Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991

Gary P. Pisano; Steven C. Wheelwright; Jonathan   West

Case | HBS Case Collection | December 1991 (Revised October 1998)

Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991

by Gary P. Pisano, Steven C. Wheelwright and Jonathan West

Abstract

Outlines the evolution of Lilly's corporate manufacturing strategy over the past decade. The corporate vice president of manufacturing must decide on the next phase of Lilly's strategy for the early 1990s, as well as to what extent and what role process development will play. Provides data outlining three different points in the product development process at which manufacturing process development might be initiated. Using learning curve concepts and data, students can estimate the economic costs and benefits (as well as organizational issues and challenges) associated with each. Illustrates process improvement's substantial impact in a capital-intensive industry, describes possible roles of manufacturing process technology in an industry that has viewed product R&D as its primary competitive advantage, illustrates phases through which manufacturing can evolve in pursuit of comparative advantage, and introduces students to a challenging and changing industry.

Keywords: Cost vs Benefits; Management Practices and Processes; Industry Structures; Product Development; Production; Research and Development; Competitive Advantage; Corporate Strategy; Manufacturing Industry;

Format: Print

18 pages

Educators Purchase

Citation:

Pisano, Gary P., Steven C. Wheelwright, and Jonathan West. "Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991." Harvard Business School Case 692-056, December 1991. (Revised October 1998.)

Creative Construction tackles the myth that larger enterprises are inherently incapable of transformative innovation and are doomed to be disrupted by nimble start-ups. If larger enterprises seem incapable of transformative innovation, it is due to how we design and manage them, rather than anything inherent in their scale. In fact, Creative Construction argues, if used properly, scale can be an asset, rather than a liability, when it comes to innovation. However, to leverage the advantages of scale for innovation, companies need the right combination of strategy, systems, and culture. Based on more than three decades of the Pisano's research, teaching, and experience, Creative Construction offers a set of principles that will lead readers to rethink many long-held beliefs about innovation.

Innovative cultures are generally depicted as pretty fun. They’re characterized by a tolerance for failure and a willingness to experiment. They’re seen as being psychologically safe, highly collaborative, and nonhierarchical. And research suggests that these behaviors translate into better innovative performance. But despite the fact that innovative cultures are desirable, and that most leaders claim to understand what they entail, they are hard to create and sustain. That’s because the easy-to-like behaviors that get so much attention are only one side of the coin. They must be counterbalanced by some tougher and frankly less fun behaviors: an intolerance for incompetence, rigorous discipline, brutal candor, a high level of individual accountability, and strong leadership. Unless the tensions created by this paradox are carefully managed, attempts to create an innovative culture will fail.

Faculty & Research

Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991

Abstract

Citation:

About the Authors

More from these Authors