Comprehensive Analysis: Innovation Management at GSK Pharmaceuticals

This report provides a comprehensive analysis of innovation management, specifically focusing on GSK Pharmaceuticals. It begins by exploring the theory of innovation, including the Diffusion of Innovation (DOI) and its application within the pharmaceutical industry. The report then delves into internal factors influencing innovation, such as organizational structure, employee roles, and retention strategies, highlighting their impact on the innovation process. Furthermore, it examines external factors, including political, economic, social, and technological (PEST) influences, and their effects on GSK's innovation management. The report concludes with recommendations to improve the innovation process, aiming to achieve business goals and objectives effectively within a competitive market. The analysis draws on academic tools and models to provide a thorough understanding of innovation within the context of a major pharmaceutical company.

Innovation
Management

Table of Contents
.........................................................................................................................................................3
Innovation Theory............................................................................................................................4
Internal Factors ...............................................................................................................................5
External............................................................................................................................................7
Recommendation: ...........................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

Innovation Theory
Innovation has been found to be one of the most essential considerations of an entity and
it can be easily said that its role within a company is inalienable (Helper and Henderson, 2014).
This is an aspect which demonstrates the extent to which a company engages in new product
development or value addition within existing offerings. Innovation can be formulated in the
premises of a company in the form of a product, service, process, method or technique. This is a
crucial element that provides a competitive advantage to company in market place. Innovation is

a driving force that provides assistance to a corporation in gaining the attention of a large base of
population with a view to keep them in-tacked with the entity for a long run. In addition to this,
innovation is successful at provision of satisfaction to customer base by rendering such kind of
offerings that possess the capability to meet the needs and preferences of people within the
market.
The necessity of bringing about innovation within product, process, services or
techniques is ascertained with the help of R&D business unit. This department is involved in the
process of carrying out constant market research in relation to determination of latest techniques
as well as trends persisting within the business sector. The organisation then carries out such
steps with the help of which advanced technologies or processes can be implemented within the
company. This assists them in gaining recognition in market place, thereby enhancing the share
in global market.
Diffusion Of Innovation (DOI) is regarded as one of the most historical social science
theories. Usually it is taken into use for the procedure of communication and depicts the various
ways by which an innovative idea or concept can be effectively communicated through the usage
of a number of channels. Over years, GSK Pharmaceuticals has been engaged in the process of
coming up with rapid innovations at punctual intervals. With the help of this theory, the
company has been coming up with new drugs that possess the capability to restrain the impact of
mode of such viruses such as by way of air, water or land. DOI theory assists an entity in gaining
knowledge regarding the manner in which innovation initially gain momentum and post that,
diffuses within a certain population. The last result of such kind of diffusion is the adoption of a
new idea or concept. The most significant and essential impact of such adoption is that people
are able to perceive the new product, i.e., the drug sold by GSK Pharmaceuticals.
In accordance with the Diffusion of Innovation (DOI) Theory, adoption of innovation
needs time for people to effectively comprehend the features of the new product and post that,
makes a purchase. The innovation brought forward by GSK Pharmaceuticals within past times in
terms of powerful and effective drugs were not able to gain the attention of people in beginning,
yet with inflexion of time, these drugs were able to capture around three quarter of consumers in
the market place. Further, the innovation that will be brought by GSK Pharmaceuticals in terms
of new and innovative drugs will also require time to develop a favourable brand image amidst a
wide base of people. As per DOI theory, there are certain factors that largely influence the rate at

which an innovation is adopted within the market place. Such factors are Relative Advantage,
Compatibility, Complexity, Trialability and Observability.
Innovation refers to the introduction on new goods or product with appropriate quality
in competitive marketplace. It also refers in improving on existing concept ideas or else using
step wise process to create commercially viable product. It is also defined as stereotactically for
the start up business as they then to be very dynamic as well as vital or viable aspects in large
corporate organisation. In this report organisation chosen is GSK PHARMACEUTICAL, it is
one of the largest medical company at world wide. This report is going to analyses innovation
theory , its critically discussion on broad range of academic tools and modes. Moreover,
examining internal factors that are related to innovation management with appropriate theory
and process that help in overcoming of internal factors. Additionally, examining external factors
that that are related with proper management and strategy as well as pointing out proper
recommendation in improving innovation process so that business gaols and objectives can be
achieved within stipulated period of time.
Internal Factors
Innovations are related with the creation or development of new product that create beneficial
for both organisation and people in an effective manner. It is a perception of developing an
unique innovation that leads to have positive perception, new service opportunity that leads to
development of production that result in striving commercial success of invention. In
organisation context to GSK Pharmaceutical there are some of the internal factors that are
affection an organisation performance. Internal factors care under the control of an organisation
as it dose not matter weather internal elements are tangible or intelligible in nature. Moreover,
this factors also help an organisation to figure out the strengths and weakness within an
organisation. Their may be many factors that are creating strengths towards the organisation or
on the other if there is another factor that are preventing negatively towards the business
operation that it lead to have negative impact which may termed as weakness . Eventually, the
organisation need to work upon the weak are so that they can good command over their
innovation process.
Internal factors of innovation in organisation structure: In an organisation is planning to have
most suitable and appropriate structure with in work place so that a proper system can be
developed in order to have smooth running of business. Herein, GSK PHARMACEUTICAL

