Novartis 2.0
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Transcript of Novartis 2.0
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NOVARTIS PHARMA
Section B | Group 215P067 ANISH BARJATYA | 15P083 HIANSH! JHAB
15P070 S"YATA RAST"GI15P076 R"HAN #$SHPAN#$ | 15P06% A#ITYA BANSA&
15P120 'I(AS G!PTA
(Designing the internal organization: structural options
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Content
• Back ground
• Industry challenges
• New proposed structu
• Business Units (BUs)
• Advantage of BUs
• ules of the ga!e
• "i!itation of BUs
• #our $t test and desig
• eco!!endations
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Background -
Novartis AG
• %&'&&& e!ployees *usinesse• In +&&&' ,pun o- Agri*usine
!ove towards a pure healthcare• .rd largest phar!aceutical coworld
• /.0 of phar!aceutical revenue1 D
• 2roducts spanned a wide range
• 3op 4 selling drugs accounted f2har!a sales
• /. new products launched *y +• 2atent e6piry rate was /&0
and +&&. as co!pared withaverage +0
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Industrychallenges
Downwardprice
pressure
86cessiveco!petitiv
e!arketingspending
ising costand
co!ple6ity
Ntech
cinno
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NEW ProposedStructure
• 9hanged fro! 9ounty#unc
to Business Units
• #ocus on
8ntrepreneurshipAppropriataking
• ini;98?s in each country
• >oving towards *eing a pur
@ealthcare co!pany
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Factors for selecting
Business Units
Degree ofspecialization
#ranchopportu
Distinctconsu!erseg!ent
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(B)usiness(U)nits
?ncology (U,)
3ransplantation (Basel',witzerland)
?phthal!ology (Bulach',witzerland)
>ature 2roducts (Basel',witzerland)
2ri!ary 9are (Basel',witzerland)
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Advantageof BU s
3ake co!panycusto!
New positions toretain top
Delayered !astructure would e
growt
Better focus on
Better control oinvest!
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Rules of theGame
•
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Limitationof BUs
De*ate over
accounta*ility ande=ciency
Autonovs ,yne
3i!ing ofthe
reorganisation 1
acCuisitionof talent
#rag!e1D e-
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Nine designtests for org. structure
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01
02
03
04 #easi*ility test
>arket advantagetest
2arenting advantagetest
2eople test
design direct sufficient manag
sources of competitive advant
>arket advantage test
design help the corporate pare
organization
2arenting advantage te
design reflect the strengths, w
motivations of people
2eople test
account of all the constraints t
implementation of design
#easi*ility test
Four fit test for Novartis
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“Good
Design”Tests
,pecialist 9ulture 3
Di=cult "inks 3est
edundant @ierarch 3est
Accounta*ility 3est
#le6i*ility 3est
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Recommendations
• #ocus on pro*le! solving an
innovations
• Delegation of !ore powers
• 9learly !apped ole 1 respeveryone
• 2ro!ote tea! goals *y ince
other way
• Integration of decision !aki
and BU
• Data sharing a!ong BUs( !
i!portantly 1D division)
• ,ynergies a!ong BUs *y reg
!eetings
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THANK YOU