Somchai Ruangpermpool Tresor Ngassa

Outlines R& T Department Structure and Activity Company overview Management of a large R&T Management of International R&T Activity Features of global R&T activity International R&T sites Lessons learned Conclusion Tresor Ngassa

R& T Department Structure and Activity

Company overview

Management of a large R&T

Management of International R&T Activity

Features of global R&T activity

International R&T sites

Lessons learned

Conclusion

Tresor Ngassa

Daimler-Benz History Benz Established in 1871 by Benz and Cie Manufactured automobile and internal combustion engine in brand of Benz Daimler Established by Gottlieb Daimler and his partner Wilhelm Maybach in 1890 Manufactured automobile and internal combustion engine in brand of DMG Tresor Ngassa Formally merged on June 28, 1926 becoming Daimler-Benz and agreed that, all the factories would use the brand name of Mercedes-Benz on their automobile.

Benz

Established in 1871 by Benz and Cie

Manufactured automobile and internal combustion engine in brand of Benz

Daimler

Established by Gottlieb Daimler and his partner Wilhelm Maybach in 1890

Manufactured automobile and internal combustion engine in brand of DMG

In 1998 Daimler-Benz merged with the American automobile manufacturer, Chrysler corporation and formed DaimlerChrysler The company produces car and truck under the brands Chrysler, Dodge, Jeep, Mercedes-Benz, Smart and Maybach Daimler-Benz History (cont.) Tresor Ngassa

In 1998 Daimler-Benz merged with the American automobile manufacturer, Chrysler corporation and formed DaimlerChrysler

The company produces car and truck under the brands Chrysler, Dodge, Jeep, Mercedes-Benz, Smart and Maybach

T otal revenues of € 151.6 billion s in the year 2006 33 % was generated by the Mercedes Car Group 31 % by T he Chrysler Group 19 % by the Truck Group 9 % by the Financial Services division an d 8 % by the Van, Bus, Other segment. DaimlerChrysler employed more than 360,000 people worldwide. Through most of its history, Chrysler has been the third largest of the “BIG 3” US auto makers, In Jan 2007, DaimlerChrysler excluding its luxury Mercedes and Maybach lines outsold traditionally 2 nd placed Ford, though behind Toyota DaimlerChrysler 2006 Figures Tresor Ngassa

T otal revenues of € 151.6 billion s in the year 2006

33 % was generated by the Mercedes Car Group 31 % by T he Chrysler Group 19 % by the Truck Group 9 % by the Financial

Services division an d 8 % by the Van, Bus, Other segment.

DaimlerChrysler employed more than 360,000 people worldwide.

Through most of its history, Chrysler has been the third largest of the “BIG 3” US auto makers,

In Jan 2007, DaimlerChrysler excluding its luxury Mercedes and Maybach lines outsold traditionally 2 nd placed Ford, though behind Toyota

Daimler-Benz Corp. In fact, there are 23 business in four divisions Passenger car Commercial vehicles Aerospace Services (railway system, microelectronics etc.) Its revenue 75 percent from automobile Tresor Ngassa

In fact, there are 23 business in four divisions

Passenger car

Commercial vehicles

Aerospace

Services (railway system, microelectronics etc.)

Its revenue 75 percent from automobile

R&T adjustment 1980s-1990s Tresor Ngassa Time Business Situation/Strategy R&T Adjustment 1980s – Early 1990s External Growth Technology Acquisition Establish itself as an major “ Integrated technology group” Many R&D departments added along with the acquired companies Middle 1990s Concentration on specific competencies and competitive strengths Non-strategic business sold Assessment of R&T Impact Redundancy detected Non-productive internal competition All R&T units are brought under centralized control Render R&T as the Strategic technological weapon for Daimler-Benz competitive future

External Growth

Technology Acquisition

Establish itself as an major

“ Integrated technology group”

Many R&D departments added along with the acquired companies

Concentration on specific competencies and competitive strengths

Non-strategic business sold

Assessment of R&T Impact

Redundancy detected

Non-productive internal competition

All R&T units are brought under centralized control

Render R&T as the Strategic technological weapon for Daimler-Benz competitive future

