Weber and Rohracher (2012) stated that business innovation is a process of incorporating new ideas, methodologies, products and services in the business process. The prime intention to adopt technological innovation is to attain more profitability that enhances the economic condition to the organization. Schiederig et al. (2012) furthermore portrays that innovation leads to the success of the business and provide competitive advantage with respect to other organization in the market. This research study emphasizes on the innovation and its impact on business management that drives the economic growth of the company. This chapter comprises of a brief background of the study, rationale of the study, significance of the research along with the research aim, objectives and question followed by the structure of the research study.
The importance of business innovation is that it allows companies to implement new strategies, ideas and technology in the business so that the profitability and productivity of the organization can be maximized (Narula 2014). Johnston and Marshall (2016) stated that there are two ways to enhance the output of the economy- increase the workforce that increases the productivity and innovate new approaches and ways through which the business functions can be performed. In addition to that, businesspeople think that business innovation is a surviving skills and it is positively impacts the customer’s expectations. Thus, every business should adopt innovation to develop their working competency and quality of the work. In this way, many customers can rely on the business that they are taking continuous effort to grow their organization for the betterment of their stakeholders. Thus, this research the impact of innovation both in terms of technological innovations and business innovations is highlighted that allow organization in business management.
Pfizer Inc. established in 1849 is an American pharmaceutical corporation (Pfizer.com 2017). The company is liable to develop and formulate vaccine and medicines for a wide range of disease like- oncology, cardiology, neurology, endocrinology and immunology. The annual revenue that is attained by Pfizer was $52,824 million for the year 2016 and $48,851 million for the year 2015 (Statista 2017). The company had incurred great profitability in the year 2010 and 2011 compared to the previous years. However, continuous loss has been witnessed in their annual revenue from 2012 to 2015 due to poor business management (Statista 2017). However, in the year 2016, Pfizer was able to attain great financial growth again by adapting innovation and technology in their business process.
Johnston and Marshall (2016) stated that lack of business innovation results in diminished profitability of the organization. This also affects the brand’s reputation. Thus, adopting technologies and innovation influences the working ability of the organization, the managers of the organization are also able to adopt new business procedure through which their business goals can be attained. In this research study, the Pfizer is an organization that is taken into consideration. It can be said that if innovation is not implemented in this company, their business process of developing drugs from biotechnology will be affected. Thus, this research highlights the necessary things that are required for this organization to innovate so that they can improve their business efficiency.
Research Hypothesis
H0: Innovation and technological changes does not have any significant impact on business economy
H1: Innovation and technological changes have significant impact on the business economy
The main aim of this research is to present the impact of the innovation in business management for a biopharmaceutical company. The organization that is taken into consideration is Pfizer. Their innovative approach to make drug for the betterment of the patients and taking effective business decision that can results to immense financial growth is also highlighted in this research study. In addition to that to explore innovative strategies that are effective for pharmaceutical company, formulation of the competitive growth strategies that can experience growth in the business environment is also the aim of this research study.
This chapter comprises of different concepts and theories related to business innovation and its impact on the business management. The chapter highlights all the required ideas that are required for strategy innovation, business innovation and technological innovation. Moreover, the details of organization compared to innovation and the business economy is also discussed in this chapter. A conceptual framework is illustrated at the end of this chapter to represent the link between the two research variable that is innovation and technology usage and business management.
Pisano (2015) stated that the term strategic innovation refers to a situation in which the company redesign and reinvented their corporate strategy to encourage their business growth and generate profitability. These strategies are taken for attaining effective competitive advantage and develop values for their company. However, Di Stefano et al. (2012) stated that this type of innovation is required only when the organizations have to adopt the rapid change in technology and align their business objectives with that of the changing technology. Another reason for adopting innovation or new technology is to attain more financial growth that on the other hand enhances the performance of the business and management competencies. Nambisan (2013) on the other hand depicted that companies who intends to implement strategy innovation have to undertake some consideration like- what kind of products and services need to be reinvented or need innovation that enhances the profitability, what are the new market segments and expand customer base is suitable for further business expansion so that more financial growth can be obtained, which processes allow the strategy optimization that saves cost from usual business procedure and contribute more in annual revenue. Reinventing the business process of supply chain and value chain is also included in the strategy innovation.
Some of the successful examples for strategic innovation in the organization are- Apple Inc. that had taken strategic business decision of expanding the use of computers for individual that enhances their sales which on the other hand drives their financial growth Chesbrough et al. (2014). IBM on the other hand, expanded their business by selling hardware along with their software solutions so that they can diversify their products range and their existing customer base can purchase new products offered by them (Rindos 2012).
