-
8/9/2019 Ch-15 Mgmt Control of Research and Development
1/17
Management Control of Research and Development
By Sheetal ThomasDean, GIMT
-
8/9/2019 Ch-15 Mgmt Control of Research and Development
2/17
R& D as a key factor
Many organisations operating in thesectors of Biotechnology,defence,pharmaceuticals, and manufactureof mobile phone devices dependheavily on the success on their R&Doperations.Given the huge investments madeby organisations in R&D it is criticalthat the org. ensure that there isadequate return generated.
-
8/9/2019 Ch-15 Mgmt Control of Research and Development
3/17
Dilemmas in Controlling
Research and DevelopmentLinking R&D Activities to Organisational andcustomer needs. Collection of relevant data from the marketing
function. Integrating R&D with other organisationalfunctions.
Differing time framesDiffering outlooks regarding assessment of newtechnologyLack of available expertise to integrate R&D with theother functionsDisagreement on controlDisinterest in creating the link
Ensuring commercial viability
-
8/9/2019 Ch-15 Mgmt Control of Research and Development
4/17
R&D Project Planning and
controlAn effective plan includes: The technical obj of the R&D function The issues that the R&D function will have to
face during the research and developmentphase
Evaluation methods to be used to verify theresults obtained
The intermediate technical targets that have tobe achieved in order to attain the final
technical objectives The time frame within which those targetshave to be achieved
The budgets required to achieve the targets The people who will be responsible for the
completion of the project
-
8/9/2019 Ch-15 Mgmt Control of Research and Development
5/17
R&D project control
Managers should set immediatetargets
Using R&D assessment systems
-
8/9/2019 Ch-15 Mgmt Control of Research and Development
6/17
V iewing R&D as strategic
infrastructureIt provides a competitive advantagedue to the emphasis on the value of
knowledge, competencies,intangible assets such as brandname etc.Evaluation of the value of strategicR&D should also be done
-
8/9/2019 Ch-15 Mgmt Control of Research and Development
7/17
Impact of culture on R&D and
InnovationNational Culture and R&D Types of research
Basic researchApplied researchDevelopment research
R&D structures
Production structureControl structureEmployment relationship
-
8/9/2019 Ch-15 Mgmt Control of Research and Development
8/17
Cont
Dimentions of national culture Power distance
Uncertainty avoidance Masculinity/ femininity Individualism / collectivism
-
8/9/2019 Ch-15 Mgmt Control of Research and Development
9/17
Organisational culture and
innovationOrganization culture fosteringinnovation
Managerial actions to foster innovativeness Balanced autonomy Integration of technical skills and team
work Personalized recognition/ reward
system
-
8/9/2019 Ch-15 Mgmt Control of Research and Development
10/17
Measurement and control of
R&DTypes of control Financial controls
Behavioral controls Personnel controls
-
8/9/2019 Ch-15 Mgmt Control of Research and Development
11/17
Systems approach to R&D
performance MeasurementComponents of the R&D systemInteraction between the components
of the R&D systemReasons for failure of measurementsystemsConsideration to design effectiveperformance measurement systems
-
8/9/2019 Ch-15 Mgmt Control of Research and Development
12/17
R&D activities and levels of
effectivenessActivities that portray R&Deffectiveness
Levels of effectiveness
-
8/9/2019 Ch-15 Mgmt Control of Research and Development
13/17
Measuring V alue of R&D
Assessing strategic infrastructure Inimitability
Durability Appropriability Substitutability Competitive superiorityV alue from ongoing projects Finding out the NP V of projects
-
8/9/2019 Ch-15 Mgmt Control of Research and Development
14/17
R&D audit
Guidelines for monitoring Set a definite R&D goal Set aside an R&D budget every year Decide the extent of R&D required for an
organisation Select broad research concepts keeping in
mind the organisations technological
capabilities Involve all the employees in the decision
regarding which project should be undertaken Conduct a trail run of the project before
starting the research project on a full scale
-
8/9/2019 Ch-15 Mgmt Control of Research and Development
15/17
Evaluation of R&D activitiesAre the R&D objectives aligned with the overallobjectives of the org.Has the org. allocated specified amount as theR&D budgetAre the details of exp.of each project maintainedseparatelyIs there control in material usageAre the R&D personnel recruited on merit and
competencyDoes the org spend on non commercial R&DAre the R&D activities well coordinated withother functionsDoes the R&D centre have a good library
-
8/9/2019 Ch-15 Mgmt Control of Research and Development
16/17
Management control of new
product developmentStage gate framework Putting stage-gate framework to use Significance of the framework
Balanced scorecard Implementation of balanced scorecard in R&D Integration of balanced scorecard and stage-
gate frameworkFinancial perspectiveCustomer perspectiveInternal business process perspectiveLearning and growth perspective
-
8/9/2019 Ch-15 Mgmt Control of Research and Development
17/17
Concurrent engineering
Concurrent engineering links thedemands of the markets with theperformance of the new productdevelopment function.Types of integrationMethods for achieving integration
Integration through strategy Integration through process Integration through technology Integration through organisation