Imagine for a moment that you were given that responsibility in one of the leading pharmaceutical companies, what’s the first thing you would do?

This was the challenge facing Sergey Zverev (Managing Director, Colombia & Ecuador Cluster at MSD). He enabled intrapreneurs on five different continents to explore ideas for innovative access to Merck’s drugs and vaccines.

Sergey set up a new innovation infrastructure and got to work creating an innovation culture to drive repeatable innovation results. He began fostering an entrepreneurial mindset and implemented new ways of working within Merck’s Emerging Markets.

At MSD, the journey towards innovation isn't just a buzzword—it's a tangible reality driven by the Emerging Markets Innovative Access Studio (EMIAS). The EMIAS was born out of the necessity to nurture transformative ideas aimed at expanding access to MSD's drugs and vaccines. But it wasn't just about brainstorming; it was about rapid experimentation and turning ideas into actionable projects. Sergey emphasized the need to move swiftly from ideation to implementation, acknowledging the all-too-common scenario of projects failing without a clear understanding of why.

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Building an innovation ecosystem from the ground up

In their first year of building an innovation ecosystem, MSD laid down a strong foundation focused on three vital components: Portfolio and framework, Innovation programs, and Exploration culture.

1. Portfolio and framework

In the first year, the focus was on developing volume in the portfolio. This involved creating a structured funnel for innovative ideas originating from both within and outside our organization. Over the course of the year, teams gathered over 180 out-of-the-box commercial models. Through a rigorous selection process guided by Strategyzer’s framework, they honed in on around 30 promising ideas. These ideas were then put through a series of agile sprints to test their viability. While many ideas didn't make it past the initial stages, those that did underwent thorough validation before being integrated back into the organization for exploitation.

2. Innovation programs

The focus on innovation programs was centered on fostering intrapreneurship. EMIAS served as a beacon, inviting ideas from employees across more than 50 markets. Clear communication about the studio's purpose and the time commitment required from contributors was key to its success. By encouraging participation and dedicating resources to nurture these ideas, they ensured a steady flow of innovative concepts ready for exploration.

3. Exploration culture

Lastly, EMIAS dedicated efforts to cultivate an ‘exploration culture’. Through regular assessments, they gauged the innovation-friendliness of their environment. This introspection allowed them to identify areas for improvement and address key blockers that were hindering their experimentation journeys. By fostering a culture of agility and nimbleness, they allowed innovation to progress alongside the core business activities.

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Bringing an innovation ecosystem to life

The message from MSD's leadership was clear:

Innovation isn't a linear path; it's a journey of trial and error. By collecting thousands of ideas and rapidly testing them, MSD aimed to unearth the few gems that would shape the future of their business.”

In order to achieve this, MSD had to put in place the support, the right governance model and allocate sufficient time and resources for the teams to work on ideas. Below is a list of enablers MSD established to help bring their innovation ecosystem to life.

The people

MSD’s journey towards innovation began with a focus on assembling the right team—a team dedicated 100% to the task at hand. Portfolio managers were brought together in a virtual studio, tasked with soliciting ideas from various markets within the emerging regions. These weren't just any ideas. From the outset, MSD emphasized the importance of thinking beyond the status quo, encouraging teams to bring forward ideas that challenged conventional thinking.

The formation of innovation SWAT teams, led by portfolio managers, marked the next phase of the journey. These teams were tasked with taking ideas from conception to execution, embracing an agile approach to experimentation.

Leadership support

It's crucial to secure endorsement and support from top leadership on aligned innovation initiatives. The right team can only fully dedicate themselves to the work if leaders are there supporting them and helping remove institutional blockers that invariably come with large organizations.

Innovation practice

As ideas poured in, innovation SWAT teams were formed, bringing together expertise from across the organization. These teams embarked on a journey of agile experimentation, guided by a robust innovation framework. From discovery sprints to validation and acceleration, every step was carefully designed to de-risk assumptions and move ideas forward.

External innovation coaches

External innovation coaches played a critical role in pushing teams to excel, challenging assumptions and ensuring rigour in the experimentation process. Their presence brought a fresh perspective, helping teams navigate the complexities of innovation with objectivity and confidence.

The governance ethos

With a focus on agility and nimbleness, decision-making was streamlined, allowing ideas to flow freely and progress swiftly through the pipeline. It’s all about fewer layers in the decision-making process. A focus on insights and hypothesis-driven approach to decision-making, enabled leaders to navigate uncertainties efficiently. This simple governance approach paved the way for nine projects to get started with nine teams.

Maintaining objectivity is crucial for fostering adaptability in the face of challenges.

The mindset

Lastly, MSD adopted a test-and-learn mindset, leveraging assumptions-driven approaches to iterate and refine ideas gradually. Remember, innovation is a journey that requires patience and adaptability; don’t expect to do everything in a day. Start small, scale wisely, and tailor your approach to suit the unique needs of your company.

Constant learning should be woven into the fabric of your company culture, with a focus on capturing insights and applying them to future endeavours. You may need to retire ideas not supported by evidence… and that's ok. It’s all a part of the process.

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Key takeaways

Put yourself in Sergey Zverev's position, entrusted with leading innovation initiatives in a top pharmaceutical company. Sergey wasted no time in initiating transformative changes. He promptly laid the groundwork for a dynamic innovation ecosystem and instilled an entrepreneurial mindset within the company. By introducing innovative work practices across Merck's Emerging Markets, he empowered intrapreneurs worldwide to devise inventive solutions for improving access to Merck's vital medications and vaccines. Sergey's visionary leadership not only spurred significant growth but also catalyzed a cultural shift towards innovation, setting a powerful precedent for the company's future endeavours.

Make sure to download our whitepaper where we show the three ways you can make innovation predictable, through a repeatable ecosystem.