Iles and Martin (2013) stated that business innovation makes companies different from others companies. There are some measuring terms through which the business innovation of an organization is assessed like- the business process for attaining organizational goals, how effective the performance of the entire organization and the procedure to exploit new ideas. Sahut and Peris-Ortiz (2014) furthermore stated that business innovation also resembles to a situation where the different business idea taken by an organization is considered. Taken for instance, if an pharmaceutical selling shop is selling only medicines of other companies and started formulating medicines of same chemical formula but under their sole brand it is known as business innovation. Qian and Haynes (2014) portrays other instance, where there an organization only sells medicines for life-threatening and chronicle diseases like- neurological disorders, cardio-vascular disease, dialysis and chemotherapy and the organization has taken initiative to formulate medicine for common diseases, this can also be referred as business innovation. In addition to that, formulating medicated consumer beauty products can also be considered as business innovation and people will purchase more of such products that enhance the overall profitability of the organization. Yu-bing (2012) thus depicted that the major aim of business innovation is to attract more customers and enhance their customer base. There are three different types of business innovation model- revenue model innovation, enterprise model innovation and industry model innovation.
In this model, the products and services of the organization is re-configured along with the pricing strategy of the same product that indicates the business economy. Amit and Zott (2012) depicted that in this business model, businesspeople use different pricing models and implement only those that provides the best result to their organization. Richter (2013) highlighted that some organization use competitive pricing strategy; while some uses the concept of skimming price and both represents effective business management. However, in pharmaceutical organization competitive pricing strategy only occurs when similar kind of medicines are formulated. Companies, who are liable to develop medicine by using nanotechnology and 3-D printing, should charge high fir their new technology and effort to provide accurate solution. This will help pharmaceutical companies to incur more profitability from their customer base.
This is a model that is used by the business personnel for reinventing the connections of the business (Lambert and Davidson 2013). Schneider and Spieth (2013) moreover stated that, changing the internal and external processes is also adopted in this model. This innovation model is dependent on the partners who are connected with the organization and adopts the same technology so that business objectives can be attained with the partnership.
This innovation model refers to the ability of an organization, where they can enter into a new market so that more customers can experience different products of their brand and purchase the same according to their requirement (Casadesus?Masanell and Zhu 2013). Bucherer et al. (2012) highlighted the example of Google. Google is an organization that organizes the world’s information; however, they have entered into new industry through developing self-driving cars and smart phone named “Pixel” (Steiber and Alange 2013). This kind of innovation expands the competencies of organization and helps the company to attain monopoly in the market, which on the other hand enhances the financial growth of the organization. It is also genera tendency of people to experience new products from their trusted brand. As Google is famous for their technology, people have a trust that their technological innovation worth financial resources.
Priem et al. (2012) stated that the process of implementing new products and processes or brining new technological advances and change in the existing technology of the business is known as technological innovation. Many organizations develop a Research and development centre within their organization for developing the technology to improvise their existing products or produce different product line is also another aspect of technological innovation. Tang and Tan (2013) furthermore depicts that technological changes is adopted by business people for improving the organizational productivity and adding values to customer. In addition to that, it can be said that the formulation of e-commerce of every business can be considered as a technological innovation. Customers also visit the online site according to their convenience and do not have to wait in longer queues. Moreover, organization now intends to develop a mobile application under their brand name for further convenience. The business management can be witnessed from the available discount to attract maximum customers that furthermore impacts positively on the business economy. Gallagher et al. (2012) also highlight that every sector adopts the technological advancement of cloud technology and big data concept so as to manipulate the details of customers. These changes in technology are known as technological innovation.
The technology and innovation in biopharmaceutical organization is better witnessed through their manufacturing line. Lubrano (2013) stated that biological science have reached to a new height by unlocking different technological advancement and pathways to provide health solution to human disease. Sclove (2012) on the other hand specifically highlighted that manufacturing equipment and material technology along with the development of supply chain are the examples of technological innovation in biopharmaceutical industry. This also redefines the business management decision for curing human health by delivering the required medicine within time. Leminen et al. (2012) portrays that many pharmaceutical companies defined technological management in their supply chain process so that final products can be reach to the end-customers without any delay and productivity can be increased that automatically indicates higer profitability of the organization. Riedl (2013) also affirms that these innovative changes can be better achieved of the entire process is divided into some steps that can be separately handled like the supply chain innovation can be broken into four phases- observe, align, decide and implement.
Business economy growth is directly related to innovation as greater the successful innovation is implemented by an organization, greater the growth in business witnessed by that organization (Audretsch et al. 2014). According to the research of McKinsey, it is highlighted that not all growth opportunities are equally strong; however, growth of an organization is still considered as critical driver for organizational performance (Fagerberg et al. 2013). Gordon (2012) furthermore highlighted another aspect that maximum executives agrees on the fact that innovation is important for business growth but these respondents also showed their dissatisfaction on the lack jog clarity of the developed technology that can lead to poor performance of the organization.
Radjou et al. (2012) portrays that successful organization adopts four best practices to ensure the growth of the organization. The four steps are evaluating next s-curve, intention to lean on customers, ability to think like a designer and lead by example. Acemoglu et al. (2013) depicted that no strategy grows forever and all kind of business practices and models go through a predictable cycle of growth. This procedure can represent through the innovation window. Kogan et al. (2017) stated that whenever a new product emerges, most customers gets attracted by the products and in this time businesspeople usually take the strategy to diminishes the pricing of the products so that other target group can also be attracted for greater increase in the sale. In this time, the product loses its luster. Thus, the best time to innovate next products or services is when the curve hits the inflation point.
