Innovation Without Walls: Alliance Management at Eli Lilly and Company Harvard Case Solution & Analysis

Leadership alliance capability

To build leadership alliance capability Eli Lilly should follow the three dimensional fit that can actually help the company in identifying the strategic, cultural and operational fit of the organization with the partner company. This method will definitely reduce the conflicts that can creep up in normal circumstances and can make things worse. Strategic fit can help in aligning the companies together. Secondly it will help in identifying the commitment to the alliance. It also help in trust amongst the partners. Operational fit will ensure that the operations within the company are dealt with conviction and support while all the decisions by a leadership is handled in the right manner. Cultural fit will help in increasing flexibility and the knowledge management element amongst the partners or the alliances.

Procurement and its advantages developed by OAM

            Procurement can be of great value that can actually help OAM in avoiding duplication and overlapping. The system is quite clear where the system can increase the efficiency and the effectiveness of the method where it can help in overcoming the duplication issue. With strong procurement process it can help OAM in maintaining relationship with the suppliers at a broader scale. The office of alliance management through the unique procurement system installed can significantly improve the procedure of managing the retailers and suppliers simultaneously.

Over here, OAM can also gain benefit from the fact that it has developed an alliance with Eli Lilly, which is one of the most rated company in the industry. The merger will be of great help and support considering the fact that it has supported procurement and its major activities have been involved in the alliance between the companies.

Replicating the Expert Knowledge

Collaborations shall be made by Lilly with its overseas subsidiaries and as well as with the Official Alliance Management (OAM) in order to replicate its expertise and knowledge to embed in the overseas organization. Sending in the team of experts and professionals to train the locals of those companies as they have higher amount of knowledge about the local market than Lilly or OAM, this would help the company to get equipped with the latest knowledge.

Lilly shall also make collaborations with OAM to provide them information and knowledge about the operations for the overseas market. The company shall also designate the authorities to the overseas subsidiaries. The decisions regarding to the new product development and the strategic decisions to launch a particular product shall be decided with the consultation of the parent company, whereas, the local decisions shall be made by the overseas company. This strategy shall distribute the power of governing and managing different companies.

Enhancing Value

The focus for OAM shall be more towards developing the relationship with clients where the operations tend to be inclined towards enhancing their value instead of focusing more towards the operational management where company focuses on improving its products or improving on R&D. Relationship with alliance partners and relationship with customers shall be considered as the most valuable aspect of the company because this strategy enhances the element of interaction and collaboration.

The value can be enhanced by either maintaining the relationship aspect or the company can gain value through improving its operations. In both the cases.......................

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The newly appointed Executive Director of Alliance Management (OAM) at Eli Lilly and Company (Lilly) returns to his office after his first meeting with his supervisor, Senior Vice President, Corporate Strategy and Business Development (CSBD). Executive director was appointed only a week ago, and now senior vice president asked him to conduct a full review of OAM strategy. Senior vice president, made it clear that it was fine to leave the strategy as it currently existed, or change it in the bud, if the situation warranted. Now the executive director must decide what Lilly need to do to create and maintain its leadership in the alliance opportunities. "Hide
by Charles Dhanaraj, Marjorie Lyles, YuPeng Lai Source: Richard Ivey School of Business Foundation 25 pages. Publication Date: April 25, 2007. Prod. #: 907M15-PDF-ENG

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