...How Matsushita electric and Sony manage global R&D Research Technology Management; Washington; Mar/Apr 1999; Sadanori Arimura Duns:00-891-9813 Duns:69-055-3649 Volume: 42 Issue: 2 Start Page: 41-52 ISSN: 08956308 Subject Terms: Electronics industry Foreign investment R&D Management styles Multinational corporations Case studies Classification Codes: 9179: Asia & the Pacific 1300: International trade & foreign investment 2200: Managerial skills 5400: Research & development 8650: Electrical, electronics, instrumentation industries 9110: Company specific/case studies 9510: Multinational corporations Geographic Names: Japan Companies: Matsushita Electric Corp of America Duns:00-891-9813 Sony Corp Ticker:SNE Duns:69-055-3649 Abstract: As companies transfer their R&D activities abroad, they will have to confront a challenging management issue: how to successfully operate R&D laboratories dispersed around the world. Both Matsushita Electric and Sony seem to have coped with this issue successfully by introducing new management systems and practices - redefining the mission and goals of their global R&D, assigning two types of projects at the same time, rather than specializing projects among different labs, coordinating not by large-scale committees or meeting but through human relationships among a small number of top R&D mangers, drastically changing their organizational structures. It appears that both companies have already realized some...
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...Research and Development: Essential Foundation for U.S. Competitiveness in a Global Economy Our hope is that there will be full employment, and that the production of goods and services will serve to raise our standard of living…Surely we will not get there by standing still, merely by making the same things we made before and selling them at the same or higher prices. We will not get ahead in international trade unless we offer new and more attractive and cheaper products…There must be a stream of new scientific knowledge to turn the wheels of private and public enterprise. (Vannevar Bush, 1945)1 U.S. Basic Research: A Need for Serious National Attention U.S. industry and the Federal Government are the primary pillars of financial support for the U.S. research and development (R&D)2 enterprise. The National Science Board (Board) observes with concern the indicators of stagnation, and even decline in some discipline areas, in support for U.S. R&D, and especially basic research, by these two essential patrons and participants. A decline in publications by industry authors in peer reviewed journals suggests a de-emphasis by U.S. industry on expanding the foundations of basic scientific knowledge. More specifically, research contributions by U.S. industry authors in the physical and biomedical sciences through publications in peer reviewed journals have decreased substantially over the last decade. In addition, in this century the industry share of support...
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...Department of Technology Management and Innovation MG 7953 Global Innovation Fall 2014 Professor: Tom Helling Saturday @ 1:30-6:00 pm (see dates of class per session dates below) Contact Details: th930@nyu.edu 917-593-0946 (mobile) Course Description: This course focuses on the global dimension of technology-enabled innovation. Topics covered include: motivation for a global business outlook, how to proactively access global sources of innovation, coordination and organization of innovation-oriented activities around the world, new product development on a global basis, the role of revitalized global R&D, the growing of prominence of IT, virtual organizations and e-Business, and the increasing role of alliances and linkages with customers, suppliers, and other third parties. Course Structure: This course introduces the latest and most relevant thinking, research and best practices, with an emphasis on learning based on the experiences of actual firms around the world. Individual and team-based project work is an important part of this course. We will be discussing a number of research papers, case studies and relevant reading material during this course. Class interaction is vital to understanding many of the central themes and issues in the area of global innovation. Textbooks: Reverse Innovation, Govindarajan and Trimble, 2012 ISBN-10: 1422157644 ISBN-13: 978-1422157640 The Innovator’s Dilemma, Christensen, 2011 ISBN-10: 0062060244...
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...2010/12/03 The Global Innovation 1000: How the To… Home Magazine About Store Log In / Register Business Literature Financ e Global Perspec tive Innovation Marketing, Media & Sales Operations & Manufac turing Organizations & People Rec ent Researc h Strategy & Leadership Sustainability Thought Leaders ARTICLE TOOLS Auto, Airlines & Transport Consumer Produc ts Energy Healthc are Tec hnology MOST READ MOST E-MAILED adv ertisement strategy+business on Facebook Like Chinmay Sohoni and 15,215 others like this. SHA RE PDF E-MA IL R EPR IN TS PRIN T 1. Current s+b Issue 2. The Power of the Post-recession … Best Business Books 2010 15 Y ears, 50 Classics The Global Innovation 1000: How … Best Business Books 2010: Innova… 3. 4. 5. Sign up for free s+b email new sletters Subsc ribe to s+b Advertise in s+b ONLINE INNOVATION PROFILER For a new assessment tool from Booz & Company, designed to help evaluate your company’s R&D strategy and the capabilities required, visit: www.booz.com/innovation-profiler. RESOURCES Barry Jaruzelski and Kevin Dehoff, “Profits Down, Spending Steady: The Global Innovation 1000,” s+b, Winter 2009: Last year’s study showed that most companies were sticking with their innovation programs in the early stages of the recession — and many were boosting spending to compete in the upturn. Barry Jaruzelski and Kevin Dehoff, “Beyond Borders: The Global Innovation 1000,” s+b, Winter 2008: This study revealed for...