In the second phase, the successful companies uses the concept of rely on customers. Ion and Cristina (2014) stated that some organization utilizes the concept of survey so that the accurate demand of the customer can be identified. This allow the organization to incorporate only those changes that they actually need and thus customer gets attracted through their products which also ensures the company’s growth and greater sale of products that on the other hand impacts the economic growth of the business effectively. Moreover, some companies also use customer empathy map to discover new opportunities to create values.
The prime objective of this model is to highlight the thoughts of the customers that develop the competency of the organization to develop new things. The second aspect is the feelings that refer to user’s emotional state whether or not they are getting the accurate solution or not. The third aspect is action, which signifies user’s behaviors that they attain after getting a specific solution.
In the third phase, the emphasis is more on the designers and not on the managers. The prime reason for this logic is managers are tends to make choices out of many but designers are liable to develop new option that is best suitable for the betterment of the organization (Ion and Cristina 2014). Acemoglu et al. (2012) also affirms the above argument by stating that some organization uses the concept of Porter’s five forces to evaluate the mater conditions and develop well-defined boundaries along with the competitors ability to grab their market share. In this phase, models like Blue-Ocean Strategy and Business Model Canvas is also utilized by businesspeople.
In the fourth and last phase, the business management initiates if only the CEO of an organization supports the innovation. Sutherland (2014) portrays that reason that innovation is always a risk taking decision but unless an organization takes risk to innovate, attaining maximum profitability and growth for the organization is difficult. Take for instance, Google allow all their employees to spend one day in a week to innovate or find new ideas.
Taken for instance, in the traditional days, pharmaceutical companies develop medicine that can cure the disease but not completely. However, the chronicle disease like Tuberculosis and caner does not have any solutions for medicinal treatments. However, at today’s era, innovation like “precision medicine”, that is a combination of clinical and molecular information that is use to identify the accurate basis of disease. This helps the business to management their treatment procedure effectively. The information is collected from the DNA of human and proper solution according to their disease is provided to the patient (Evens and Kaitin 2014). In this case, targeted therapies are tailored based on the patient’s requirement through genetic makeup by using the process of genomic testing. This helps the doctors to find out the relationship between the drug and patient’s gene so that right drug can be provided to the them However, Cockburn and Long (2015) highlight a challenge that only those companies, who are able to attain high annual revenue can implement these innovation in their business management. This allows the patients to attract towards the pharmaceutical organization that utilizes these procedures as every patient desire to be completely cured and this furthermore enhances the growth of the medicinal company. Another example that can be taken is the development of 3D printing in biopharmaceutical companies. Technology is incorporated to formulate high dose medicine that is previously harder and expensive to produce. Mittra and Tait (2012) thus stated that in this way, patients suffering from severe disease can get medicines for their disease. In addition to that, other pharmaceutical companies, selling medicines can also contact these biopharma for creating a strategic partnership for more profitability.
Innovation shows the ability of an organization to develop their products and services according to the customer’s needs and demand (Christensen 2013.). In addition to that Boons and Lüdeke-Freund (2013) also depicted that innovation can only be possible of the organization understand that every products have a specified timeline to survive and it must be change and reinvented in order to attract customers. In biopharmaceutical industry, innovation of nanotechnology, 3-D printing technologyibility and fincail and precise medicine allow the organization to provide accurate medicinal solution. Thus, it will boost the profit of the organization and help in further development of the business.
Purce (2014) stated that a critical ingredient for preceding other organization is innovation. Innovation in an organization provides broad perspectives, flexibility and develops new theories and models and all these aspects offer competitive advantage to an organization. In addition to that, employees should always be encouraged to identify new ideas that also develop their ability to develop creativity and problem-solving skills (Baker 2012). New ideas and new technology makes one organization different from others and creates a monopoly in the market, which on the other hand is a greater business management decision that is obtained from innovation. In this way, chances for obtaining more profit from sale and services are higer for the concerned organization. The efficiency of the business management can also be seen through the tactics that an organization follow when adopts innovation and technology like- how much to focus on technological innovation and how much financial resources are required to spend in business model innovation. Businesspeople uses innovation landscape map to assess the accurate technology that they need to develop as different sector need different innovation technology.
Johnston and Marshall (2016) depicted that innovation leads to discovery of new business approaches and business strategies through which all the demands of the customers can be fulfilled. Moreover, incorporating innovation in business approaches attract employee towards the organization as they can utilize their skills to develop new things and products. In this way, the satisfaction of the internal stakeholders can be attained. On the other hand, technological innovation and business innovation fulfills the needs of the customers. In some aspects, concept of customization is also used so that people can exact solution that they required. In pharmaceutical industry, this customization can be attained through technological advancement. Moreover, suppliers and contractors association with such organization also get opportunity to develop their company and learn something from the strategic partnership. Thus, in this way, the satisfaction of external stakeholder can also be attained.
