MBA501 - Dynamic Strategy and Disruptive

Innovation

Case Study - FutureMed

Group Assessment 3
Atif Rehan - 130139
Bernadeth Vendiola - 130294
Gabriela Goulart– 130354 February, 2018

Margareth Fanggidae – 130207

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 Introduction
• FutureMed is a large Australian company
• Develops and market Radiopharmaceuticals
• Radiopharmaceuticals are Radioactive Pharmaceutical
drugs
• Its containing radioisotopes use for diagnosis and therapy
many diseases

Introduction

FutureMed is a large Australian company that develops and market

Radiopharmaceuticals. It is type of radioactive pharmaceuticals drugs, very unique
medicinal formulations. Containing radioisotopes use for diagnosis and therapy.
Radiopharmaceuticals are use in the field of nuclear medicines radioactive traces in
medical imaging and in therapy many diseases.

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 Introduction
• 4 different perspectives

Internal Perspective

External Perspective

Marketing perspective

Technology Perspective

In this presentation, we are going to analyse FutureMed as a company and give

recommendations to the following perspectives:
- Internal perspective by maggie/myself
- Extenal perspective by Atif
- Marketing perspective by Gabby
- Technology perspective by Bernadeth

And finally the conclusion also by Bernadeth

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Internal Perspective
(Margareth)

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 Internal Perspective
• Human Resource

• Organisation Culture

• Resource Allocation

• Organisation Structure

Internal Perspective

There are four challenges in internal perspective:

- Human resources
- Organisation Culture
- Resource Allocation
- Organisation Structure

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 Human Resources
• Employee are demonstrated high resistance to change

• Lack of training

The FutureMed implement an employee survey and indicated that the organisation has a
very conservative corporate culture. Based on the survey responses, the average
employee are demonstrated a high resistance to change or adapt with the environment.
This could inhibit the company to grow.
FutureMed is not providing enough training and knowledge to staff in how to grow
together with the company.

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 Organisation Culture
• Conservative corporate culture

• Old fashioned and hard to change

Organisation culture

According to the employee survey, the staff are still old fashioned and hard to change in
the way of work or thinking. One of the reason might because staff are feel comfortable
with the way the are working after long period.

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 Resource Allocation
• Not maximize the resource

• Not enough innovation skills in nuclear medicine

Resource Allocation

- There is no systematic approach in place for the identification or creation of potential

disruptive technologies

- According to the market research, the research and development have a limited
understanding of what doctors and physicians needs.

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 Organisation structure
• Governed by a board of seven directors

• The senior manager team (head of finance, marketing, and

research)

• Regular meeting to review and set strategy to achieve the company

goals

Organisation Structure

Analysis:
• FutureMed is governed by a board of seven directors to oversee the senior
management team.
• The senior management team are the head of each large department such as
operation, finance, marketing and research and development.
• FutureMed has been a relatively successful in terms of pay higher dividends to its
shareholders consistently.

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 Recommendations
• Add a team in corporate that responsible in disruptive innovation

• Implement, respond and monitor employee survey

• Keep a good relationship with the stakeholders

• Authority to staff member with the limitation

• Modified organisation structure to promote flexibility

Recommendation:
- An additional team in corporate is required. The team will responsible in collecting
disruptive innovation ideas and implementing them in organisation
- Implement, respond and monitor employee survey is one of the best tools to use to
improve the efficiency in organisation. Due to the conservative culture in the
organisation, FutureMed could provide staff training and knowledge to staff and
engage them to change to be better. It beneficial for both company and staff as well
- Keep a good relationship with the stakeholders also one of the key company success.
One of the important stakeholders is Australian Department Health.
- In terms of the hierarchy of the company that can affect process of decision making. It
would be more easier if the head of department give the authority to the staff member
to make decision with some certain limitation.
- The organisation structure could be modified to promote flexibility by having smaller
business unit. So that the person who make a decision able to take emerging
opportunities seriously.

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 External Perspective
(Atif)

For every company to achieve sustainability in an industry market, it is

important to evaluate external factors that affecting the industry and the business. In
general, external analysis covers two areas
1. Macro-environment and
2. Micro-environment.

PESTEL Analysis and Porter’s Five Forces analysis are the two best tools for identifying
the opportunities and threats for the company in the industry. In this presentation, only
the key external factors impacting the organizations innovative capacity and
recommendations are addressed.

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 Political Factors
• Very difficulty to successfully register
radiopharmaceuticals on the ARTG.

