Value creation through intellectual property acquisition
Author(s)McMullin, Nathan K. (Nathan Keith), 1979-
Leaders for Global Operations Program.
Steven Eppinger and Warren Seering.
MetadataShow full item record
After Sanofi acquired intellectual property (IP) from bankrupt Pelikan Technologies it desired to leverage the IP to identify a product concept to enhance the company's portfolio. To facilitate the project, a structured opportunity identification process was utilized. This process consisted of four major steps: Problem Framing, Idea Search, Screen, and Refine. Problem Framing formulated the innovation challenge. Idea Search sourced over two dozen potential opportunities that spanned markets and industries. Using a tournament selection approach, the Screen step filtered the opportunities according technical and strategic objectives. This selected an integrated blood measurement device as the opportunity of focus. This leverages the IP to simplify at-home blood testing while simultaneously reducing pain. The Refine step evaluated the opportunity using a framework that assessed markets, product, competitiveness, economics, and risk. The beachhead market is the diabetes market and potential follow-on markets are oncology, multiple sclerosis, rare diseases, and cardio-metabolic diseases. Key technology elements were assembled into a variety of conceptual approaches and evaluated according to market fit. This identified a conceptual approach that integrates all disposable elements (i.e. lancet and blood test element) into a single disposable cartridge that can be inserted into an electronically actuated meter. The projected financial returns in the beachhead market have a positive nominal NPV. NPV sensitivity was calculated based on estimated cost and revenue item variations. In all cases the NPV remains positive, but this highlighted key drivers of economic performance along with risks that need to be resolved in future development work. With key assumptions identified, Sanofi is in an excellent position to decide whether or not to pursue the identified opportunity. In addition, this project acts as a pilot for a structured opportunity identification process within the company and it is recommended that Sanofi adopt a similar process as part of its product development workflow. Finally, the company should adjust resources and financial commitment to ensure full cross-functional teams can be staffed to execute opportunity identification work. These improvements will enable the company to more effectively execute corporate entrepreneurial activities.
Thesis: M.B.A., Massachusetts Institute of Technology, Sloan School of Management, 2015. In conjunction with the Leaders for Global Operations Program at MIT.Thesis: S.M., Massachusetts Institute of Technology, Engineering Systems Division, 2015. In conjunction with the Leaders for Global Operations Program at MIT.Cataloged from PDF version of thesis.Includes bibliographical references (pages 91-93).
DepartmentSloan School of Management.; Massachusetts Institute of Technology. Engineering Systems Division.; Leaders for Global Operations Program.
Massachusetts Institute of Technology
Sloan School of Management., Engineering Systems Division., Leaders for Global Operations Program.