The document outlines the structure and activities of Daimler-Benz's Research and Technology (R&T) department, including the company's historical background and its evolution through mergers. The strategic focus on research and technology emphasizes collaboration and integration across various business units while addressing challenges related to project management and global operations. It details the company’s R&T organization, project types, financing, international research sites, and the importance of technology monitoring and partnerships with universities and research institutions.

1. Somchai Ruangpermpool Tresor Ngassa

2. 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

3. Tresor Ngassa

4. 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.

5. 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

6. 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

7. 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

8. 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

9. Tresor Ngassa

10. R&D in Daimler-Benz Organization Chart Tresor Ngassa

11. 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

12. 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

13. R&T Department The Organizational structure Tresor Ngassa

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

15. 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

16. 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

17. 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

18. 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

19. 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

20. Three Vectors model Tresor Ngassa

21. 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

22. 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

23. 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

24. R&T Functional Organization Tresor Ngassa

25. 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

26. 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

28. Tresor Ngassa

29. 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

30. 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

31. 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

32. Technology Monitoring Six Step Process Tresor Ngassa

33. 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

34. 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

35. 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

36. 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

37. 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

38. 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

39. 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

40. 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

41. Circle Member Group Tresor Ngassa

42. Exchange Group R&T Tresor Ngassa

43. 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

44. 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

45. 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

46. Tresor Ngassa

47. 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

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

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

50. Natural Evolution of International R&D Sites Tresor Ngassa

51. 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

52. 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

53. 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

54. 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

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

56. 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

57. 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

58. 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

59. 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

60. 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

61. 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

62. 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

63. 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

64. 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

65. 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

66. 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

67. 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

68. 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

69. 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

70. Theory and Practice Tresor Ngassa

71. 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

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

73. 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

74. 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

75. 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

76. 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

77. 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

78. 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

79. Tresor Ngassa

80. 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

81. 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

82. 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

83. Thank you Tresor Ngassa