TITEL

Prerequisites for a successful multi-product line R&D organization

SPREKER

Sikko Wittermans, senior vicepresident R&D, Océ

TAAL

Nederlands, sheets in het Engels

ABSTRACT

The organization model of R&D activities in most companies is either a dedicated R&D activity per business unit (BU) or a centralized multi-product line R&D, serving several business units. While both models have strong and weak points, there seems to be a trend over the last years towards dedicated R&D activities per BU. The benefits mentioned are focus and dedication of the R&D staff involved on the specific markets and customers served by the BU. However this model also has significant drawbacks leading to inefficiencies in the R&D process caused by the lack of reuse of technology assets, key components and platforms across different product categories, resulting in higher R&D spend per product introduction, lower product reliability and longer time to market.

Through specific choices in the design of the R&D organization and the innovation process it is possible to offset the drawbacks such as lack of focus and dedication in centralized R&D’s, while at the same time achieve an efficient and effective R&D process. To realize this, a simple and flat organization structure in R&D driven by strong integral innovation project management is essential. Also an innovation process that clearly distinguishes between technology/application development, system architecting and system realization is a prerequisite. A multi-product line R&D organization is inherently flexible in economically changing times to quickly reset priorities on R&D programs in line with the new market reality.