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Role of Research

Role of Research. Masao Kato Chairman FX PALO ALTO LAB INC. Xerox Corporation. FX Palo Alto Xerox PARC. Fuji Xerox. Fuji Xerox Asia Pacific. Role of Research in Industry. Invention : Golden age of research Nylon, Penicillin, Rader, Transistor Industrial Innovation : Dinosaur project

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Role of Research

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  1. Role of Research Masao Kato Chairman FX PALO ALTO LAB INC

  2. Xerox Corporation FX Palo Alto Xerox PARC Fuji Xerox 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 ResearchPanel DiscussionHarvard Business SchoolJanuary 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 (Intel) • Lucky (AT&T) • Meyers (Xerox) • Spencer (Sematech) • Branscomb (HBS) • Kato (FujiXerox) • Watanabe (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 SpinoffExamples • 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. 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 Company Lords and company Outlaws

  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. 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 From selling boxes to offering services

  22. Information RepresentationAnalogue v.s. Digital • Analogue: 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 ATT NEC FUJITSU TOSHIBA HITACHI Computer IBM Semi-conductor TI Intel Home electronics RCA

  24. Japanese Industrycompetitiveness 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 MOUNTAINTHE 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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