Management Strategy for Technological
Development
By Curt Deckert, PhD, CMC.
Adapted from the following
reference: OE
REPORTS, October 1990
During the past decade, the efficiency of research and development has
become a significant issue because of international competition,
shorter product life cycles, and increasing R&D cost.
Prior to U.S. and international accelerated technology development
during the 1940s, technical developments were relatively slow. There
has traditionally been little tough, critical, systematic analysis and
comparison of R&D strategy, policy, and implementation. Many
R&D managers are unable to select from alternative strategies
that have been thought out, experienced, articulated, analyzed, or
debated clearly. In general, values, facts, and predictions are often
not complete, and optimum R&D strategies have not been
implemented or even clearly identified. The increasing importance of
future U.S. research and development for international markets drove my
study on R&D management strategies. I received well over 100
significant responses to the "R&D Strategy Questionnaire" sent
to 680 key people having R&D responsibilities. The primary
research questionnaire results reflect the diversity of present
strategic thought about technological development.
The results of the primary research survey are shown in the following
table. All respondents were asked to evaluate each strategy and rate
its effectiveness on a -10 to +10 basis where +10 is the most effective
strategy. The summary results indicate clearly that some strategies are
much better than others. Respondents were also asked what strategies
they use in their R&D. That data is presented by percent of
respondents using the strategy. Then each strategy is ranked by
frequency of use. The high frequency of use correlated with the higher
ratings for most strategies, but those with high frequency of use, but
low ratings indicate considerable dissatisfaction with that strategy.
(See table for these evaluations and rankings.)
|
Primary
R&D Strategy Survey Results
R&D Strategies for Development of
Technology |
Strategy Evaluation Totals (best
+10 & worst -10) |
Percent of Co's Making Use of
Strategy |
Strategy Ranking by Frequency of
Use |
|
New development driven by market
requirements |
1016 |
66 |
1 |
Internal R&D |
851 |
66 |
1 |
Internal R&D with outside
consulting |
736 |
50 |
2 |
Cooperation with universities |
363 |
40 |
3 |
Purchase of small U.S. technology
companies |
468 |
31 |
4 |
Copying a product of a competitor |
131 |
21 |
5 |
Purchase of foreign technology &/or
patents |
113 |
20 |
6 |
Contracting for development by U.S. R&D
firms |
127 |
17 |
7 |
Use of R&D partnerships |
196 |
14 |
8 |
Association or alliance with U.S.
companies |
221 |
14 |
8 |
Purchasing of U.S. patents |
149 |
13 |
9 |
Purchase of technology from large U.S.
companies |
151 |
10 |
10 |
Contract R&D to foreign development
organizations |
132 |
8 |
11 |
Use of high-tech incubators for new R&D
organizations |
192 |
8 |
11 |
U.S. government developed technology or
patents |
54 |
6 |
12 |
Major technology management problems currently faced by U.S. business
include rapid application of technology to get to the correct market
quickly and effectively; international competition including labor
cost, subsidies, technology drain, and other factors. The survey also
indicated that user training and functional literacy of the technology
workforce, and manufacturing and quality processes were in need of
improvement relative to foreign competition.
From the survey technology developments needed to help R&D
include: development in computer software such as improved
computer-aided software, artificial intelligence, measurement of data
quality, increased computer power, and improved CAD/CAM at lower cost.
This response exceeded that for improved materials and components for
increased performance and lower cost, but many respondents questioned
the need for new R&D development tools.
More efficient management of people is indicated indirectly by
respondents questioning the need for new R&D development tools.
The attention given software was probably biased because of its
widespread in high technology companies. It is known that more
efficiency in R&D is needed for successful competition in an
international market, but much of it is still dependent upon the
creative human element. Encouragement of and focus on making the human
element more valuable and useful should be a high priority relative to
application of technology to aid the R&D process.
Realizing that external environments change, R&D strategies
need to be updated to meet future international competition. Changes in
the environment causing the most difficulty in the implementation of
present R&D strategies include the following: government
regulations, taxation controls such as expensing R&D, people
shortage, housing cost, turnover, and training; increased costs of
money and material for R&D; advancement of technology and
education; short product lifetimes; and market environment changes such
as high tech substitutions and market shifts. Overseas competition has
specifically affected the need for R&D and cost reduction
through international pricing pressure.
Shorter product life cycles have also caused a drastically increased
need for revision of R&D strategies. In the future, both
engineering and marketing should agree on all specifications after
demonstrating that there is at least one
way to satisfy them. Manufacturing must also participate in the
establishment of overall R&D strategy. Sustaining engineering
and project maintenance should be removed from the primary R&D
team since they do not have time to do
R&D and engage in significant sustaining engineering programs.
There is a great deal of external and internal restructuring going on.
To stay at the forefront of technology, companies need to make
consistent investments in new R&D. Incremental market-led
product innovation is not sufficient when major competitive
technological leaps are occurring.
Continual product development is an effective, competitive economic
weapon. One should aim at staying ahead of present new product
developments in order to alert the total business to threats and
opportunities associated with new technological shifts. Improved
R&D education can also provide for success as it is channeled
into more effective future R&D strategies.
