Development of Concepts for R&D Management R&D in an Individual Enterprise

Strategic Tools and Principles in the 4th Generation R&D Management 2

4th Generation R&D Strategic Tools and Concepts 1.Mutually dependent learning 2.Knowledge channel 3.Competitive architecture 4.Capability development 5.Product and service platforms 6.Innovation cycle 3

4th Generation R&D Strategic Tools and Concepts 1.Mutually dependent learning 2.Knowledge channel 3.Competitive architecture 4.Capability development 5.Product and service platforms 6.Innovation cycle 4

5 Internalization Socialization Combination Externalization From To Tacit Explicit

6 Internalization Socialization Combination Externalization From To Tacit Explicit Analyze observations Create value scenarios from observations: decision Build prototypes to test value scenarios Test prototypes through use, experiences

4th Generation R&D Strategic Tools and Concepts 1.Mutually dependent learning 2.Knowledge channel 3.Competitive architecture 4.Capability development 5.Product and service platforms 6.Innovation cycle 7

The Knowledge Channel 8 Traditional distribution channel The knowledge channel Suppliers Markets Information and knowledge enhanced, alternative times and places Two Way One Way

4th Generation R&D Strategic Tools and Concepts 1.Mutually dependent learning 2.Knowledge channel 3.Competitive architecture 4.Capability development 5.Product and service platforms 6.Innovation cycle 9

Competitive Architecture 1 Broadest overview of a company in the context of the markets in which it competes Includes – customers and their needs – history – products – services – organization – goals 10

Competitive Architecture 2 Includes other companies, too Shows the evolution of the external patterns of competition 11

4th Generation R&D Strategic Tools and Concepts 1.Mutually dependent learning 2.Knowledge channel 3.Competitive architecture 4.Capability development 5.Product and service platforms 6.Innovation cycle 12

Organizational Capability Systems thinking construct that integrates tools, technology, process, and the associated knowledge that people have and create into a manageable unity 13

Organizational Capability Development Model Levels – Operations – Improvement 1 – Improvement 2 14

Three Different Ways of Working and Thinking Operations – Day-to-day work Improvement 1 – Making improvements in the way that we work today Improvement 2 – Making improvements in the way we improve 15

Operations 1 Engaging in day-to-day work in order to get the work done Applying the existing knowledge into practice 16

Operations 2 New platforms applied as product families, products, services, and distribution systems in order to get business results 17

Improvement

Improvement 1 1 For every core business activity, the objective is to make better the performance of that activity 19

Improvement 1 2 Architecture and capability applied to development of product and service platforms 20

Improvement 1 2 Reducing product life-cycle time that would make smarter, faster, and higher quality core operations activities 21

Improvement

Improvement 2 1 Development of new architectures and capabilities 23

Improvement 2 2 The objective is to make Improvement 1 more effective 24

Improvement 2 3 Reducing the cycle time of Improvement 1 Includes discovering the types and contents of cycles that will occur in the future iterations 25

Difference between Improvement 1 and Improvement 2 Improvement 1 – Implementing improvements Improvement 2 – Deciding what method of improvement to implement 26

Difference in Types of Innovation Improvement 1 – Method for continuous innovation Improvement 2 – Method for discontinuous innovation – Creation of new technical disciplines, for example 27

Difference in Types of Knowledge Improvement 1 – Based on knowing what you need to accomplish Improvement 2 – Things that you don’t know that you don’t kow but you need to know – Examples: scenarios that you missed, hidden systems dynamics, new rules of performance and value,… 28

Examples of Improvement 1 Developing new processes and tools through analyses, experimentation, simulation, and practice,… Improvements that are relevant in the short to medium term Human resource management, information systems design and implementation, work process design and redesign, design of work environments,… Management consulting 29

Examples of Improvement 2 Determining latent needs in future years Exploring the full range of future possibilities which may be too abstract and far-reaching to be useful or comprehensible in the Improvement 1 and operations communities Fundamental architectural questions How improving Improvement 1 will be effective in the future environments 30

The Difference Reflected in Managers’ work Improvement 1 – Refining skills in existing processes and practices Improvement 2 – Studying for an MBA degree – Transferring to a new department for learning – Discussing with peers 31

4th Generation R&D Strategic Tools and Concepts 1.Mutually dependent learning 2.Knowledge channel 3.Competitive architecture 4.Capability development 5.Product and service platforms 6.Innovation cycle 32

Product Platform ”A product platform is a set of subsystems and interfaces that form a common structure from which a stream of derivative products can be efficiently developed and produced.” Meyer, M. H. & Lehnerd, A. (1997) 33

Platform Products and R&D Dilemma of innovation – Necessity of addressing a complex and diverse marketplace – Maintaining simplicity in the manufacturing process 34

Cost Saving of Platform Products Sources of savings – Design leverage – Re-use of standard elements Derivative products can be produced even up to 90 % cheaper than non-platform products 35

4th Generation R&D Strategic Tools and Concepts 1.Mutually dependent learning 2.Knowledge channel 3.Competitive architecture 4.Capability development 5.Product and service platforms 6.Innovation cycle 36

The Innovation Cycle 37 Product family and product Product platform Organizational capability Competitive architecture Primary innovations Secondary innovations

The Innovation Cycle Competitive architecture development and capability development lead to innovations in product platforms and products Use of the new products and the market-place create new conditions and, thus, architecture and capabilities must be re-evaluated 38

Thank you! Acknowledgements Main source: Miller, W. L. & Morris, L. (1999) 4th Generation R&D: Managing Knowledge, Technology, and Innovation, New York, New York, USA, John Wiley & Sons Inc, 347 pages. 39