

through networ+ing. )his will hel' Lonza to achieve innovation by

carrying out R6& activities

+atekeeper i(ilar to a technical%co((ercial scanner the role o0 gate+ee'er is

also signi0icant who acuires in0or(ation 0ro( 7ournals

co('anies con0erences and colleagues and serve as an

in0or(ation resource 0or others in the organisation

%rod"ct campion Lonza really needs new innovative ideas 0ro( idea sellers so5called

8'roduct cha('ion9.%ro,ect leader )he role o0 'ro7ect leader is vital in Lonza 'articularly 0or

develo'ing new innovative 'roducts. Be%she usually ensures (any

reuire(ents o0 the 'ro7ect such as ad(inistration (anage(ent

'roduction resources and 0ul0il(ent o0 goals and strategic

ob7ectives

#ponsor =inally s'onsor always 'lays a crucial role in 'roviding 'ower

based within the organisation. In case o0 Lonza the s'onsor can

hel' the co('any 0or 'roviding legiti(acy and 'atent basis 0or new

"olyglactine%"oly'ro'ylene Mesh i('lantSource: #o"ert and $uh%eld (19&1)

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&) Conclusion

In this 'a'er a (a7or ga' in the Lonza Li(ited Co('any i.e. lac+ o0 0ocusing on long5ter(

radical innovation is addressed by 'roviding a basis 0or radical 'roduct innovation. In this

regard stage5gate 0ra(ewor+ is used to develo' a new i('lant with "olyglactine%

"oly'ro'ylene Mesh technology 0or hernia surgery. It is 0ound 0ro( the ris+ analysis at idea

screening stage that Lonza needs to ado't ris+ avoidance and ris+ (itigation strategies to

avoid the i('act o0 'robable ris+s.

?verall the (edical 'roduct (ar+et has high co('etition with low 'ro0it (argin and (ost o0

the (anu0acturing 0ir(s loo+ to reduce 'roduction costs by a''lying lean (anu0acturing

techniues. In develo'ing 'rototy'es 0or "olyglactine%"oly'ro'ylene Mesh i('lant Lonza(ust i('le(ent lean (anu0acturing theory 0or success0ully co('leting the develo'(ent

'rocess and also to avoid issues that can cause a higher 0reuency o0 recurrence o0 hernia

'ain or in0ection a0ter the surgery.

It is also 0ound 0ro( the industry analysis that Lonza (ust be care0ul in securing 'atents 0or

establishing te('orary controls in the (ar+et and also to hold bac+ new entrants and reduce

the i('act o0 rivalry. )o enable radical innovation it is very i('ortant 0or Lonza to

collaborate with other organisations or universities to e('loy latest R6& 0acilities and tools

that will allow co('any to strengthen the innovative s+ills o0 engineers scientists and

doctors wor+ing in the co('any. Also it is 0ound that Lonza is very (ar+et5oriented

organisation so in order to intensi0y their 'roduction ca'abilities 0or develo'ing 'rototy'es

0or "olyglactine%"oly'ro'ylene Mesh o0 the new i('lant the co('any needs to access or

e('loy e'erienced and s+illed 'eo'le and scienti0ic%engineering techniues and ti(ely

integrate the( into their 'roduction o'erations.

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14/19


15/19

Ghan D. angash A. adi M. Badi A. and Ba(id B. :21;. "olyglactine%

"oly'ro'ylene Mesh vs. "ro'ylene Mesh! Is )here a Deed 0or Dewer "rosthesis in

BerniaQ audi ournal $astroenterol 1-:1; ''. *H13

Leigh R. :2;. #adical Innovation: 'o *ature !opanie can Outart 3ptart8

Barvard usiness "ress

Lettl C. $e(nden B.$. and Bienerth C. :2*;. 'loring Bow Lead sers &evelo'

Radical Innovation. I777 /ranaction on 7ngineering *anageent ##:2; ''. 21,5

233

Mascitelli R. :2-;. /he Lean roduct evelopent uide"oo: 7verything our eign

/ea Need to Iprove 7iciency and Slah /ie;to;*aret . )echnology

"ers'ectives

Mascitelli R. :211;. *atering Lean roduct evelopent: - ractical, 7vent;riven

roce or *a6ii. Uegveld :1,*#;. #eindutriali


16/19

Appendi6 A

Table -1 . >?) analysis o0 Lonza Ltd.

#TR/0+T# /-K0/##/#-456R-7L/ 60-456R-7L/

I 0 T / R 0 - L

o Eery good custo(er oriented co('any

o u''lier o0 big (ultinational

organisations

o tre(ely (ar+et5oriented co('any

o Redundancy in innovation

o Lac+ o0 eternal networ+s to

/ 8

T /

R 0

- L

5%%5RT60ITI/# TR/-T#

o Collaborate with universities and other

co('anies in biotech industry

o $row signi0icantly in the areas o0

bio'roducts bio'har(a and hu(anhealth

o )echnological brea+through

o =ocus on long5ter( radical innovation

without losing co('etence in current

business environ(ent

o Custo(er reuire(ents are not

innovative

o Co'yright issues

o Lac+ o0 availability o0 standardised raw

(aterial 0or develo'ing innovative

'roducts

Source: !reated "y author (201@)

Appendi6

ig"re 71: tage5gate (odel

16 | P a g e


17/19

ig"re 72! Ris+ (a' 0or Lonza9s new 'roduct develo'(ent

#o"rce: created by author :213;

ig"re 73: "ower%interest grid 0or sta+eholder 'rioritization

1( | P a g e


18/19

#o"rce: Benri :2*;

ig"re 7': Ca'ability )riad

#o"rce! est :21;

1) | P a g e


19/19

ig"re 7(: +ills Matri

#o"rce: Aswatha''a :2# '. ,,;

1* | P a g e

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Radical Product Innovation