8: Organizing R&D and innovation

Question 1

What are typical problems between R&D and production?

Answer 1

• Developments cycles are too long and too expensive

- Late, unplanned changes in product design

Question 2

What are the reasons for the problems in the R&D/Production interface?

Answer 2

• Rigid sequential developments process with little overlapping
• High uncertainty when defining cost and time targets
• Too little flow of information between functions
• Strategic objectives of top management not clear

Question 3

What is the biggest difference between the planned use of resources and the true use of resources in classical development processes?

Answer 3

• It occurs late changes, corrections and bug fixing in the product development phase, which then affects the production phase.

Question 4

How can we solve the R&D/production interface-problems?

Answer 4

• Overlapping development phases
• Matrix organizations
• Cross-functional teams, from different departments.
• Proximity of relevant actors (premises, architecture!)
• Use of suitable communications technologies

Question 5

Souter collected data for 289 product developments at 56 manufacturers. What did the study show?

Answer 5

In the majority of cases (59%), disharmony characterized the interaction between R&D and marketing.

Question 6

What are the reasons for the lack of harmony according to Souder’s study?

Answer 6

•  Differences in language and culture (technical vs. business people)
•  Different objectives
•  Lack of trust in information from other functions
•  Lack of credibility of information source

Question 7

What are Souder’s recommendations for innovation management?

Answer 7

Organization:

•  Split larger projects in sub-projects
•  Early integration of both functions in innovation process 
• Clear definition of competences and responsibilities

People:

•  Open discussions about conflicts and interface problems 
• Support contacts between individuals
•  Integrating task force of management

Question 8

What kind of study did Allen (1977) perform?

Answer 8

Allen (1977) examined the effect of spatial distance on the communication and cooperation of employees in a firm

Question 9

What were the empirical findings from Allen’s study?

Answer 9

• Only within the first 30 meters, distance plays a role for the frequency of communication, i.e. communication only takes place with those colleagues which are closest.
• Communication between groups is significantly lower than within a group.

Question 10

What is so special about traditional architecture?

Answer 10

• Traditional architecture is a linear sequence of offices which maximizes the separation distance.

Question 11

Is vertical segregation good or bad?

Answer 11

•  Empirically, it is found that vertical separation has a more negative effect on communication and cooperation than horizontal separation (Peters, 1969)
•  But many factors may have an influence on this order (location of staircases and elevators, accessibility of these)