Efficiency in Research and Development
Sometimes, research and development in a company becomes a black box. This phenomenon applies in particular to industries with complicated technology, such as the pharmaceutical and automobile industries. It is difficult for management to assess what measures would be reasonable, as well as to determine if product development is working effectively or not.
We have verified that a good deal of product development work is pure production, that is, testing and other procedures that must be carried out as quickly and efficiently as possible.
Further, IT-based design systems mean computers now accomplish many tasks that were previously done by hand. This requires a disciplined organisation.
We have realized a number of projects with very large and complicated product development and budgets of between USD 500 million and USD two billion. This has often led to considerable cutbacks, streamlining measures and substantial improvement in product development results.
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Traditionally, long-established, large-scale industries, such as the forestry, chemical, mechanical and steel industries have been strongly inclined to invest. Their philosophy: The next investment will solve the problems of both today and tomorrow. This type of thinking has sometimes led to over-investment and wrong and unnecessary investments.
In such instances, it can be a good idea to get an outside opinion on the effectiveness of earlier investments and an assessment of future investments from someone whose experiences are different from those of the company in question.
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