A business model for biotechnology enterprises in South Africa

D.Comm.The mission of the research is to design a South African biotechnology business model that could be widely embraced by various biotechnology enterprises. The business model advises biotechnology enterprises on the applicable strategy to follow and addresses both internal and external factors important to biotechnology enterprises. Contrary to common beliefs, biotechnology has been utilised for thousands of years. The biotechnology markets in the United States, Europe, Canada and Asia/Pacific are increasingly moving operations beyond country borders to achieve business efficiency. A South African biotechnology strategy has been drafted and various organisations have been established to assist with the development of the industry. Aligning the information technology and knowledge management strategy to the overall business and operational strategies is crucial. The model information technology infrastructure will integrate key administrative, clinical and financial data and make it available to all researchers during the life-cycle, but in such a way that the speed-to-market for the new products being developed is much faster. Information technology outsourcing and grid computing have emerged as key solutions to solve shortage of information technology skills and generate vast capacity in the industry. Knowledge management forms the foundation of biotechnology organisations. The biotech culture must foster knowledge transfer and sharing. Employees in return must foster the behaviour created by the culture, and must importantly work in groups such as communities of practice to achieve applicable goals. Technology is the enabler of the knowledge management process and the corresponding architecture must allow the people to follow the culture of a knowledge sharing and transfer culture. The strategic management process of a biotechnology organisation is critical. Collaboration activities in the biotechnology industry have increased substantially over recent years to represent a contemporary management issue that needs to be managed by the strategic management process. Innovative biotechnology organisations will stay ahead by introducing new products prior to their rivals and consolidate a strong market position by adopting corporate and collaborative growth strategies. The aim of the empirical research is to identify the respondents' views on a number of strategic factors crucial to a biotechnology organisation and how it will influence the business model. Externally, market conditions, biotech categories and regulatory conditions influence the market outlook for South African biotech enterprises. Internally, information technology, knowledge management, human resources, enterprise structure, customers, productivity and growth strategies influence the shape of the enterprise. Based on all of these factors, recommendations are made to the industry on the external and internal factors of a business model and on specific areas that require further research