• Pricing Regulations

• Taxation – Tax rates

It is very difficult for an organization to successfully register their

radiopharmaceuticals on the ARTG (Australian Register of Therapeutic Goods).
Therapeutic Good Administrations (TGA) is the part of Australian Government
Department of health. TGA is responsible for regulating medical devices and medicines.
They undergo risk management to determine standards of quality, safety and
performance when it is needed. In this process of taking regulatory actions, the
administers use decision support system which includes healthcare professionals and
the industry to evaluate the problems concerned with the medicine (TGA 2017).
Government of Australia takes the responsibility in creating pricing
regulations. For prescribed medicines, government decides the prices of the medicine by
considering the affordability of the citizen. It is important consider that the Government of
Australia levy high tax rates on prescribed medicines.

References
Bernstein, B. and Singh, P.J., 2006. An integrated innovation process model based on
practices of Australian biotechnology firms. Technovation, 26(5-6), pp.561-572.
TGA (2017). Australian regulatory guidelines for prescription medicines. Retrieved From:
https://www.tga.gov.au/tga-presentation-codeine-industry-forum-11-may-2017.

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 Economic factors
• Difficult to raise capital to fund the development of new
pharmaceuticals in Australia.

• Government Intervention

• Efficiency of financial markets is low

It is known factor that Australia economy is highly developed and it is one

of the largest mixed market economies in the world. But coming to the
radiopharmaceutical business, it is difficult to raise investments or capital to fund the
development of new pharmaceuticals in Australia. Investors in pharmaceutical industry
have less or no idea of how business can be profited and market conditions (Kola
&Landis 2004). There is great government intervention as stated earlier. They involve in
generating regulations for new medicine pricing, taxation and other factors that related to
citizen health and safety. The efficiency of industry in financial markets is low, no
effective share effective value, investors search for different ways for investing their
money considering the risk factors with radiopharmaceuticals.

References
Atuahene‐Gima, K., 1996. Differential potency of factors affecting innovation
performance in manufacturing and services firms in Australia. Journal of Product
Innovation Management, 13(1), pp.35-52.

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Kola, I. and Landis, J., 2004. Can the pharmaceutical industry reduce attrition
rates?. Nature reviews Drug discovery, 3(8), p.711.

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 Environmental Factors
• Fluctuating Weather Conditions

• Laws regulating environmental pollution

• Endangered species

The weather conditions in Australia are mostly unpredictable, in a day we

can find rains, high temperatures and coldness fluctuating. Radiopharmaceuticals are
based upon nuclear reactions which might be harmful and may release harmful gases
into the air and water which creates pollution and making life difficulty (Boxall et al.
2012). There are some effective laws regulating environmental pollution to safeguard
human lives as well endangered species.

References
Boxall, A.B., Rudd, M.A., Brooks, B.W., Caldwell, D.J., Choi, K., Hickmann, S., Innes, E.,
Ostapyk, K., Staveley, J.P., Verslycke, T. and Ankley, G.T., 2012. Pharmaceuticals and
personal care products in the environment: what are the big questions?. Environmental
health perspectives, 120(9), p.1221.

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 Social Factors
• Low skill level in the areas of Radiopharmaceuticals

• Conservative corporate culture

• High resistance to change

• Above 55 years old in Senior Management Team

• Low growth opportunities

In 2014, it is found that only 74 researchers and scientists are available in

Australia to work on developing new radiopharmaceuticals. Very low numbers of
candidates with desired skills in the field of nuclear medicine. FutureMed has very
conservative corporate culture which is unhealthy for a company which has dynamic
capabilities of innovation. High resistance to change costs more time and cost in
developing new products. Growth opportunities in the company are very low, to become
a member of senior management team, the employee should have at least 55 years of
age that which stops in attracting and retaining high-skilled and potential employees to
the company (Parvin & Kabir 2011).

References
Roberts, A.S., Benrimoj, S.C., Chen, T.F., Williams, K.A., Hopp, T.R. and Aslani, P.,
2005. Understanding practice change in community pharmacy: a qualitative study in
Australia. Research in Social and Administrative Pharmacy, 1(4), pp.546-564.
Parvin, M.M. and Kabir, M.N., 2011. Factors affecting employee job satisfaction of

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pharmaceutical sector. Australian journal of business and management research, 1(9),
p.113.

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 Recommendations
• Establish Developing Center in Indonesia and New Zealand.
• Create value to attract more investors that who understand
and feel security for their money.
• Secure Environment
• Able to provide growth opportunities for every employee.
• Empower employee towards change

To enhance dynamic capabilities of FutureMed and its operations in developing new

radiopharmaceuticals, it is essential to look forward in establishing its business area in
neighboring countries of Australia such as Indonesia and New Zealand, where there are
low government regulations for developing radiopharmaceuticals. It is also essential for
the company to create awareness of radiopharmaceuticals uses and effectiveness in the
areas of diagnosis and therapy. When there is an awareness of the product, eventually
investors look for investing money on developmental practices. Law of attraction should
be used in proper channels to make business financiers understand and feel comfortable
with.

