The abbreviation "R&D" stands for Research and Development. R&D is a full cycle of research. It starts with a problem statement, includes scientific research, new design solutions and the production of a prototype or a small series of samples.
The decisive factor for holding positions in the market of high-tech products and successful competitiveness is the constant renewal of products and, in parallel, the modernization of production. This is a qualitative transition from labor-intensive technologies to science-intensive ones. Where investments are made not in manual labor, but in scientific research for practical purposes.
How it works in practice
- The task of R&D is to create new principles for the manufacture of products, as well as the development of technologies for its production. Unlike basic research, R&D has a clearly defined purpose and is financed not from the state budget, but directly from the interested party. The R&D order includes the conclusion of an agreement, which specifies the terms of reference and the financial side of the project. In the course of such research, there are discoveries of previously unknown properties of materials and their compounds, which are immediately embodied in finished products and determine a new direction in the development of technical progress. Note that the customer in this case is the owner of the research results.
- The implementation of R&D consists of several stages and is associated with certain risks, since the creative component plays the most important role in successful work. There is a chance of getting a negative result. In this case, the customer decides to stop funding, or continue research. R&D is carried out according to an approximate scheme:
- study of existing samples, research, theoretical research;
- practical research, selection of materials and elements, experiments;
- development of structures, schemes, principles of work;
- development of appearance, sketches, creation of a prototype;
- coordination of technical and visual characteristics with the customer;
- prototype testing;
- drawing up technical documentation.
- Inventory, or R&D accounting, is carried out within the framework of existing regulatory documents. In practice, it looks like this: PBU 17/02 (Accounting for expenses for research, development and technological work) regulates the accounting of all R&D expenses. This document is addressed to research customers, or organizations that carry out development on their own, without the involvement of third parties. PBU 17/02 is applied if, in the process of development, a result is obtained that is not subject to legal protection under the law of the Russian Federation. R&D expenses are reflected in accounting as investments in non-current assets of the organization. R&D results are a unit of intangible assets and are accounted for separately for each topic in accordance with actual expenses.
From the foregoing, it is clear that R&D is a risky but necessary investment item. They have become the key to successfully doing business abroad, while the Russian industry is just beginning to learn from this experience. Business leaders who look to the future, not limited to today, have the opportunity to rise to the top positions in their industry.
Since the organization of R&D involves completely new developments that are intangible value, the issue of copyright, intellectual property, etc. is decided by the contract for development within the framework of the Federal Law on Science dated 23.08.96 No. 127-FZ.
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Conducted research and the creation of new technological developments should be reflected in accounting. The method of fixing data depends on who is the performer of the work. Studies can be ordered from a specialized company or implemented on their own. If a third-party organization is engaged in research and development (R&D), this company needs documentary grounds - an agreement - to take into account expenses in the form of payment for services.
IMPORTANT! An agreement with an organization performing R&D work must be drawn up in writing.
An agreement between enterprises may provide for a full cycle of research or the solution of a part of the tasks within the framework of a large-scale project. If the work is carried out on its own, then it is necessary to register the ongoing research activities in the database of the All-Russian Information Center. The notification forms were approved by the Order of the Ministry of Education and Science dated March 31, 2016 No. 341. In case of violation of the rules for reporting initiated research developments, a fine may be imposed on the organization.
What is included in R&D expenses
R&D stands for "scientific research and development". They are intended for the formation of a new or improved technology, the invention of a new type of product with more advanced characteristics. R&D expenditures can be used to find improved methods of organizing production or implementing managerial functions.
The composition of the costs incurred by the institution in connection with the ongoing R&D is determined by Art. 262 of the Tax Code of the Russian Federation:
- Depreciation deductions for the fixed assets involved in the work and.
- Remuneration of personnel involved in research activities or operations to develop new designs.