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...VENDOR PROFILE HCL Technologies — Vendor Profile Series for R&D/Product Engineering Services Mukesh Dialani IDC OPINION As HCL Technologies likes to put it, product engineering is in its DNA. Since inception of its group operations more than 30 years ago, the company has invested in creating technology products and offering engineering services to its customers. Until recently, its focus was to position itself as a "technology services provider." IDC believes that in order to scale revenue and utilize its assets more productively, the strategy has changed since the past five to six years to include other IT services offering. As a result, engineering and R&D services now contribute to approximately 26% of HCL Technologies' total revenue. IDC has made the following observations: ! It is commendable to note that revenue for R&D/product engineering services has risen by 40%, while head count has risen only by approximately 24%. This indicates that HCL is successfully optimizing the use of its resources. ! Among its various initiatives, its Global Risk Reward Partnership (GRRP) model is unique and does enable it to create differentiation. However, success of this partnership will be determined by analyzing customer adoption over the next 2–3 years. ! HCL Technologies has created a sound and robust ecosystem consisting of partnerships, alliances with educational institutions, and manpower certification. ! It has acquired more than 270 customers and its top 10 customers contribute...
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...desktop PCs, servers and storage, LCD monitors and high-definition TVs, and handheld/navigational devices. Acer's unique Channel Business Model is instrumental to the company's continued success. The model encourages partners and suppliers to collaborate in a winning formula of supply-chain management, allowing Acer to provide customers with fresh technologies, competitive pricing, and quality service. Established in 1976, Acer Inc. employs 5,300 people supporting dealers and distributors in more than 100 countries. Estimated revenue for 2006 is US$11.31 billion (Acer Annual Report 2005). Stan Shih, the founder and chairman of the Acer group and widely regarded as a high-tech visionary, had a long term vision to transform the Group into a global high-tech corporation. Though fully committed to aggressively pursuing growing segments of the PC market, Acer also began to shift a sizeable portion of its attention and resources to the 3E market – education, entertainment and e-commerce. Newly created ventures in semiconductors, communications and consumer electronics were expected to play an integral role in Acer's strategic growth,...
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...survive! ANALYSIS (Continued) Competitors The competition among 20 vendors is very fierce. Comparison between three typical companies is as follows. revenue($'000) sales spending 25000 51000 revenue per customer($'000) technology sales process customers simple telesales 3300 7.58 WebEx field sales, telesales and enterprise sales sophisticated 23000 4673 440 52.27 Centra enterprise sales; single-source vendors sophisticated 2200 20 110.00 Lotus Not available ANALYSIS (Continued) technology Positioning sophisticated simple revenue per customer ANALYSIS (Continued) Straightforward strategy Market leader in sophisticated end Products from simple to sophisticated R&D capability Rapid growth markets Merger waves The friction between telesales and field sales Bad financial situation Penetration rather than dissemination Limited experience in enterprise deal Success of new competitor, WebEx...
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...China. 1.1.2 Financial Huawei had the financial support from the Export-Import Bank of China and the state-owned Chinese Development Bank. Therefore, Huawei received a US10 billion facility for its international expansion over five years and US$600 million respectively. 1.1.3 Human Resources Huawei was started with only 200 production staff and 500 R&D staff. Until 2005, there were 24,000 employees and 48 percent were worked in R&D. There were more than 85% of Huawei’s employees had a higher degree or bachelors, and about 60 percent owned a PhD or masters, which means the education level of Huawei’s employees were higher than the average workers in China. 1.2 Intangible resources Huawei held more than 8000 patent applications, and 800 were applied in more than 20 countries and territories in 2004. It may enhance the value of its products. There were more than 400 million people communicating in China used Huawei's networks, it had 25 percent market share, and supplied 80 percent of all short messaging services from China Mobile 2. Value Chain 2.1 Inbound logistics Huawei built its strategy based on its own R&D, it put in lots of labor resources and...
