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R&D Management projects

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Elalami Chaimaa

on 29 March 2014

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Transcript of R&D Management projects

I- Definition
II- The changing nature of r&d management
III- Management models
IV- Associations and communities

R&D Management projects
Plan :
Introduction :
The management of research and development was, and in some cases still is, viewed as a form of insurance policy. Those companies that did not perform any R&D were regarded as either poor or irresponsible
Definition of R&D:
The Frascati Manual (2002) gives the following definition:

Research and experimental development
(R&D) comprise creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications.
FRASCATI MANUAL 2002 – ISBN 92-64-19903-9 – © OECD 2002
Concepts of R&D management:
R&D management

is the discipline of designing and leading R&D processes, managing R&D organizations, and ensuring smooth transfer of new know-how and technology to other groups or departments involved in innovation*
R&D management

can be defined as where the tasks of innovation management meet the tasks of technology management **
* Chiesa, V. (2001). R&D Strategy and Organisation, Imperial College Press
** Brockhoff, Klaus (1994). Forschung und Entwicklung. Oldenbourg
Synthesis of definition
R&D management is the process and techniques used to control the amount of money and effort invested in research and development (R&D) projects. The primary concepts used in R&D management include oversight committees, cost accounting, project management and product life cycle management. R&D management is most commonly seen in the manufacturing, scientific and product development sectors. Companies in these industries must dedicate resources to research and development as part of a long-term management strategy.

The first aspect of R&D management is to determine which projects to pursue. For example, a pharmaceutical company can evaluate the market for skin cream that fights wrinkles and decide that there is sufficient consumer interest in the product to make it profitable. The R&D management team will then review the options and ask the scientists to explore the possible solutions.

Management models
Few dedicated management models for R&D exist. Among the more popularized ones are :

Third generation R&D management
The Development funnel
The Phase–gate model
Third generation R&D management
Some companies are now moving to a mode of R&D management that is both purposeful and strategic. In this third-generation R&D, general managers and R&D managers work as partners to pool their insights in deciding what to do and why and when to do it, given the needs of each business and of the corporation. They realistically assess costs, benefits, and risk/reward, and they balance these variables within a portfolio of R&D activity that best fulfills the purposes of the corporation as a whole.
Third-Generation R&D Management, Philip A. Roussel, Kamal N. Saad, and Tamara J. Erickson
Third generation R&D management
Seven Key Practices
How can CEOs and R&D managers assure themselves that their organizations are developing and institutionalizing practices consistent with third-generation management? The experience suggests that seven key practices will help manage the process effectively:
A common vocabulary
Objectives, Priorities, and Resources
A process for setting priorities
A Backlog of Ideas
Aggressive Project Design
Planning, Reporting, and Controlling
Appropriate Project Teams
Roussel et al. (1991). Third generation R&D. HBS Press.
Development funnel :
The process of a new product development funnel consists of five major stages:
A Phase–gate model, also referred to as a phase–gate process, is a project management technique in which an initiative or project is divided into stages or phases, separated by gates. At each gate, the continuation of the process is decided by a manager or a steering committee. The decision is based on the information available at the time, including the business case, risk analysis, and availability of necessary resources.
The Phase–gate model
Phases :
1. Scoping
2. Build business case
3. Development
4. Testing and validation
5. Launch

(1993). Winning at New Products: Accelerating the Process from Idea to Launch (2 ed.). Cambridge, Massachusetts: Basic Books. ISBN 978-0-201-56381-8.
Associations and communities
• RADMA, a R&D management society based in the UK,
• IAMOT, the Int'l Association for the Management of Technology
• R&D and Innovation in China

Conclusion :
Research and Development plays a critical role in the innovation process. It’s essentially an investment in technology and future capabilities which is transformed into new products, processes, and services.
The changing nature of r&d management:
R&d activities have changed dramatically since 1950, the past 10 years have witnessed enormous changes in the way companies manage their technological resources and in particular their research and development, there are numerous factors that have contributed to these changes, rothwell and zegveld(1985) identify three important factors.

Technology explosion
Shortening of the technology cycle
Globalisation of technology
Rothwell, R. and Zegveld, W. (1985) Reindustrialisation and technology, longman, London.
Objective :
When we will complete this presentation you will be able to :

Recognise what is R&d management
Recognise the changing nature of R&D management
And, have a very good idea about management models.

Bibliography :
Webography :
Full transcript