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

Group III

Flow of presentation

1

2

3

J&J company and Past innovation culture

Innovation process at J&J

Tools deployed for innovation identification

4

5

6

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 RECONFIGURATION DONE PRODUCT LINES INVOLVED

1982 Acquisition of A&O Surgical Co Inc and and Symedix Inc Dialysis supplies

1982 Acquired units combined with Medical Specialties Inc Cardiovascular accessories, Dialysis supplies

1983 Extracorporeal Medical Systems Inc, Vascor, and Cardio Systems Inc reconfigured into a new originating unit Hancock Extracorporeal

Cardiovascular accessories (heart valves etc)

1984 Hancock and Extracorporeal Medical Specialties Inc amalgamated to form new unit Johnson and Johnson Cardiovascular

Cardiovascular lines retained,dialysis lines divested to Baxter International Inc

1986 1986 JJC unit divested to Medtronic Inc Cardio vascular accessories

1995/1996 Menlo Care Inc and Cordis Corporation acquired. Cardiovascular accessories

Product Innovation

● Consumer Products

● Medical Segment: Lead user Methodology

Understanding Consumer Needs

Are existing technologies available?

Test of practicality and feasibility

Clinical test

Safety tests

Various attributes to consider

Process Innovation

Skunk-work like groups

Involving external stakeholders

Systematic Inventive thinking

Frameworks & COSAT

Knowledge Sharing

Bucketful of Money

Barriers to Innovation

Physician-Centric Model

Policy & Regulations

Increasing cost of R&D

Overseas Competition and Linguistic IssuesFunding

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

Fear of Risk

Reduced Funding

Lack of Innovative Leaders

123

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

Traditional Performance

Combined traditional and new

New only

Traditional only

Effort (Elapsed Time, Cost)

Potential for increased innovation

Performance Gap

Savings from combining traditional and new

technologies

THANK YOU