Research And Development Strategies
The need to develop or improve products and production processes is met by the research and development (R&D) function. Figure 2-7 outlines several questions that need to be considered in developing an R&D strategy.
The most important research and development strategy issue concerns the relationship of R&D to corporate strategy. The more important innovation is to the strategy of the organization, the more implementation will require consideration of strategic issue in R&D.
Moreover, if R&D is part of an aggressive new product development strategy, a series of decisions logically follow from such a link, including funding levels, project selection decisions, and the structure for R&D. If R&D is used primarily for process improvement, the decisions are more conservative.
Cross-functional Implications Of Strategy Implementation
Failure to integrate strategies is failure to consider the cross-functional implications of strategy when the critical issues of strategy are appraised.
Cross-functional implications of strategy can be identified by considering the following:
- Careful consideration of the strengths and weaknesses of the organization includes a review of the functional areas which should alert managers to potential conflicts. Trade-offs
- A strategy which is comprehensive should spell out certain major trade-offs. Communication
- Communication of the strategy is a way of giving functional areas the same information. Participation
- Functional managers who have some part in the process of formulating and implementing strategy are in a better position to understand what is required of them. Close lateral relations
- As functional specialists have closer contact with each other, trade-offs can be better assessed. Multifunctional experience
- Many organizations require that managers spend part of their tenure in functions other that their own specialty. Coordination
- As part of the implementation process of identifying strategic issues for each of the functional areas, the cross-functional implications of a change in strategy should be addressed.