Group III

DEVARAJAN K | SHALABH DHANKAR | SONAM BHARGAV | AMARENDRA KR.GORAI | BHARATH BALAJI | AKSHATA V M | KARTHIKA S| NEELAM | VIGNESHWAR M | AMOY KUMAR D | KULBHUSHAN SINGH BAGHEL | MAHTAAB KAJLA

Flow of presentation

1 2 3 4 5 6

J&J company and Past innovation culture Innovation process at J&J

Tools deployed for innovation identification

Innovation Audit framework Closing the Innovation Gap Q&A

J&J- Company and Past Innovation culture

250 subsidiary companies ,57 countries, products sold in over 175 countries Worldwide pharmaceutical sales of $24.6 billion for the calendar year of 2008 Innovation through resource re-configuration of internally developed and acquired resources 87 unique medical sector product lines between 1975 and 1977 (14 Internal and 73 through acquisitions)
YEAR 1982 1982 1983 1984 RECONFIGURATION DONE Acquisition of A&O Surgical Co Inc and and Symedix Inc Acquired units combined with Medical Specialties Inc PRODUCT LINES INVOLVED Dialysis supplies Cardiovascular accessories, Dialysis supplies

Extracorporeal Medical Systems Inc, Vascor, and Cardio Systems Cardiovascular accessories (heart Inc reconfigured into a new originating unit Hancock valves etc) Extracorporeal Hancock and Extracorporeal Medical Specialties Inc amalgamated Cardiovascular lines retained, to form new unit Johnson and Johnson Cardiovascular dialysis lines divested to Baxter International Inc 1986 JJC unit divested to Medtronic Inc Menlo Care Inc and Cordis Corporation acquired. Cardio vascular accessories Cardiovascular accessories

1986 1995/1996

Product Innovation
Consumer Products

Understa nding Consume r Needs

Test of practicality and feasibility

Safety tests

Are existing technol ogies availabl e?

Various attributes to consider

Clinical test

Medical Segment: Lead user Methodology

Process Innovation

Skunk-work like groups Frameworks & COSAT Involving external stakeholders

Knowledge Sharing Bucketful of Money

Systematic Inventive thinking

Barriers to Innovation

Physician-Centric Model Policy & Regulations Increasing cost of R&D Overseas Competition and Linguistic Issues Funding

Tools to identify potential areas of innovation

Dynamics of medical device innovation

INNOVATIVE CAPABILITIES AUDIT FRAMEWORK CORPORATE LEVEL

Refer Excel for Detailed analysis

Innovation Gap
1 2 3
Fear of Risk Reduced Funding Lack of Innovative Leaders

Risk Taking vs. Risk Averse Diverse business units Functional silos Investor vs. inventor

Long term investment vs. short term operations

More than 250 internal divisions several SKUs Different goals & communication gap Failure good for innovation fatal for finance

Closing Innovation Gap

Appendix
Combined traditional and new

Potential for increased innovation Performance Gap

Traditional Performance Traditional only

New only

Savings from combining traditional and new technologies

Effort (Elapsed Time, Cost)

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