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• W229839251 abstract "Over the past decade, R&D management has experienced four waves of productivity improvement. Each one has brought improved understanding of how to pick R&D projects (effectiveness) and how to best carry them out (efficiency). Likewise, measures associated with evaluating and improving the effectiveness and efficiency of R&D performance have changed too. In the early 1990s, U.S. companies faced strong global competition and were under pressure to sustain their level of shareholder return against a successful Japanese new product development system. Japanese products captured large shares of profitable growth markets and built entire new ones. For U.S. CTOs, this made imperative to learn how to improve a company's R&D organization and make oneself a better R&D leader. 1. Re-engineering Drives Incremental R&D first wave of change occurred around 1990 and was driven by a re-engineering initiative that swept through all corporate cost centers. CTOs strove to reengineer all unnecessary costs out of their R&D organizations. Smaller, division-sponsored research programs replaced large corporate R&D budgets. focus was on improving incremental R&D and thereby boosting the company's next-quarter earnings. New or modified metrics were needed to measure results of the new focus. Key questions asked at this time included: When does the corporation receive its money's worth from its R&D dollars? What size organization is required so that only value-adding functions are left? What are the minimum financial targets that should be considered for a product to be introduced? This was clearly an accountant's view of R&D. For this short-term focused, incremental type of R&D project, new product ideas were most likely found by listening closely to customers' stated needs for new features. For process research, scanning the literature for proven new technology to adopt quickly was a successful strategy. Project selection for this class of development was done effectively by using return on investment (ROI) calculations because most of the numbers were known for such short-term work. Customer class A, B and C lists ensured that key relationships were supported, and risk versus capability charts helped to select R&D project portfolios. Project work was characterized by a just do it mentality as incremental research was for the most part easy to define. In knowledge management jargon, researchers and the CTO they knew what to do. Developing metrics for R&D organizations was a big issue during this era. work of Szakonyi, Robb and Leer was built upon by the Industrial Research Institute (RTM's publisher) in its committee and subcommittee work (1-3). From these efforts, was found that the best overall metric for the outcome produced by incremental R&D was to measure divisional financial performance tracked monthly on a control chart. Output metrics included divisional products mapped on a Value Chart, which maps relative costs of products and services produced by differing technologies versus the relative performance (quality, service level, unique design features) of the same technologies. In-process results were shared with executives using monthly progress reports. parties with the most concern and influence over R&D results during this period were divisional general managers and their business teams. 2. Next-Generation R&D Fills the Gap By the mid-1990s, the reengineering phase had passed and most companies were productive when came to incremental research. But at the corporate office, gaps were found between what the divisions said they could produce in revenues and the financial returns the CEO had promised The Street. Next-generation products and services were needed to fill the growing gap. For any one directly involved in corporate R&D, the pressure was on once again to find and develop new product ideas quickly. …" @default.
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• W229839251 date "2003-11-01" @default.
• W229839251 modified "2023-09-28" @default.
• W229839251 title "Measuring R&D in 2003: Developing Meaningful R&D Metrics Is Not Only a Critical Technical Competency but One That Can Be Applied to Other Corporate Functions as Well" @default.
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