Chapter3 R&D Introduction

8/3/2019 Chapter3 R&D Introduction

1/28

1

Chapter 3Research & Development


2/28

CHAPTER OUTLINE

2

Definition of R&D

Basic concepts in R&D and R&D management

Technology creation through R&D

Categories of R&D

R&D needs

Funding for R&D
http://images.search.yahoo.com/search/images/view?back=http://images.search.yahoo.com/search/images?_adv_prop=image&va=scientist&sz=all&ei=UTF-8&fr=yfp-t-501&b=1&w=256&h=171&imgurl=www.sciencelives.com/graphics/scientist.jpg&rurl=http://www.sciencelives.com/conflict.html&size=11.4kB&name=scientist.jpg&p=scientist&type=jpeg&no=12&tt=267,857&oid=ff756c393f4beeea&ei=UTF-8


3/28

Processes in R&D management

Stages of technology development

Generic technology portfolio model

Problems in implementing R&D

Establishment of R&D unit in organizations

Human Resource Management in R&D

3


4/28

Definition of R&D

4

Any creative systematic activity done in orderto increase the stock of knowledge, including

knowledge of man, culture and society, andthe use of this knowledge to devise new

applications.


5/28

Apa-apa aktiviti kreatif yang sistematik yangdilakukan untuk meningkatkan pengetahuan,termasuk pengetahuan manusia, budaya danmasyarakat, dan menggunakan pengetahuan ini

untuk mencipta aplikasi baru

JTH 3033 Chapter 35


6/28

Technology creation through

R&D

6

Can result either from individual or a groupeffort.

Previously, individual efforts of inventors andtrial & error approaches were dominant modesused to develop technology.

Nowadays, complex organizations involving

many employees have been established toconduct R&D activities & scientific approachesto problem solving has been widely utilized.


7/28

7

Contemporary R&D involves coordinating the

activities of various disciplines to contribute totechnological progress.

A company should engage in R&D to the extentnecessary to create a strong technologyportfolio to support its activities.

A technology portfolio can be selected tosupport all aspectsof the companys technology,

from pure research to development, tomaintaining and embracing existing business.


8/28

Innovation interactive model

8

Latest sciences and technology

advances in society

Idea R&D Manufacturing Marketing CommercialProduct

Needs in society and the

marketplace

TECHNOLOGY PUSH

response

response

MARKET PULL


9/28

Categories of R&D

9

Basically R&D can be categorized into3 major types:

Basic research

Applied research

Development


10/28

Stages of technology

development

10

Basicresearch

Applied

research

Development

Technologyenhancement


11/28

Basic research

11

To gain fuller knowledge or understanding of the subjectunder study

No specific practical aim or application and commercialobjectives

Involves the creation of new knowledge; fundamentallyrisky

Advances scientific knowledge

Essential for new discoveries and the growth ofknowledge

Can either be pure or oriented
http://images.search.yahoo.com/search/images/view?back=http://images.search.yahoo.com/search/images?_adv_prop=image&va=scientist&sz=all&ei=UTF-8&fr=yfp-t-501&b=1&w=175&h=242&imgurl=www.lancs.ac.uk/depts/philosophy/courses/211/scientist.jpg&rurl=http://www.lancs.ac.uk/depts/philosophy/courses/211/100determinism1.htm&size=13.5kB&name=scientist.jpg&p=scientist&type=jpeg&no=1&tt=267,857&oid=ec9f98240a25db88&ei=UTF-8


12/28

Examples of Basic research

12

a) Developed from solar system andexamines how the power in solarreact.