are maintaining centralized structure in decision making so that their innovation can become
successful in competitive market place. Moreover, with their new idea of innovation they can
have wider attraction of their customers if they are maintaining proper rules and regulation
that are being applied to ensure benefits of employees, customers and business in an effective
manner. If an organisation wants to have proper structure in their innovation process then a
respective organisation they can provide training and development session so that they can
maintain their operational structure so that their innovation work out in an appropriate manner.
Moreover, organisational structure directly impact and influences employees within an
organisation which is done trough number of channels such as teams are organised in uni
formality.
Employees and innovation process: Employees play's an essential role in innovation process
and organisation. Employees have an importance in developing ideas and innovation in order to
simply process in an effective manner. Moreover, a respective organisation can identify the
common cited relationship that exist between the factors of innovation process. Employees
also help in innovation process by analysing the complex situation as well as overcoming with
different situation so that appropriate oncomings can be evaluated in an effective manner.
Employees retention and innovation process: It is essential for an organisation to grow and
develop in an effective manner so that each and every activities need to be performed
accordingly. If a respective company is coming out with proper innovation they can less
employee retention with in organisation. Moreover, if GSK PHARMACEUTICAL are having
skilled and qualified employees they can have proper innovation process that results into
effective out comes of innovation. If an organisation is planning to come with an unique
innovation the have train their employees in an effective so that they analyses their innovation
weather it is effective to the people or not. For such purpose they need to have proper knowledge
about the their innovation as it should not have any kind of side effects to the general people if
the are suffering from any kind of virus.
Apart from this, a respective organisation are applying motivation theory in motivating
their employees and staff members so that they can work towards their innovation process in an
effective manner. If an employees feel motivated as well as managers of an organisation are
encouraging its employees and staff members on regular basis then they will able to achieve
their targets as well as gaols and objectives within stipulated period of time. For such instance ca

respective organisation is going is acquire Maslow's Theory of innovation in motivating their
employees. Herein, if an employee is able to fulfil its physiological needs such that is their basic
needs that is food clothes and shelter from their income of pay then employees safe and secure
and motivate themselves to work towards achieving gaols and objectives within competitive
marketplace. Eventually, if employees feel safe and secure, as well as love and belongingness
from their mangers and superior then they feel them self and works with more dedication in
achieving their tagetes within time period. Moreover, it is core duty of manger to to reward ,
provide bonus and incentives to its employees and staff members if they work in an effective
manner.
Thus, in manner employees feel motivated and working with dedication in achieving the
main motive of an organisation within competitive marketplace of same industry line. Hence , it
can be said that internal factors are those factors that affect the business function and operation
within an organisation that are controllable with the hands of management for such purpose
proper measure and strategies need to be adopted by the organisation in order to maintain
efficiencies and profitability in competitive marketplace.
External
Innovation management include proper handling of all those activities that are required to
introduce a new thing. This process mainly include activities such as, developing, prioritizing
and implementing idea in best effective way. All these practices are assigned in a well effective
manner in order to launch a new product and introduce something new.
There are different of external factors that is related to innovation management of GSK
PHARMACEUTICAL company. External factor is related to those elements that lead towards
affecting organisational overall strength and efficiency. Thus, it becomes essential for an
organisation to effectively adopt formative measures with the help of which they can overcome
impact of external factor in best effective way. In simple terms, these are those elements that put
pressure from outside of business organisation. These elements include, government regulations,
raw material supplies. Mention below PEST analysis has been conducted with the help of which
GSK PHARMACEUTICAL can effectively able to analyse market condition:
Political Environment:
In this factor political impact on a business sector is included. In context with present
scenario, tariff and trade deals are evaluated along with political decisions that impact on

