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Business Model InnovationThe Organizational Dimension$
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Nicolai J Foss and Tina Saebi

Print publication date: 2015

Print ISBN-13: 9780198701873

Published to Oxford Scholarship Online: April 2015

DOI: 10.1093/acprof:oso/9780198701873.001.0001

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Business Model Innovation in the Pharmaceutical Industry

Business Model Innovation in the Pharmaceutical Industry

The Supporting Role of Organizational Design

(p.240) 12 Business Model Innovation in the Pharmaceutical Industry
Business Model Innovation

Klement Rasmussen

Nicolai Foss

Oxford University Press

This chapter investigates business model innovation in the pharmaceutical industry. The chapter shows how much of the ongoing experimentation with business models in the industry is driven by changes related to increasing demands from payers, the increasing role of patients, changing legal requirements, and declining technological opportunity. Based on interviews with LEO Pharma, UCB Pharma, and Novo Nordisk, the chapter distinguishes between three ideal types, namely a traditionalist model (exemplified by Novo Nordisk), the full-blown service-oriented model (UCB Pharma) and the in-between model (LEO Pharma). The chapter illustrates the changes to the organizational design and management processes that accompany the ongoing process of changing business models in these firms.

Keywords:   business model innovation, the pharmaceutical industry, organizational design, servitization

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