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  1. 1. An Organisational study of ICT Innovation as a Strategy in Five Pharmaceutical and Technology Cases MBS - Information Systems for Business Performance Stephen McCarthy Dorota Gedrowicz Kieran Mulcahy Kristina Gyurova Robert OLeary Course Coordinator - Dr Karen Neville, UCC Project Mentor Mr Gerard ORiordan, HSE Date: 30th August 2012
  2. 2. Page 1 Table of Contents 1. Executive Summary.........................................................................................................................7 2. Literature Review.............................................................................................................................8 2.1 ICT Innovation as a Concept.....................................................................................................8 2.1.1 What is Innovation?...........................................................................................................8 2.1.2 Innovation as a Misunderstood Concept .........................................................................10 2.1.3 What is ICT Innovation? .................................................................................................12 2.2 ICT Innovation in the Pharmaceutical and Technology Sectors ............................................13 2.3 Critical Success Factors for ICT Innovation...........................................................................14 2.3.1 McKinsey's 7S's Framework for Innovation Management .............................................15 2.3.2 Hard Critical Success Factors..........................................................................................19 2.3.2.1 Strategy..................................................................................................................19 2.3.2.2 Systems..................................................................................................................20 2.3.2.3 Structure ................................................................................................................21 2.3.3 Soft Critical Success Factors...........................................................................................22 2.3.3.1 Culture...................................................................................................................22 2.3.3.2 Leadership .............................................................................................................23 2.3.3.3 Capabilities............................................................................................................24 2.4 ICT That Facilitates Innovation ..............................................................................................25 2.4.1 Developments in ICT Innovation....................................................................................26 2.4.1.1 Ubiquitous Communication Technology ..............................................................27 2.4.1.2 Corporate Business Intelligence............................................................................28 2.4.1.3 Knowledge Management Systems (KMS)............................................................29 2.4.2 How ICT Fosters Organisational Innovation ..................................................................30 2.4.3 Measuring ICT's Value Contribution to Innovation........................................................32 2.4.4 The Role of Change Management in ICT Innovation Success.................................................33
  3. 3. Page 2 3. Methodology..................................................................................................................................35 3.1 Research Objective..................................................................................................................35 3.2 Research Questions .................................................................................................................35 3.2.1 Research Question 1........................................................................................................35 3.2.2 Research Question 2........................................................................................................36 3.3 Qualitative Research ...............................................................................................................36 3.4 Method Steps...........................................................................................................................38 4. Case Analysis.................................................................................................................................39 4.1 Backgrounds of Organisations ................................................................................................39 4.2 ICT That Facilitates Innovation ..............................................................................................41 4.2.1 Pharmaceutical Sector .....................................................................................................41 4.2.1.1 Pharma Process......................................................................................................41 4.2.1.2 Drug Development ................................................................................................43 4.2.1.3 EKI ........................................................................................................................44 4.2.2 Technology Sector...........................................................................................................46 4.2.2.1 Health Tech ...........................................................................................................47 4.2.2.2 Web Tech ..............................................................................................................48 4.2.3 Contrast between ICT Innovation in Pharmaceutical and Technology Sector................50 4.3 Critical Success Factors for Innovation ..................................................................................53 4.3.1 Pharmaceutical Sector .....................................................................................................54 4.3.1.1 Pharma Process......................................................................................................54 4.3.1.2 Drug Development ................................................................................................55 4.3.1.3 EKI ........................................................................................................................57 4.3.2 Technology Sector...........................................................................................................59 4.3.2.1 Health Tech ...........................................................................................................59 4.3.2.2 Web Tech ..............................................................................................................60 4.3.3 Contrast between Critical Success Factors in Pharmaceutical and Technology Sector..62
  4. 4. Page 3 5. Conclusion .....................................................................................................................................64 5.1 Business Problems Identified from Literature ........................................................................64 5.2 ICT Solutions Identified from Case Studies ...........................................................................64 5.3 Implications of Findings .........................................................................................................65 5.4 Recommendations...................................................................................................................67 5.4.1 Research Question 1........................................................................................................68 5.4.2 Research Question 2........................................................................................................68 5.5 Future Direction ......................................................................................................................70 6. References......................................................................................................................................71 6.1 Academic and Industrial References.......................................................................................71 6.2 Figure References....................................................................................................................75 6.3 Web References ......................................................................................................................76 7. Appendices.....................................................................................................................................78 7.1 Additional Interview Transcriptions .......................................................................................78
  5. 5. Page 4 Figures Figure 1: Relationships between the concepts of Innovation, 7Ss and ICT ....15 Figure 2: McKinsey's Original 7 S's Framework ..16 Figure 3: Modified McKinseys 7Ss Framework ....................................................................17 Figure 4: Model of Individual Innovative Behaviour Determinants. 23 Figure 5: Estimated Probability of Engaging in Innovative Activity .. 26 Figure 6: Knowledge Hierarchy.....30 Figure 7: Business Value Delivered Through 2006 by Intels IT Innovation Initiatives.. 31 Figure 8: Lewins Change Management Model ... 34 Figure 9: eMarketer.coms Data Driven Industries survey ...43 Figure 10: Innovation Process within Pharmaceutical Industry 46 Figure 11: Perceived ICT Value vs. Cost in Pharmaceutical Sector .... 51 Figure 12: S95 Model for the Integration of Enterprise and Control Systems .52 Figure 13: Pharma Processs System Dependency Model ... 54 Figure 14: Innovation Strategy for EKI ....58 Figure 15: Modified Stra