Module 5 - Business Models & Business Development in Biopharma: Building New Business Units Flashcards
What has Novozymes done differently recently to create new and better business units?
1) Focused: Made fewer small projects and bigger big projects
2) Created new strategic opportunities outside the scope of the traditional business. Small units that work in a fast and agile (sprint) fashion
What characterizes the small business units for innovation that Novozymes has created?
1) Pressure-tests and refining using rapid learning cycles
2) Governed using a differentiated investment approach (“pitching” for investments instead traditional company funding)
3) Funded and nurtured in a dynamic structure separate from the core business.
Why did they choose utilize this small/agile way of making innovation?
They had a need to do things differently from the traditional innovation scheme. Not enough was happening to meet customer demands:
1) Venture mindset with milestone funding based product innovation
2) Innovation Council governance
3) Agile culture - fast learning loops, adaptable solutions mindset and MVPs!
4) Taking risks with high returns
5) Business model innovation taking higher value share
What does the product development phases look like in Novozymes one health?
1) Scout: For consumer and healthcare professional insights
2) Develop business model: Leverage data, for personalized insights and clear mode of action
3) Test and learn: Find the best microbe, predictive models
4) Pilot: Optimized production for stability and efficacy
5) Scale: Efficacy demonstration in clinical trials
Next to developing small agile units, what does novozymes also do to be more agile and innovative?
Collaborate with startups BUT also get idea from initiatives such as:
1) Novozymes innovation day
2) HelloScience
Trying to leverage the ecosystem and crowd.
What ideals does Novozymes utilize for their business development?
Agile ways of working through 8 themes:
1) MVP Mindset
2) Think big, start small
3) Fail fast, learn fast
4) Customer involvement
5) Cross-functional teams
6) Co-creation
7) Pretotyping
8) Sprints
What is Novozymes business development model similar too?
Very similar to the lean-startup approach/hypothesis driven approach to innovation where you make MVP, learn, PPP, MVP2 etc.
What is a sprint and why does Novozymes sprint?
1) Idea
2) Build
3) Measure
4) Learn
5) Idea v.2
6) Etc.
A quick iterative cycle allowing for learnings and testing of key assumptions without building or launching and making expensive commitments.
How long are novozymes sprints?
1 week!
Understand, ideate, decide, develop, validate
Often uses pretotyping
Are all sprints the same in Novozymes?
No! They differ according to the goal/concept they want information on:
1) Customer desirability - pains, needs, MVP, WTP, potential partnerships
2) Technical feasibility - hypothesis of solutions that customers are willing to pay for –> sprint on how to develop an MVP to accelerate time to market
3) Commercial viability - Sprint on long term commercial viability
How else could you build new business units?
Entrepreneurship and intrapreneurship
What three focus points did Novozymes have for better business with biology?
1) Differentiate to succeed (5 growth themes)
2) Invest in impact (Focusing on the R&D Pipeline –> smaller amount of projects and new strategic opportunities)
3) Spearhead new business (In a new more agile way off making business units)
