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Case studies

A major electronics manufacturer


    
A major electronics manufacturer realigns its R&D activities to respond to market demands and encourage innovation.    
A major electronics manufacturer realigns its R&D activities to respond to market demands and encourage innovation.
   
Business impact
Developed customized innovation management methodologies for improving research and development activities in an effort to become more aggressive in pursuing new technology-based growth opportunities.

Issue
The electronics maker needed to improve its innovation capabilities to achieve its goal of becoming a world-class leader that is capable of creating and leading new markets instead of remaining a fast follower.

Executive summary
IBM Research and IBM Global Business Services worked in partnership with the client to transform its R&D division by incorporating certain of IBM's world class research practices, methodologies and experience into the client's research and development operations. The client’s teams drew from best practices developed at IBM Research labs to generate new ideas and technology themes. In collaboration with business units, they worked to develop a corporate culture and business processes geared toward nurturing creativity while boosting effective execution. As a result of its successful transformation efforts, the R&D division anticipates a 20 percent increase in its funding.

What IBM did
With more than $100 billion in revenue, the electronics manufacturer is well-known as an aggressive powerhouse in some parts of its business, but as a rapid follower in others. Hoping to hone its image as a "lean and mean" industry leader, the company turned to IBM for help in devising a strategy to transform itself into a constant growth engine.

IBM assembled a global team of innovation management experts, consultants and research managers to assist the client in implementing advanced practices while maintaining current strengths. Client teams visited IBM's Watson Research Lab for detailed benchmarking and to gain insight into strategies that it could use to foster the development of breakthrough technologies for new markets, rather than its present R&D practice of developing and purchasing competitive technologies for existing markets.

IBM's transformation blueprint for the client's R&D activities called for building acceptance and cooperation between the business and R&D units, aligning activities to correspond with market demands and encouraging workers to expand their thinking across disciplines and departments. Researchers were given greater flexibility and encouraged to work more effectively rather than just more efficiently. Some individuals were empowered to make their own decisions, and creativity and effort were nurtured and rewarded. In addition, the client was exposed to new processes, such as one similar to IBM's Global Technology Outlook (GTO), which proved valuable as a forecasting tool. To demonstrate its commitment to the process, the company pledged up to 15 percent of its R&D unit budget to seed activity, which will be allocated to creative research projects. By enhancing its creativity and effectiveness, the client's R&D unit anticipates a more comprehensive response to customer needs while maintaining a strategic focus and taking responsibility for its future as the company's growth engine.

Capabilities applied
As a preeminent leader in research and development, IBM was well positioned to share its expertise in crafting a strategic vision and implementing a plan to transform a static R&D operation into an industry frontrunner. IBM's benchmarking-based consulting services provided the client with a roadmap to successful transformation into a "lean and mean" industry leader.
    
 
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