b) Investigation of particle physics;examines how particles in an atom

interact.
http://images.search.yahoo.com/search/images/view?back=http://images.search.yahoo.com/search/images?p=atom&ei=UTF-8&fr=yfp-t-501&x=wrt&w=274&h=267&imgurl=www.csdf.k12.ca.us/student_life/events/01/sciencefair/atom.jpg&rurl=http://www.neowin.net/forum/index.php?act=findpost&pid=586255388&size=16.8kB&name=atom.jpg&p=atom&type=jpeg&no=11&tt=339,703&oid=9fce61697cd9ed64&ei=UTF-8http://images.search.yahoo.com/search/images/view?back=http://images.search.yahoo.com/search/images?p=solar+system+image&ei=UTF-8&qp_p=solar+system&imgsz=all&fr=yfp-t-501&b=161&w=136&h=194&imgurl=static.flickr.com/117/261009841_17dbd14478_m.jpg&rurl=http://www.flickr.com/photos/rlukebryant/261009841/&size=33.3kB&name=261009841_17dbd14478.jpg&p=solar+system+image&type=jpeg&no=171&tt=192,982&oid=bfdfa273e5aa36b4&fusr=Dutyman&tit=The+Solar+System+-+A+minute+speck+in+the+Universe.&hurl=http://www.flickr.com/photos/rlukebryant/&ei=UTF-8&src=p


13/28

Applied Research

13

Utilize the new knowledge developed by the basicresearch to create new products.

Gaining necessary knowledge or understanding

necessary to meet a recognized and specific need

For commercial purposes

Less risks than in basic research

A mix of science and engineering


14/28

Examples of Applied Research

JTH 3033 Chapter 314

a) Solar power system

b) Particle detectors: Medical imaging
http://images.search.yahoo.com/search/images/view?back=http://images.search.yahoo.com/search/images?p=medical+imaging&ei=UTF-8&fr=yfp-t-501&x=wrt&w=274&h=189&imgurl=www.gammex.com/images/Medical_Imaging.jpg&rurl=http://www.gammex.com/Thanks_Registration.htm&size=34.2kB&name=Medical_Imaging.jpg&p=medical+imaging&type=jpeg&no=11&tt=58,925&oid=b8eea93b5de30be2&ei=UTF-8http://images.search.yahoo.com/search/images/view?back=http://images.search.yahoo.com/search/images?p=solar+system+image&ei=UTF-8&qp_p=solar+system&imgsz=all&fr=yfp-t-501&b=161&w=245&h=327&imgurl=www.satellite-provider.pl/images/solar_power_system_2.jpg&rurl=http://www.thuraya.pl/solar_power.html&size=34.2kB&name=solar_power_system_2.jpg&p=solar+system+image&type=jpeg&no=167&tt=192,982&oid=c104538c926926ca&ei=UTF-8


15/28

Development

15

Systematic use of knowledge or understandinggained from research

Directed towards production of useful products orprocesses

Includes the design & development of new orimproved sciences

More of engineering rather than science

Connecting a link between research and thecommercial use of ideas


16/28

Examples of Development

16

a) Roof solar, solar modules,

solar water heater, solar car etc.

b) Scan machine
http://images.search.yahoo.com/search/images/view?back=http://images.search.yahoo.com/search/images?p=CAT+scan+machine&ei=UTF-8&fr=yfp-t-501&x=wrt&w=194&h=164&imgurl=bioweb.wku.edu/courses/BIOL115/Wyatt/Current/mriclosed.jpg&rurl=http://bioweb.wku.edu/courses/BIOL115/Wyatt/Current/Cousin_Billy.htm&size=8.9kB&name=mriclosed.jpg&p=CAT+scan+machine&type=jpeg&no=17&tt=65&oid=8be16b4785499e62&ei=UTF-8http://images.search.yahoo.com/search/images/view?back=http://images.search.yahoo.com/search/images?p=solar+roof&ei=UTF-8&fr=yfp-t-501&x=wrt&w=737&h=553&imgurl=image.ec21.com/image/hero7979/oimg_GC00613882_CA00613891/solar_water_heater_for_inclined_roof.jpg&rurl=http://hero7979.en.ec21.com/GC00613882/CA00613891/solar_water_heater_for_inclined_roof.html&size=144.3kB&name=solar_water_heater_for_inclined_roof.jpg&p=solar+roof&type=jpeg&no=14&tt=17,240&oid=8414ac1e4fbf99da&ei=UTF-8http://images.search.yahoo.com/search/images/view?back=http://images.search.yahoo.com/search/images?p=solar+roof&ei=UTF-8&fr=yfp-t-501&x=wrt&w=200&h=201&imgurl=www.grist.org/news/muck/2005/06/23/solar_roof.jpg&rurl=http://www.grist.org/news/muck/2005/06/23/little-solar&size=22.4kB&name=solar_roof.jpg&p=solar+roof&type=jpeg&no=3&tt=17,240&oid=90789e86d5d95d68&ei=UTF-8


17/28

Technology enhancement

17

Continuous effort by scientist & engineers tosupport and improve existing or developing

technology.

