Chapter 21. Managing Research and Development
Research and development (R&D), a topic of utmost importance because of its complexity, encompasses three interrelated elements:
Technology management (identifying opportunities, marketing the product, managing technological innovation, and more)
This chapter focuses mainly on managing the R&D department that has components of these three elements.
Complexity of R&D Management
Research and development management is characterized by:
A multiplicity of projects competing for the same resources
High levels of marketing and technological uncertainty
Complexity in managing employees with a high level of specific expertise
A multiplicity of specializations in various technological areas
Inherent conflicts between the two permanent bottlenecks:
—Marketing and sales personnel
Pressure from customers and management to reduce response times and costs
Continual reduction of the product or technological service life cycle
Improving R&D enhances the firm's value. To achieve this enhancement, there is a need to deal with the main problems faced by R&D management.
Experience with R&D departments demonstrates several typical important problems:
Business thinking and subordination to the market and its needs
Effect of project type on management requirements
Conflict between generic development and specific development
Overspecification and overdesign
Viewing development as a process
Working without a Complete Kit or ...