INNOVATIVE CULTURESThe iQ Index: Pharma’s Most Innovative Cultures

ABOUT iQ

iQ is the innovation lab of GSW Worldwide. We research emerging trends in both how technology and expectations are changing.

We use those findings to develop perspectives on how our health care marketers can gain competitive advantage in fast-changing areas like mobile, slate, gaming, and social media.

Then we model and build innovative tools and experiences designed just for health care marketers.

INNOVATION FROM EVERYWHERE

Two years ago, we started to see a new job title pop up all along the corridor and at leading healthcare brands around the world: chief innovation officer

This new role represented a fundamental shift in C-suite thinking: no longer would innovation be just about products or services. Today, innovation needs to come from everywhere – in beakers, from warehouses, on spreadsheets, in marketing suites.

We identified the five U.S. companies that have moved the farthest, the fasted in answering that call for change. These are the enterprises that are best positioned to redefine our future and point the way to a better tomorrow.

WHY IS THIS NEW CALL FOR INNOVATION HAPPENING NOW?CHALLENGES IN THE PIPELINE AND COMMODITIZATION IN KEY CATEGORIESThe “patent cliff” has created a flashpoint for change – how can we build value both in our products and around them?

ACCELERATION OF CHANGE CREATED BY THE DIGITAL REVOLUTIONThe rate and scale of disruption brought about by innovation has massively accelerated

INNOVATION EXPERIENCE HAS BECOME THE NEW MBANew generation of leaders has a much better understanding of the dynamics of innovation, as well as the scale of the threats and opportunities it presents

CHAMPIONEmpower flag

bearers of innovation in the

C-suite and throughout the

organization

CHALLENGECreate a focus for

what the organization will do and build rewards around the goal

CREATEDevelop a pipeline of ideas, a process for vetting them and start moving

them forward

CHANGEShare successes

and learnings from failures across business units,

begin to see major wins or cultural

change

We identified four key ways that pharma brands are learning from out-of-category innovators and scored each company on their investments and efforts in each area. Not all of these companies are fully realizing the benefits of their investment in innovation yet. But, they are the companies we think are best positioned to win based on the cultures they’re building.

HOW WE CHOSE THE COMPANIES

THE NEXT GENERATION OF INNOVATIONFive leading U.S. companies on the iQ index

GILEAD

Gilead’s scientists have long been motivated by a single mission: advancing treatments for life-threatening diseases. Increasing, much of the rest of the organization is focused on an equally important one: Access for professionals and patients around the world. Meeting that goal requires innovation from all corners: distribution, marketing, policy, compliance, skills training and more.

Best ats:

• The leadership is united in their focus – from the CEO to brand managers

• They’ve defined goals for how the company has to change the game (ex. Reach 3 million HIV patients in developing countries this year)

• And, created mini competitions between brands to reward the best innovations and cross pollinate thinking

1

MILLENNIUM2

Sometimes innovation that can’t happen in the macro culture, happens in a micro one. Millennium, the Takeda Oncology company, has just 1100 employees, but together they’ve taken on a massive challenge: curing cancer.

The innovative difference is the culture they’ve been able to create. In an industry known for hierarchy, Millennium fosters innovation by being flat. Senior management is involved in the day-to-day, interruptive ideas are quickly vetted, and each employee’s MBOs are connected to the overall change the company wants to make in the world.

Best ats:

• Big expectations: Millennium is the center of excellence in a global organization

• Constant connection to the patients they serve through patient opinion leaders and company-wide events

• A proven commitment to entrepreneurship

GENENTECH

Genentech is the Google of the pharma space. It invests in its people (retention pay + fantastic on-site perks) and encourages free thinking in the lab. These hallmarks have consistently won Genetech “best place to work” awards, but they’ve also cemented the value equation around big thinking and invention in leadership.

Even while integrating with Roche’s culture, Genentech maintained its investment in innovation and even extended it far beyond the lab.

Best ats:

• Put a premium on curiosity and creativity

• Have a constant influx of new ideas through a unique post doctoral program that keeps young people with different backgrounds and technologies moving through Genentech

• A broad range of social tools that connect people across disciplines and make innovation everyone’s responsibility

3

PFIZER4

Pfizer may have struggles in its pipeline, but it’s thinking big about innovation in distribution, sales and marketing, pricing and patient support. The most important step Pfizer has taken is recognizing and correcting the internal barriers it created to innovation – namely micro management and mergers. Individual thinking was greatly limited by both carefully defined guardrails and organizational upheaval.

To infuse innovation in the culture, Pfizer knew it needed a new kind of leader–one who could inspire open thinking through open conversation. Enter Joe Shields, Director of Worldwide Innovation at Pfizer, who is charged with entirely recasting Pfizer’s role in healthcare.

Best ats:

• Setting new kinds of metrics that power innovation

• Thinking about the role of culture in sustaining innovation

• Being an early mover in segmentation: customizing experiences and content for meaningful niches instead of running to the middle

AMGEN5

Amgen may be the surprise of this list. It’s maturation this year – highlighted by its first dividend payment this April – has led many to call it an old man in a young man’s world, a company that’s graduating from true bio tech to big pharma.

You wouldn’t know it on the ground though. Individual teams – from legal to marketing to distribution – are expected to find better ways, moments of invention around the way people live and work.

Best ats:

• Partnering with their Foundation to look for solutions beyond their own walls through unique crowdsourcing initiatives

• Bringing everyone – from the execs to the investors – into their science story

• Being willing to fail fast to make a difference (this year, the marketing teams piloted everything from iPads to remote detailing to find the tools that make the biggest difference)

INNOVATION LAB 2010

Leigh HouseholderVP/Managing Director of iQleigh.householder@iq-w.com614.543.6496IQ-W.com@leighhouse