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    Case Study

    Digital transformation at Merck

    By Stefan Michel, Paulo Sti Lin Liao, Anandram Narasimhan and Charlotte Van Hautekerke
    8 pages
    August 2020
    Order this case study
    Reference: IMD-7-1999

    Big corporations have structured processes and frameworks for strategic projects review, and professionals are well trained and versed on developing detailed project plans. But, the execution discipline is frequently overlooked or completely neglected, which results in staggering project failures, even when they are strategic to the business in a fast-changing environment, and even when it has the appropriate sponsorship from the senior management. This case study is based on the events and outcomes of one such project, MyCHC, driven by Merck in China. It demonstrates the benefits of a structured framework to secure a successful strategic project execution. MyCHC was a key strategic digital transformation project to develop a digital platform to support physicians and patients make informed decisions for diagnosis and treatment of diseases and to diminish the transactional friction to set appointments and follow-up. Although the project was solving both patients and physicians’ problems and had strong support from the senior management it ended up discontinued and was eventually merged into another project. The framework for smart execution from Gilbert et al. 2008 was utilized to analyse the case to better understand what went wrong during the execution of the project that was set for success with the appropriate focus, scope and sponsorship. An application of the framework highlights the need to secure the best team, a better rehearsal of the execution to identify risks and potential roadblocks, more investment to inspire and engage the team members and key stakeholders, and to follow through and keep the team energized, which were the missing elements that led the project to be folded eventually. The case demonstrates not only the importance of a structured approach to secure the success of a strategic project in a complex internal and external environment, but also the challenges to bring about a key digital transformation in an industry incumbent.

    Learning Objective
    • Digital is a buzz word. What factors do you need to keep in mind when you embark on a digital transformation journey?
    • Strategy is important, but what about execution?
    • What are the execution steps you need to plan before embarking on any key change initiative?
    • The China healthcare industry is prime for disruption. But, is China the best market to enter? And is Merck addressing the market’s needs? We believe they are, but they are not alone. Will Merck be able to win? Alone or in partnership?
    Keywords
    Strategy, Digital Transformation, Project Planning, Execution, Framework, Life Science
    Settings
    China
    Merck Group, Healthcare, Healthcare, Pharmaceuticals
    2016-2017
    Type
    Field Research
    Copyright
    © 2020
    Available Languages
    English
    Related material
    Teaching note
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    Copyright ©2024
    Copyright owner IMD Copyright
    Organization Daikin Industries
    Industry Consumer Goods, Home Appliances
    Available Languages English
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

    Related topics
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    Global Business Strategy
    By Kazuo Ichijo and Yunfei Feng
    Case reference: IMD-7-2618, © 2024
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    By Joep de Caluwé
    in I by IMD
    Summary
    Learn why flashy innovation often fails and how a strategic, fact-based approach can drive real innovation success in corporate environments. Insights from industry experts.
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