Tresor Ngassa

R&D in Daimler-Benz Organization Chart Tresor Ngassa

R & D in Daimler-Benz One of the highest spender on R&D worldwide (in 1997 about US$ 5.4 billion ) Conducting p roduct development , advanced development and fundamental research But not heavily conducted in basic R&D Development is exclusively carried out by business units (account for US$5.1 billion) R&T is clearly separated from the organization point of view Tresor Ngassa

One of the highest spender on R&D worldwide (in 1997 about US$ 5.4 billion )

Conducting p roduct development , advanced development and fundamental research

But not heavily conducted in basic R&D

Development is exclusively carried out by business units (account for US$5.1 billion)

R&T is clearly separated from the organization point of view

R&T department Overview Centralized for all business units and cover research activities for a wide range of potential products. Their responsibilities Support all business units and Daimler –Benz in term of technological strategies through networked and knowledge based cooperation within business units Had budget of US$280 billion coming from two sources. Tresor Ngassa

Centralized for all business units and cover research activities for a wide range of potential products.

Their responsibilities

Support all business units and Daimler –Benz in term of technological strategies through networked and knowledge based cooperation within business units

Had budget of US$280 billion coming from two sources.

R&T Department The Organizational structure Tresor Ngassa

R&T Projects Types and Financing sources Tresor Ngassa Corporate Projects Business Units Projects

R&T Activities Projects types Business Units Projects Corporate Projects Short-term projects Business oriented Aims Transferring new and mature technology to BU Support in the development of technological strategies Examples mature technology for Passenger car commercial vehicles, microelectronics railway system. Long term projects Strategic technology creation applicable in several business areas Aims: Give a competitive technological advantage Examples Multimedia, Satellite based navigation and communication Environmental production processes Tresor Ngassa

Business Units Projects

Corporate Projects

Short-term projects

Business oriented

Aims

Transferring new and mature technology to BU

Support in the development of technological strategies

Examples

mature technology for Passenger car

commercial vehicles, microelectronics

railway system.

Long term projects

Strategic technology creation applicable in several business areas

Aims:

Give a competitive technological advantage

Examples

Multimedia,

Satellite based navigation and communication

Environmental production processes

R&T management : How to make it works ? What is the yardstick of R&T? Successful transfer of research results to the business Since R&T aim to be integral part of business units therefore Scientific know how of employee is crucial and This know how can be sustained via the networks Tresor Ngassa

What is the yardstick of R&T?

Successful transfer of research results to the business

Since R&T aim to be integral part of business units therefore

Scientific know how of employee is crucial and

This know how can be sustained via the networks

R&T management : How to make it works ? Key success factors for industrial research were identified Close interaction with internal customers at divisions Goal-oriented and time-managed projects based on these areas. A culture for employees that cooperate over departmental boundaries is essential for success. The entire value-creation process had to be support by the use and integration of IT Tresor Ngassa Project Management Corporate Culture Supporting Technology

Key success factors for industrial research were identified

Close interaction with internal customers at divisions

Goal-oriented and time-managed projects based on these areas.

A culture for employees that cooperate over departmental boundaries is essential for success.

The entire value-creation process had to be support by the use and integration of IT

Two core process were identified Technology strategy, innovation planning, project work, transfer of results. Measure agree upon are : Technology management and research know-how are now united Cooperation with business units will be determined in individual organization agreement The process transfers will dealt with separately. Staff selection, staff development, staff transfer : Critical success factor for R&T and technology transfer are Skilled Motivated employees. R&T management : How to make it works ? Tresor Ngassa

Two core process were identified

Technology strategy, innovation planning, project work, transfer of results. Measure agree upon are :

Technology management and research know-how are now united

Cooperation with business units will be determined in individual organization agreement

The process transfers will dealt with separately.

Staff selection, staff development, staff transfer : Critical success factor for R&T and technology transfer are

Skilled

Motivated employees.

First core process The main goal Reinforced integration of R&T in defining the overall technology strategy of Daimler-Benz and the innovation strategy of the business units. Transition of all research programs into research projects Concentration of distinct capabilities in research laboratories designated as competency center that serve to consolidate internal and external knowledge Tresor Ngassa

Reinforced integration of R&T in defining the overall technology strategy of Daimler-Benz and the innovation strategy of the business units.