Innovation signifies the ability to change their business procedure to reinvent their products or develop new products line. The effectiveness of the business management in this aspect can be witnessed through the fact that in this way, company can optimizes their overall expense so that more revenue can be collected at the end of every financial year. The prime reason is that development of new products line, allow them to save finical resources that is earlier required in supplier management for delivering the raw material.
Rosenzweig (2014) stated that the main aim of the business is to enhance their productivity so that they can attain maximum financial growth for the organization. However, in traditional days, managing authority encourages people to increase their productivity but in this process the problem of stress occur. Hammer (2015) thus stated that innovation of business procedure allows the organization to find areas where time can be spend less but the result provide the better outcome.
This chapter represents the details of the research methods to obtain the desired research aim and objectives. Research methodology describes the proper structure of the research. Mackey and Gass (2015) represent the significance of this chapter that is to illustrate the systematic way to attain research outcome. This chapter comprises of the utilized research philosophy, research approach and research and research purpose along with valid justification. The process of data collection and data analysis technique used in the research is also discussed in this chapter. In addition to that, the sampling technique followed by the ample size and ethical consideration is presented.
Converse (2012) stated that in order to attain proper dimension and knowledge of the research topic, research philosophy is used. There are three types of research philosophy- positivism, interpretivism and realism. Coleman (2013) stated that positivism research philosophy is highly structured and comprises of large number of samples. Another advantage of this philosophy is that this philosophy can be utilized for both quantitative and qualitative measurements. On the other hand, the intrepretivism philosophy is used when few research samples are taken into consideration and the investigation mostly follows the qualitative analysis. Smith (2013) portrays that, realism is the combination of both the positivism and intrepretivism philosophies. In this research, positivism research philosophy is utilized.
Positivism philosophy is used because it helps in cross checking the find data with the research aim and objectives. Moreover, the data obtained previously can be analysed properly so that any gap lying two researches regarding the research topic can be effectively analyzed.
Bryman (2015) stated that there are two types of research approaches- inductive and deductive research approach. Bryman and Bell (2015) furthermore explains that in inductive research approach, the major focus is on developing new theories and models to obtain the desired research result. On the other hand, the deductive research approach signifies the case where previous theories and models have to be tested. In this research project, the deductive approach is utilized.
The primary reason for selecting deductive research approach is that no new theory and models are developed to obtain the result. Moreover, through deductive research, theoretical support from other research papers can be utilized.
Sekaran and Bougie (2016) stated that there are three types of research purpose- explanatory, explanatory and descriptive. According to Ormston et al. (2014), explanatory research purpose helps to gather several ideas and concept and then link it with the prepared literature for the research. Exploratory research purpose on the other hand, is used when the research will be conducted for longer time and this purpose is used mainly with inductive approach as new direction in research is aimed. Lastly, Cohen (2013) mentioned that descriptive research purpose describes all the aspect of the research variable and then allow linking the theory with the research objectives. In this research project, deductive research purpose is used.
The descriptive purpose is selected so that the considered research variables can be descried with additional information on how innovation helps in shaping the business strategy.
Data can be collected through two methods- primary data collection and secondary data collection. In primary data collection all the research data are collected directly from the research respondents. On the other hand, in the secondary data collection methods, all the research data are collected from sources like research papers, peer journals and other authentic sources (Wahyuni 2012). In this research, primary data has been collected from the employee and manager of Pfizer so that accurate scenario and initiative of business innovation taken by them can be addressed. The primary data are collected from the employees and managers of the concerned organization. A questionnaire of consisting of 10 question related to business innovation is given to the employees of Pfizer and seven interview question is asked to the managers of the same organization.
Smith (2015) depicts that data analysis can be done through two ways- quantitative data analysis method and qualitative data analysis method. Quantitative data analysis method is used when numerical data are analyzed; whereas, the qualitative data analysis method is used when the analyzed of the data has to be done from theoretical information. In this research project, both the quantitative and qualitative data analysis methods are used. The questionnaire provided to the employees is analyzed through quantitative method and the interview information is analyzed through qualitative method.
Fowler Jr (2013) stated that there are two types of sampling techniques- probability and non-probability sampling technique. In probability sampling technique all the research respondents get the same chances to participate in the research; whereas in the non-probability sampling technique not all research respondents get the similar chance to participate in the research. In this research project, both the probability and the non-probability sampling technique have been used. The selection of the employee is done through probability sampling technique; whereas, the selection of the managers are done through non-probability sampling technique.
The total number of research respondents participate in a research is known as sample size. In this research, sample size is 73 in which 70 are the employees of the Pfizer and 3 are managers, who are liable to handle the business innovation in the same company.
Firstly, all the respondents are provided with a consent form, which is duly signed by them (Miller et al. 2012). This shows that they are participating in the research willfully. All the data collected from the respondents are protected following the legislation Data Protection Act 1998. Moreover, all the research data are utilized for the research purpose and not for any business benefits. Anonymousness of the data is maintained properly that is no data given by a respondent is disclosed to others. No respondents are influenced during the research.
