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Corporate R.& D. as the Ringmaster of Innovation
Its role will be smaller and its advantage diminished, suggests Michael Schrage, a research fellow at the Center for Digital Business at the Sloan School of Management at M.I.T. The idea-production process, according to Mr. Schrage, will continue to shift away from the centralized model epitomized by large corporate labs, going from “proprietary innovation to populist innovation.”
Chez les développeurs, trop de connexions freine l'innovation
Viktor Mayer-Schönbergeren est persuadé, dans le futur "nous verrons apparaître des poches d’équipes réduites avec moins d’interconnections et un mode de pensée moins grégaire". Elles pourront ainsi prendre plus de risques et s’aventurer à essayer des solutions plus radicales. Il est également urgent de réintroduire une certaine compétition entre les différentes équipes de développement. Et de faire évaluer les projets non par des pairs - comme c’est l’usage - mais par un panel d’experts évoluant dans des domaines légèrement en retrait de celui étudié.
P&G's New Innovation Model
The model works. Today, more than 35 percent of our new products in market have elements that originated from outside P&G, up from about 15 percent in 2000. And 45 percent of the initiatives in our product development portfolio have key elements that were discovered externally. Through connect and develop—along with improvements in other aspects of innovation related to product cost, design, and marketing—our R&D productivity has increased by nearly 60 percent. Our innovation success rate has more than doubled, while the cost of innovation has fallen. R&D investment as a percentage of sales is down from 4.8 percent in 2000 to 3.4 percent today. And, in the last two years, we've launched more than 100 new products for which some aspect of execution came from outside the company. Five years after the company's stock collapse in 2000, we have doubled our share price and have a portfolio of twenty-two billion-dollar brands.
Microsoft Reinvents Its Global R&D Model
Undoubtedly Microsoft is pioneering the R&D 2.0 model that I discussed in my last post — an organizational model that relies on anthropologists and development economists to first decipher the socio-cultural needs of users in emerging markets like India and then use these deep insights to develop appropriate technology solutions. And it's telling that Microsoft picked India as the epicentre of its global R&D transformation.
Clash of the Mindsets: How Indian And Western Engineers View the World Differently
They pointed out that the biggest hurdle is socio-cultural, as Indian engineers think and act completely differently than their Western colleagues. The former, growing up in a red-hot economy, are animated by a “growth mindset” whereas the latter, operating in mature economies, are stuck in a “settled mindset.” These two opposite approaches clash when they are asked to collaborate on a R&D project. Why? Because Indian and Western engineers completely differ in their:
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1) Reasoning. Unlike Western engineers, who reason with a predicate logic (a statement is either true (1) or false (0)), Indian engineers solve problems using a fuzzy logic (the degree of truth of a statement can range anywhere between 0 and 1).
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2) Problem-solving. Given their average age (mid-20s), Indian engineers belong to the Generation Y, or the Millennials, who learn through hands-on experiments (think video-games) and peer-to-peer interactions (instant messaging anyone?). When solving a problem, these grown-up “kids” harness the multiplicative power of social networking tools to experiment with multiple solutions simultaneously, and select the optimal one based on peer input
How Indian Firms Convert Intellectual Property Into Intellectual Profit
More open-minded Indian firms, on the other hand, are redefining IP as “intellectual partnering.” Rather than reinvent the technology wheel in-house, Indian CIOs and CTOs rely on external providers to address most of their firms’ innovation needs, through IP licensing agreements. Take TCS, India’s largest IT service provider. TCS operates the oldest and largest software R&D lab in Asia. Yet, under the visionary leadership of its CTO Ananth Krishnan, TCS is replacing its closed R&D approach with a networked C&D (Connect & Develop) model. As part of its intellectual partnering strategy, TCS now sources more IP from an external innovation network made up of academic labs, startups, and large software vendors.
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