Transition of all research programs into research projects

Concentration of distinct capabilities in research laboratories designated as competency center that serve to consolidate internal and external knowledge

Three Vectors model Tresor Ngassa

Problems and Solutions in R & T Set of Problems I It is more difficult to cooperate between different business area than between different sites Project members are engaged in several projects or function . And different locations do increase coordination problems. Spatially dispersed project management has to deal with the following problems . Coordination cost Information cost Project management cost are higher and must be accounted for accordingly Tresor Ngassa

Set of Problems I

It is more difficult to cooperate between different business area than between different sites

Project members are engaged in several projects or function . And different locations do increase coordination problems.

Spatially dispersed project management has to deal with the following problems .

Coordination cost

Information cost

Project management cost are higher and must be accounted for accordingly

Problems and Solutions in R & T (cont.) Solution for set I Project must be identified properly at the beginning phase At individual level, project managers should be educated in Human Resources Management and cultural management +++ People with technical knowledge, managerial talent and good networking skill are generally hard to find Tresor Ngassa

Solution for set I

Project must be identified properly at the beginning phase

At individual level, project managers should be educated in Human Resources Management and cultural management

+++ People with technical knowledge, managerial talent and good networking skill are generally hard to find

Problems and Solutions in R& T (cont.) Set of problems Problem II External partners within Daimler-Benz are considered as competition. The NIH syndrome occur between different location. Solution II The new structure with labs as competence centers. Each lab has research focus. The labs form a resource pool for project team, so that matrix problem can be solved. Lab are clustered with R&T directors managing the cluster. Tresor Ngassa

Set of problems Problem II

External partners within Daimler-Benz are considered as competition.

The NIH syndrome occur between different location.

Solution II

The new structure with labs as competence centers. Each lab has research focus.

The labs form a resource pool for project team, so that matrix problem can be solved.

Lab are clustered with R&T directors managing the cluster.

R&T Functional Organization Tresor Ngassa

R&T Department Classification of Projects Tresor Ngassa Project type Project volume Number of projects Approved by Reviewed by A projects > DM 16 millions ~30 CTO, KAMs, other R&T directors CTO, KAMs, other R&T directors B projects DM 5-16 millions ~ 100 KAM KAM C projects <DM 5 millions ~ 240 KAM Lab Director

International research expansion International of R&D encompass more than establishing R&D site oversee, its activities included Cooperation in projects with the leading universities worldwide Cooperation with specialized research institutes Strategic cooperation with other companies, or in international research program Participation in high-tech venture-capital funds. Participation in sponsorship programs. Tresor Ngassa

International of R&D encompass more than establishing R&D site oversee, its activities included

Cooperation in projects with the leading universities worldwide

Cooperation with specialized research institutes

Strategic cooperation with other companies, or in international research program

Participation in high-tech venture-capital funds.

Participation in sponsorship programs.

Tresor Ngassa

Global R&T Management Major Issues Organization of soft and informal means Building of a global mind-set for R&T employees Intrinsic difficulties of international R&D operations Different languages and cultures High costs Long project execution times Geographical distances Interfunctional differences Tresor Ngassa

Organization of soft and informal means

Building of a global mind-set for R&T employees

Intrinsic difficulties of international R&D operations

Different languages and cultures

High costs

Long project execution times

Geographical distances

Interfunctional differences

R & T Organization Special features Five features support global R&T operations at Daimler-Benz Technology Monitoring Research Project Coaching Circle Member Group Exchange Group R&T Research Auditing Tresor Ngassa

Five features support global R&T operations at Daimler-Benz

Technology Monitoring

Research Project Coaching

Circle Member Group

Exchange Group R&T

Research Auditing

Technology Monitoring In 1990 Daimler-Benz establish a technology observation unit to systematize its global technology monitoring Mission: Maintain and strengthen the technological competitiveness of the business areas Tasks: Conduct a business oriented analysis of relevant technological developments Support corporate or business specific technology strategy development Tresor Ngassa

In 1990 Daimler-Benz establish a technology observation unit to systematize its global technology monitoring

Mission:

Maintain and strengthen the technological competitiveness of the business areas

Tasks:

Conduct a business oriented analysis of relevant technological developments

Support corporate or business specific technology strategy development

Technology Monitoring Six Step Process Tresor Ngassa

Technology Monitoring Six Step Process Identify customers and their needs Design of a monitoring plan Information acquisition Data Storage Analysis of the material Dissemination Customers are potentially all Daimler-Benz employees Scientists want detailed technical data, executives require technical overviews/business news Tresor Ngassa

