me

Thursday, June 28, 2012

The Eli Lilly and Co. Case – Innovation in Diabetes Care: What Went Wrong? Why? and What Should the Next Step be?


The Eli Lilly and Co. Case – Innovation in Diabetes Care: What Went Wrong? Why? and What Should the Next Step be?
            As a company, Eli Lilly may have achieved more success had they read chapters two and nine of  Adams' “ A Good Hard Kick in the Ass: Basic Training for Entrepreneurs.”

Background
            Despite efforts of high investment to maintain it's dominant position as an insulin manufacturer, the company began to see it's worldwide position weaken. To add to the devastation, Lilly missed several waves of innovative opportunities within the diabetes care market. At the time of the case, Lilly was engaged in a determined effort to strengthen it's position in insulin and grow beyond that single product, exploring alternative products and services (Unger, 2012).

Mistakes
            Eli Lilly dropped in overall market share in diabetes care from 1980 to 1995 (Christensen C.M., 1996). What mistakes did Lilly make in its product and service initiatives, and why did this happen? Is Eli Lilly & Co. talking to the right persons or groups to determine what product features or advancements would be most appreciated by the “diabetes related market?”
            Lily launched three innovative insulin products: the “Insulin pens”, “Match” and “Humulin,” all priced premium in comparison to your traditional insulin and/or insulin delivery syringes (HBS, 2004). Unfortunately, Lilly's tendency to invest significant amounts of funding into commodities proved to be one of leading factor in Lilly's decreasing market share. Usually, a customer will become more price sensitive if satisfied with a certain commodity; therefore, the buyer is less likely to purchase the product without some sort of substantial gain (Anthony Romano, date).
            Additionally, Lilly and Novo launched several of the same products simultaneously in a race to place first in the market. This marketing assault of new products outweighed customer demand, presenting yet another downfall (Christensen C.M., 1999).
            Lastly, the behavior of a majority of the patient population towards the treatment and care of their diabetes shifted, becoming substandard by patients determining their own ways of therapy. In order to utilize insulin pens, patients must effectively monitor and administer multiple insulin shots daily. Though it may be an arduous and lengthy process for all parties, putting forth efforts that will change the behavior of this majority could prove successful in repairing the damage that has been done.
            Lily appears to avoid speaking or listening to the appropriate group of individuals that can significantly improve their positions by determining products and featuring advancements.

Lessons Learned & Next Steps
            What should we learn from this case? Should Adams' way be our model?

Lesson Learned 1: The Shifting Basis of Competition – Develop a Sense of Pain
            While other companies are constantly developing and introducing new products and services, along with making incremental improvements to existing ones, Lily refuses to play on on a static competitive space.
            Adams, discussing “customer pain,” suggests that Lily ought to put themselves in the shoes of potential customers to "develop a sense of their pain" (Adams R, 2002). This way, Lily can obtain the knowledge necessary to release products that are of high customer demand.
            Lily should be looking for wicked, brutal, vicious, hideous pain amongst potentials – the type of pain that makes people want to fix their situation immediately.
            Lily should ascend the market-validation pyramid by practicing the following, step-by-step: Lily must lay down the groundwork by: verifying the pain around the problem, along with a likely market, using secondary research (i.e. the internet, analyst reports, the industry press) in order to discover market data, market size, and direction of market trends.
Stages:
ñ  Stage 1: Explore the pain. Use questionnaires to do quantified market research which will in turn uncover the target market. Then:
    Perform customer interviews to locate the greatest pain.
    Create a heat map to visually represent where the worst pain lies.
    Generate several hypotheses about target markets.
ñ  Stage 2: Envision the solution. Test the target market hypothesis found in Stage 1 against a set of quality influences. Then:
    Develop and sharpen a presentation and product prototype.
ñ  Stage 3: Establish credibility. Evoke excitement in leverage influencers (thought leaders, analysts, consultants, and editors) about your company, product, and prospects.

Lesson Learned 2:  Explore new opportunities
            Undoubtable are the difficulties that may arise if Lily were to change their way of thinking, transcending normal patterns of thought, as they have historically been consistant in their ideas about what can be made possible. This fact makes reaching that place in Lily’s imagination in which they hold the power to predict customer desires, but, despite this obvious hurdle, understanding of potential clientele allows for successfully understanding the products in which they need to deliver.

"Discovering what has been discovered: What Job was your Product Hired to Do?" (Christensen C.M., 1999b).
            As much as Lily ought to know what the customers are demanding, they must follow out these steps in order to be successful:
ñ  Step 1: Watch and ask actual customers the way in which they use the product, what their values consist of, and what they prioritize, starting with the most important aspects, in the product.
ñ  Step 2: Ascertain the advantages of alternative products that customers could have opted for. This will help to identify the competition and open up different social and emotional dimensions of the customer experience.
ñ  Step 3: After product requirements have been identified, back track to the lower left-hand corner of the Exploration Space Matrix because solutions and improvements need to be based on what is possible (Christensen C.M., 1999b).