Aims to improve performance parameter of the

technology, lengthen the technology life cycle &foster incremental innovations.


18/28

R&D needs

18

Jain & Triandis (1990) proposed the followingR&D needs:

Normative needs

Comparative needs

Forecast needs


19/28

R&D needs

19

Normative needs

Research is directed towardsatisfying the needs of the user,the user being primary or follow-onbeneficiary of the research

product.

Forecast needs

Research is driven by the forecastof changes in technology,products, consumer behaviour ornew regulations.

Comparativeneeds

Research is driven by the need tostay in the race with competitors.


20/28

Establishing R&D unit inorganizations

20

The organization must first determine its levelof technology.

The R&D unit established must be clear on theorganizations specific goals and objectives; aswell as its technology portfolio, products andinternal processes.

Normally the unit is led by a technologist with astrong background in the field related to theorganizations technology portfolio.
http://images.search.yahoo.com/search/images/view?back=http://images.search.yahoo.com/search/images?p=scientist+image&ei=UTF-8&fr=yfp-t-501&x=wrt&w=566&h=633&imgurl=www.physics.uq.edu.au/people/people/amanda/images/mad_scientist_1.gif&rurl=http://www.physics.uq.edu.au/people/people/amanda/images&size=9.9kB&name=mad_scientist_1.gif&p=scientist+image&type=gif&no=16&tt=267,920&oid=2770eeaeb1f129c4&ei=UTF-8


21/28

HRM in R&D

21

Special attention must be given to these issues:

The effects of technological change on the skillrequirements of the workforce

Matching & training the skilled workforce to meet therequirements of new technologies

Obsolescence of professional staff and the continuingneed for professional development activities.


22/28


23/28

Funding for R&D

23

Currently there are 2 known methods forfunding R&D activities in organizations:

R&D is supported as an overhead (OH) expense.

R&D is supported as an investment.


24/28

R&D as OH expense

24

Management considers R&D as a necessary cost ofthe business.

Suitable for projects directed toward knowledgebuilding; which exploratory or basic research isundertaken as necessary in technology portfolio.

LIMITATION: difficult to determine the appropriate levelof funding that will not cause a problem to a companysfinancial status.


25/28

R&D as investment

25

Funds are allocated to R&D on the basis of thecompanys traditional financial criteria justifying capitalbudgeting.

Most common as Return on Investment (ROI)

ROI is suitable for justifying R&D projects at the

downstream end, when uncertainty of outcome isreduced or eliminated.


26/28

Role of R&D: Business view

26

R&D and its link with

businesses

R&D for existing businesses

Defend, support and

expand

Ensure the business able tocompete and exploit all

opportunities availability

Drive new businesses

Business opportunities

arise

Exploratory research

Broaden & deepen

technological capability

Develop understanding oftechnology that the business is

using or may use


27/28

Problems in R&D

27

Scientists becoming managers

Inappropriate organizational structures

Business oriented research: Scientists as salesmen

De-emphasis on long-term research

Failure to transfer research

Increasing financial pressures

Frequency of meetings


28/28

References

Tarek Khalil, 2000. Management of Technology: The key tocompetitiveness and wealth creation, McGraw-Hill InternationalEdition, Singapore.

Harrison, N. and Samson, D.,2002. Technology Management: Text andInternational Cases, McGraw-Hill Irwin, US.

Betz, F., 2003. Managing Technological Innovation: competitiveadvantage from change, John Wiley & Sons, US.

Betz, F., 1987. Managing Technology: Competing Through NewVentures, Innovations, and Corporate Research, Prentice-Hall, US

White, M.A. & Bruton, G.D. (2007). The management of technology andinnovation: A strategic approach, Thomson South-Western, US.

28

Chapter3 R&D Introduction

Documents

Transcript of Chapter3 R&D Introduction