Identify customers and their needs

Design of a monitoring plan

Information acquisition

Data Storage

Analysis of the material

Dissemination

Customers are potentially all Daimler-Benz employees

Scientists want detailed technical data, executives require technical overviews/business news

Technology Monitoring Six Step Process Identify customers and their needs Design of a monitoring plan Information acquisition Data Storage Analysis of the material Dissemination Plan which includes: Technology fields to be monitored Information sources Available resources Tresor Ngassa

Identify customers and their needs

Design of a monitoring plan

Information acquisition

Data Storage

Analysis of the material

Dissemination

Plan which includes:

Technology fields to be monitored

Information sources

Available resources

Technology Monitoring Six Step Process Identify customers and their needs Design of a monitoring plan Information acquisition Data Storage Analysis of the material Dissemination Formal sources Patents / Licenses Publications Press Releases Business news Informal sources Personal networks Reverse engineering Electronic resources Electronic databases Netsurfing Others sources Tresor Ngassa

Identify customers and their needs

Design of a monitoring plan

Information acquisition

Data Storage

Analysis of the material

Dissemination

Formal sources

Patents / Licenses

Publications

Press Releases

Business news

Informal sources

Personal networks

Reverse engineering

Electronic resources

Electronic databases

Netsurfing

Others sources

Technology Monitoring Six Step Process Identify customers and their needs Design of a monitoring plan Information acquisition Data Storage Analysis of the material Dissemination Computerized databases which play the role of knowledge database Tresor Ngassa

Identify customers and their needs

Design of a monitoring plan

Information acquisition

Data Storage

Analysis of the material

Dissemination

Computerized databases which play the role of knowledge database

Technology Monitoring Six Step Process Identify customers and their needs Design of a monitoring plan Information acquisition Data Storage Analysis of the material Dissemination Identification of substitutes and competing technologies Analysis of the activity patterns of competitors, suppliers, and customers Benchmarking of internal technology Tresor Ngassa

Identify customers and their needs

Design of a monitoring plan

Information acquisition

Data Storage

Analysis of the material

Dissemination

Identification of substitutes and competing technologies

Analysis of the activity patterns of competitors, suppliers, and customers

Benchmarking of internal technology

Technology Monitoring Six Step Process Identify customers and their needs Design of a monitoring plan Information acquisition Data Storage Analysis of the material Dissemination Depends on the results of the analysis Briefings for executive board Evaluations/reports for senior management and expert groups Presentations and Workshops are carried out Tresor Ngassa

Identify customers and their needs

Design of a monitoring plan

Information acquisition

Data Storage

Analysis of the material

Dissemination

Depends on the results of the analysis

Briefings for executive board

Evaluations/reports for senior management and expert groups

Presentations and Workshops are carried out

Research Project Coaching Daimler-Benz established commercial project controlling in R&T in 1991. Consist of project coaches who act as service providers. Have grown from 11 to 40 coaches (as in 1997) Tasks: Introduce project management (knowledge, instruments) Establish project controlling processes Focus: Strategic or special R&T projects Projects susceptible to (or having) particular problems Tresor Ngassa

Daimler-Benz established commercial project controlling in R&T in 1991.

Consist of project coaches who act as service providers.

Have grown from 11 to 40 coaches (as in 1997)

Tasks:

Introduce project management (knowledge, instruments)

Establish project controlling processes

Focus:

Strategic or special R&T projects

Projects susceptible to (or having) particular problems

Circle Member Group CMG* is an information network of distinguished scientists. 23 members (1996)from a broad range of disciplines and different parts of the world. Each member has a mentor within Daimler-Ben They are expected to: Demonstrate in-depth appreciation for international state-of-the-art developments Bring along excellent contacts to others institutes worldwide Activities: Tresor Ngassa

CMG* is an information network of distinguished scientists.

