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Updated R
& D Strategies
April
10, 2007
by
What competitive
R&D strategies will help you move your organization to develop
successful products? This will depend on the type and size of your
organization, its products, and the size of markets. Even large
successful organizations often face considerable difficulty in
maintaining their core strengths, technological edge, and consumer
demand over time. Because of rapid change, factors that lead to initial
success can also play a significant role in decline. For example,
relying on a single technology or a very narrow focus may not be the
best long term R&D strategy. Also, vision, policies,
leadership, strategic R&D focus, competencies, structures, and
corporate culture are also critical in the development of R&D
strategy. A number of possible R&D strategies from my earlier
· New
development driven by market requirements
· Internal
R&D
· Internal
R&D with outside consulting
· Cooperation
with universities
· Purchase
of small technology companies
· Use
of R&D partnerships
· Association
or alliance with local companies
· Copying
a product of a competitor
· Purchasing
of. Patents
· Contracting
for development by R&D firms
· Purchase
of technology from large companies
· Contract
R&D to foreign development organizations
· Purchase
of foreign technology &/or patents
· Use
of high-tech incubators for new R&D organizations
· Government
developed technology or patents
Shorter
product life cycles have caused an increased
need for new R&D which may require revision of existing
R&D strategies.
Major technology management problems currently faced by many
corporations
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 process of deciding on new
R&D
strategies and projects can benefit from objective Market Research. The
previous
Changes in the international environment causing the most difficulty in the implementation of present R&D strategies include the following: government regulations, taxation, IP violations, people shortages, housing costs, turnover, training; increased costs of money, new materials for R&D; advancement of education; short product lifetimes; and market environment changes such as new high tech market shifts. Technology developments needed for competitive new R&D include: development of new computer software such as improved computer-aided software, artificial intelligence, and data quality. Also, to compete in international markets, improved materials and processes are needed for increased performance, tighter tolerances, and lower cost. More efficient management of people and other resources are required for new competitive products. 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. New R&D strategies need to concentrate on making the human element as effective as possible.
Realizing that external environments change, R&D strategies now need to be updated to meet and exceed that of international competition. For example, one should try to remove sustaining engineering and project maintenance from the primary R&D team since they do not have time to do very creative and competitive new R&D and engage in significant competitive sustaining engineering programs. Incremental market-led product innovations are not sufficient when major competitive technological leaps are occurring. A new look at related technologies can be helpful, if not necessary, for competitive R&D to take place. International competition has increased the need for competitive R&D and cost reduction to meet international pricing pressures. There has been 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. Continual product development is an effective, competitive economic weapon. One should aim at continually researching present and new product developments in order to alert the total R&D organization to threats and opportunities associated with new technological shifts. Improved R&D education is also necessary for preparing people for success as new ideas are channeled into more effective R&D strategies for international competition. Small start up organizations need some special care in the development of R&D strategies because of limited resources and the pressing need for commercialization. |
Curt Deckert Associates, Inc. |
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E-mail:curt@cdeckert.com |
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© 2007 Curt Deckert Associates, Inc. Established 1976.