Empower Your Research and Development Projects with a Deal Management System

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hi everyone we are going to continue our chapter 5 uh managing technology and knowledge for mpsw5033 engineering technology and management so uh as the last part of this chapter we are going to cover managing research and development this is the outline for our session today definitions we want to cover the definition we're going to see what the meaning of research and development from different perspectives classification of research and development fundamental dilemma relationship with business strategies technology elaboration rnd strategies and we're going to conclude our present our session with estimating r b expenditure so managing research and development so we have uh this is the definition we have a two different definition um from different perspectives the first one is academia which is the researcher the academics lecturers the higher institution people it is the systematic approach to discover to the discovery of new knowledge and for industry the continual activities with scientific knowledge and concepts directed toward the production of useful materials devices systems or methods including design and development of prototype and processes so this is two different perspective of the rnd so usually we we heard people say university is not coming up with the technology no there's too many uh words thrown out to academia but if we see from the definition here for the research the academics the university the research at the academia they come up with the new knowledge okay so we call this more fundamental it's fundamental so fundamental research okay well this fundamental uh will give some insight how they can continue the research for the application so this is to towards the applied industry so the main activities in industry uh industrial r b is discovering enable new technologies okay they have an existing technology and you have to upgrade they want to find out new innovation improving understanding of technology and existing products improving and strengthening understanding of technologies used in manufacturing or in specific field understanding research results from universities and other institutions which will complement each other so classification of rnd we can say uh this rnd recession development can be viewed as two sides of the same coin okay so the first side is research activities we call it fundamental research which is the exploit to determine the new compound new new methods it's like a basic uh research we could say fundamentals it's possible and second side of the coin we are using the coin uh analogy here and the second side is development of products which is applied research so this is the two classification of the rnt fundamental research and flier research so why this rnd is important so we we know okay even we can link to our previous session okay uh it is very important for us to compete in a market especially the business uh the profit oriented organization okay so they need to strive to be to compete in the market so basically is um related to the success of a business so it's a crucial to survive a fast changing environment you know if you you is the environment change means that the needs change the requirement change so if you are still on the traditional phase then we are going to be uh you know be behind far away from our competitor and continuous technology change competition changing consumer preference okay so your customer now is looking for different products additional features better technology products and it's also fundamental to marketing when you do research you know you come up with new things and it's going to be a fundamental to your marketing you are going to say that okay we have this compared to our competitor so we are leading in this so you know so automatically your the customer is going to give a focus to your organization so and and i believe the lease can have we can have more or less who is going to out but we can we can discuss this and you also can think of all of the other important and i believe the most important part is to extend the product life cycle on the business types we just take an example as a product so we know this is the product lifecycle for you know for when you compare the sales and also your time you know it's increasing okay so here where you introduce your product needs that you've done is your research and development somewhere before this right okay r d established and that's now it goes to the market so introduce your product okay let's say here one okay and then it's going to take time before it boost okay then now you are leading so your product is uh you know will be a part in the market and it's going to come to one point we call it maturity we submit to it you know it's matured then it's going to decline okay it's going to decline so if you don't we didn't focus on their rmd you're going to lose so it's going to be con it's going to be continued by your computer okay because they are doing the rnds so if you don't want okay so you need to do that earlier to extend the features the demand so you you have your so while your pro your product is fought you should have your rmd grades on rnd so you know while it's growing you know you need to have some additional innovation here so by the time it comes to the maturity level so you launch your new product okay we can see how how usually that when you mean short cycle is usually for electronic companies your mobile phones your laptops you know they are literally gadgets so you're going to have a maybe after two three months or maybe after six months you're going to have a new product launch why because they want to keep to be in in the competitive market and they want to lead the market okay and usually rnd management um they have their fundamental delay okay because rld is not free so it's required big capital so each company and every competitive environment is unique and they are in their own stage of change so our iron need to be managed ing to specific heritage and resources of the company in its competitive industry so it's different industry differently right they have a low pace industry you have a medium based industry you have a quick phase industry you know so but you still need to think of these things so they need to provide an environment that fosters creativity at the same time providing a stable environment for the resources so what are they delivering so excuse me well precisely to invest okay uh it's like confusion okay which project and technology to invest so when to stop pouring money into a project so your existing project you know you believe this can go far go far away and it looks like it failed but could yet deliver enemies okay