Aligning an R&D portfolio with corporate strategy
Article Type: Abstracts From: Strategic Direction, Volume 25, Issue 2
Herfert K.F., Arbige M.V. Research Technology Management,September-October 2008, Vol. 51 No. 5, Start page: 39, No of pages: 8
Purpose – To study the ways in which senior management can determine the direction that research and development (R&D) should take to align with the business goals of the company and the approaches used to integrate the R&D strands running through different parts of the company. Design/methodology/approach – The corporate portfolio management cycle of Genecor, a division of Danisco, USA, and one of the largest biotechnology companies in the world, is examined as a case study to reveal how R&D investment priorities are viewed stratgically. Describes how Genecor has adopted the concept of the business integration team (BIT) to create linkages between the different parts of the corporate portfolio cycle and create key linkages among various corporate functions. Findings – In the specific case of Genecor the BIT is led by a specific business-unit head and comprises several individuals, including high-level leadership from the R&D, supply,intellectual property, and regulatory areas. Reveals how the BIT is responsible for setting and achieving the specific goals of a particular business unit,including financial outlays among functions. Highlights the critical role of the“centres of excellence” approach adopted by the company to ensure team work and communication, where each distinct location has a critical mass and scientific talent to provide world-class work in distinct areas of R&D. Originality/value – Reveals a practical approach that could be tried by other companies involved in setting R&D corporate strategy. Included in a special issue of Research-Technology Management journal devoted partly to the theme: “R&D and business strategy”. ISSN: 0895-6308 Reference:37AX483
Keywords: Biotechnology, Business planning, Corporate strategy, Innovation, Management techniques, Managerial strategy, R&D
