Horizontal R&D management

Abstract

Technology-based corporations are facing a different business environment in the 1990s. This new business climate is being driven by complex, horizontally managed organizations and decision processes; global technology development; shorter product life cycles; increased R&D costs and risks; and limited resources. Global surveys of major technology-based companies have indicated that there is a poor linkage between technology and business strategies. The poor linkage results when decision makers view R&D management as a vertical process under the responsibility of the head of R&D. To achieve cost effective innovation in the 1990s, R&D management must be viewed as one of the strategic core processes of the corporation and be managed as a horizontal process with cross-functional representation. Corporations must re-engineer their R&D management process based on the needs of their internal and external customers. A six step process is presented as the next generation of R&D management. This organizational transition is very difficult because it will redefine roles and responsibilities of key decision makers. Success will be a function of the methodology and organizational factors considered in this re-engineering effort.<>