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GSK What is your assessment of Yamada’s proposal for the centers of excellence in drug discovery

Decent Essays
Chandler – GlaxoSmithKline

What is your assessment of Yamada’s proposal for the centers of excellence in drug discovery (CEDD)? What are its strengths and weaknesses relative to other potential organizational structures for R&D?

Overview:
Yamada reorganization of drug discovery at GlaxoSmithKline (GSK) following a merger to combat bureaucracy in decision making, approval, and authorization. This reorganization was necessary for the continued success of the company. Often the process for drug discovery and market is a slow and tedious process which can cost a company a lot in resources and financially. The smaller biotech companies are able to move quicker and push new drugs to market faster. The shift, Yamada thinks,
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There were areas of artificial barriers in the old system of product development and research. What Yamada is trying to attempt is to focus the groups into one area, create accountability, and speed up the process similar to what happens in the small biotech firms. Where Yamada had difficulties was the performance of the CEDD in the first 18 months, and possibly the buy in from the CEDD leadership. While some of this is because of bad legacy products from the heritage organizations some was also to the CEDD leadership leaving the organization. This is not unlike the case study of Kodak and the leadership backing at new product development. Leadership accountability comes with buy in to the development process. Lack of defining structure in genetic research and discovery research in this case.

Strengths:
Harness Talent - Allows the research scientist to be vested in the development of new drugs and compounds. Finical rewards for product success and creation.
Focus development - The products are developed by the CEDD and the artificial barriers of product development lessen or eliminated. Increase the speed at development of compounds and products.
Cost effectiveness - Set Budgets for CEDD to operate within and creates incentive to operate efficiently.
Create accountability – Brings more marketable
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