R&D product development process

Question 1

centralised R&D

Answer 1

appropriate for development of new tech
protects from uncertainty and financial risk
risks being too divorced from market needs so is difficult to make use of

Question 2

decentralised R&D

Answer 2

closer to customer
focused on business needs and product application
however can be involved in production problems which distracts from developing innovation

Question 3

how is resource allocation calculated

Answer 3

R&D budgeting is strategic issue
can be inter-firm comparison, fixed % of revenue/profit, reference to previous expenditure, costing an agreed programme
there is competition for resources between departments

Question 4

what is profitability of success in R&D projects

Answer 4

80% work technically, 20% are commercially successful

Question 5

what is development funnel model 1

Answer 5

funnel model, many ideas in and few ideas out

R&D driven, survival of the fittest

Question 6

what is development funnel model 2

Answer 6

a few big bets, common in small entrepreneurial firms, bets on single projects

Question 7

what does the funnel model show is needed

Answer 7

focus and innovation

Question 8

What is the offline product development process

Answer 8

a model that does not interrupt day to day activity
marketing and planning
feasibility and initiation
concept development
detail design
prototype and test

Question 9

what are stage gate procedures

Answer 9

gates present go/no go decision points

each gate needs pre-determined evaluation criteria