DR. R.K. KHANDALDIRECTOR

POSITIONING THE NEED FOR R&D BUSINESS AND

NETWORKING

SHRIRAM INSTITUTE FOR INDUSTRIAL RESEARCH19, UNIVERSITY ROAD, DELHI - 110007

Outline of Presentation R&D: Dimensions and Degree

R&D: Evolutionary Phases

R&D : Changing Needs

R&D : A Product & A Business

R&D : Global Perceptions

R&D Business : Success factors

Examples of Positioning the Need for R&D Business & Networking

Positioning the need of R&D Business and Networking

Positioning the Need : R&D Business

Examples of R&D success

Examples of R&D success: Green Revolution in India

Examples of R&D success: White Revolution in India

R&D: Increasingly a Global Enterprise

Increasingly difficult to go alone….

Path forward

R&D : Dimensions & Degree

R&D : Dimensions & Degree

Sustainability curve is SS shaped R&D exists at the centre of sustainability curve Dimensions and degree of R&D are determined by the

driving force as also by the criteria of sustainability

EducationSu

st a

inab

i lit

y

Science

R&D Products & Processes

Technology

Innovation

Alternatives

Driving Forces

R&D : Evolutionary Phases

R&D : Evolutionary Phases

Select Hands

Glo

balizati

on

Time Scale

SecretiveClosetedMonopolyWinners &

Loosers

Technology Transfer

Profit-centric Control-

centric Safeguards Obsolete/

State-of-the-art

Winners & loosers

Collaboration

Outsourcing

Multi-centers

Competitive-ness

Multi approach

Multi faceted

Patent regime

Exclusivity

More Winners less loosers

Innovation

Sustainability

Renewable resources

Cooperation rather than competition

All winners no loosers

Global Networkin

g

1950 1970 2008 2020

R&D has evolved along with the globalization

Globalization has helped build R&D capability around the world

Future of R&D: +ve with harmony & cooperation amongst the nations

R&D evolution ultimately enters into era of networking / sharing

1990

R&D : Changing Needs

R&D : Changing Needs

Innovation Local Resources Renewable

Software driven Biochemical Continuous & batch Energy efficient Environment friendly Sustainability

driven Efficiency driven

INPUT

PROCESS

OUTPUT

Beyond 2000

Value addition Customer-driven Cradle to grave

approach Safety focus

Technology Local resources Synthetic

Hardware driven Chemical process Continuous process Energy intensive Profit driven Environment

protection compliance Capacity utilization

Value driven Production driven Little concern for

disposal Lenient on safety

R & D

Before 2000

Changing needs demand for positioning of needs for R&D Business & Networking

R&D : A Product & A Business

Challenge Conceptualization KnowledgeDrive Interactions InnovationTalent Creativity TechnologyTools Research & Development Trouble-shootEnvironment Improvisation Intellectual property

R&D : A Product & A Business

COST I COST II INCOME

INPUT PROCESS OUTPUT

Profitable : Income > Cost I + Cost II

Viable : Income > Cost I

Sustainable : Income = Cost I + Cost II

Successful R&D Business Model : Not-for-Profit Sustainable

Sustainability of R&D as a business must be evaluated differently

R&D as a business is always a gainer on the long-term basis

R&D Business

R&D : Global Perceptions

Challenge

Drive

Talent

Tools

Environ-ment

Border-less R&D with complete networking Positioning the need for R&D business with global view R&D: Driving force for economy & growth with all inclusive

approach Cooperation, collaboration & sharing: a positive networking of

R&D

R&D : Global Perceptions

Global

Local &

Global

Local

Global

Global

Conceptuali-zation

Interactions

Creativity Research

Development

Improvisation

360° approach

Global

Novel

Innovative

Environment friendly

Sustainable

Globally accept-

able

while

being

locally adaptable

Parameters ParametersINPUT PROCESS OUTPUT

R&D Business : Success Factors

R&D Business : Success Factors

Driving Forces Technology

Market know-how

Cost Reduction

Technical know-how Conceptualization

Concentration

Market Leadership

Local knowledge

General guidelines

Market survey

`R&D as a product

Pragmatic R&DManagement methods

Tailor made methods

Effectiveness

Standard tools

Manage historic growth

Clear strategy

Focussed approach

Managerial capability

Implementation of organizational change

Manage Transition Process

Manage change

Retaining key personnel

R&D Business: Success Factors

Control Systems

Positioning the Need Of R&D Business & Networking

For achieving the success, positioning the need of R&D business & networking is like reorienting the R&D

Positioning the Need Of R&D Business & Networking

Product portfolio

Positioning the Need : R&D Business

Business

strategy

R&D

strategy

R&D project portfolio

Target market

Strategic positioning

Technology roadmap

Core technology

R&D BusinessManagement tools R&D locations

CollaborationInternal organizationCommunication tools

+

Networking of R&D leads to successful R&D business

Examples of Positioning the Need for R&D Business & Networking

An example of R&D success: Green revolution in India

• New seeds

• Effective

agrochemicals

• Efficient tools

• Adaptation

• Involvement

• Motivation

Positioning the need for R&D and then realizing the fruits of R&D to achieve the goals

Self reliance in food grains

Networking Success factors

An example of successful networking: White revolution in India

•Community based

•Government

support

•Industry support

•Demand

•Coordination

•Cooperation

Success is contagious speciality when networking is perfect

Networking Success factors

R&D: Increasingly a global enterprise

Projected shares of total world R&D,

2030

United States,17.7%

WesternEurope, 13%

Other West, 7%

Japan, 4%Former USSR, 3%China,

18%

India, 10%

Other Asia,20%

Rest ofWorld, 7%

• R&D is widely recognized as key for competitive advantage, economic growth, wealth and social benefits

• Growing international markets– Global R&D expenditures

will increase ~ 4 times over next 25 years

– US and European shares will decline (US decline from ~40% today to less than 20% in 2030)

– Largest growth in Asia (increase from <30% today to over 50% in 2030)

R&D: Increasingly a global enterprise

Increasingly difficult to go alone...

Increasingly difficult to go alone...

Cooperation and collaboration brings prosperity to all

Path Forward

Path Forward

R&D Business All inclusive No one as looser Sustainability Driven Globally Local

Networking Sharing Global view

Thank You