The research is based on only one organization, thus, the impact of innovation on business management is discussed with respect to only one organization. Thus, considering multiple companies especially from different sectors is the future opportunity of the research through which actual effectiveness of business innovation on business management can be assessed. In addition to that, in terms of qualitative analysis, only the interview process is considered, which another limitation of this research is. In this case, the future opportunity is that a thematic analysis can also be performed in order to make the research work more authentic.
|
Main activities/ stages |
Week 1 and 2 |
Week 3 and 4 |
Week 5 |
Week 6 and 7 |
Week 8 and 10 |
Week 10 to 12 |
|
Topic Selection |
||||||
|
Framing layout of the research |
||||||
|
Literature review |
||||||
|
Formation of the research Plan |
||||||
|
Selection of the Appropriate Research Techniques |
||||||
|
Primary data collection |
||||||
|
Analysis & Interpretation of Data Collection |
||||||
|
Conclusion of the Study |
||||||
|
Formation of Rough Draft |
||||||
|
Submission of Final Work |
Table 1: Time Frame for the Research
(Source: Created by Author)
|
Row Labels |
Count of Respondents |
|
Strongly agree |
47 |
|
Agree |
5 |
|
Indifferent |
6 |
|
Disagree |
6 |
|
Strongly disagree |
6 |
|
Grand Total |
70 |
Table 2: Innovation is important in present economic condition of Pfizer
(Source: Created By Author)
This question has focused on illustrating the significance of innovation in the present economic condition. As mentioned earlier, Pfizer has always concentrated on different innovative activities for staying ahead of all the competitors. For that reason, total 47 respondents have strongly agreed with the fact that innovation is very much essential in the present economic condition. On the other hand, 6 respondents have mentioned that innovation is not that much important for Pfizer for achieving sustainable growth in the market. Thus, the analysis has highlighted the fact that proper utilization of innovation is critical for any business activities.
|
Row Labels |
Count of Respondents |
|
Strongly agree |
49 |
|
Agree |
6 |
|
Indifferent |
4 |
|
Disagree |
6 |
|
Strongly disagree |
5 |
|
Grand Total |
70 |
Table 3: Organizational versus technological innovation can improve business management process of Pfizer
(Source: Created By Author)
This question has concentrated on the differentiation between organizational and technological innovation. However, 49 respondents have strongly agreed with the fact that both the innovation is critical for fulfilling all the business activities. On the contrary, only 5 respondents have strongly disagreed with the same statement. Therefore, the analysis has highlighted that proper utilization of both organizational and technological innovation is critical for handling all the market related challenges in an appropriate way. The outcome have mentioned that Pfizer need to get involve in different innovative activities for achieving sustainable growth in the market.
|
Row Labels |
Count of Respondents |
|
Strongly agree |
46 |
|
Agree |
6 |
|
Indifferent |
6 |
|
Disagree |
4 |
|
Strongly disagree |
8 |
|
Grand Total |
70 |
Table 4: Innovation and organizational growth is correlated with each other
(Source: Created By Author)
This question focuses on assessing the relationship between innovation and organizational growth in the present competitive business environment. Presently, all the pharmaceutical companies are facing massive challenges in maintaining the overall profit level. The analysis has highlighted that 46 respondents have strongly agreed with the fact that proper utilization of innovation activities can help any business to grow at a rapid rate. On the other hand, 8 respondents have strongly disagreed with the same statement. Thus, the analysis has clearly shown positive correlation between innovation and organizational growth activities. For that reason, Pfizer will have to continue its innovation process for maintaining its growth in the competitive market.
|
Row Labels |
Count of Respondents |
|
Strongly agree |
48 |
|
Agree |
5 |
|
Indifferent |
4 |
|
Disagree |
8 |
|
Strongly disagree |
5 |
|
Grand Total |
70 |
Table 5: Impact of technological changes have created positive impact on the business management process of Pfizer
(Source: Created By Author)
This question has concentrated on assessing the impact of technological changes in the overall business management process of Pfizer. In this analysis, 48 respondents have strongly agreed with the statement technological changes can have positive impact on the business process. On the other hand, only 5 respondents have strongly disagreed with the fact that technological changes can have positive impact on the business process. These respondents have added that technological changes can only have positive impact on long-run. In short-run, they have to face different challenges in keeping the overall efficiency of the business management process. Still, heavy responses in favour of positive correlation between two factors have highlighted the significance of technological changes.
|
Row Labels |
Count of Respondents |
|
Strongly agree |
46 |
|
Agree |
6 |
|
Indifferent |
6 |
|
Disagree |
7 |
|
Strongly disagree |
5 |
|
Grand Total |
70 |
Table 6: Different approach is required for successful innovation procedure
(Source: Created By Author)
This question has focused on assessing the importance of implementing different innovation procedure for staying ahead of the rest. Here, the analysis has highlighted that total 46 respondents have strongly agreed with the statement while 5 respondents strongly disagreed. Therefore, the analysis has clearly emphasized on the importance of using mix techniques for fulfilling innovation requirements. The study has analyzed the significance of implementing systematic procedure for accomplishing all the goals and objectives. Still, organizations need to think out of the box for maximizing the innovation impact on the business process.