so you don't know when i mean maybe it's nature you can still go over you don't know when it's going to go stop or do you have a sufficient um you know do you have a sufficient capital in your company and recently i mean if you take uh taking into consideration the recent you know uh pandemic probably 19. so all the indies all the industry are really struggling okay most of the companies are you know looking for uh divisions or alternative businesses so do you think in this kind of uh environment they are going to focus on the r yes maybe but how about the others they are actually struggling to compete struggling to stable to make profit so that's the length okay and again uh currently we need to always refine back with the business strategy of the company what are the aims of the businesses okay so they need to make sure they understand they know what are their aims and usually is profit okay all the companies they are not doing charity they are doing profit so they want profit profit and confidence so this is the matter to plan and think how how this rnd can contribute to fulfill their aims which is to ever increase profit continuously okay so here the importance of the rmd and this is uh the technology level is okay so this is the level okay when you start the early things especially in relation to technology so we have uh break the mode there is going to be technology mastery we are going to see in the next slides detail leverage and then once you master the technology you're going to be complete competitiveness the level and then you're going to survive okay so we have a two types of randy here for maintenance so they're doing it for their survival and also the competitiveness so make sure they are in there in the mainstream and another part okay so for existing this is for the existing businesses and for growth what's your future okay so they need to break the more planning the new thing before they can be technology mastery before i think this uh somehow is they have their correlation to this one but basically this is for maintenance for for sustaining the business and in the market that you that you are in now and at the same time you're focusing for growth what's next okay so survival rules of problem solving recession process a product this is the explanation for foreign technology languages now we have the competitiveness research or on product improvement and process improvement to complete amount of r d for high technologies higher than rnd4 okay they are saying here automatic industry compared to food in the english industry right of course the automotive industry the more rnd is higher technology mastery here is the explanation research on technological development okay it's for the new technology and of course it's higher volume experience and breakthrough developing a new patentable technology is a very new technology to be explored as you involve a higher level of basic scientific research okay so when they say basic scientific research means that it's a fundamental research so now things and issues are related on the budget so we are going to see some points on setting the rnd budget so basic concept of rna is enable profits from today's successful businesses okay which these profits should be invested into what the company hopes will become profitable businesses of the world so it's a sustainable business you're not just thinking of money that you get today and how you're going to you know use the money but use the money for profit for the next days for the coming days and this should continue so why the companies the organization should consider spending between 10 to 25 percent of their sales on rmd okay 10 to 25 percent of sales on rmd so you can just to clean your organization your companies are they doing something on these okay so this is like a very basic range 10 to 25 so rnd expenditure can be based on a constant percentage turnover provides a stable figure that grows in line with the size of the company and a large organization with more resources can clearly afford to invest more in r d than their smaller counterparts so we know although we say in the previous slides okay 10 to 25 percent of sales you know of sales so but the issue is large organization with more resources can clearly afford to use how about these small medium industries the smaller counterparts and the companies they need they are still growing so why now we can relate it back to the strategic alliance that we have discussed in the previous chapters i mean subchapters how they can cooperate collaborate with others you know so this is uh you should know this right rmd as percentage of sales so rna expenditure uh divided by total sales income in the multiplier so this is how you can get your rmds expectations from specification of salesforce and i will share the last uh sharing on the r d expenditures okay sales based on industry sector so what's happening also we said 10 to what is number 10 to 25 right but you see what's happening 10 to 25 so we can just see two industry uh that somehow in the range okay it's pharmaceutical and biotech okay pharmaceutical and where you attack the rnd expenditure it's about 15 to sales and software and computer 11 and close to 10 is technical heart ratings and breasts are less than 10 right seven for leisure goods you see electrical electronics aerospace defense automatic five percent uh not sure so every space so we have if we have we have uh our friends from ctrm right so is this right you can check okay is it five percent the expanded sales amount is being invested on rnd okay chemical exam industrial engineering and manufacturing so-called manufacturing other men's actually here and food so i think the lowest okay so they're not not really innovative in terms of technology they have but they're still struggling usually the innovation is in terms of how they present the food you know we're putting all the cheeses and all the sauces taking the good pictures virally you know you know but this is we are talking about rmd how they improve the food the frozen foods so we now have many kind of frozen foods and different things so this is the expenditure based on the percentage of sales based on certain industry so i think that's all uh for the for this session uh hopefully we have covered the rnd so you understand that rnd is very important and we have basic the fundamental research and also the applied research where you need the information between the academy and also the industry so i hope we have some understanding on on this all these rnd things and basically we have covered all everything the four important subjects for managing technology and knowledge okay so thank you thank you very much for watching the videos and i hope we can have a good discussion on the content thank you thank you you