GLOBAL INNOVATION MANAGEMENT AND VIRTUAL R&D TEAMS

1. GLOBAL INNOVATION MANAGEMENT AND VIRTUAL R&D TEAMS

2. GLOBALIZATION OF INNOVATION • Innovatıons have acquired a key-ole in the growth and competition strategies of firms today.

3. GLOBALIZATION OF INNOVATION • At the same time, innovations in today’s “GLOBALIZED” world are hardly feasible in isolation.

4. GLOBALIZATION OF INNOVATION • All these developments are leading to do “globalization” of innovation. Based on recent emprical studies cunducted by the authors in Germany.

5. GLOBALIZATION OF INNOVATION

6. GLOBALIZATION OF INNOVATION

7. GLOBALIZATION OF INNOVATION • ERNST and KIM (2001) identified three forces that drive global production Networks(GPN) a)Instutional changes in the form of economic liberalization and free trade agreements b)The impact of information and communication Technologies (ICT) c) Competition and the changing industrial organization (Networks)

8. GLOBALIZATION OF INNOVATION • In summary, GLOBAL INNOVATION activities are thought to provide firms the following advanteges: 1-ACCESS TO GLOBAL EXPERTISE AND KNOW-HOW :

9. GLOBALIZATION OF INNOVATION 1-ACCESS TO GLOBAL EXPERTISE AND KNOW-HOW 2- REDUCE BOTTLENECKS IN THE R&D PIPELINE AND SHORTEN TIME TO MARKET 3-MEET DEMAND FOR LOCALİZED PRODUCTS IN EXTERNAL (FAST – GRAWING ) MARKETS 4- RELIEVING COST PRESSURE 5- PROXIMITY TO PRODUCTION CENTERS 6- LEARNING FROM “LEAD MARKETS”

10. GLOBALIZATION OF INNOVATION • 4- RELIEVING COST PRESSURE • 5- PROXIMITY TO PRODUCTION CENTERS • 6- LEARNING FROM “LEAD MARKETS”

11. GLOBALIZATION OF INNOVATION • The above mentioned advantages may be translated in a BCF strategy, which enables a “better,cheaper and faster” development of products, process and services. The BCF factors may be regarded as characterizing the “goal model” of moderni international firm.

12. GLOBALIZATION OF INOVATION

13. CHALLENGES OF GLOBAL INNOVATION • The desire to engage in international innovation activites however either did not materialize or did not run satisfactorialy for many. (((The primary reasons cited, and evaluated on a scale of 1 (=very important to 6=not importatnt at all)

14. CHALLENGES OF GLOBAL INNOVATION

15. HOW DO WE MANAGE THE GLOBAL INNOVATION?

16. GLOBAL INNOVATION MANAGEMENT 10 RULES FOR MANAGING GLOBAL INNOVATION

17. GLOBAL INNOVATION MANAGEMENT • Companies are well aware that hidden in their dispersed, global operations is a treasure trove of ideas and capabilities for innovation. • But it’s proving harder than expected to unearth those ideas or exploit those capabilities in global innovation projects.

18. GLOBAL INNOVATION MANAGEMENT • What works for an innovation project conducted in a single location doesn’t necessarily work for one dispersed across many sites around the world. When a project spans multiple locations, many of the natural benefits of co-location are lost. Part of the challenge of dispersed innovation thus becomes how to replicate the positive aspects of co-location while harnessing the unique benefits of a global initiative.

19. GLOBAL INNOVATION MANAGEMENT • To explore this challenge, we spent more than a decade doing field research at 47 companies around the world, including Citibank, Intel, Novartis, Samsung and Xerox. In 2004 we teamed up with Booz & Company to conduct a global survey that was completed by 186 companies from 19 countries and 17 sectors. We draw on that work to present a set of guidelines for successfully managing global innovation projects.

20. GLOBAL INNOVATION MANAGEMENT 1. Start Small • No matter how strong technical capabilities or customer knowledge may be at a particular site, employees will struggle to make a contribution to a global project commensurate with their skills if they have had experience only in co-located development. That’s because on single-location projects, team members benefit from collective tacit knowledge and a shared context, both of which support rich communication and help build trust and confidence among coworkers.

21. GLOBAL INNOVATION MANAGEMENT • Projects that span multiple sites and time zones are often hobbled by differences in workplace practices, communication patterns and cultural norms. In the absence of everyday interactions and encounters, people struggle to signal trustworthiness and demonstrate competencies. Many teams are used to competing for resources with teams at other sites, and this creates yet another barrier to trust and collaboration between sites.

