MBA501: Analyzing Disruptive Innovation at Millennium Health Science

This case study examines Millennium Health Science and its approach to disruptive innovation. Established in 1968, the company focuses on dermatologically tested skin care products and operates with two business units: Neutrino (Vitamins) and Dermatech (advanced skin care). The company's internal structure features a top-down management style, with a preference for employees with pharmacology or microbiology backgrounds. Market research, particularly within the Neutrino unit, is crucial for driving innovation, though it comes at a significant cost. Research and development are central to the company's strategy, focusing on seaweed-based solutions for various product lines. The analysis covers internal structures, external factors, marketing approaches, and technological processes impacting the organization's innovative capacity, ultimately assessing the effectiveness of Millennium Health Science's disruptive innovation strategies.

Running head: DISRUPTIVE INNOVATION
Disruptive Innovation
Name of the Student
Name of the University
Author Notes:

1DISRUPTIVE INNOVATION
Table of Contents
Introduction......................................................................................................................................2
Internal Structure of the organisation..........................................................................................2
Market research techniques.........................................................................................................3
Research and Development methodology...................................................................................4
Conclusion.......................................................................................................................................4
REFERENCES................................................................................................................................6

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Introduction
It can be said that the gateway go success of a company in the modern business
environment is through constant innovation. An organisation that is carrying out constant
innovation can be subject to success as a result of the edge that the company has over the
competitors (Minakov et al. 2015). Innovation is the process of carrying out a conventional task
in a different manner than usual (Reypens, Lievens and Blazevic 2016). While innovation has
become a mainstream nature of operations of organisations, organisations that change the state of
operations of every other organisation operating in a similar industry can be deemed to an
innovation that is disruptive for the operations of other companies in the same industry. Such
type of innovation is known as disruptive innovation (Christensen, Raynor and McDonald 2015).
Millennium Health Science was carrying out the same while they were operating in the
Australian market. All the existent functional division of the company were segregated and
innovation was carried out in all the functional departments that were existent in the
organisation. The paper will discuss regarding the internal structure of the organisation, the
techniques employed by the company to carry out market research and the research and
development techniques employed by the company.
Internal Structure of the organisation
The company was established in 1968 and the company offered dermatology services in
the industry that they operated in. Ever, since, the company has been carrying out innovation of
various kinds in order to develop products that cater to the needs of people across the country.
The company is based on research and development as the company has been successful in
identifying that the latter is the way of successfully gaining a competitive advantage in the
industry that the company is operating in. It has been found from the case study analysis that the

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workforce of the company is of aging nature. The average of the senior executive sin the
company was found to be around 53 and was referred to as the senior citizens club by other
departments. It was found out that the main criteria of performance appraisal and promotion in
the company is through experience. Hence, no matter how competent and employee was, they
would have to possess considerable amount of experience in order to climb up the organisational
hierarchy. Each of the business units of the company was headed by individual general
managers. On the other hand the structure of the management that was followed in the
organisation was of top down nature that is all the managers presided over each individual
department across branches of the organisation. Apart from this, the was a criteria in the
organisation that all the employees of the organisation had belong from pharmacology or
microbiology background. Even the official of the company who belonged to the marketing and
the sales departments of the organisation had to belong to the said backgrounds. It was a belief of
the company that having knowledge regarding the same would help the members of each
department and the organisation as a whole in having an edge over the competitors. The culture
of the organisation was an aspect that was deemed to be tough for the new employees. It was
found out that if the employees did not questions that decision of the management of the
company they would be able to have a long tenure in the organisation. Thus, apart from culture
and some superfluous requirements in the organisation, the nature of operations of the
organisation seemed to be favourable.
Market research techniques
From two of the business units that was owned by the company, Neutrino was known for
their efficacy in market research. The latter was the department that was necessary for the
generation of constant innovation that ultimately resulted in generation of revenue as a result of

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which the company sustained itself over a long period. The cost that was incurred by the
company in carrying out the intensive research programs were deemed to be a little too
expensive for the operations of the company. The expenditure of the company that was
accumulated to research and development amounted to $12 million that was high, however, the
expected returns of the company was perfectly aligned towards the sustainability of the
company. The research that was carried out by the company was perfectly aligned towards
advancement of the company, in terms of generation of revenue that would amount to $350
million by the year, 2023. The insights that were recorded by the company was carried out by the
marketing teams that was latter presented in marketing meeting that were organised on monthly
basis.
Research and Development methodology
Research and development was the mainstay of the organisation. The latter was deemed
to be one of the most effective wasys that the company could keep on developing the products by
carrying out innovation in the markets that the company was operating in. The research that was
being carried out by the company was mainly to test the viability of the company in development
of the Neutrino, Dermatech and Poseidon range of products with the help of seaweed solutions
and creams that would help in the alignment of the company towards innovation. For the
development of the Poseidon line intensive research was being carried out on a regular basis and
methods for the development of the best possible solutions was evident in the research and
resulted in the development of sea weed based products in liquid ad tablet form.
Conclusion
Millennium Health Science is an organisation, whose sole nature of operations is based
on the development of sea weed based ointments and tablets. One of the most regular nature of

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operations of the company is centred on the research and development, the company has been
carrying out constant innovation while they are operating in the market and this has been the
main strategy of the company in order to gain productivity in the operations. The company has
two business unit which is characterised by a structure that is characterised by a top down flow
of operational structure.

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REFERENCES
Christensen, C.M., Raynor, M.E. and McDonald, R., 2015. What is disruptive
innovation. Harvard Business Review, 93(12), pp.44-53.
Minakov, V.F., Minakova, T.E., Galstyan, A.S. and Shiyanova, A.A., 2015. Time constant of
innovation effects doubling. Mediterranean Journal of Social Sciences, 6(3 S6), p.307.
Reypens, C., Lievens, A. and Blazevic, V., 2016. Leveraging value in multi-stakeholder
innovation networks: A process framework for value co-creation and capture. Industrial
Marketing Management, 56, pp.40-50.