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Module 2: Part IThe Role of R&D in the
Corporation: Xerox as a Case in Point
Module 2: Part IThe Role of R&D in the
Corporation: Xerox as a Case in Point
Professor Nina D. ZivPolytechnic Institute of NYU
New York City, New YorkEmail: [email protected]
Professor Nina D. ZivPolytechnic Institute of NYU
New York City, New YorkEmail: [email protected]
Discussion QuestionsDiscussion Questions
What is the role of R&D in the corporation?What should the relationship be between R&D
and the business of a company?What elements do you need to create a
successful company? Why did Xerox ‘fumble the future’ and fail to
capitalize on its innovations, e.g., GUI, mouse?What are challenges facing managers who
manage R&D organizations?What are the lessons learned from our study of
R&D in Xerox?
Other Ideas on R&D - IOther Ideas on R&D - IThe Long Nose of Innovation
The bulk of innovation takes place over a long period of time – this is the long nose of innovation. Much of this is low key and takes place before new idea is generally known. Example is the mouse which was invented in 1965 then adopted in 1973 by PARC and then 1984 when first mouse used by MACS
An idea may start with an invention but bulk of work and creativity is in the augmentation and refinement.
Companies should focus on refining existing technologies as much as on creation – Buxton calls this prospecting, mining, refining and goldsmithing.
Long noses are great for sniffing out great neglected ideas and companies which can shorten the nose make a great contribution.
Copyright©2010, N.D. Ziv, Institute for Technology & Enterprise
Other Ideas on R&D - IIOther Ideas on R&D - II IBM’s idea is to going all over the world looking to set
up collaboratories which matches up its researchers with experts from universities and companies. In Brazil, Saudia Arabia and other countries, IBM is
collaborating with outsiders as an essential piece of its research strategy. This is in contrast with its usual way of operating which was to keep everything proprietary and secret.
No guarantee this can work because of issues of intellectual property and expenses
Also, controversial since critics say US competitiveness is weakened when flagship companies take crucial research projects overseas.
IBM thinks it can get ideas and other research streams it would not normally think of – larger scale ventures and large payoffs.
Copyright©2010, N.D. Ziv, Institute for Technology & Enterprise
John Seely Brown’s Views on the Role of R&D
John Seely Brown’s Views on the Role of R&D
Copyright©2010, N.D. Ziv, Institute for Technology & Enterprise
Corporate research must reinvent innovation and be a change agent Emphasis should be on what Brown calls ‘pioneering research’:
Research on new work practices and organizational innovation as important as developing new products Innovation must be transmitted throughout the organization and must be viewed as something that is co-created with other members of the organization, not just those who are directly responsible for R&D Technology must be viewed as something that is integrated into the fabric of the organization and helps enable learning in the organization The way to communicate the value of new innovations developed in the ‘lab’ is to go beyond just technology transfer and get people to experience first hand the value of the innovation R&D’s ultimate partner is the customer who must be directly involved in the research and development process
Overall, R&D is seen by Brown to be as much a catalyst for transforming corporations as it is a place where technological innovations are created
Xerox - BackgroundXerox - Background Began As Haloid Company, a Small Photographic Paper
and Supply Firm In Late 1950s, Company Invests in Large Amounts of
R&D to Develop Xerography Which Becomes Basis of Successful Copy Machine Business (the 914 Copier) and is a smash hit
In Early 1970s, McColough Decides to Change the Company’s “DNA”. Xerox Buys SDS for $900 Million in Stock. McColough Declares That Xerox’s Commitment Is to Research: “R&D Has Been, Is, and Will Be a Way of Life. Our Company Already Owes Much to the Prompt Exploitation of New Technology”
Question: Can you change a company’s DNA?
Copyright©2010, N.D. Ziv, Institute for Technology & Enterprise
PARC – The PromisePARC – The Promise Jack Goldman, chief scientist establishes PARC to develop
future technologies
Innovative Team Develops New Technologies (Ethernet, Mouse, GUI, laser printer, computer system )
Team Made up of Top Notch Scientists and Run by Bob Taylor
Culture Similar to Dotcoms of the 1990s – “Counterculture”
Enthusiastic, Flat Organization conducive to innovation
Generous funding from parent company
Question: So What went wrong?