The operations location should be sited far away from the human living
areas and pollution should be reduced to the permissible limits of the environment to
secure the environment. Some species may not be comfortable with the byproducts in
nuclear reactions to be concerned. Employees under effective leadership will be
motivated and empowered towards a change. Growth opportunities, training and

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development and career development opportunities should be provided to attract and
retain desired and high-skilled employees in the area of radiopharmaceuticals.

References
Lofgren, H. and de Boer, R., 2004. Pharmaceuticals in Australia: developments in
regulation and governance. Social science & medicine, 58(12), pp.2397-2407.
Raftery, J.P., 2008. Paying for costly pharmaceuticals: regulation of new drugs in

Australia, England and New Zealand. Medical Journal of Australia, 188(1), p.26.

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Marketing Perspective
(Gabriela)

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 Analysis
• Market Research

– Conducted by R&D department.

– Focused on the centre of the target market.

– Limited understanding of what doctors and physicians

need.

The third perspective on disruptive strategies is Marketing.

Analysing FutureMed’s market research there are a few features that can be improved:

-The company’s market research is conducted only by the R&D department.

-It is focused on the centre of the target market, doctors and physicians
-R&D department has limited understanding of what the company’s target market really
need

In order to improve FutureMed’s marketing strategy and the achievement of better

results, there are some recommendations that can be followed, so the company can find
emerging markets and understand potential customer needs.

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 Recommendations
• Customer Visit Programs

– Cross-functional team

• Marketing + R&D

FutureMed’s market research should be conducted not only by R&D, but also marketing
department. When conducted by cross-functional teams, the same information is heard
by both departments, helping to solve conflicts, implicit assumptions, and poor
communication.

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 Recommendations
• Lead user processes

– Identification of lead-users

• Include: radiologists, oncologists, pharmacists

In order to achieve better results on conducting disruptive strategies, FutureMed needs

to identify it lead-users. They will be able to foresee customer’s needs before the rest of
the target market. Among doctors and physicians already considered as the target
market, FutureMed can include radiologists, oncologists, pharmacists to help them on
the development of new technologies.

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 Recommendations
• Empathic design
– Identification of latent customers
– Attention to users feelings towards a product
• Observation
• Data capture
• Reflection and Analysis
• Brainstorming to find solutions
• Developing prototypes of possible solutions

In addition to customer visit program and lead user process, empathic design can
also help FutureMed to better understand users’ needs, making it possible for
them to develop solutions to problems that users didn’t even know they had.
To do that, some steps must be followed:
Observation
Data capture
Reflection and Analysis
Brainstorming to find solutions
Developing prototypes of possible solutions.

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Technology Perspective
(Bernadeth)

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 Technology Perspective
Basic TRIZ Framework

TRIZ basic principles

Create advanced technique
1. Transformation No Systematic procedure to quickly spot
Approach potential new innovation
2. Resources technology

3. The Ideal and

Market research focus only mHealth Application
Result in company’s target market, for Futuremed
doctors and physicians
research team

Satisfied too quickly

Be always open to
with solution to a
even better ideas
problem

Traditional Approach mHealth Application

No System
Create advanced
Limited Research technology technique
Resources procedure

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 Transformation
Analysis
FutureMed have No systematic approach in place for
identification or creation of potential disruptive
technologies.

Recommendation
FutureMed should create advanced technique
procedure to quickly spot potential new innovation
technology.

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 Resources
Analysis
FutureMed’s market research team focus only in company’s target market, doctors
and physicians.

Recommendation
In our advanced technology generation, it is highly recommended that
FutureMed research team use mHealth application because this
application will allow people participate easily and this apps will help
FutureMed gather information about people’s health problems. Therefore,
it will help the company to have fresh idea to improve pharmaceuticals
and provide products that people actually needs.

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 Resources
Analysis
FutureMed’s market research team focus only in company’s target market,
doctors and physicians.

Recommendation
In our advanced technology generation, it is highly recommended that
FutureMed research team use mHealth application because this application
will allow people participate easily and this apps will help FutureMed gather
information about people’s health problems. Therefore, it will help the
company to have fresh idea to improve pharmaceuticals and provide products
that people actually needs.

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 Conclusion

The analysis of internal, external, marketing and technology

perspective has provided a better understanding of the current
situation of FutureMed. We encourage the company to follow the
recommendation in order to achieve its goal.

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