|
Row Labels |
Count of Respondents |
|
Strongly agree |
48 |
|
Agree |
5 |
|
Indifferent |
5 |
|
Disagree |
5 |
|
Strongly disagree |
7 |
|
Grand Total |
70 |
Table 7: Systematic approach is important to improve innovation procedure
(Source: Created By Author)
This question has again focused on highlighting the importance of implementing systematic procedure for fulfilling all the requirements of the operational procedure. Here, 48 respondents have strongly agreed and 5 respondents have agreed with the concept. On the contrary, only 7 respondents have strongly disagreed with the same statement. Therefore, Pfizer will have to use systematic procedure for fulfilling all the requirements of the innovative activities.
|
Row Labels |
Count of Respondents |
|
Strongly agree |
46 |
|
Agree |
5 |
|
Indifferent |
5 |
|
Disagree |
8 |
|
Strongly disagree |
6 |
|
Grand Total |
70 |
Table 8: Systematic approach as being the best option for effective utilization of innovation process within Pfizer
(Source: Created By Author)
This research question has focused on assessing whether systematic fulfilment of all the requirements is the best way for innovative activities. Now, 46 respondents have strongly agreed with the fact that systematic process is the best way for fulfilling innovation requirements. On the other hand, 6 respondents have strongly disagreed with the fact that systematic process is important. Therefore, the analysis again highlighted the necessity of using systematic procedure as per the market needs and wants for fulfilling all the requirements of innovation. For that reason, Pfizer will continue have to focus on utilizing different innovation process through the effective utilization of systematic procedure.
|
Row Labels |
Count of Respondents |
|
Strongly agree |
45 |
|
Agree |
5 |
|
Indifferent |
5 |
|
Disagree |
7 |
|
Strongly disagree |
8 |
|
Grand Total |
70 |
Table 9: Pfizer practices about innovation are appropriate in present business management context
(Source: Created By Author)
This question has focused on assessing the present innovation procedure initiated by Pfizer for staying ahead of the competitors. Here, 45 respondents have mentioned that the present initiated innovative activities are appropriate for the competitive business environment. On the other hand, only 8 respondents have strongly disagreed with the same argument. As a result, the analysis proved the fact that innovation process initiated Pfizer has allowed organization to sustain its position in the competitive pharmaceutical market. In addition, effective use of innovation process is likely to help Pfizer to handle all the future challenges in an effective way.
|
Row Labels |
Count of Respondents |
|
Strongly agree |
44 |
|
Agree |
5 |
|
Indifferent |
6 |
|
Disagree |
7 |
|
Strongly disagree |
8 |
|
Grand Total |
70 |
Table 10: Innovation changes the overall job description process within business management
(Source: Created By Author)
This question has concentrated on assessing the kind of challenges employees of Pfizer faced in performing their provided responsibilities. The analysis has mentioned that 44 respondents strongly agreed with the fact that innovation changes job description while 8 respondents have strongly disagreed with the same argument. It established the fact that innovation directly induces businesses to made strong technological changes that eventually alters the overall responsibilities of the employees. For that reason, it is critical for Pfizer to provide proper level of training and development facilities to all the employees for covering all the requirements of the operational process in an effective way.
|
Row Labels |
Count of Respondents |
|
Strongly agree |
42 |
|
Agree |
6 |
|
Indifferent |
5 |
|
Disagree |
9 |
|
Strongly disagree |
8 |
|
Grand Total |
70 |
Table 11: Innovation and technological changes have reshaped the overall business process of Pfizer
(Source: Created By Author)
Discussion
This question has focused on assessing the kind of impact innovation or technological changes can have on the overall business process of Pfizer. Here, 42 respondents have strongly agreed that technological changes or innovation completely reshaped the business process. On the other hand, 8 respondents have strongly disagreed with the same statement. Therefore, it has highlighted the fact that Pfizer will have to be extremely careful at the time of initiating different innovative activities within the business process. The organization need to implement lot of market research activities for maximizing the overall impact of innovation on the operational procedure.
