strategic r&d management as competitive strength with respect to present and future perspective

7/28/2019 Strategic R&D Management as Competitive Strength With Respect to Present and Future Perspective.

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Strategic R&D Management as CompetitiveStrength With Respect to Present and Future

Perspective.

MilanPadariya

PreparedBy:

CENTRE FOR MANAGEMENT STUDIES, GANPAT UNIVERSITY

For more material contact me @ [email protected]


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R and D is Investigative activities that a business choosesto conduct with the intention of making a discovery that can either

lead to the development of new products or procedures, or toimprovement of existing products or procedures. Research anddevelopment is one of the means by which business canexperience future growth by developing new products or

processes to improve and expand their operations.

What is R and D?


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What is R and D Management?

R&D management is thediscipline of designing and

leading R&D processes,managing R&D organizations,and ensuring smooth transfer ofnew know-how and technologyto other groups or departmentsinvolved in innovation.


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Strategic R&D Management

Strategic R&D Management is about how organizations make product innovationhappen.

It helps senior managers engage in and support product innovation in a way thatdrives rather than dissipates their business strategy.

One will learn how to manage product innovation as a strategic business processthat cuts across and involves multiple functions. By using a framework for R&D,One will be able to deliver more and better product innovation to your company.

For over 15 years, the Strategic R&D Management programme has beenconstantly evolving, consistently remaining at the forefront of productdevelopment business concern.


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Key Benefits

View R&D from a strategic perspectiverather than a collection ofdevelopment projects

Build tools to translate businessstrategy into a portfolio of innovationinitiatives, and to measureperformance of uncertain and longterm innovation

Build processes and structures toenhance the capability of yourorganization to generate creative ideasfor different purposes and withdifferent degrees of novelty


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How Successful Execution make R&D

as Competitive Advantage?

Build support for the strategy at all levels of the organization

A successful implementation begins with articulating the vision for the newstrategy. The entire R&D organization, from the VP of Development to theclinical trial teams, will be affected and will need to accept the vision in order

to support the strategy. Mobilizing the R&D organization for a lengthyimplementation requires clear and compelling communications, sustainedleadership, and broader participation throughout the strategy's developmentand implementation.

Articulate the strategy

Maintain leadership engagement

Broaden participation


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Operations and infrastructure must

support the strategy

Whether an organization realizes thebenefits from a strategy is very dependenton having its operations and infrastructure

aligned with the strategy.

The organizational structure, processes,and performance incentives that supportthe current strategy may be inappropriateor counterproductive to the new strategy.

New skill sets and different performanceand behaviors may need to be cultivated.The level of change required depends on

both the current R&D organization and the

chosen strategy


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Better Execution, Better Results

R&D organizations are great at developing

strategies, but the results are often less thanexpected. Most R&D organizations have notfostered the skills required to execute and sustainstrategy.

Implementing an R&D strategy affects all levels ofthe organization. Continuous communication and arobust plan for managing the activities and impactscan help to build and sustain the support requiredfor a successful implementation.

In most cases, a new strategy requires investmentsin capabilities, processes and technologies


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The success of an R&D strategy is attributable to both itsfundamental soundness as well as its execution.

By getting..

the execution right,

starting with articulating and building support for the strategic vision,

to assembling the right teams to implement the strategy and finally,

investing in the necessary operational and infrastructural changes.

R&D organizations should be much better positioned tobe more successful at ultimately realizing the fullbenefits of their chosen strategies.


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Example: GlaxoSmithKline

In 2002, GlaxoSmithKline (GSK) created the Centers for

Excellence in Drug Discovery (CEDDs); each of these operatingunits focused on a specific therapeutic area.

The strategy was developed to promote innovation, increaseaccountability, and make results more transparent with the

ultimate goal of improving research productivity.

GSK changed its research operations to align with the new strategy.They assessed and invested in capabilities needed for this alignment,created a new governance structure, and established new incentiveprograms, extending the accountability of the CEDDs from discovery

to Proof of Concept.

As a result of implementing the CEDD strategy, by 2007 GSKs

pipeline had doubled, to an industry-leading 45 New ChemicalEntities (NCEs) in Phase II and 11 NCEs in Phase III development.


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Firm R&D Program

Cipla Ciplas R&D largely focuses on new process development and delivery

systems. The companys annual report notes intentions to move into

new drug development.

Dr. Reddys

Laboratories

In addition to research in generics and biosimilars, Dr. Reddys Labs is

conducting R&D for new chemical entities in three main areas:

antibiotics against Staphylococcus aureus, Pseudomonas aeruginosa,

and Acinetobacter baumannii; metabolic disorders; and

pain/inflammation.

Mylan India Mylan India (formerly Matrix Labs) primarily conducts generics R&D

for active pharmaceutical ingredients and formulations. Their generics

portfolio is quite large and includes antibiotics, antiretrovirals, and

antimalarials.

Piramal HealthcareLtd.

Piramal Healthcare Ltd., the new chemical entity research subsidiaryof the broader Piramal Healthcare Group, is developingcandidates in

the following areas: oncology, inflammation, diabetes/metabolic

disorders, and infectious

diseases (such as herpes simplex virus and methicillin-resistant

Staphylococcus aureus).


