1. Core Competencies, R&D Management and Partnerships Samuli Hynönen 1.4.2016

2. About the article  Published in 2000  Compilation of ideas on R&D management and establishing partnerships  40 company interviews from US and Europe  No quantitative research  Utilize as a partial checklist and for getting ideas when managing R&D

3. Agenda  Managing R&D: Main problems and possible solutions  Market uncertainty  The competitive environment  Uncertainty over the technological evolution  The internal R&D process  Human resources and culture  The management of technological competencies  University — Industry partnerships  Technological co-operations and partnerships  Cross-departmental, horizontal or inter-functional groups

4. Managing R&D: Main problems and possible solutions

5. Market uncertainty (1/5)  Problems  The definition of customer needs is imprecise and inadequate  The product's attributes or features are only vaguely comprehended  There is an insufficient familiarity with the market's workings  Sale-forces and commercial capacities are structured inappropriately  The distribution network is incomplete  The value chain is poorly organised  Solutions  Collect market data through experts, consultants, and consumer panels  Mobilise cross-departmental or inter-functional groups

6. The competitive environment (2/5)  Problems  Companies are not aware of their competitors’ innovation processes  New entrants may compete with novel technologies or create new market segmentation  Solutions  Establish contacts and long-term relationships with state-owned laboratories, universities, consultants, and research institutes  Interact closely with principal customers

7. Uncertainty over the technological evolution (3/5)  Problems  Lack of knowledge of the future direction of technological development  Lack of intense and quality efforts in this area  Unavailability of necessary competencies and skills  Insufficient interfaces with customers  Teams' inadequateness for the task at hand

8. The internal R&D process (4/5)  Problems  R&D projects may not be relevant to the market situation  Priorities in technological development may change  Infrastructure or technical capacity may be unavailable  Solutions  Interfaces between operational divisions and R&D  Horizontal workgroups

9. Human resources and culture (5/5)  Problems  Culture of R&D and ability to listen to the market  Collective and individual competencies of R&D matching with the needs  Solutions  Acquire competencies externally  Gain access to competencies through co-operation

10. The management of technological competencies

11. University — Industry partnerships (1/3)  Expectations  Interpretation and understanding of the research  Access to expertise and to scientific networks  Understanding of the practical aspects of technological innovation  Proposal of feasible scientific and technological options  Information on scientific and technological trends  Renewal of scientific and engineering skills  Success factors  Strict and unconditional confidentiality  Mutuality of the interests at stake  Continuity in the relationship  Rapid exploitation of results

12. Technological co-operations and partnerships (2/3)  Projects must be coherent with the strategies of each partner  Partners must rely on their internal competencies  Partners take responsibility of the operational management of the partnership  Projects must be related to real activity rather than fundamental research  Business cultures of the partners should be as similar as possible  Partners have comparable level of scientific aptitude  Reputations of the partners should be equivalent

13. Cross-departmental, horizontal or inter- functional groups (3/3)  Characteristics  Formed to solve a problem or propose a solution  Limited life span & evolving composition  Uses and functions  Essential for satisfactory solutions to complex problems  Improve circulation of information  More junior employees may contribute to development activities  Guidelines  Legitimacy derived from senior management  Members should have equal status  Potential customers included  Members should continue their normal operations parallelly

14. Questions & Discussion