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https://docs.google.com/document/d/12XcFYFadMmRZt2ysfKeMSCPzCHWfl-ggZbTqrKUOjQY/edit?usp=sharing

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1) It dep - vendor solution
strategic plan
2) In-house IT partner with IT expertise vendor (who responsible for what)

3) rough market analysis, competitor analysis
4) org change - PR lose power? how to handle - strategy for communicating the change

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Strategy is means of achieving the intended goals.
It is a long-term corporate planning and usually covers a period of around three to five years.  A strategic vision for more than five years is not unusual either.

What are our unique differentiators?
What must we be able to do better than our competitors?
CORE COMPETENCY
The answer will determine the capabilities the organization needs to have.

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Vision: our vision is to achieve prosperity in business in proprietary generic products
motivated by innovative technologies by 2020 with a robust presence in emerging
markets;

Values: for caring human life. Putting the patient at the forefront of ethical commitment
with transparency in all aspects of the business (www.alrummanpharma.com); and

Focus: Al-Rumman Pharma strives to become an esteemed source for supplying
quality generic medicines, active pharmaceutical ingredient (API), ready to fill pellets,
ready to compress granules and provide high standard of scientific and technological
solution to pharmaceutical distributors/companies in the MENA region and to
encourage capability of producing quality generic medicines at reasonable prices.

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Transformation project team
- all functions need representative to join
- all functions/teams have defined accountabilities (RR)
- To collaborate closely with stakeholders with high visibility, rapid decision-making

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Components of Successful Digital Business Transformations

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Components of Successful Digital Business Transformations

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1. Always Remember the Ultimate Goals of Digital Business Transformations

2. Align the Team Around a Shared Vision

3. Get C-Level Buy-In

4. Anchor in Outcomes

5. Seize Your Quick Wins and Communicate

6. Move Fast

7. Be Thoughtful About Your Governance Choices

8. Choose Partners Who Will Co-create and Are a Fit for Your Team

9. Keep Your Teams Small and Cross-functional

10. Consider New Approaches to Funding That Match the Way Projects Work

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A clear strategy provides a defined goal lays the path to get there. It outlines how you grow and compete, and defines choices you will make about what opportunities your company will pursue.

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How will work flow between work groups?
How will decisions be made?

have to do with the flow of information, the means of responding to information technologies.

Management processes are both vertical and horizontal

Vertical processes:
business planning and budgeting processes
allocation of resources to capital, research and development, training

Horizontal processes:
designed around the workflow, e.g. new product development, fulfillment of customer order.
It includes voluntary contacts and formally supervised teams

Horizontal processes are designed to be carried out along sideways relations between departments. These horizontal processes are also known as lateral processes. These management processes are the most important tools available to managers for managing the company. The vertical processes relate to allocating budget and talent; they deal with planning and budget processes.

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As-Is:
1) Operation/decision making process:
=> Duplication in purchases, diff depts performing the same buying functions

2) Information process
=> Fragmented view of what is being purchased, and by whom
=> Disparate systems are unable to communicate with each other and are not performing function they are meant to, manual process bypass the system

To-Be:

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Structure (Annie) - every structure create silos and boundaries 

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Structure (Annie) - every structure create silos and boundaries 

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How should we group work together?
What roles are needed to lead the work?
How should power be allocated among the roles?

Promote standardization
Encourage knowledge sharing
Increase specialization
Reduce effort duplication

Product Structure

Specialization

Shape
Distribution of power
Departmentalization

As-Is
1) No clear sense of responsibility for the efficient purchase of goods and services at an executive level
=> Public Relation Officer also manage procurement function
=> Duplication in purchases and inefficient buying methods, all depts performing the same buying function separately

To-Be

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Def:
People - made up of policies relating to people (human resource policies), which influence and frequently define the employees’ mind-sets and skills.
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Current status:
People - lack in strategic buying skills & executing sourcing strategies

Culture- silo approach, employees in the company don't share info= company doesn't incentivize inclusivity among teams.
no clear sense of responsibility for procurement

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1.  Design with the expectation of great leaders
2.  Avoid designing around people
3.  Find the pivot roles
4.  Design roles to attract and grow great talent
5.  Fit motivation to the roles
****************

What skills, competencies, and experiences do our people need?
>>digital skills of especially for the full-time employees

What HR practices will attract and develop the talent we need?
>>establish a baseline for people for easy measurement;
>> well defined RR for each employees (e.g. Job description)
>> Job rotation & training

HR policies of recruiting, selection, rotation, training and development

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Metrics and rewards communicate what success looks like
Determine how will we measure progress - at individual, team and business level
What incentives will guide behaviour and reinforce our culture?

OKRs quarterly assessment & review (Agile)

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(People) Mindset & Competencies Trainings
=> Component 3 Get C-Level buy-in (set OKRs for them)
=>

(Rewards) OKRs
=> Component 4 Anchor in Outcomes
=> Component 3 Get C-Level buy-in (set OKRs for them)

Any other Component related to "Stakeholder Engagement"?