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...INDIAN PHARMACEUTICAL INDUSTRY – AN OVERVIEW 1. Overview The Indian Pharma industry is one of the fastest growing sectors with approximately 20,000 manufacturing units. The industry that is highly price sensitive ranks thirteenth in the global pharmaceutical market in value terms and fourth in volume terms. The country has tremendous export potential in the areas like custom synthesis, R&D, clinical trials, and Bioinformatics. The industry produces 60,000 finished medicines and roughly 400 bulk drugs, which are used in formulations with about 20% of the manufacturers in the bulk drugs segment. India has approximately 1% share of global pharma industry, which is worth US$406 billion. This implies that there is a huge market waiting to be unfolded. The figure below explains the evolution of Indian pharmaceutical industry: Figure 1: Progress Of Indian Pharmaceutical Industry Source: Pharmabiz.com (Article by Dr. Laxman Prasad) 2. Industry Structure and Size 2.1 Industry Structure The Indian Pharma industry is highly fragmented and can broadly be classified in to two categories: organized and unorganized sector. Figure 2: Revenues of Organised vs. Unorganised Sector Source: Secondary Research The organized sector contributes about 70% of the total revenues and consists of 260 units in both manufacturing as well as formulation segment. This sector can further be divided into Indian and multinational companies. The unorganized sector is...
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...Student Name : Singh, R. : Hariram, E. : Marimuthu, V.K. Student Number : 20054057 : 20101233 : 19852274 Assignment Title : The Global Pharmaceutical Industry. Date : 10 March 2012 Programme : BTECH-MANAGEMENT IV Question 1 Identify the main environmental forces currently affecting the global pharmaceutical industry? PESTEL analysis of the global pharmaceutical industry: Political * Governments set stringent regulation and is a powerful purchaser. * Governments around the world focus on pharmaceuticals as a politically easy target in their efforts to control rising health care expenditure. * Inter-country pricing disparities. Economic * European free trade agreements. * Deregulation of market to allow foreign drugs to compete. Social * Ageing population puts pressure on healthcare systems. * Epidemic of chronic diseases. * Rising consumer expectations. * Payers choosing generic drugs for first-line treatment of common ailments. Technological * Increase productivity, decrease costs and develop new treatment modalities to enhance profitability. * Impact of Internet on traditional business models. * Impact of genetic research on industry. Environmental * Industry operations are becoming more stringent with increasing standards and requirements for environmental protection. Legal * Rigorous regulatory scrutiny governed by legislation. * Legislation enacted to set a...
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...Characteristics page 4 a) Structure b) Costs c) Demand d) Competition- The Rise of the Generics e) Market Failure, Government Intervention and Price 4) Performance page 7 5) Impact of the Global Economic Downturn page 9 6) Summary page 10 7) Conclusion page 11 Bibliography page 12 8) 1. Introduction This paper briefly examines the current state of the pharmaceutical industry, as well as the economic characteristics, performance, and the impact of the global recession. The industry is made up of several enterprises engaging in the research, development, manufacture and marketing of medicines, vaccines, medical devices, and nutritional products for humans and animals. Though, this multi-billion dollar industry includes large ethical drug multi-nationals (often referred to as Big Pharma), mid-sized specialty pharmaceutical companies, manufacturers of generics, small biotechnology and biopharmaceutical firms, and service companies, 1 for the purpose of this paper, the emphasis will be mainly on drug makers. 2. History/Overview of the Industry The pharmaceutical industry of today is a far cry from its humble beginnings in the nineteenth century of physicians mainly prescribing plant extracts to being technology intensive, dominated by a few large companies with significant research and development (R&D) budgets, and significant government oversight. Over the past five years...
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...The emerging global race for talent Arie Y Lewin1, Silvia Massini2 and Carine Peeters3 The Fuqua School of Business, Duke University, Durham, USA; 2Manchester Business School, University of Manchester, Manchester, UK; 3 Solvay Brussels School of Economics and Management, Brussels, Belgium Correspondence: AY Lewin, The Fuqua School of Business, Duke University, 1 Towerview Drive, Box 90120, Durham, NC 27708, USA. Tel: þ 1 919 660 7654; Fax: þ 1 919 660 7769 1 Abstract This paper empirically studies determinants of decision by companies to offshore innovation activities. It uses survey data from the international Offshoring Research Network project to estimate the impact of managerial intentionality, past experience, and environmental factors on the probability of offshoring innovation projects. The results show that the emerging shortage of highly skilled science and engineering talent in the US and, more generally, the need to access qualified personnel are important explanatory factors for offshoring innovation decisions. Moreover, contrary to drivers of many other functions, labor arbitrage is less important than other forms of cost savings. The paper concludes with a discussion of the changing dynamics underlying offshoring of innovation activities, suggesting that companies are entering a global race for talent. Journal of International Business Studies (2009) 40, 901–925. doi:10.1057/jibs.2008.92 Keywords: offshoring; innovation; product development; global talent; co-evolution;...
