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Merck Anaysis

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Merck (in 2009): Open for Innovation?
The pharmaceutical company undergoes new drug advances, conflicting regulatory laws, and tough economic situations. With all these pressures evolving, Merck & Company felt the need to pursue open innovation strategy because the biotech company is too complicated to navigate on its own. There is so much useful information within and outside of company that would be great advantage to the company. Creating new partnerships, discovering new technological trends and classifying new business opportunities are the leading strategic reasons to take part in open innovation. An open innovation strategy allows companies to contribute ideas from external sources quicker than ideas created contained by its own company. Merck’s sole purpose behind using open innovation is keep his pharmaceutical company is to stay competitive. An open innovation strategy would allow the company to source new ideas externally and at a faster rate. While Merck had been moving toward an open innovation strategy, he has to convince his company and their leaders to embrace research and development from other research organization and universities. It is obvious that Merck should pursue an open innovation strategy for the company to overcome challenges.
Open innovation lets many people from dissimilar disciplines to challenge the same problem at the same time and not consecutively. In collaborative technology, it can save lots of time. It takes a lot of time to come up with ideas of your own so using other people ideas will help save time and quicker to retrieve information. When many people are working on the same problem, it will take less time to solve it. Open innovation reduce the innovation cycle and dramatically decreases the cost of research and development. Working for a company may have people to have the same ideas, so we can tap into the knowledge

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