Case Study Description of Pfizer's Centers for Therapeutic Innovation (CTI)
In 2010, Pfizer established four small research units in New York, Boston, San Francisco, and San Diego located close to several premier Academic Medical Centers (AMCs), or hospitals with adjoining medical schools. The goal of these units was to redesign collaboration with Pfizer and academic medical researchers with the purpose of developing new, innovative drugs candidates for testing in patients. Project teams consisted of Pfizer scientists and academics working side-by-side to reduce the time needed to bring a therapeutic drug from the lab to a patient's bedside. This case explores the academic collaboration model developed by Pfizer. What were the strengths of and challenges facing this model? How would the model evolve in the future? And how would new, similar collaboration models surfacing at other major pharmaceutical companies pose a threat to the Pfizer model?
Authors :: Gary P. Pisano, James Weber, Kaitlyn Szydlowski
Swot Analysis of "Pfizer's Centers for Therapeutic Innovation (CTI)" written by Gary P. Pisano, James Weber, Kaitlyn Szydlowski includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Pfizer Academic facing as an external strategic factors. Some of the topics covered in Pfizer's Centers for Therapeutic Innovation (CTI) case study are - Strategic Management Strategies, Operations management, Research & development, Strategy, Technology and Technology & Operations.
Some of the macro environment factors that can be used to understand the Pfizer's Centers for Therapeutic Innovation (CTI) casestudy better are - – wage bills are increasing, geopolitical disruptions, challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy,
digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, etc
Introduction to SWOT Analysis of Pfizer's Centers for Therapeutic Innovation (CTI)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Pfizer's Centers for Therapeutic Innovation (CTI) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Pfizer Academic, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Pfizer Academic operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Pfizer's Centers for Therapeutic Innovation (CTI) can be done for the following purposes –
1. Strategic planning using facts provided in Pfizer's Centers for Therapeutic Innovation (CTI) case study
2. Improving business portfolio management of Pfizer Academic
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Pfizer Academic
Strengths Pfizer's Centers for Therapeutic Innovation (CTI) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Pfizer Academic in Pfizer's Centers for Therapeutic Innovation (CTI) Harvard Business Review case study are -
Organizational Resilience of Pfizer Academic
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Pfizer Academic does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Pfizer Academic has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Pfizer Academic to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Pfizer Academic is one of the leading recruiters in the industry. Managers in the Pfizer's Centers for Therapeutic Innovation (CTI) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the Pfizer's Centers for Therapeutic Innovation (CTI) Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Ability to lead change in Technology & Operations field
– Pfizer Academic is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Pfizer Academic in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Pfizer Academic digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Pfizer Academic has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Strong track record of project management
– Pfizer Academic is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Pfizer Academic has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Pfizer's Centers for Therapeutic Innovation (CTI) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Pfizer Academic in the sector have low bargaining power. Pfizer's Centers for Therapeutic Innovation (CTI) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Pfizer Academic to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Pfizer Academic has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Pfizer's Centers for Therapeutic Innovation (CTI) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Learning organization
- Pfizer Academic is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Pfizer Academic is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Pfizer's Centers for Therapeutic Innovation (CTI) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Pfizer Academic has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Pfizer's Centers for Therapeutic Innovation (CTI) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Pfizer's Centers for Therapeutic Innovation (CTI) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Pfizer's Centers for Therapeutic Innovation (CTI) are -
Products dominated business model
– Even though Pfizer Academic has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Pfizer's Centers for Therapeutic Innovation (CTI) should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Pfizer's Centers for Therapeutic Innovation (CTI) HBR case study mentions - Pfizer Academic takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Need for greater diversity
– Pfizer Academic has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Lack of clear differentiation of Pfizer Academic products
– To increase the profitability and margins on the products, Pfizer Academic needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of Pfizer Academic, firm in the HBR case study Pfizer's Centers for Therapeutic Innovation (CTI) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Pfizer Academic is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Pfizer's Centers for Therapeutic Innovation (CTI) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Pfizer Academic has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Pfizer Academic even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Workers concerns about automation
– As automation is fast increasing in the segment, Pfizer Academic needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Capital Spending Reduction
– Even during the low interest decade, Pfizer Academic has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Pfizer's Centers for Therapeutic Innovation (CTI), it seems that the employees of Pfizer Academic don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Pfizer's Centers for Therapeutic Innovation (CTI), in the dynamic environment Pfizer Academic has struggled to respond to the nimble upstart competition. Pfizer Academic has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Pfizer's Centers for Therapeutic Innovation (CTI) | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Pfizer's Centers for Therapeutic Innovation (CTI) are -
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Pfizer Academic can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Pfizer Academic can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Learning at scale
– Online learning technologies has now opened space for Pfizer Academic to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Leveraging digital technologies
– Pfizer Academic can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Buying journey improvements
– Pfizer Academic can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Pfizer's Centers for Therapeutic Innovation (CTI) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Low interest rates
– Even though inflation is raising its head in most developed economies, Pfizer Academic can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Pfizer Academic in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Using analytics as competitive advantage
– Pfizer Academic has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Pfizer's Centers for Therapeutic Innovation (CTI) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Pfizer Academic to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Pfizer Academic in the consumer business. Now Pfizer Academic can target international markets with far fewer capital restrictions requirements than the existing system.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Pfizer Academic can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Pfizer Academic is facing challenges because of the dominance of functional experts in the organization. Pfizer's Centers for Therapeutic Innovation (CTI) case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Pfizer Academic can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Pfizer's Centers for Therapeutic Innovation (CTI), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Pfizer Academic to increase its market reach. Pfizer Academic will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Pfizer Academic to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Pfizer Academic to hire the very best people irrespective of their geographical location.
Threats Pfizer's Centers for Therapeutic Innovation (CTI) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Pfizer's Centers for Therapeutic Innovation (CTI) are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Pfizer Academic in the Technology & Operations industry. The Technology & Operations industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Pfizer Academic can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Pfizer's Centers for Therapeutic Innovation (CTI) .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Pfizer Academic with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Pfizer Academic
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Pfizer Academic.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Pfizer Academic business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Pfizer Academic can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Shortening product life cycle
– it is one of the major threat that Pfizer Academic is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Pfizer Academic will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Consumer confidence and its impact on Pfizer Academic demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Technology acceleration in Forth Industrial Revolution
– Pfizer Academic has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Pfizer Academic needs to keep up with the evolution of technology in the Technology & Operations sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Pfizer Academic can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Pfizer's Centers for Therapeutic Innovation (CTI) Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Pfizer's Centers for Therapeutic Innovation (CTI) needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Pfizer's Centers for Therapeutic Innovation (CTI) is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Pfizer's Centers for Therapeutic Innovation (CTI) is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Pfizer's Centers for Therapeutic Innovation (CTI) is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Pfizer Academic needs to make to build a sustainable competitive advantage.