22. GLOBAL INNOVATION MANAGEMENT • To be effective, dispersed teams have to develop a new set of collaboration competencies and establish a collaborative mindset. This can be done by running small, dispersed projects involving just two or three sites before a project launch

23. GLOBAL INNOVATION MANAGEMENT 2. Provide a stable organisational context • During periods of major organisational change, the complexity of dispersed innovation escalates. Top managers are likely to be focused elsewhere within the organisation, leaving their global projects orphaned. In a climate of organisational uncertainty, turf battles can flare up, and team members may become concerned about job security and lose focus. • Managers need to anticipate the possible toxic side effects of reorganisation on global innovation and shelter teams as much as possible from disruptions. They should focus on creating an atmosphere of stability and bolster employees’ sense of self-worth and loyalty to the firm.

24. GLOBAL INNOVATION MANAGEMENT 3. Assign oversight and support responsibility to a senior manager • When a project is fragmented and scattered over multiple locations, miscommunication, conflict and stalemates over crucial decision-making are much more likely. Teams often struggle to handle these problems constructively over a distance, so senior managers have to take on a formal role as arbiter, risk-manager, support-provider and ultimate decision-maker. Companies that are smart about global innovation create an explicit role for senior executives in their projects.

25. GLOBAL INNOVATION MANAGEMENT 4. Use rigorous project management and seasoned project leaders • A global innovation project also requires a strong management team to drive the project on a day-to-day basis and strong team leaders supported by robust tools and processes. These are necessary to impose discipline, structure and a shared sense of purpose across the locations.

26. GLOBAL INNOVATION MANAGEMENT • Firms can adopt rigorous quality programs to provide formal management for global projects, or they can build a corporate project-management capability. However, it’s important to note that global innovation projects are so complex that standard tools and processes don’t always work well.

27. GLOBAL INNOVATION MANAGEMENT 5. Appoint a lead site • Each site involved in global innovation will see the project through the prism of its own contribution and context. That’s why all sites can’t carry equal weight, even if their experience and expertise are equivalent; one has to be designated the lead. That site takes responsibility for delivering the project on time and on budget.

28. GLOBAL INNOVATION MANAGEMENT 6. Invest time defining the innovation • One of the great benefits of co-location innovation is that the product or service isn’t always what was anticipated at the outset. Because everyone involved is in frequent communication, continuous learning and adaptation can take place, allowing the design of the product or service to improve over the course of the project. • When a project is split, there is very little latitude for iterative learning. Instead, everything must be defined upfront. In addition, process flows, timelines and knowledge requirements need to be thoroughly understood so that everyone working on the project has the same understanding of the goals and their individual contributions to them.

29. GLOBAL INNOVATION MANAGEMENT • Although there is a natural temptation to dive into development as soon as possible, studies show a positive correlation between investment in defining goals and technical specifications and the successful outcome of projects. We believe that a global project can’t be effectively defined without some degree of co-location between the different functions and sites involved. Co-location builds relationships and trust upfront and supports the sharing of complex ideas and concepts.

30. GLOBAL INNOVATION MANAGEMENT 7. Allocate resources on the basis of capability, not availability • The question of how best to staff a project rarely arises when only one location is involved. The effective staffing of a global project, however, requires a great deal of attention to select and integrate the best possible knowledge and capabilities.

31. GLOBAL INNOVATION MANAGEMENT 8. Build enough knowledge overlap for collaboration • Although sites should be selected on the basis of the unique capabilities and knowledge they can bring, there also has to be a small degree of knowledge overlap between sites. Without this, critical interdependencies between modules may not be apparent until the integration phase, when problems are costly to rectify. This doesn’t mean replicating the other sites’ knowledge, but understanding enough of what they do to anticipate potential interdependencies and interfaces in the development process.

32. GLOBAL INNOVATION MANAGEMENT 9. Limit the number of subcontractors and partners • In most innovation projects today, part of the work is outsourced or undertaken by development partners to access specific competencies, reduce development time or cut costs. Managing relationships with external parties takes time and energy, so global projects must limit the additional complexity and management burden by keeping the number of subcontractors or partners to a minimum.

33. GLOBAL INNOVATION MANAGEMENT • Choosing partners or subcontractors located close to one of the internal project sites will reduce the potential for cross-cultural misunderstandings and support face-to-face communication.

34. GLOBAL INNOVATION MANAGEMENT 10. Don’t rely solely on technology forcommunication • The successful execution of a global project remains dependent upon communication channels that go as far as possible to replicate the richness of co-located communication. Information and communications technologies certainly have a role to play, but those tools shouldn’t be over-relied on, because they tend to mask differences between locations, leading to misunderstandings and tension. Successful globally integrated firms understand the importance of an extensive communications approach.

35. GLOBAL INNOVATION MANAGEMENT • Information and communications technologies certainly have a role to play, but those tools shouldn’t be over-relied on, because they tend to mask differences between locations, leading to misunderstandings and tension. Successful globally integrated firms understand the importance of an extensive communications approach.

