As the globalization is in full swing all business has to withstand competitions in order to retain market position by retain and gaining its market share.
Fierce competition can eat away market share even all the sales can dry up. To sustain the market share the firms should bank on contemporary technologies or try to develop new technologies.
R & D pays a significant role in technology development and in turn product and service development enhancing the PLC of the product.
North American, European, Japanese MNCs were the first to come out innovative products with cutting edge technologies.
AT&T, GE,3M,Intel, Microsoft, Apple Computers,Google,Wall Mart and many more are great examples of North American Corporations which has dominated the world market with their world class products and services.
Japanese corporations like SONY, Toyota, Honda still dominates the world market with electronics, auto, ship building with cutting edge technology spending a significant amount in R&D.
Recently the European and the Japanese joint venture Sony Ericsson innovated a mobile phones with camera features eying the global market.
The Chinese too are spending a good amount of money for R&D and for innovation. Computer hardware outsourcing and electronic toy market are examples of Chinese dominance in the world market. With Chinese SEZ in right place and low production cost and economies of scales, China has become right destination for global manufacturing hub.
What about India, Indian companies now compete against the best of world class rivals , of course, that is the reason why they are taking innovation and spending on R&D much more seriously. Many of the Indian Brands making waves in Global market are parking a sizeable amount of money in R & D.
Tata Motors, Dr Reddy, HAL, Reliance, Sun Pharma, Cipla , Infosys,M&M are some of the Indian brands making wave in the global market.
Does R&D and innovation drive profitable growth and increases profitability?
This is a very debatable question, managing Innovation requires lot of investments, many a times R&D money can go down the drain. Marketing can be an expensive proposition too. Eight out of ten products fail to click. At times it proves to be an expensive gamble.
3 comments:
my answer is not to this blog, however I have something about change management---
Companies must pay as much attention to the hard side of change management as they do to the soft aspects. By rigorously focusing on four critical elements, they can stack the odds in favor of success.
Managing change is tough, but part of the problem is that there is little agreement on what factors most influence transformation initiatives. Ask five executives to name the one factor critical for the success of these programs, and you’ll probably get five different answers. That’s because each manager looks at an initiative from his or her viewpoint and, based on personal experience, focuses on different success factors. The experts, too, offer different perspectives. A recent search on Amazon.com for books on “change and management” turned up 6,153 titles, each with a distinct take on the topic. Those ideas have a lot to offer, but taken together, they force companies to tackle many priorities simultaneously, which spreads resources and skills thin. Moreover, executives use different approaches in different parts of the organization, which compounds the turmoil that usually accompanies change.
In recent years, many change management gurus have focused on soft issues, such as culture, leadership, and motivation. Such elements are important for success, but managing these aspects alone isn’t sufficient to implement transformation projects. Soft factors don’t directly influence the outcomes of many change programs. For instance, visionary leadership is often vital for transformation projects, but not always. The same can be said about communication with employees. Moreover, it isn’t easy to change attitudes or relationships; they’re deeply ingrained in organizations and people. And although changes in, say, culture or motivation levels can be indirectly gauged through surveys and interviews, it’s tough to get reliable data on soft factors.
What’s missing, I believe, is a focus on the not-so-fashionable aspects of change management: the hard factors. These factors bear three distinct characteristics. First, companies are able to measure them in direct or indirect ways. Second, companies can easily communicate their importance, both within and outside organizations. Third, and perhaps most important, businesses are capable of influencing those elements quickly. Some of the hard factors that affect a transformation initiative are the time necessary to complete it, the number of people required to execute it, and the financial results that intended actions are expected to achieve. Research shows that change projects fail to get off the ground when companies neglect the hard factors. That doesn’t mean that executives can ignore the soft elements; that would be a grave mistake. However, if companies don’t pay attention to the hard issues first, transformation programs will break down before the soft elements come into play.
Why don’t we get more innovation?
One of the most repetitious and, I am convinced, most erroneous answers we get to this question is that businessmen are not adequately creative and that they are enslaved by the incubus of conformity. It is alleged that everything in American business would be just dandy if industry were simply more creative and if it would hire more creative people and give them the chance to show their fructifying stuff.
But anybody who carefully looks around in any modern business organization and speaks freely and candidly with the people in it will, I believe, discover something very interesting: namely, there is really very little shortage of creativity and of creative people in American business. The major problem is that so-called creative people often (though certainly not always) pass off on others the responsibility for getting down to brass tacks. They have plenty of ideas but little businesslike follow-through. They do not make the right kind of effort to help their ideas get a hearing and a try.
Hi Mr. Bramha, All your blogs are really helpful and informative. The way you have thrown out light through your different management blogs is really commendable.Keep it up!!!!
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