Role of Research. Masao Kato Chairman FX PALO ALTO LAB INC
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1 Role of Research Masao Kato Chairman FX PALO ALTO LAB INC
2 Fuji Xerox FX Palo Alto Xerox PARC Xerox Corporation Fuji Xerox Asia Pacific
3 Role of Research in Industry Invention : Golden age of research Nylon, Penicillin, Rader, Transistor Industrial Innovation : Dinosaur project Computer, Operating system, High density memory device Paradigm Shift Bell break up, Trade deficit, Down sizing Companies without research lab thrive Bubble: born, grow and gone A look at future
4 Future of Industrial Research Panel Discussion Harvard Business School January 1993 Industrial R&D in the United States David A. Hounshell CMU Notes on the Future of Industrial Research Richard S. Rosenbloom HBS
5 Participants Gordon Lucky Meyers Spencer Branscomb Kato Watanabe --- (Intel) (AT&T) (Xerox) (Sematech) (HBS) (FujiXerox) (Sony)
6 Eighties to Nineties Companies without research lab thrive Industrial research as national asset US competitiveness and consortia Multiplicity of research avenues internal and external: university, joint ventures and consortia etc Globalization and diversification of research outposts
7 Question Is industrial research a financial burden or nutrient essential to competitive vigor? How must industrial research be adapted to the competitive realities of the 1990s? What must CEO and senior management do to the adaptation? What need to be considered in regard to the US competitiveness
8 What happened in nineties Internet fueled Less concern for US competitiveness Vigorous venture and startup involvement Invention to Innovation immediate path Staged transfer from research to development, development to commercialization does not apply
9 Where we go from here
10 Reinventing Corporation Xerox Parc Challenges
11 Parc Spinoff Examples 3Com Ethernet Metcalfe VLSI IC design tools Balletto Adobe Page description Warnock Synoptics Network Ludwick SDLI Laser diode Scifres Liveworks Groupware Bruce Uppercase e-book Halaz etc
12 Shifting main business Established technology vs disrupting technology
13 Behavior of large corporation Many talented person in main business Many steps to go up the ladder for approval Many groups to go around for agreement Many able persons for procedural debate Delegates study and decision
14 Small Start Ups Lack of experience of organizational work Coordination of groups in expansion Deal with large established companies Large corporation become supplier of talent with organizational experience for startups
15 Main Business and New Business Established Main Business New Business Disruptive Technology
16 Company Lords and company Outlaws Main Business supported by talented company lords years of distilled knowledge of the company precise rules, procedures control of resources New Business supported by few company outlaws disruptive force breaking rules, procedures and assigned resources
17 FOR RESEARCH INFLUENTIAL AT HEADQUARTER DECISIONS Not just scientist but well qualified and trusted for strategic and political decisions at corporate level management Needs to be respected for his/her scientific accomplishment. Mandatory for researchers support Systematic motivation, screening and training
18 WHEN IT GOLD RUSH SATURATES BUSINESS SCENARIOS ENUMERATED ANOTHER LEAP NEEDED IN THE MATERIALS AND DEVICE SCIENCE LOGIC AND DISPLAY OPTICAL TRANSISSION AND DISTRIBUTION BATTERY AND ENERGY
19 MERGING INDUSTRY SECTOR TELECOMMUNICATION COMPUTER BROADCASTING HOME ELECTRONICS
20 Shifting research attention From technology for making boxes to technology for providing services Technology for making boxes : Machine speed, performance and functions Technology for providing services : Less sales skill, less sales costs and less customer visit time
21 From selling boxes to offering services Technology for selling boxes; Design defined by Input and Output conditions. Stable design when algorithm is fixed. Text book culture Technology for offering services Design defined by business scenarios Design dependent on customer reactions Unstable and progressive
22 Information Representation Analogue: Analogue v.s. Digital Unique format and associated technology in each industry sector protected invasion from other sector. Digital: Common format and technology across sectors of industry has lowered industry barrier.
23 INDUSTRY STRUCTURE IN THE 80 S Telecomm Computer Semi-conductor Home electronics ATT IBM TI Intel RCA N E C F U J I T S U T O S H I B A H I T A C H I
24 Japanese Industry competitiveness and weakness Every one doing the same generated severe competition in 80s Worked nicely for increased competitiveness in quality and cost Invited weakness in unique concept and products to meet the environment in 90s
25 Japan to look ahead Cell phones becoming digital camera, video phone, GPS equipped locator and electronic ticket(60 M cell phones 20M internet mobile access) High speed ADSL and Optical fiber 40Mb/s ADSL at $25/month 100Mb/s Fiber access $40-$25 (400,000 subscribers increasing 50,000 /mo.) Internet connected generation Digital Television supported by NHK, MITI, SONY
26 Research and Development Lessons learned in R&D management
27 THE HIGHEST POINT OF MOUNTAIN THE LOWEST POINT OF VALLEY
28 It s Not My Job Syndrome
29 FAILURE TEACHES A LOT, SUCCESS LEARNS LITTLE
30 RESEARCH NEVER FAILS JUST CHANGES ITS TITLE
31 Role of Research Lab Experimenting future of corporation
32 physics Electrical engineering telecommunications computers Information technology
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