Gary Pisano

Harry E. Figgie, Jr. Professor of Business Administration, Harvard Business School

BIG IDEAS

• The Science Business
  One of the most powerful forces shaping the economy in the 21st century is the convergence of science and business. Historically, businesses left science to universities and academic research institutes. And, academia left commercialization to businesses. This “division of labor” has begun to erode, as witnessed by sectors such as biotechnology and nanotechnology. In short, science is becoming a business. The fusion of science and business puts us in novel territory and raises a question: can science really be a business? Science creates unique challenges for business that extant models, institutions, approaches, and practices are simply not geared to tackle. For science to be a business, we need to re-think some common and long-held assumptions about business, and we need innovation in the business organizations. The science-based business enterprise of the future will look very different than the 20th century corporation.

SNAPSHOT BIO

Gary Pisano is the Harry E. Figgie, Jr. Professor of Business Administration at the Harvard Business School. Since joining the Harvard faculty in 1988, he has taught both MBA and executive level courses on technology and operations management, operations strategy, competitive strategy, product development, the management of innovation, and health care. He currently serves as chair of the Technology and Operations Management Unit.

Professor Pisano’s research has examined technology strategy, the management of product and process development, organizational learning, and vertical integration and outsourcing strategies. For the past 20 years, Pisano’s research has also focused on strategy, R&D, and competition in biotechnology and pharmaceuticals. His research has led to insights about appropriate licensing, manufacturing, and R&D strategies for biotechnology and pharmaceutical companies. Pisano is a widely published author with over 25 research papers published in such journals as Management Science, Administrative Science Quarterly, and Harvard Business Review. He has also written case studies on such companies as BMW, ITT-Automotive, Intel, Merck, Eli Lilly, and Vertex Pharmaceuticals. He is the author of The Development Factory, a book investigating the strategies and practices leading to superior development performance in biotechnology and pharmaceuticals. Pisano has also written Operations, Strategy, and Technology, with co-authors Robert Hayes, David Upton, and Steve Wheelwright. His most recent book, Science Business: The Promise, The Reality and The Future of Biotech, examines the evolution of the economic and strategic challenges facing the biotechnology sector. The book was released by HBS Press in November 2006.

Professor Pisano has served as an advisor to senior managers at such companies as Amgen, Biogen, Becton Dickinson, Eli Lilly, Johnson & Johnson, Merck, Millennium Pharmaceuticals, Novartis, Pfizer, Roche, Siegfried Pharmaceuticals, State Street Bank, and Teradyne, assisting them in creating business and operating strategies and in improving product development performance. At several of these companies, Professor Pisano has been directly involved with the management team in the implementation of these efforts. In addition, Pisano has served on the Board of Directors and Advisory Boards of a number of start-up companies.

Professor Pisano holds a Ph.D. from the University of California, Berkeley and B.A. in economics from Yale University.

A Closer Look at Gary

FOCUS AREAS
What's on Gary's current research agenda?

Gary’s current research focuses on two areas:

• The first is a continuation of his past work on science-based business and the themes of his book, Science Business. He is also looking beyond biotech and pharmaceuticals to understand differences across science-based businesses, and the implications for management.
• The second stream relates to the first, but focuses on intellectual property. Clearly, IP occupies center stage in science-based businesses, but it is hard to think of a business where it does not. Gary is particularly interested in the changing strategies for IP. In particular, there is an interesting trend (started with open source software) to make IP public, rather than focusing on protection. Gary’s view is that companies are increasingly using “free” IP as a way to level the playing field where they are weak, and leverage asset positions where they are particularly strong.

ENGAGEMENTS
How have other organizations utilized Gary's expertise, and what's ahead on his schedule?

• Gary is currently working with a biotechnology company on a strategy for their R&D portfolio.
• He’s providing advice and guidance to a major multinational pharmaceutical company on the organization of their research organization.
• He’s also currently working with one of the world’s leading financial services companies on ways they can begin to innovate in their businesses.
• In addition to assisting organizations, creating business and operating strategies and in improving product development performance, Gary has been directly involved with the management team in the implementation of these efforts.

SPHERE OF INFLUENCE
Who shapes Gary's thinking and inspires his work?

Gary is a big fan of the work of Richard Nelson, who he has known for more than 25 years. Dick is one of the pioneers of the field of the economics of innovation, and he has been reading his work since he was an undergrad at Yale. To this day, Dick continues to be highly productive and provocative.

Another influential force in Gary’s life was Alfred Chandler, the business historian from Harvard who recently passed away. Chandler, more than anyone, gets Gary thinking about how organizational innovation and technological innovation go hand in hand, and has been a major theme of his work.

Outside of academia, Gary gets inspired by talking to thoughtful scientists who are trying to run companies or major research operations. He often find that scientists have extraordinarily deep insights about how organizations work (contrary to the prevailing view that scientists are too focused on science and don’t understand management!).

RECOMMENDED READING
What's on Gary's must-read list?

Good Capitalism, Bad Capitalism, and the Economics of Growth and Prosperity, William J. Baumol, et al.

Prophet of Innovation, Joseph Schumpeter

Creative Destruction, Thomas K. McCraw

MIND FUEL
Which blogs, web sites, and industry events does Gary tap into to feed his mind and fuel his creativity?

Gary stays away from the web for his inspiration, he takes an “old fashioned” approach – he goes out and has practical, hands-on experiences with the people who are actually in the field doing the work. Gary finds that if you are a business school academic, then talking to managers about what they are working on and what they are stuck on is probably one of the best ways to generate ideas. He also does some of his best thinking when he is outdoors and just letting his mind run free.

OUTREACH
What are Gary's pressing questions, and on which topics does he seek your feedback?

The most pressing question Gary is asked is what’s going to happen to biotech? Where do you see biotech in 10 years?