Merck Anaysis

659 Words3 Pages
Merck (in 2009): Open for Innovation? The pharmaceutical company undergoes new drug advances, conflicting regulatory laws, and tough economic situations. With all these pressures evolving, Merck & Company felt the need to pursue open innovation strategy because the biotech company is too complicated to navigate on its own. There is so much useful information within and outside of company that would be great advantage to the company. Creating new partnerships, discovering new technological trends and classifying new business opportunities are the leading strategic reasons to take part in open innovation. An open innovation strategy allows companies to contribute ideas from external sources quicker than ideas created contained by its…show more content…
Open innovation is to find and take advantage of new opportunities to advance their technology. Open innovation permits you to obtain and flesh out ideas collaboratively, leading to sustained innovation. Merck & Company should use outside sources as well as inside sources to have a more advance company. Outside info is very useful to the company because it is where individuals strive to develop the best resolution to the innovation challenge the company has set forth. . One of the core benefits of open innovation is that it allows companies to grasp outside their organizational restrictions and tap into the external expertise of a broader set of people than they could otherwise influence. While open innovation thoroughly raises the accessibility of information by finding extremely talented associates for scientists to work together, it also certainly leads to the loss of individual control over hypothetically priceless technology. The barriers Merck faces in the attempt to pursue open innovation are the shift in Merck’s culture and mindset. Merck’s culture and organizational systems maintained this reason, which expected that later they hired the best people; the smartest people in the industry must work for Merck. Dr. Turner knew that innovations attempts often failed for large companies. Merck was optimistic because of his past successful experiences with several open-innovation ingenuity. Merck was already tapping into external
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