Industrial sector is transforming from vertical integration to horizontal structure. So far this transformation has taken place in manufacturing, but now it’s the turn for R&D to make a paradigm shift. The restructuring trends of manufacturing predict the future of R&D to be focused, financially independent, universally expanded and distributed.
In 2003 with their article titled Reorienting R&D for a Horizontal Future Downey, Greenberg and Kapur illustrated that a horizontal structure of development in all industrial disciplines is required because of emerging markets, cost cutting needs and globalization. Collaborative networks in a decentralized environment are produci ng better results because of flexibility and cost reduction. R&D is spreading across the globe for faster development and unique innovations. Building block structure is getting popular in R&D because it is more manageable and focused.
In a challenging market environment after manufacturing now companies are eyeing to reduce the development cost where R&D needs to justify its existence as an independent profit center with increased productivity and reduced operational costs. This can only be achieved through collaboration and trade-offs. Formation of horizontal collaborative network is challenging because it incorporates the issues of adaptability, security, cultural differences, varying standards, trust and ownership. Globalization is pushing R&D to concentrate on global design approach with the design flexibility where products can be tailored as per different geographic markets.
Innovating products in response to market requirements will keep organizations in business whereas knowing their own productivity and capacity will enable them to operate more effectively. Firms can make better investment decisions if they can predict their development cost. This will directly add to the bottom line of the business. In a race to improve the productivity, lower the cost and save time, firms should not forget to retain the expertise of their core competencies. The proper synchronization of global resources must be addressed in order to save time and money. Companies must support the development of innovation management system for future growth.
Companies are decentralizing their R&D units across the globe to extract the time and diversity benefits. Customer centric orientation is most profitable approach for any firm to operate in a competitive environment. R&D is an area where ‘The World is Flat’ theory applies perfectly. World is shrinking with the increasing pace of information technology, and the same time decentralization is making our days longer. In this fast pace environment managing intellectual property is more critical for businesses to keep themselves in the race. Never ending attempts should be made to optimize the development with minimal resources. Flattening the innovation process will result in technological development with greater profits and efficiency.
In 2003 with their article titled Reorienting R&D for a Horizontal Future Downey, Greenberg and Kapur illustrated that a horizontal structure of development in all industrial disciplines is required because of emerging markets, cost cutting needs and globalization. Collaborative networks in a decentralized environment are produci ng better results because of flexibility and cost reduction. R&D is spreading across the globe for faster development and unique innovations. Building block structure is getting popular in R&D because it is more manageable and focused.
In a challenging market environment after manufacturing now companies are eyeing to reduce the development cost where R&D needs to justify its existence as an independent profit center with increased productivity and reduced operational costs. This can only be achieved through collaboration and trade-offs. Formation of horizontal collaborative network is challenging because it incorporates the issues of adaptability, security, cultural differences, varying standards, trust and ownership. Globalization is pushing R&D to concentrate on global design approach with the design flexibility where products can be tailored as per different geographic markets.
Innovating products in response to market requirements will keep organizations in business whereas knowing their own productivity and capacity will enable them to operate more effectively. Firms can make better investment decisions if they can predict their development cost. This will directly add to the bottom line of the business. In a race to improve the productivity, lower the cost and save time, firms should not forget to retain the expertise of their core competencies. The proper synchronization of global resources must be addressed in order to save time and money. Companies must support the development of innovation management system for future growth.
Companies are decentralizing their R&D units across the globe to extract the time and diversity benefits. Customer centric orientation is most profitable approach for any firm to operate in a competitive environment. R&D is an area where ‘The World is Flat’ theory applies perfectly. World is shrinking with the increasing pace of information technology, and the same time decentralization is making our days longer. In this fast pace environment managing intellectual property is more critical for businesses to keep themselves in the race. Never ending attempts should be made to optimize the development with minimal resources. Flattening the innovation process will result in technological development with greater profits and efficiency.
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