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Organization's digital transformation road map

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Organization's digital transformation road map

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1 year-
i) Harness Digital Technology: Foster greater adoption of technology to help facilitate smarter health care practices (e.g. smart pill containers)
ii) Research Collaboration: Form alliances in developed countries for research projects and access to emerging technologies

3 years-
i) Invest in local manufacturing: expand into region; global export markets for medicine

5 years-
Be the leading enterprise in MENA

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Ultimate Goals of digital business transformation

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Ultimate Goals of digital business transformation

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Be thoughtful about your governance choices

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Be thoughtful about your governance choices

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Choose partners who will co-create and are a fit for your team

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Choose partners who will co-create and are a fit for your team

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Keep your teams small and cross-functional

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Keep your teams small and cross-functional

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Consider new approaches to funding that match the way projects work

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Consider new approaches to funding that match the way projects work

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strategyzer.com/blog/posts/2015/2/03/implementing-your-business-model-with-the-galbraith-star-model

indeed.com/career-advice/career-development/how-to-implement-star-model-to-your-business

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Case Study: Al-Rumman Pharma

Your Action:

(1) Download the case study through your library account: VOL. 10 NO. 1 2020, pp. 1-16, © Emerald Publishing Limited, ISSN 2045-0621 j EMERALD EMERGING MARKETS CASE STUDIES.

(2) Answer the question: If you were the CEO of AI-Rumman Pharma, what would you do next from “Designing the Organization for Digital Transformation” perspective.

(3) Create your group ppt and Craft your essay. Submit them by the respective deadlines.

Judging Criteria / Board Acceptance Criteria:

• 5% 商業需要: Business Needs

• 15% 公司現狀分析: Analysis of Current Status, including but not limited to, company

strategy, culture, structure, process, rewards and people development…etc.

• 50% 組織設計及發展理論 Application of “Organization Design and Development

Theories and Concepts” with strong justifications

• 15% 創新思維 / 前瞻性 / 原創性: Creativity / Originality

• 15% 演示吸引性、流暢及句邏輯性: Live Presentation Appealingness, Smoothness and

logical flow

• (Bonus) 10% 資料 及 分析整體圓滿性: Completeness of analysis in terms of different

major stakeholders’ Perspectives

Presentation PPT Deadline: Please submit your Group Project presentation slide-deck in “PPT” file format on SOUL platform before your presentation on Lecture 9.

Group Project Report Deadline: Please submit your Group Report in “PDF” file format on SOUL platform not later than Lecture 10 starts.

Remarks:

*Only one group member needs to submit the softcopy of Group Report & PPT on behalf of the whole group.

*Late submissions will not be entertained.  Both slide-deck and report are needed to submit on SOUL2.0 on time.

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light-weight and loosely organized to remain flexible while it searches for the appropriate business model.  This allow for faster decision making in response to market feedback

start-up - temp
company - permanent organization

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1.  Create a star model graph
2.  Start with strategy, based on mission, vision, and objectives
3.  Move on to the structure
4.  Write down the company processes
5.  Write down the company rewards
6.  Consider how people relate to the company
7.  Share this information with all employees
8.  Re-visit the star model as your usiness changes

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innovative in bringing the latest pharmaceutical drugs to cater to the health sector

Advantage Al Rumman:

Vast Network of customers and resources of Medicinal needs.

Expertise of regulatory environment and local requirement.

Strategically access to major & untapped markets with low cost of operation.

Value based Organization with relationship based business approach

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How to compete with global brands

Outdated procurement process

Lack of digitalization of document - Contracts, PO are all stored in cabinets

PO issued only after submission of Invoice

Cannot benchmark vendor performance and pricing

Poor sourcing strategies

3 challenges:
1.  People
2.  Strategy
3. Digital transformation dilemma

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1. Growing population - meet the growing health care needs
2. Expansion - partner with regional gov to provide quality medicines at affordable cost.
3. Strategic location- allow the company to capitalize their proximity to larger established markets while also being close to emerging markets (India, China)

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Due to lack of digitalized contract management capability, there is high rick of unnecessary fees and non-compliance penalties from vendors

Unable to transit from traditional buying to a more strategic sourcing approach

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https://docs.google.com/presentation/d/1ncGMLuBLJyvAjoFkfCdZt49fmJpdn2Cf3TeX3u3OTDg/edit?usp=sharing

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1.  Strategy -> disruptive product innovation
2.  Portfolio management
3.  Nurture new ideas, core business
4.  Idea networks, project teams for prototyping
5.  Reward breakthrough ideas, Tolerate failed ideas
6.  Agile teams
7. Whenever there is a change on strategy, the 4 components have to adjust to accommodate and re-align