|
SUMMARY OUTPUT |
||||||||
|
Regression Statistics |
||||||||
|
Multiple R |
0.224064 |
|||||||
|
R Square |
0.050205 |
|||||||
|
Adjusted R Square |
0.036237 |
|||||||
|
Standard Error |
0.496415 |
|||||||
|
Observations |
70 |
|||||||
|
ANOVA |
||||||||
|
df |
SS |
MS |
F |
Significance F |
||||
|
Regression |
1 |
0.885755 |
0.885755 |
3.594376 |
0.042226 |
|||
|
Residual |
68 |
16.7571 |
0.246428 |
|||||
|
Total |
69 |
17.64286 |
||||||
|
Coefficients |
Standard Error |
t Stat |
P-value |
Lower 95% |
Upper 95% |
Lower 95.0% |
Upper 95.0% |
|
|
Intercept |
1.566288 |
0.188132 |
8.325466 |
5.62E-12 |
1.190876 |
1.9417 |
1.190876 |
1.9417 |
|
X Variable 1 |
0.170455 |
0.089908 |
1.895884 |
0.062226 |
-0.00895 |
0.349863 |
-0.00895 |
0.349863 |
Table 12: Regression analysis between Innovation and Business Management
(Source: Created by Author)
The above table has described regression analysis between independent variable innovation and technology changes with dependent variable business management. Statistical tools like regression and ANOVA helps the study to represent correlation between two variables in numeric terms. In order to assess the impact of innovation and technology changes on business management, the estimated regression value is “0.042226”, which can be rounded off to “0.042”. Moreover, the above analysis has estimated value of multiple R as “0.050205”.
The use of regression analysis has allowed the research project to describe the relationship between independent and dependent variable in numeric terms. Here, the calculated regression value between innovation and business management has come up less than 0.05. Now, the meaning of regression value less than 0.05 is that the developed null hypothesis is rejected. Thus, the descriptive analysis has rejected the statement “Innovation and technological changes does not have any impact on the business management process”. On the contrary, the descriptive analysis has accepted the alternative hypothesis that states, “Innovation and technological changes does have significant impact on the business management process”.
Thus, both outcome of both quantitative and descriptive analysis has rejected the developed null hypothesis statement. It reflects that Pfizer will have to be extremely careful with its innovative and technological changing procedure for creating positive impact on the business management process.
In this qualitative question, the selected three managers of Pfizer were asked about the significance of invention and innovation within business management process. To answer this question, all the managers have highlighted strong competitive market for pharmaceutical industry. It has also highlighted the kind of challenges pharmaceutical companies like Pfizer have to face in order to achieve sustainable growth in the market. Therefore, changes in the business procedure have become essential for maintaining consistent profitability in the market. The first manager has highlighted that innovation or invention helps to increase the overall efficiency of the operational procedure. On the other hand, second and third manager have mentioned that proper utilization of innovation allowed Pfizer to reduce the overall cost of the operational procedure in a significant way.
This question has aimed to assess all the possible drawbacks of innovation within the business process of Pfizer. Here, second manager has mentioned that innovation required lot of investment from the organization. In fact, organizations like Pfizer have already created separate department for innovation activities. As a result, it has increased the overall budget of the operational procedure. First manager have mentioned that innovation requires proper understanding of the market needs and wants. Otherwise, the innovation activities might not able to create desired impact on the market. Second managers have mentioned that every organization is looking to utilize innovative technologies for fulfilling all the requirements of the operational procedure. Therefore, there is every possibility of certain technology or process becoming obsolete, which increases the market related threat factor in a major way.
This question has focused on assessing the importance of maintaining systematic procedure for fulfilling all the requirements associated with the operational procedure. Here, the managers have mentioned that systematic approaches can allow organizations to cover all the areas associated with the innovation activities. As a result, it allowed Pfizer to distinguish itself from the other prime competitors in the market. The managers have mentioned that systematic approach also allows organization to understand the kind of innovative activities initiated by the others for minimizing the cost associated with the operational procedure. Moreover, the systematic approach can also help Pfizer to segregate innovation activities in two prime categories including cost minimization related innovation and resource maximization related innovation for performing all the responsibilities.
To answer this question, the first manager has highlighted the fact that Pfizer always made conscious effort to make sure the innovative process or technology is completely new in the market. The manager added that without introduction of complete new things, it would be extremely difficult for any organization to accomplish all the goals and objectives in an appropriate manner. For that reason, second manager mentioned that Pfizer always look to recruit people with maximum knowledge and skills for fulfilling innovative goals and objectives. The third manager has mentioned that introduction of new process or technology can easily grab the attention of the targeted customers. As a result, it can have greater positive impact on the overall profit level in a major way. On the contrary, similar innovation does not really add value to the overall business management process. For that reason, it is critical for the organizations to maintain lower degree of similarity for maximizing the impact on the business process.
This question deals with assessing the significance of relatively new term incentive with innovation. Thus, it focuses on assessing the ways added benefits or increment can induce employees to get involved with different innovative activities. Here, the first manager has mentioned that financial increment is key for encouraging employees to go beyond the targeted activities. Financial increment can allow employees to remain in positive frame of mind over the sustain period of time. As a result, it encourages organization to initiate different changes in the business procedure for maximizing the profit. However, the second manager has highlighted that financial benefits is not the only thing that guarantees high quality innovation activities within the business process. In fact, there is combination of different factors that determines the overall efficiency of the innovation procedure. Therefore, Pfizer need to focus on different areas for accomplishing all the goals and objectives of business process in an appropriate manner.
