Changes Ahead - Prepare Now

A young research manager was discouraged: His research budget had been cut, the business manager didn't want to invest in some technology that would have a significant impact in five years, and although a new chemist on the staff had a lead on a new synthetic route to an important product, he did not see any way of proving feasibility without significant (unavailable) capital for a pilot plant. The young manager wondered what was happening to industrial R&D and how vital it could possibly be in the next decade. This set me to thinking about the challenges as well as excitement that all research/technology managers will face in the 21st century. First, many current trends will most likely intensify: * Company resources devoted to R&D will be ever-more precious. Those involved in the R&D process will have to find even more ways to work smarter, lower costs, and get more done with less. * The value of R&D will continue to be questioned versus other business needs, and the pressure will increase for near-term results where the value is readily apparent. Those involved in R&D will need to be even more articulate and find additional ways to measure and demonstrate that value. * The R&D function itself will be organized from company to company in very different ways. In some firms, the responsibility for innovation will be broadly shared and a distinct R&D unit may cease to exist. In others, technical developments from an R&D lab will be the driver of innovation for the business. In still others, the primary task of the R&D or technology group will be to obtain technology from outside the firm. Those involved in R&D will need to make sure that their knowledge and talents impact the business irrespective of where they sit. * Research and Development resources will continue to be evermore dispersed, not only within the firm but also around the globe. Managing technology will be a more complex task. Those doing the managing will need to draw upon entirely new resources and newer information technologies to make possible additional ways for individuals and groups to work and collaborate with one another while being miles or continents apart. * Various constituencies in society will continue to assert that some technology-based innovations present undue risks. Technology managers will be spending a greater amount of time and effort demonstrating where risks are negligible and manageable, and furthermore where they are far outweighed by the benefits. In addition, we at Du Pont see other developments taking place: * Less R&D may be done in the present "research intensive" industries, but more R&D will be done in non-manufacturing and service industries. Much of this may be non-traditional and may draw upon sciences and other disciplines besides chemistry, physics, engineering, and biology. Today's R&D in financial services, banking and transportation will spread to other service industries. "Products" may be intangible and will not be produced in manufacturing plants as we know them. Technology managers from manufacturing industries will be able to learn new ways to drive the innovation process, and the output of R&D from the service sector will provide "products" that may be opportunities to be exploited in the present research-intensive industries. * R&D organizations will need to be more fluid. "Virtual" R&D organizations will be at the heart of collaborative business arrangements formed to meet pressing complex needs which can only be met by harnessing a wide range of technical skills and knowledge. …