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...RESEARCH AND INNOVATION POLICY OF BRAZIL 1. Some Numbers: • Total area - 8.5 million km² • Population - 191 million • GDP (2010) - 3,7 US$ trillion • Investment in R&D - 1.25 % GDP in 2010 • Scientists and researchers - 231,000 in 2010 (headcount) • Scientific papers - 2.7 % of world scientific production • world's sixth largest by nominal GDP • eighth largest by purchasing power parity. • moderately free markets and an inward-oriented economy. • the largest in Latin American nations ere. • one of the fastest-growing major economies in the world with an average annual GDP growth rate of over 5 percent • together with Mexico, has been at the forefront of the Latin American multinationals phenomenon by which, thanks to superior technology and organization, local companies have successfully turned global. 2. Overview Brazil has many times in its history praised to be the land of the future. First, Brazil with population of 190 million, the past eight years “Bolsa Familia” social program have lifted over 40 million Brazilians out of poverty and into middle class. This creates interesting platform for creating context related innovations and scaling bottom-of-the-pyramid innovations (disruptive and reverse) globally. Second, Brazil was almost non-effected by financial crisis 2008, a signal for strong and stable macro-economic policies. This means that Brazil, first time in its history, is becoming an interesting country for long term investment...
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...Academic Press. Antonakis, J., & House, R. J. (2002). The full range leadership theory: The way forward. In B. J. Avolio & F. J. Yammarino (Eds.), Transformational and charismatic leadership: The road ahead (pp. 3–33). Boston: JAI Elsevier Science. Aquino, K. (1995). Relationships among pay inequity, perceptions of procedural justice, and organizational citizenship. Employee Responsibilities and Rights Journal, 8, 21-33 Avolio, B. J., & Bass, B. M. (1987). Transformational leadership, charisma, and beyond. In J.G. Hunt et al. (Eds.), Emerging leadership vistas. Lexington, MA: Lexington Books. Avolio, B. J., Bass, B. M. and Jung, D. I. (1997). Replicated Confirmatory Factor Analyses of the Multifactor Leadership Questionnaire, Center f or Leadership Studies, Binghamton University, Binghamton, NY. Avolio, B. J., Zhu, W., Koh, W., & Bhatia, P. (2004). Transformational leadership and organizational commitment: Mediating role of psychological empowerment and moderating role of structural distance. Journal of Organizational Behavior, 25(8), 951–968. Retrieved February 16, 2008, from ABI/INFORM Global database. Barak, M. E. M., Nissly, J. A., & Levin, A. (2001). Antecedents to turnover and retention among child welfare, social work, and other human service employees: What can we learn from past research? A review and meta-analysis. The Social Service Review, 7(4), 625–661. Retrieved April 19, 2008, from ABI/INFORM Global database. Bass, B. M. (1998). Transformational...
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...Preface This report investigates how Samsung was able to build a competitive advantage in the global memory chip industry and what steps it should take to sustain its advantage in the face of the imminent threat of Chinese competition. Analysis of Samsung’s business strategy and competitive advantage Porter’s 5 forces model in Exhibit 1 is used to analyze the global memory chip industry and Samsung’s strategy to date. Samsung had become the dominant player in the global memory chip industry and was able to increase the gap from other competitors in terms of technology and market share by following the below strategy. 1. Aggressive investments in R&D The memory chip industry is technology driven. A significant investment is required in R&D at the product design stage. As illustrated in exhibit 1 Samsung Electronics had maintained its technology leadership by outspending its rivals in R&D by over 1.5 to 20 times from 1998 to 2003 (Exhibit 3), which was possible thanks to the Samsung group’s diversified portfolio that allowed it the take calculated financial risks. Since Samsung was able to create and maintain technology leadership it was able to earn a very high premium at the initial stages of a new product to recover its initial investment and if competitors began producing the same product it could aggressively lower prices to make it difficult for followers to stay in the competition. 2. Differentiation Faced with the challenge that the DRAM industry...
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