AD 741 Topic 3 Case – Eli Lilly and Co.

Topic 3 CaseEli Lilly and CompanyThis case emphasizes:The difference between a) the trajectory or path over time of increases in performanceimprovement in an industrial segment which consumers demand or want (trajectory of customerneed); and b) the improvement over time in the level of product performance that technologistscan provide (trajectory of technological improvement) in a product.How the criteria customers use to choose among competing products changes (the evolving basisof competition), and dramatic results when the technology available (b above) has overshotwhat customers want?We do this by studying the history of Eli Lilly and Companys efforts to develop new products and services for the diabetes care market, a field it had originally pioneered, and some of the successes and failures it had as the market itself evolved.Background:Lilly invested heavily to maintain its dominant position as an insulin manufacturer, but began to see its worldwide position weaken despite its efforts. In addition, there were several other waves of innovative opportunities in the diabetes care market that Lilly had already missed. Lilly at the time of the case was engaged in a determined effort to strengthen its position in insulin and grow beyond that single product into other products and services. In particular, the case describes Lillys intent to participate, in some way, in the huge market opportunity created by patient noncompliance, and thereby increase demand for insulin. Note that there are four particular classes of innovation explored in the case: Improvements in insulin; Delivery devices (pens and injection devices); Meters and technology to measure blood glucose levels; and the development of products or services for education and behavioral change among patients with diabetes. Questions:In addressing and discussing the outcomes of the questions below about what Lilly did wrong, and about how it should approach the current decisions, remember to use the readings and concepts from the course , for example those on the shifting basis of competition, about how to best explore new opportunities, and the reading on Big Companies Need to Act More Like Startups.1. Review the history in recent years of Lilly that is presented in the case: what mistakes did Lilly make inits product and service initiatives, and why did this happen.2. Is Eli Lilly & Co. talking to the right persons or groups to determine what product features oradvancements would be most appreciated by the diabetes related market? Explain your answer.3. WHAT SHOULD WE LEARN FROM THIS CASE?Think
about broader issues raised by the Eli Lilly and Co. case (Innovation in
Diabetes Care) and in the Exubera Mini-case. Eli Lilly and Pfizer are two
leading pharmaceutical companies that spent enormous capital and organizational
energy on developing potentially exciting and innovative products that their
customers ultimately did not want or could not get appropriately reimbursed.
Both failures were quite remarkable with Eli Lilly and Pfizer banking huge
losses and taking strong hit to their market share and reputation (especially
Pfizer).
So, what
when wrong and why? How could two worldwide pharmaceutical industry leaders Eli
Lilly and Pfizer with vast resources and expertise in the field make such
massive miscalculations of the market’s demand for Humilin and Exubera? How can
big established organizations do a better job in avoiding such kinds of issues?Please do not just repeat the case
and mini-case discussions of the week, but move onto how these problems can be
addressed in other large successful professionalized organizations, especially,
but not limited to, big Pharma. Be prepared to focus on both substantive (e.g.
methods of better understanding the shifting basis of competition and other
broader factors in an industry such as emerging new technologies, business
models, and “arenas” of opportunity a la McGrath, 2013) and
organizational factors (e.g. how companies structure, manage, and incentivize
their efforts).
Structure and Formatting Requirements for Individual
Assignment Papers
All
assignment papers in the Course should useAPA formatfor formatting and citing in the body
of the Paper that is at least: should be typed, double-spaced with 1″
margins on all sides using 12 pt., Times New Roman font. Include a page header
(also known as the “running head”) at the top of every page. To
create a page header/running head, insert page numbers flush right. Then type
“TITLE OF YOUR PAPER” in the header flushes left using all capital
letters. The running head is a shortened version of your paper’s title and
cannot exceed 50 characters including spacing and punctuation.
Word limit
requirement is enforced: your paper should be at least750 words, and no longer than 1000
words.
Assignment
papers should have clear structure including:

Title Page that
should have title of your paper; author’s name; Institutional affiliation
– Boston University; MET AD 741; and Date.
Abstract that
gives a concise summary of the key points of the paper. Abstract should be
not more than 100 words (note: do not count towards the total word limit
for the Assignment paper).
Main Body of the
paper is for detailed analysis of the key issues and circumstances of the
company or business practice under consideration and how relevant concepts
and frameworks from the course can be applied to understand what is going
on. Main body should have appropriate sections and sub-sections to show
structure and logic. The actual subhead titles can be descriptive,
normative, or humorous to best reflect your own writing style.
Recommendations section should be separate and occupy at least one third
of the body of the paper.
References that
are properly cited and enclosures (Note: do not count
towards the total word count limit for Assignment paper).
Both assignments
can be submitted only in word or pdf formats.