“So what is the right way to reconfigure a company when breakthrough technology shows up on its doorstep? Step inside Roche’s U.S. pharmaceuticals headquarters, and you’ll see how that adjustment is taking place. It begins with something as basic – and hard – as embracing the excitement of having way too much data, too fast. It goes on to include new thinking about the best ways to build teams, hire people, and create a culture where failure is all right, as long as you fail first. The only way to embrace a technological revolution, Roche has discovered, is to unleash an organizational revolution” (Anders, 2007)
* Extracted from: Online article on FastCompany.com, available at http://www.fastcompany.com/magazine/54/roche.html
The areas of information strategy and organizational strategy that Roche had to deal with are as follows:
Information strategy to deal with:
- A new way to handle too much data too fast
Organizational strategy to deal with:
- The way to build teams
- The way to hire new people
- The way to create culture
The reason why those changes necessary:
The reason behind the change in strategies is the emergent of new technology in pharmaceutical, which requires a change in thinking among management and workers of Roche.
(Further acceptable elaboration on this is required.)
A good answer would link the elaboration with the IS Strategy Triangle, the business diamond (Hammer & Champy, 1994), the managerial levers (Cash, Eccles, Nohria & Nolan, 1994) and/or the value chain (Porter, 1985). It should mention how the changes in these strategies eventually change the business process, where the bottleneck issues are confronted by having new methods in handling tasks.
A good additional discussion on how Roche eventually applied the D’Aveni’s 7Ss of hypercompetition model in their strategies.
7-S: Application
- Superior stakeholder satisfaction:
- Maximizing customer satisfaction by adding value through the discovery of breakthrough drugs to cure cancer, stroke, or other disabling diseases - Strategic soothsaying:
- Seeking new knowledge in a variety of ways: applying new technologies
- Advertising for new employees in a wide range of sources, including online magazine
- Leveraging on the knowledge of it employees through more collaboration and teamwork - Positioning for speed:
- Using IS to process large volumes of data more efficiently
- Applying ‘Fail Fast’ philosophy to identify winners more speedily - Positioning for surprise:
- Altering its organizational and IS strategies to speed the discovery of new breakthrough drugs - Shifting the rules of competition:
- Using breakthrough discoveries of revolutionary drugs to treat major diseases can result in new ways to serve customers that transforms the industry
- Trying to take advantage of discoveries in the genomics projects
* Source: Pearlson & Saunder (2006)
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