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1.  Business case and discovery
Identify the problem
Determine the implications
Pinpoint the gaps

2.  Strategic Grouping
Identify the basic structure.
Design for future, not fixing only fixing existing and past

3.  Integration - Design points of linkages across boundaries

4.  Talent and leadership
staff pivotal roles

5.  Transition
Learn and adjust

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1.  Assess change readiness
2.  Ensure your leader is committed to see the change through
3.  Invest in project infrastructure
4.  Plan for feedback and expect adjustments

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1st: Intro/Background
2nd: Strategy
3rd: Structure, Process
4th: People, Rewards
5th: Implementation plan
1st: Conclusion

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Strategy - Tony
Structure - Annie
Process - Bong
Rewards - Sandy
People (& Culture) - Sabrina

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Customer of different products/services:
(1) Finished products
=> Governments, Hospital, direct Pharmacy shops
(2) APIs, pellets, granules, herbal extract
=> Other pharma production companies
(3) Dossier development and supply
=>
(4) Dossier supply & tech transfer of formulation development
=>
(5) Support for API dev, formulation dev
=>
(6) Consultancy support
=>

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1) Globally - MENA may be the smallest pharmaceutical market in the world, accounting for just 2 % of world market

2) Regional - Our company is not big enough, some big supplier has strong bargaining power than us, we need to do CPFR analysis to raise buying power

+ Some extracts from the case
+ MENA pharma industry trends / market analysis

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Organization is to help achieve strategy.  Organziation is for the future, not the past.

capacity. Individual has competencies, organization has capability.
Identify the capability that are unique to the company

Needed capabilities ->
understand the need of cutsomer
deliver high-value solutions
manage internal and external relationships across geographies and boundaries
management need to pay attention to build capability

solve root cause , not symptoms

interview,
ask open-end questions

function, product, georgraphy, customer

structure determine the basic power dynamics of organization

drive behaivor

functional structure of pharmaceutical company:
reasch, manufacturing, product development, clinical and regulatory affairs, marketing, sales
cons:  do not provide interface for the customer
each group only focus on their own unique solution, incompatiable systems
miss the opportunities to share and leverage scale

functional structures - group work by common activity:
1.  promote standardization
encourage knowledge sharing
increase specialization
reduce effort duplication

start with simple functional structure
mangement need to do lot of communication

Product structure
georgraphic sturcture

Structue group work and activities together
organization model - how sturctures are layerred and linked in order to create the desired balance of power dynamics between the parts of the organization

e.g.
Capability Needs:
1.  Develop products and solutions to meet needs of private practices and hospital systems
2.  Grow in selected international markets
3.  Reduce the cost of manufacturing

Vertical:
How information and decisions flow from global to local and corporate to field
vertical organization enables innovation and collaboration

Horizontal:
How information and decisions flow between organizational units
must be designed

break down the silos, build collaboration

1.  High trust relationships, networks, communities of practice
2.  management processes and routines
3.  business processes and systems
4.  aligned incentive systems
5.  formalized teams
6.  integrator roles
7.  matrix

use the lightest touch possible

use matrix sparingly
fill matrix roles with experienced talent
forget dotted  and solid lines ->involve peers in decisions, matrixed positions: treat all objectivies as equally important
align managers who share resources -> objectives, metrics, decisions, rights, standards of performance

Clarify decision rights:
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tension creating decisions:
1.  setting joint goals
2.  forecasting results
3.  allocating resources
4.  priciing
5.  investments
6.  functional policy
7.  hiring

Assign one person the golden vote:
responsible for quality of decision

Anticipate tension areas and design the conversations for each one

steps:
identify the tension scenario
name the players in decision
anticipate conflicts
identify the golden vote

relationship of talents to organization
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design with the expectation of great leaders
avoid designing around people
Find the pivot roles
Design roles to attract and grow great talent
Fit motivation to the roles

Transition
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4 to enable and acclerate:

1.  Assess change readiness
how urgent is the need for change?
Move fast or evolve?
Area leaders prepared to manage a more complex organizaton?
What other changes may impact the project?

answer:  help you set up sequence and timeframe

2.  Ensure your leader is committed to see the change through

Leadership
activation

3.  Invest in project infrastructure
change management
adjusting metrics
project management resources

4.  Plan for feedback and expect adjustments

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M2 Group Presentation Group 4 20 Annie 20part 

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An important principle of Galbraith’s  Star Model of Organizational Design  has been that organizational effectiveness is  greatest when there is a fit among the points of the star. In particular, the emphasis has been  designing processes, reward systems, structures, and people systems  that produce the capabilities  that are required for the implementation of the strategy. Fit is important according to the Star  Model because it is required in order to produce the kind of capabilities that provide for  competitive advantage. It occurs when all the points on the star are aligned in a way that support  each other and in combination, support a particular business strategy.