23 members (1996)from a broad range of disciplines and different parts of the world. Each member has a mentor within Daimler-Ben

They are expected to:

Demonstrate in-depth appreciation for international state-of-the-art developments

Bring along excellent contacts to others institutes worldwide

Activities:

Circle Member Group Tresor Ngassa

Exchange Group R&T Tresor Ngassa

Exchange Group R&T Benefits and Financing Benefits: Development and production profit from personal know-how and expertise of researchers Central research recruit former “customers” who know particular needs of business units Engender greater customer orientation among research personnel Financing: Tresor Ngassa

Benefits:

Development and production profit from personal know-how and expertise of researchers

Central research recruit former “customers” who know particular needs of business units

Engender greater customer orientation among research personnel

Financing:

Research Audits A network of research auditors (60+) who evaluate project or research fields The research auditing system applies T otal Q uality M anagement principles to research Objectives: Get direct feedback concerning quality and competitiveness of Daimler-Benz research activities Give to executives a feeling of where they stand in the international scientific community and what the demand is for innovation Justify the costly in-house research Tresor Ngassa

A network of research auditors (60+) who evaluate project or research fields

The research auditing system applies T otal Q uality M anagement principles to research

Objectives:

Get direct feedback concerning quality and competitiveness of Daimler-Benz research activities

Give to executives a feeling of where they stand in the international scientific community and what the demand is for innovation

Justify the costly in-house research

Research Audit The process Four or five research audits are carried out each year The audit is performed by a group of ten experts: 5 business managers from Daimler-Benz manufacturing division – “The customers” 5 outside scientists – The independent experts Criteria of evaluation Technology attractiveness Expertise of researchers Market potential Management strategy Tresor Ngassa

Four or five research audits are carried out each year

The audit is performed by a group of ten experts:

5 business managers from Daimler-Benz manufacturing division – “The customers”

5 outside scientists – The independent experts

Criteria of evaluation

Technology attractiveness

Expertise of researchers

Market potential

Management strategy

Tresor Ngassa

Tresor Ngassa International R&T Sites Location Two Strategic Reasons in the choice of a location: Proximity to Market Collocation with principal markets and customers Facilitate the learning and understanding of the needs of downstream functions and customers requirements Presence in Hot-spots Few places where critical knowledge and know-how is created Stay up to date with the latest technology developments

Two Strategic Reasons in the choice of a location:

Proximity to Market

Collocation with principal markets and customers

Facilitate the learning and understanding of the needs of downstream functions and customers requirements

Presence in Hot-spots

Few places where critical knowledge and know-how is created

Stay up to date with the latest technology developments

Activity of International Research Site Depending on the purpose, international sites carry on 3 different activities: Representing Monitoring / Listening Research Tresor Ngassa

Depending on the purpose, international sites carry on 3 different activities:

Representing

Monitoring / Listening

Research

International Research Sites Representing & Monitoring Original Research Hot Spot Market Proximity Tresor Ngassa

Natural Evolution of International R&D Sites Tresor Ngassa

Listening Posts Small teams : 3 to 10 people Missions Technology Monitoring: Observation of key technology areas and identification of new trends Establishing Research Cooperation Establishing and maintaining expert networks Technology and market intelligence service Location Tokyo Boston Moscow Tresor Ngassa

Small teams : 3 to 10 people

Missions

Technology Monitoring:

Observation of key technology areas and identification of new trends

Establishing Research Cooperation

Establishing and maintaining expert networks

Technology and market intelligence service

Location

Tokyo

Boston

Moscow

Tokyo Listening Post (1990) Reasons of the Location: Monitoring of the Japanese automobile market Japan is a strategic market for Daimler-Benz Get pre-market, first-hand data Improve Daimler-Benz competitiveness Tresor Ngassa

Reasons of the Location:

Monitoring of the Japanese automobile market

Japan is a strategic market for Daimler-Benz

Get pre-market, first-hand data

Improve Daimler-Benz competitiveness

Tokyo Listening Post General Information 10 employees (in the beginning): 3 German and 7 Japanese people Each member is specialized in a technology field Each member build his specific network Activities and Financing Basic Monitoring financed by the central R&T dept Additional projects are paid by the client Tresor Ngassa

10 employees (in the beginning):

3 German and 7 Japanese people

Each member is specialized in a technology field

Each member build his specific network

Activities and Financing

Basic Monitoring financed by the central R&T dept

Additional projects are paid by the client

Tokyo Listening Post Basic Monitoring Keeping Track of daily life in Japan Outcome : A Newsletter Tresor Ngassa Sources Entities monitored Newspapers Automobile manufacturers Press conferences Automobile suppliers Annual reports Industry associations Research reports Research institutions Conferences Governmental agencies

