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As two of his business units were completing their merger, Peter Noll, chief of the Diagnostics division at the Frankfurt-based Scherr Pharmaceuticals, felt it was time to address a nagging issue: The combined entity had no overarching revenue model.

This deficiency had been weighing on him for a year, ever since the merger had been approved by the CEO, the executive team, and the board. Although the two units had similar products, they relied on different strategies to earn their money.