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Firm R&D Program

Ranbaxy Since Ranbaxys new drug discovery program was transferred to

Daiichi Sankyo, its Indian R&D operations focus on new drug

delivery systems and formulations. Ranbaxy is continuing to

manage the clinical development of its antimalaria candidate inIndia.

Wockhardt Wockhardts new drug discovery program concentrates on broad-

spectrum antibiotics. Its biosimilars R&D targets chronic disease.

Zydus Cadila Zydus Cadilas discovery program largely focuses on chronic

diseases such as diabetes, osteoporosis, and renal failure. The

company is participating in a collaborative rabies program with the

WHO to develop a cocktail treatment using monoclonal antibodies.

Glenmark Glenmark is conducting R&D for both new chemical and biological

entities. The companys disease focus includes adult diarrhea, pain,

inflammation, oncology and autoimmune disorders. Glenmark

maintains one R&D facility in India and

two in Europe.


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Pharma 2020: Virtual R&D

This explores how pharmacompanies could dramaticallyimprove the R&D productivity.

It contends that by 2020 the R&Dprocess may be shortened bytwo-thirds, success rates maydramatically increase, and clinicaltrial costs could be cutsubstantially.

New computer basedtechnologies will create a greaterunderstanding of the biology ofdisease and the evolution of"Virtual man"; to enableresearchers to predict the effectsof new drug candidates before

they enter human beings.

Along with changes underway inthe regulatory and socio-politicalenvironment, this will enablePharma to overcome one of themost fundamental issues it needsto resolve over the next decade.


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This provides a visionary perspective on the changedrivers that will impact research and development

productivity and offer greater opportunities for thedevelopment of more, truly innovative productsgiving greater benefit to healthcare payers,providers and patients, and greater value for thecompanies involved.

These implications and the risks and choicesinvolved will vary across companies. Typicalchallenges may include; deciding which elements

of the innovation process to pursue and retain in-house versus accessing via new types of strategicpartnership the operational changes needed toimprove speed of response for the differing typesof innovative treatments.


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Green R&D

For companies thatwant to makeenvironmental

leadership a source

of competitiveadvantage, a keyplace to focus is

research anddevelopment.

R&D, of course, is acore driver of

product innovationand critical to staying

ahead in anychanging market.

Sustainability, in turn,is a lens on

innovation that isbecoming

increasinglyimportant in diverse

industries - fromenergy and

transportation toconsumer products.


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1. Do a lifecycle analysis.

One way to gain new perspective on how to improve a product is a lifecycleanalysis (LCA), a cradle-to-grave examination of the environmental impactsof a product, from sourcing, manufacturing, and distribution to product useand disposal.

This expansive analysis looks beyond obvious measures of performance andcan reveal new areas for improvement that can benefit both theenvironment and your customer.

When Proctor & Gamble performed a series of LCAs on its laundrydetergents, it discovered that 80-85% of greenhouse gas emissions

associated with these products came from heating the water to do laundry -far more than the emissions from manufacturing or transport.

These studies contributed to the development of cold-water detergents,which save consumers money on energy bills and reduce their greenhousegas emissions. P&G released cold-water formulas of its detergents, in Europe

in 2003 and in the U.S. in 2005, and was first to market in both cases.

HOW???


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The greening of business is being driven byglobal macro-trends like rising energy costs,water scarcity, demographic changes, and newregulation.

Corporate leaders need to work with their R&Dteams to examine how these trends aretransforming customer needs today and willcontinue to do so in years to come.

2. Look at big

trendsshaping the

marketplace.

Looking at big trends and the full product lifecycle areuseful tools for generating new R&D concepts andpriorities. However, these can be complex exercises

best undertaken occasionally. On a day-to-day basis, R&D teams also need simple

tools and guidelines to help them make decisionsabout product features.

Creating a set of indicators that measure progressconsistently on key sustainability indicators canreduce complexity for R&D teams and keep them

aligned with broader corporate goals.

3. Drive

progress with

simple

metrics.


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In each of these cases, greening

corporate R&D is a collaborative

endeavor.

It also requires creativity andsignificant resources. But the

payoff can be big, as companiesthat do it right will create new

products that are poised tosucceed in a marketplace with

new expectations.


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R&D 100 Awards

R&D 100 Awards are a set of100 awards given tocompanies making

technologically significantproducts The Awards have

been referred to as the "Oscarsof Innovation

Announcement of the 2012 R&D100 Awards was made in June

2012 and the awards wereceremoniously presented inFlorida on October 31, 2012.

Among the institutions receiving

awards were:

United States

AdValue Photonics

Glenn Research Center

Stony Brook University

Taiwan

Industrial Technology Research

Institute which received six

awards in 2012


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Top 10 Countries By R&D Spending

Rank Country

Expenditures on

R&D

(billions ofUS$)

% ofGDP Year

1 United States 405.3 2.7% 2011

2 China 251.8 1.84% 2011

3 Japan 144.1 3.3% 2011

4 Germany 69.5 2.3% 2011

5 South Korea 44.8 3.0% 2011

6 France 42.2 1.9% 2011

7 United Kingdom 38.4 1.7% 2011

8 India 36.1 0.9% 2011

9 Canada 24.3 1.8% 2011

10 Russia 23.8 1.0% 2011
http://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/United_States


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strategic r&d management as competitive strength with respect to present and future perspective

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