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

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Presentation on theme: "Role of Research Masao Kato Chairman FX PALO ALTO LAB INC."— Presentation transcript:

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

2 Fuji Xerox Fuji Xerox Asia Pacific FX Palo Alto Xerox PARC Xerox Corporation

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 (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 Spinoff Examples 3ComEthernetMetcalfe VLSIIC design toolsBalletto AdobePage descriptionWarnock SynopticsNetworkLudwick SDLILaser diodeScifres LiveworksGroupwareBruce Uppercasee-bookHalaz 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 Established Main Business Disruptive Technology Main Business and New Business New Business

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 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 Computer Semi-conductor Home electronics ATT IBM TI Intel RCA NECNEC FUJITSUFUJITSU TOSHIBATOSHIBA HITACHIHITACHI

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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