decisions. Legal and government issues can lead towards affecting GSK PHARMACEUTICAL
ability in order to conduct their new process on different other locations. Along with this other
related factors that may affect smooth and effective functioning of GSK include, trade
regulations, tax guidelines, social and environmental policies, safety regulations and employment
safety. Thus, in order to effectively conduct their operations it is required by GSK to effectively
consider these local and federal power structure as to conduct process in best effective manner.
Economic
Economic factor outline those factors that are related to outside economic issues. It is
essential for GSK PHARMACEUTICAL to analyse factors that are related to gross domestic
product, interest rates, unemployment, credit availability and exchange inflation. GSK is
required to effectively evaluate importance of these factors. In relation of present company, tax
rate will affect day to day prospect of company. For this there is a requirement to formulate best
effective strategies.
Social
In relation with this factor, GSK PHARMACEUTICAL is required to effectively analyse
socio-economic environment in a given industry. In relation with this, GSK is require to analyse
the manner in which customers needs are shaped and the requirement which bring them to
purchase from a marketplace (Jurkovic, 2015). In addition with this, essential elements that are
require to be examine by GSK is job market trends, population growth, age distribution, attitudes
towards work etc. By evaluating social factors GSK can effectively conduct their process work
which is related to that factor which is related to virus that affect individuals health.
Technological
Technology acts as a key essential element that will lead towards affecting GSK in
negative and positive way. Thus, in this regard company is require to analyse process from all
the technological angles. Therefore, it is important for company to introduce new process by
adjusting tough elements with the help of innovative technological aspects. In context with
present scenario, internet can play major role to help company to conduct their research to may
best effective required changes.
Thus, it is required by GSK PHARMACEUTICAL to effectively analyse all the factors
along with their potential impact that can be in the form of low, medium and high. In addition
with this, it is essential for GSK to evaluate exact time period in which they will effectively

operate their functions. There is a requirement of formulating short term, long term and
immediate goals. In addition with this, it is essential for company to evaluate positive and
negative impact of all the elements along with its direction. By doing PEST analysis in best
effective way company can effectively able to understand these process in best effective way
GSK can able to frame best effective strategic planning and can further evaluate potential threats
and danger in order to gain more valuable opportunities. This will help company to effectively
perform their functions in best effective way while measuring related strength and weakness to
overcome them in a well manner.
Recommendation:
From the above discussion it has been recommend that innovation play's a pivotal role in
coming up with new ideas and innovation in competitive marketplace. Moreover, it is very much
important for an organisation to come up with innovation on regular basis so that an unique
identity can be created in marketplace of same industry line. Herein there are some of the
recommendation for the internal factors that are discussed below:
 It is necessary for an organisation to maintain their internal factors so that they can
balance with their business operation and function in competitive marketplace.
 Moreover, it necessary for the organisation to provide proper training and development
to its employees and staff members so that an organisation can bring their efficiency and
productivity and in competitive marketplace of same industry line.
 It necessary for an organisation to maintain proper balance between both internal; and
external factors so that they can properly determine while coming out innovative
product and services.
 Additionally, it is necessary for mangers of an organisation to motivate its employees and
staff members so that they can encourage their employees to work in an effective manner
so that gaols and objectives can be maintained in competitive marketplace.
To easily facilitate the process of innovation in GSK Pharmaceuticals within future, a
number of recommendations have been given to the organisation. The first suggestion in this
regard is that the respective company should constantly research the market and consumer
demands in order to come up with products that possess the potential as well as capability to
meet the needs and demands of consumers. The next recommendation in this regard is that GSK

Pharmaceuticals should constantly update its processes and techniques in accordance with the
requirements of the respective company. In addition with this it has been further recommended
to GSK Pharmaceuticals to take advantage of PEST analysis in order to evaluate strength and
weaknesses in best effective way.
CONCLUSION
From the above discussion it has been concluded that innovation is necessary for each
and every organisation in order to maintain sustainability for longer duration of time in market
place of same industry line. Herein, an organisation are maintain both internal and external
factors in an appropriate manner so that both the factors are balance in creating out proper
innovation as an organisation wants to have. Furthermore, with proper recommendation and
suggestion an organisation can improve their innovation process so that an effective result can be
determine in pharmaceutical organisation. Thus, innovation play's an essential role in achieving
gaols and objectives of an organisation in competitive marketplace.

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