Tokyo listening Post The Newsletter The process of the newsletter Tresor Ngassa

Tokyo Listening Post Additional Projects Identify a research institution/researcher to work on the problem of the client Making contact and/or facilitating a visit of the client Tresor Ngassa

Identify a research institution/researcher to work on the problem of the client

Making contact and/or facilitating a visit of the client

Very long and complex process to establish contact with Japanese institution A full week of preparation for each day spent in a Japanese institution by a Daimler researcher Lifetime lasting contact A deep understanding of the Japanese culture is indispensable , especially for reading “between lines” Tokyo Listening Post Cultural/Country specificities Tresor Ngassa

Very long and complex process to establish contact with Japanese institution

A full week of preparation for each day spent in a Japanese institution by a Daimler researcher

Lifetime lasting contact

A deep understanding of the Japanese culture is indispensable , especially for reading “between lines”

Boston Listening Post Set up in 1992 Reason: Presence of excellent research institutions/universities (especially MIT) After the opening of Palo Alto in 1995, the Boston group was spun off into a consulting company Tresor Ngassa

Set up in 1992

Reason: Presence of excellent research institutions/universities (especially MIT)

After the opening of Palo Alto in 1995, the Boston group was spun off into a consulting company

Moscow Listening Post Founded in 1992 with six employees One German and five Russians Try to establish contacts with research institutions and companies Fields of interests: Material sciences, Information science and Mathematics Tresor Ngassa

Founded in 1992 with six employees

One German and five Russians

Try to establish contacts with research institutions and companies

Fields of interests: Material sciences, Information science and Mathematics

Moscow Listening Post The results Having an influential figure of the Russian science community appeared to be decisive A lot of activities didn’t result in a direct benefit However the discovery of a titanium alloy with good welding characteristics was a major achievement Tresor Ngassa

Having an influential figure of the Russian science community appeared to be decisive

A lot of activities didn’t result in a direct benefit

However the discovery of a titanium alloy with good welding characteristics was a major achievement

Moscow Listening Post Cultural/Country specificities Erratic reception of western visitors by research institutions Short relationship duration once the contact is established Difficult integration of a research center with the local scientific community Tresor Ngassa

Erratic reception of western visitors by research institutions

Short relationship duration once the contact is established

Difficult integration of a research center with the local scientific community

Establishing Listening Posts Lessons Learned The pre-requisite characteristic for working in a technology liaison office are: Colorful and hyperactive personalities Not shy and not afraid of high-ranking counterparts Generalist in terms of scientific/technical background Broad engineering background Rather in his fifties than thirties Tresor Ngassa

The pre-requisite characteristic for working in a technology liaison office are:

Colorful and hyperactive personalities

Not shy and not afraid of high-ranking counterparts

Generalist in terms of scientific/technical background

Broad engineering background

Rather in his fifties than thirties

Listening Posts Reviewing the efforts Task description is often vague Can be partly based on the outcomes Number of reports Timeliness Accuracy Expenses/impact is very hard to estimate One big hit can finance the program for 10+ years Cost of the offices should be put into perspective to the overall R&D investments . Tresor Ngassa

Task description is often vague

Can be partly based on the outcomes

Number of reports

Timeliness

Accuracy

Expenses/impact is very hard to estimate

One big hit can finance the program for 10+ years

Cost of the offices should be put into perspective to the overall R&D investments .

Research Centers There are two types of research centers: Research center for local development support Follow a market-driven internationalization The Shanghai Institute of Metallurgy (China) The Portland Vehicle Systems center (USA) Research center for technology sourcing Pure research in hot-spots The Daimler-Benz R&T center in Palo Alto (USA) The Daimler-Benz Research Center India Tresor Ngassa

There are two types of research centers:

Research center for local development support

Follow a market-driven internationalization

The Shanghai Institute of Metallurgy (China)

The Portland Vehicle Systems center (USA)

Research center for technology sourcing

Pure research in hot-spots

The Daimler-Benz R&T center in Palo Alto (USA)

The Daimler-Benz Research Center India

Research for local development support The Shanghai Institute of Metallurgy It’s a Joint venture founded 1995 to support Temic Fields : “electronic packaging” (microelectronics) Frequent exchange between Chinese and German scientists. Portland Vehicle Systems Established in 1996 to support Freightliner Fields: Vehicle System Technology Tresor Ngassa

The Shanghai Institute of Metallurgy

It’s a Joint venture founded 1995 to support Temic

Fields : “electronic packaging” (microelectronics)

Frequent exchange between Chinese and German scientists.

