Formulationof FunctionalStrategy:R& D, InformationTechnology
Prof.PrashantMehta
NationalLawUniversity,Jodhpur
Formulation of Functional Strategy
Introduction
Marketing Strategy Formulation
Financial Strategy Formulation
Production S...
R & D Strategy
• R&D people perform task that includes transferring complex technology,
adjusting processes to local raw m...
R & D Strategy
• R&D Strategy Emphasize
• Product and Process Improvements
• Stress Basic or Applied Research
• Be a Leade...
R & D Strategy (Externalvs Internal)
• If the rate of technological progress is slow, the rate of market growth is moderat...
R & D Strategy: Implementation
• The first strategy is to be first firm to market new technological products. (Exiting and...
Research& Development Strategies
• LEVEL OF INNOVATION
• Pioneer (Leader) v. Copy Cat (Follower)
• Technological leadershi...
Information Systems Strategies
WORKER PRODUCTIVITY & CONNECTIVITY
• Employees can be networked together across the globe
•...
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Research and Development and Information Technology

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Formulation of R&D and Information Technology Strategy

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Research and Development and Information Technology

  1. 1. Formulationof FunctionalStrategy:R& D, InformationTechnology Prof.PrashantMehta NationalLawUniversity,Jodhpur
  2. 2. Formulation of Functional Strategy Introduction Marketing Strategy Formulation Financial Strategy Formulation Production Strategy Formulation Logistics Strategy Formulation Research and Development Strategy Formulation Information Technology Strategy Formulation Human Resource Strategy Formulation
  3. 3. R & D Strategy • R&D people perform task that includes transferring complex technology, adjusting processes to local raw materials, adapting processes to local markets, and altering products to particular tastes and specifications. • New product development and improvement in old products requires significant resource availability which is always a constraint. • Technological improvements that affect consumer and industrial products and services shorten product life cycle. • R&D strategy ties external opportunity to internal strengths and is linked with objectives. • R&D policies can enhance strategy implementation efforts of the organization.
  4. 4. R & D Strategy • R&D Strategy Emphasize • Product and Process Improvements • Stress Basic or Applied Research • Be a Leader or Follower in R&D • Develop Robotics or Manual-type Processes • Spend High, Average, or Low Amount of Money on R&D • Perform R&D within the firm or Contract it Outside the firm • Use University Researchers or Private Sector Researchers • There must be an effective integration between R&D departments and other functional departments in implementing different types of generic business strategies.
  5. 5. R & D Strategy (Externalvs Internal) • If the rate of technological progress is slow, the rate of market growth is moderate, and there is significant barriers to possible new entrants, then in house R&D is preferred. The reason is that R&D, if successful, will result in a temporary product or process monopoly that the company can exploit. • If the rate of technological progress is rapid, the rate of market growth is slow, then the major effort in R&D may be very risky because it may lead to development of obsolete technology or one for which there is no market. • If the technology is changing slowly but the market is growing quickly, there generally is not enough time for in-house development. The prescribed approach is to obtain R&D expertise on an exclusive or non exclusive basis from an outside firm. • If both technological progress and market growth are fast, R&D expertise should be obtained through acquisition of well established firm in the industry?
  6. 6. R & D Strategy: Implementation • The first strategy is to be first firm to market new technological products. (Exiting and Dangerous Strategy). • The second strategy is to be innovative imitator of successful products, thus minimizing the risk and cost of startup. This strategy involves pioneer firms to develop first version of the new product and to demonstrate that the market exists. Then laggard firms develop similar products. Need excellent R&D personnel and excellent marketing department. • The third R&D strategy is to be low cost producer by mass producing products similar to but less expensive than products recently introduced. Price consideration is important in buying decision. Mass marketing replaces personnel selling. This strategy requires more investment in plant and equipment.
  7. 7. Research& Development Strategies • LEVEL OF INNOVATION • Pioneer (Leader) v. Copy Cat (Follower) • Technological leadership fits well with differentiation • A “follower” strategy makes sense with cost-leader strategies • Are we better at finding applications and customer adaptations than actually inventing something really new? • Different types of R & D (basic, product, process) • Where is the firm’s historic expertise / advantage? • How competent are the R & D Personnel? • ACQUISITION OF TECHNOLOGY • Internally developed v. acquired from outside • Technology “Scouts” • Strategic Technology Alliances • Acquire minority stake in promising high-tech ventures
  8. 8. Information Systems Strategies WORKER PRODUCTIVITY & CONNECTIVITY • Employees can be networked together across the globe • Instant translation software for global firms • “Follow the Sun Management”…pass projects on to the next team SALES & INVENTORY MANAGEMENT • Internet sales and development of customer databases • Instant sales reports allow immediate inventory reorders SHIPPING & TRACKING GOODS • FEDEX PowerShip software…stores addresses, prints labels, etc. • Tracking the progress of package shipment…FEDEX & UPS
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