Domain

Explanation

Technology?

• The creation, innovation & application of technical, scientific knowledge through research & development for the creation, addition & integration of value in the sense of economics, society & humanity

Management?

• All work & activities can be classified under:

1. Causal activities: work that is strictly linked to one another by the chain of causation, hence suitable for tight control; often low-detail, operational level
2. Medium activities: work that has both strictly casual as well as flexible components, hence adaptation & right management required: often middle level
3. Visionary activities: work that is strictly non-casual and flexible, hence highly individualistic & artistic, hence cannot be stiffly controlled, but only managed; often coordination & strategic level

Technology management?

• The balancing of technical activities with intended purposes
• Highly situation-dependent & circumstantial, hence only guidelines can help

The smart organization?

• A much abused word, smart has come to encompass all things new, invented, modified & applied in relation to new changes
• Especially in the so-called new economy, where R&D as well as work integration are rather new as coordinated large-scale activities
• People & organizations need to inject & synthesize new ideas, principles, processes & practices in order to remain in homeostasis with the fast-evolving environment
• Hence, the smart organization

The criteria?

• The decision quality made by the smart organization
• Influenced by six dimensions:

1. Appropriate frame: correct background, setting & context for a decision
2. Creative, viable alternatives
3. Meaningful, reliable information
4. Clear values & trade-offs
5. Logically correct reasoning
6. Commitment to action

Factors affecting the criteria?

• The parameters of the smart of organization are:

1. Principles: beliefs, visions, missions, guidelines
2. Processes: perceptions, design
3. Practices: behaviour, workflow

Principles

• The nine principles of smart R&D are:
• Achieve purpose:

1. Continual learning
2. Value creation culture
3. Creating alternatives

• Understand environment:

1. Systems thinking
2. Embracing uncertainty
3. Outside-in strategic perspective

• Mobilize resources:

1. Open information flow
2. Disciplined decision-making
3. Alignment & empowerment

Processes

• Technology strategy:

1. Assess: business situation
2. Develop: alternatives, information & values
3. Evaluate: risk & return strategies
4. Decide: among alternative strategies
5. Plan: for change
6. Implement: the chosen strategy

• R&D strategy:
• Based on varying two parameters: 1) technical feasibility & probability of success; 2) net value given success

1. White elephant: low technical success, low competitiveness
2. Bread & butter: high technical success, low competitiveness
3. Oyster: low technical success, high competitiveness
4. Pearl: high technical success, high competitiveness

• Project strategy:

1. Structure: "What is the problem exactly?"
2. Deterministic analysis: "What is important?"
3. Probabilistic analysis: "What is the best alternative?"
4. Appraisal: "Clarity of action?"

Practices

• Primary practices:

1. Coordinate R&D and business plans
2. Focus on end customers' needs
3. Agree on clear, agreeable goals
4. Use a formal, development process
5. Use cross-functional teams
6. Maintain intimate contact with internal customers
7. Hire the best & maintain their expertise

• Secondary practices:

1. Insist on alternatives
2. Quantify decision inputs
3. Hedge against technical uncertainty
4. Use market incentives
5. Use innovative budgeting mechanisms
6. Create a market research capability within R&D
7. Share an integrated view of the R&D portfolio
8. Learn from post-project audits
9. Learn from others worldwide

• Get on with it!