Lesson Learned 3:  Validate Markets
            Lily only has a one-time snapshot. Losing your edge is the first step to becoming dead meet, so one must keep implementing effective ongoing strategies for assessing customers and their needs in order to validate the market again and again. Never stop focusing on the customer!  (Adams R, 2002).

Reference
Adams R. (2002) A Good Hard Kick in the Ass: Basic Training for Entrepreneurs New York: Random House/Crown Business
Christensen C.M. (1996) Eli Lilly and Company: Innovation in Diabetes Care Harvard Business School Publishing, Boston, MA 02163
Christensen C.M. (1999) Innovation and the General Manager Boston, MA: McGraw-Hill Irwin. Module 2 – Finding New Markets for New and Disruptive Technologies. (pp. 95-102)
Christensen C.M. (1999b) Innovation and the General Manager Boston, MA: McGraw-Hill Irwin. Section 2.3 – Discovering what has been Discovered: What Job was your Product hired to do? (pp. 169-178) (eReserve)
HBS 9-696-077 (April 2004). Eli Lilly and Company: Innovation in Diabetes Care.
Anthony Romano, (date), Eli Lilly and Company: Innovation in Diabetes Care
Unger. (2012). Lecture 3, course MET AD 741, Boston University







Eric Tse, Richmond Hill, Toronto
Tse and Tse Consulting -Security, Identity Access Management, Identity Access Management Toronto, Solution Architect, Consulting
Linkedin ID: hfetse@hotmail.com 
company email: tsetseconsulting@gmail.com
My Company Web Site http://tsetseconsulting.webs.com/index.html
Company Blog http://tsetseconsulting.wordpress.com/
Company Blog 1 http://erictse2.blogspot.com/
Facebook Company Page http://www.facebook.com/tsetseconsulting

3 comments:

Neha Elecwire said...

Buy Diabetes care Products online Diabetes Care Products with best prices and quality. Shop online best diabetes care products with cod and free shipping at elecwire.com

otr said...

VIRUS REMOVAL

Is Your Computer Sluggish or Plagued With a Virus? – If So you Need Online Tech Repairs
As a leader in online computer repair, Online Tech Repairs Inc has the experience to deliver professional system optimization and virus removal.Headquartered in Great Neck, New York our certified technicians have been providing online computer repair and virus removal for customers around the world since 2004.
Our three step system is easy to use; and provides you a safe, unobtrusive, and cost effective alternative to your computer service needs. By using state-of-the-art technology our computer experts can diagnose, and repair your computer system through the internet, no matter where you are.
Our technician will guide you through the installation of Online Tech Repair Inc secure software. This software allows your dedicated computer expert to see and operate your computer just as if he was in the room with you. That means you don't have to unplug everything and bring it to our shop, or have a stranger tramping through your home.
From our remote location the Online Tech Repairs.com expert can handle any computer issue you want addressed, like:
• - System Optimization
• - How it works Software Installations or Upgrades
• - How it works Virus Removal
• - How it works Home Network Set-ups
Just to name a few.
If you are unsure of what the problem may be, that is okay. We can run a complete diagnostic on your system and fix the problems we encounter. When we are done our software is removed; leaving you with a safe, secure and properly functioning system. The whole process usually takes less than an hour. You probably couldn't even get your computer to your local repair shop that fast!
Call us now for a FREE COMPUTER DIAGONISTIC using DISCOUNT CODE (otr214427@gmail.com) on +1-914-613-3786 or chat with us on www.onlinetechrepairs.com.

otr said...

1 Problem: HP Printer not connecting to my laptop.

I had an issue while connecting my 2 year old HP printer to my brother's laptop that I had borrowed for starting my own business. I used a quick google search to fix the problem but that did not help me.
I then decided to get professional help to solve my problem. After having received many quotations from various companies, i decided to go ahead with Online Tech Repair (www.onlinetechrepairs.com).
Reasons I chose them over the others:
1) They were extremely friendly and patient with me during my initial discussions and responded promptly to my request.
2) Their prices were extremely reasonable.
3) They were ready and willing to walk me through the entire process step by step and were on call with me till i got it fixed.
How did they do it
1) They first asked me to state my problem clearly and asked me a few questions. This was done to detect any physical connectivity issues with the printer.
2) After having answered this, they confirmed that the printer and the laptop were functioning correctly.
3) They then, asked me if they could access my laptop remotely to troubleshoot the problem and fix it. I agreed.
4) One of the tech support executives accessed my laptop and started troubleshooting.
5) I sat back and watched as the tech support executive was navigating my laptop to spot the issue. The issue was fixed.
6) I was told that it was due to an older version of the driver that had been installed.

My Experience
I loved the entire friendly conversation that took place with them. They understood my needs clearly and acted upon the solution immediately. Being a technical noob, i sometimes find it difficult to communicate with tech support teams. It was a very different experience with the guys at Online Tech Repairs. You can check out their website www.onlinetechrepairs.com or call them on 1-914-613-3786.
Would definitely recommend this service to anyone who needs help fixing their computers.
Thanks a ton guys. Great Job....!!