Portland Vehicle Systems

Established in 1996 to support Freightliner

Fields: Vehicle System Technology

Research for technology sourcing Daimler-Benz R&T center in Palo Alto Set up 1995, originally technology listening post in the Silicon Valley, a crucial hot spot Fields : Transportation, communications and related technologies Objectives: Help Daimler-Benz in accelerating acquisition of cutting-edge technology Help intellectual exchange flourish between US research universities/institutions and Daimler-Benz Tresor Ngassa

Set up 1995, originally technology listening post

in the Silicon Valley, a crucial hot spot

Fields : Transportation, communications and related technologies

Objectives:

Help Daimler-Benz in accelerating acquisition of cutting-edge technology

Help intellectual exchange flourish between US research universities/institutions and Daimler-Benz

Research for technology sourcing Daimler-Benz R&T center in Palo Alto Activities Original research conducted jointly by scientists, US researchers, host scientists and engineers from Daimler-Benz Foster relevant research at universities and independent research institutions Encouraging promising proposals and ideas Publishing a newsletter Not the retrieval of the information that is vital but the selection Tresor Ngassa

Activities

Original research conducted jointly by scientists, US researchers, host scientists and engineers from Daimler-Benz

Foster relevant research at universities and independent research institutions

Encouraging promising proposals and ideas

Publishing a newsletter

Not the retrieval of the information that is vital but the selection

Research for technology sourcing Daimler-Benz R&T center India Founded in 1997 in Bangalore, a new hot spot Fields: Information technology and communication research (software sector) Objectives Be a bridgehead for the Indian scientific community, research institutions and software industry Benefit from the cost advantages of India to serve the needs of Daimler-Benz in Asian Tresor Ngassa

Founded in 1997 in Bangalore, a new hot spot

Fields: Information technology and communication research (software sector)

Objectives

Be a bridgehead for the Indian scientific community, research institutions and software industry

Benefit from the cost advantages of India to serve the needs of Daimler-Benz in Asian

Daimler-Benz R&T center India How It Works? 50 scientists headed by an Indian scientist Integration of Indian scientists in Daimler-Benz research projects Including sponsoring of PhD dissertations and Master theses Contract out entire projects to Indian Institutes and others research companies Reverse engineering Aims at shortening development cycles Tresor Ngassa

50 scientists headed by an Indian scientist

Integration of Indian scientists in Daimler-Benz research projects

Including sponsoring of PhD dissertations and Master theses

Contract out entire projects to Indian Institutes and others research companies

Reverse engineering

Aims at shortening development cycles

Theory and Practice Tresor Ngassa

Theory and Practice

International R&T Five Ideal Structures Tresor Ngassa Configuration Organizational Structure Behavior structure Ethnocentric centralized R&D Centralized R&D National inward orientation Geocentric centralized R&D Centralized R&D International external orientation Polycentric decentralized R&D Highly dispersed R&D, Weak center Competition among independent R&D units R&D hub model Dispersed R&D, Strong center Supportive role of foreign R&D units Integrated R&D network Highly dispersed R&D, Several competence center Synergetic integration of international R&D units

International R&T Five Ideal Structures Tresor Ngassa Daimler-Benz configuration

competition cooperation high low Dispersion of internal competencies and knowledge bases Polycentric decentralized R&D Integrated R&D Network Ethnocentric Centralized R&D Geocentric Centralized R&D International R&T Structures Classification Tresor Ngassa

Strengths High efficient due to coordination of R&D Avoidance of redundant R&D Exploitation of all available strength Realization of synergies Weaknesses High costs of coordination and time Danger of oppression of creativity and flexibility through central directives Behavior Orientation Decentralized R&D tightly controlled by center R&D center R&D center has technology lead Global coordination of R&D direction and budget R&D hub model Tresor Ngassa