To answer this question, the first manager has mentioned that brainstorming is one of the important process for generating new ideas and concepts. The second manager has mentioned that brain storming process allow employees to think out of the box for performing the given responsibilities. Third manager has mentioned that brainstorming is the preliminary step of generating new concepts and ideas. Therefore, the quality of the brainstorming process can actually determines the quality of the eventual innovation. For that reason, Pfizer spend more time and money for accomplishing in the brain storming process so that best idea for innovation can be selected. However, all the managers have mentioned that quality of brainstorming ideas heavily depends on circumstances in was conducted. Thus, it is critical to keep all the employees in positive frame of mind for maximizing the efficiency of the brainstorming process.
This question has concentrated on highlighting different drawbacks and limitations associated with the innovation activities of Pfizer. Here, all the managers have mentioned that with the innovation of any new technology, organization will have to change the entire process. Therefore, it induces organizations to invest massive amount money on the overall business management process. Moreover, organizations also have to provide proper training and development facilities for the employees so that they can able to cope up with all the challenges. As a result, any changes in the process directly creates different initial hick up in the business processes. For that reason, it is critical for any organization to develop a pre plan to route to handle all types of obstacles in an effective manner.
Conclusion and Recommendations
Pfizer is the organization that is taken into consideration. The organization is a biopharmaceutical organization liable for developing drug using innovative technology so that human diseases can be overcome. It is found from the research that innovation positively impacts the business management of an organization and in case of Pfizer; innovation enhances their profitability and brand recognition. It is also found that business people uses different models like Blue-Ocean model, Porter’s five forces model to assess the capability of the organization to develop new things competitors do not have. The organization also uses s-curve of innovation to assess whether or not the organization needs to innovate some of their products or develop a new products line. Moreover, the main aim of the research is to find out other impact of technology usage and innovation in business management. In this aspect, five impacts are found- identification of accurate solutions, attainment of greater competitive advantage, satisfied stakeholders, ability to formulate new product line, increased productivity. Furthermore, the research analysis also shows that Pfizer will have to be extremely careful with its innovative and technological changing procedure for creating positive impact on the business management process as innovation drives the success of their organization.
Objective 1: To formulate competitive growth strategies and analyze the impact of innovation and technology usage on business economy
There are mainly five impacts that have been found from the research and that are- identification of accurate solutions by analyzing the required innovation according to the business requirement. The prime reason is that not all business require same demand and thus innovation model should be developed according to the origination’s objectives. Moreover, attainment of greater competitive advantage and satisfaction of the stakeholders are the major impact of the innovation. Innovating business strategy provides competitive advantage as it makes the particular organization different from others. Innovation does not only allow the internal stakeholder to learn new things that enhance their personal skills but also provide the customers with accurate solutions and products that they demands. Thus, in this way, the satisfaction of the stakeholder can be attained. Another impact from the research is ability to formulate new product line and enhancement in productivity that on the other hand increases the profitability of the organization. Innovation allows an organization to perform their business objectives with accuracy and faster. It is also found from the literature review that people always prefer an accurate solution to their health reacted problem and more people thus use their brand compared to others. This allows the concerned organization to incur more profitability.
Objective 2: To investigate the ability of the organization to adopt innovation and technology for profitability of the organization
In this research it is found that the manager should encourage innovation in the organization. It is also found that in terms of innovation designer’s leads the managers as managers are only liable to make choices out of many but the designers formulate new strategies and ideas to reinvent products and services. In addition to that, organizations use different models to identify the competency of their organization as well as competitor’s company to identify what innovation moves is necessary. These models are Customer Empathy Model, Porter’s Five Forces Model, Blue-Ocean Model and the S-Curve for innovation. Thus, necessary changes can be incorporated so that accurate solution can be formulated that allows more profitability for the organization.
Objective 3: To analyze the impact of changing technology and innovation on business management that indicates the economic growth of the organization
It is found from the assessment that business management comprises of two categories that is internal and external business management. Innovation improves the ability of the organization to outperform along with the attainment of the betterment of the organization as well as the customers. Innovation not only allows the employee, who want to prosper through utilization of their knowledge but to also allow the company to provide accurate solution to the customers and fulfills their demand. Innovation also allows the company to formulate their production line that diminished the cost of overall operation. Thus also enhances the profitability of the organization. It is also found from the research study that the leaders of the organization should also encourage innovation so that the workforce management can be motivated and new ideas can be implemented suggested by their designers. In addition to that, innovation also provides the opportunity to develop strategic partnership with other organization and suppliers and also give chance to become globalized. This overall enhances the business management.
Objective 4: To recommend strategies for better adoption of innovation and technology for business management
The organization should value on customer survey so that people suffering from different disease can be identified. The survey also allow organization to know about different symptoms that is related to a particular kind of business so that the company can find relevant solution if they have any or innovate medicines for these patients.
The employees in the organization should be trained properly regarding the new technology in pharmaceutical industry. The organization can also conduct a meeting or training classes by leaders and professional in pharmaceutical industry. In this way, the employee also get chance to know about technology and get the opportunity to learn how to utilize these technology to accomplish their job roles and responsibilities.
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