36. GLOBAL INNOVATION MANAGEMENT • TOGETHER , 10 STEPS we have outlined represent the foundation for successful global innovation projects.Adopting only one or two may result in fleeting success in some projects but will not produce a stream of positive outcomes.These best practices all need to be put in place and honed over time.It’s not easy to build a global innovation capability , but for companies that don’t have the skills and processes in place to manage global innovation projects,the future offers a stark choice :

37. GLOBAL INNOVATION MANAGEMENT • Continuewithonlycolocatedprojects , in thehopethattheywillfilltheinnovationpipelinefor a fewmoreyearsuntil global competitionintensifiesandmakeslocalinnovation a nicheactivity.Orbeginbuildingcapability in global innovationnowtotakeadvantage of lowerdevelopmentcosts , faster time to market , and , mostimportant , theabilitytoleveragedispersedknowledgetogaincompetitiveadvantage.

38. VIRTUAL R&D TEAMS

39. VIRTUAL R&D TEAMS Innovation is becoming the most important key issue for company’s success in the 21st century. In thecompetitive environment is necessary for the enterprises to put together different capabilities and services withthe goal. It’s a widely accepted that innovation is better achieved by working in team.

40. VIRTUAL R&D TEAMS • Virtual teams base on information technology are formed to facilitate transnationalinnovation processes and it should be noted that innovation has a positive impact on corporate performance.Information and communication technology has brought about significant changes in organizations and producedimportant benefits, including in the areas of innovation which is recognized as a prime source of nationalcompetitive advantage.This contribution proposes a conceptual model for understanding and analyzing the process of virtual R&Dteam as an innovation and technology assimilation facilitator.

41. VIRTUAL R&D TEAMS • Research and development and as a result, technology have tremendously improved the quality of human lifeover the last five decades. Timely information can be crucial to the success of businesses. • Inadequateknowledge about or access to new technologies and know-how is a central concern for many enterprises. One of the best ways of promoting innovation is to ensure that individuals and firms benefit from the results of their research efforts.

42. VIRTUAL R&D TEAMS • The use of teams has increased significantly as organizations (both public and private) have turned moreand more jobs over to team-based structures. Teams are now being used in innovative ways in strategic planning,flexible-jobbing initiatives, global networks, the horizontal organization, and the virtual organization.

43. VIRTUAL R&D TEAMS • Now,due to communication technology improvements and continued globalization, virtual teams have increasedrapidly worldwide. With rare exceptions all organizational teams are virtual to some extent. Virtual teamsare assumed to be part of normal business life. It is commonly agreed that virtual teams produce a greaterquantity of ideas and information than individuals acting alone. So delaying with virtual team can bring newopportunity to facilitate technology creation and innovation in enterprises.

44. VIRTUAL R&D TEAMS • DEFINITION OF VIRTUAL TEAM : A summary of the definition of virtual team may be taken as:“small temporary groups of geographically, organizationally and/or time dispersed knowledge workers who coordinate their work predominantly with electronic information and communication technologies in order to accomplish one or moreorganization tasks”.

45. VIRTUAL R&D TEAMS • CommonCriteria Of VirtualTeam Characteristics of virtualteam : • Geographically dispersed(over different time zones) • Driven by common purpose • Enabledbycommunicationtechnologies • Involved in cross-boundarycollaboration • It is not a permanent team • Smallteam size • Team member are knowledge workers • Team members may belong to different companies

46. VIRTUAL R&D TEAMS Some Of The MainAdvantagesAssociatedWith VirtualTeaming • Reducing relocation time and costs, reduced travel costs • Reducing time-to-market • Moreeffective R&D continuationdecisions • Able to tap selectively into center of excellence, using thebest talent regardless of location • Greater productivity, shorter development times • Greater degree of freedom to individuals involved with the developmentproject • Higherdegree of cohesion • Producing better outcomes and attract better employees • Provide organizations with unprecedented level of flexibilityandresponsiveness • Can manage the development and commercialization tasks quitewell • Organizations seeking to leverage scarce resources across geographicandotherboundaries…

47. VIRTUAL R&D TEAMS • Respond quickly to changing business environments • Sharingknowledge, experiences • Enable organizations to respond faster to increasedcompetition • Better team outcomes (quality, productivity, andsatisfaction) • Most effective in making decisions • Higher team effectiveness and efficiency • Self-assessed performance and high performance • Cultivatingandmanagingcreativity • Improve the detail and precision of design activities • Provide a vehicle for global collaboration and coordination of R&D-relatedactivities

48. VIRTUAL R&D TEAMS • Thisvirtual team strategy has many advantages, but it presents its own set of managerial challenges; working online is less formalized, and companies frequently lack clear policies on how to manage virtually.

49. VIRTUAL R&D TEAMS • Here are 10 tips for managers to get the most out of their virtual teams: 1-Be available 2-Organize regular meetings with both individuals and the whole team 3-Encourageinformalconversations 4-Rotate 5-Be creative with team bonding

50. VIRTUAL R&D TEAMS 6-Treat time zonesfairly 7-Prioritizeculturalsensitivity 8-Invest in socializing  pre-existing  teams 9-Look for shared understanding when recruiting 10-Manageexpectations