Strengths

High efficient due to coordination of R&D

Avoidance of redundant R&D

Exploitation of all available strength

Realization of synergies

Weaknesses

High costs of coordination and time

Danger of oppression of creativity and flexibility through central directives

Behavior Orientation

Decentralized R&D tightly controlled by center R&D center

R&D center has technology lead

Global coordination of R&D direction and budget

What we have learned Organizational Structure R&T reorganized due to the new strategy to position itself as major integrated technology group. Each unit has a scope and activity focus , which reduce intersection and redundancy and increase mutual interdependence . However hierarchical and functional distances restrict creativity and hinder efficient communication Tresor Ngassa

R&T reorganized due to the new strategy to position itself as major integrated technology group.

Each unit has a scope and activity focus , which reduce intersection and redundancy and increase mutual interdependence .

However hierarchical and functional distances restrict creativity and hinder efficient communication

What we have learned Project process and Management Established cross boundaries project platform and IT to support increasing demands on flexibility and dynamics in corporate innovation Research project coaching needed The responsibilities and competencies of project manager and the team members must be clearly defined at the outset The good practices of project management must become the standards in R&D activities. Standardization Tresor Ngassa

Established cross boundaries project platform and IT to support increasing demands on flexibility and dynamics in corporate innovation

Research project coaching needed

The responsibilities and competencies of project manager and the team members must be clearly defined at the outset

The good practices of project management must become the standards in R&D activities. Standardization

What we have learned Knowledge acquisition and sharing Maintaining networks and sustainably support informal linkages to tap knowledge Keep abreast with world leading technology and customer needs Culture specifics awareness should be emphasized Mechanisms Technology monitoring Circle Member Group Exchange Group R&T Tresor Ngassa

Maintaining networks and sustainably support informal linkages to tap knowledge

Keep abreast with world leading technology and customer needs

Culture specifics awareness should be emphasized

Mechanisms

Technology monitoring

Circle Member Group

Exchange Group R&T

What we have learned Reviewing and Auditing Reviewing is a must-have. The main benefit is: Projects and researches are on par with the worldwide state of the art Research Audit address several issues Make sure that quality is embedded in project and technology management. Evaluate the research activity and the relevance of the research programs Justify the heavy R&T investments Tresor Ngassa

Reviewing is a must-have. The main benefit is:

Projects and researches are on par with the worldwide state of the art

Research Audit address several issues

Make sure that quality is embedded in project and technology management.

Evaluate the research activity and the relevance of the research programs

Justify the heavy R&T investments

Tresor Ngassa

Conclusion The reorganization and reorientation of R&D towards business units and downstream customer is not completed and remains a continuous challenge . Some work of R&T should always be removed from direct market contact in order to guarantee radical innovation and completely new business opportunities . Tresor Ngassa

The reorganization and reorientation of R&D towards business units and downstream customer is not completed and remains a continuous challenge .

Some work of R&T should always be removed from direct market contact in order to guarantee radical innovation and completely new business opportunities .

Conclusion Merge with Chrysler Nowadays, after merging with Chrysler, Chrysler corporate research department merged with the Mercedes Care Group’s product development department to Form the new Board of Management Department “Group Research and Development Mercedes Car Group” More closely integrated their research , predevelopment and development activities and effectively focused on development of final product . New department continue to function as a research competence center for the entire group. But is assuming more responsibility for predevelopment activities of all automotive divisions. Still expand international R&D sites . Tresor Ngassa

Nowadays, after merging with Chrysler, Chrysler corporate research department merged with the Mercedes Care Group’s product development department to Form the new Board of Management Department “Group Research and Development Mercedes Car Group”

More closely integrated their research , predevelopment and development activities and effectively focused on development of final product .

New department continue to function as a research competence center for the entire group.

But is assuming more responsibility for predevelopment activities of all automotive divisions.

Still expand international R&D sites .

Lessons Learned Applicable for other countries? France Overall organization Special Features People mindsets Country specifics Cameroon Overall organization Special Features People mindsets Country specifics Thailand Overall organization Special Features People mindsets Country specifics Tresor Ngassa

France

Overall organization

Special Features

People mindsets

Country specifics

Cameroon

Overall organization

Special Features

People mindsets

Country specifics

Thailand

Overall organization

Special Features

People mindsets

Country specifics

Thank you Tresor Ngassa

Thank you