- Expenses of a material nature directed to the implementation of R&D. These include the purchase of exclusive rights to the results of inventive activity, to obtained utility models or unique industrial designs. The transfer of rights is carried out through an alienation agreement. It is allowed to allocate expenses for the acquisition of rights to use objects of intellectual property.
- Other expense transactions that are directly related to R&D. Legislation allows them to be included in the amount of costs for research and development not in full, but in the amount of up to 75% of the total costs incurred.
- Payment of invoices issued under R&D contracts.
NOTE! For the group of labor costs, their reflection as part of R&D is possible if the personnel was engaged in research and development work. If these employees are involved in other tasks, the assignment of accrued earnings to different types of expenses is carried out in proportion to the hours worked at the facilities.
Tax and accounting
An additional regulatory document on the reflection of R&D is the government Decree of December 24, 2008 No. 988. It provides a list of research and development activities that are classified as other costs. The enterprises present in the list of work are recognized after the task is completed in the period of actual completion of all activities on it. In accounting, these costs are shown with an increasing factor equal to 1.5. After completion of the research activities, the organization must not only show the costs incurred in accounting, but also submit to the Federal Tax Service a report on its R&D.
The procedure for recognition, reflection and write-off of expenses related to R&D is approved by PBU 17/02. Costs are accumulated on account 08. In order for expenses to be accepted for accounting by an enterprise, a number of conditions must be met:
- the exact amount of expenses incurred can be identified;
- all expenses are documented;
- the results obtained as a result of R & D have the ability to bring benefits in the future;
- the results of the work can be shown to others through demonstration activities.
After the end of the formation of the amount of costs on account 08, the valuation is transferred to account 04 and the status of intangible assets appears. This is possible only if the organization has legal grounds to consider the asset as its own (if a patent or license has not been obtained, then the costs will be shown as R&D expenses). When a new asset is created, its value is written off through regular depreciation. In the absence of rights to recognize the results of development as intangible assets, expenses are gradually transferred to cost accounts from account 04. The duration of the period for the transfer of costs to expenses for each enterprise is set individually and fixed by the accounting policy.
NOTE! If the criteria for recognition of R&D expenses are not met in full, then the costs should be shown in turnovers on account 91.
In tax accounting, there is a one-time write-off of R&D expenses after the work is completed. In accounting, expenses begin to be included in R&D costs if there are signs of future economic benefits from the asset being developed:
- it is possible to technically complete the research or obtain the desired development result;
- there are options for the practical application of the results of the work;
- the enterprise is guaranteed to have enough resources to complete the project;
- for products produced with the results of research or development, there is a market;
- thanks to new assets, internal problems or tasks of the institution can be solved;
- costs can be calculated and justified.
REFERENCE! The difference between tax accounting and accounting in relation to R&D is that, according to the standards of the Tax Code of the Russian Federation, the costs of research and development activities can be recognized even if the desired result was not achieved.
Write-offs of expenses directly related to the implementation of R&D can be carried out using a straight-line method or a write-off method in proportion to output. Depreciation must take into account the total useful life, but the write-off period cannot exceed 5 years. Depreciation charges are formed from the first day of the month following the month in which R&D expenses are transferred to the status of an intangible asset.
Accounting involves a separate reflection on the accounts of R&D costs. Analytics is conducted in the context of types of research and types of development. All costs incurred are allowed to be inventoried. Before starting the control cost calculation, the check should touch upon contractual documentation related to R&D (in terms of acquired material resources, purchases of non-financial assets to support the workflow).
R&D accounting entries
Typical correspondence accounts for accounting for various expenses for ongoing R&D involve the participation of an active 08 account in them. In his debit, the costs incurred by the company are accumulated. After the completion of all activities and the full readiness of the asset for operation, its value, actually formed on account 08, is transferred to the debit of account 04.
In the process of development or research work in accounting, the following typical records can be used:
- D08 - K02— at the time of writing off the depreciation of the involved equipment and fixed assets for special purposes;
- D08 - K10- when writing off the cost of material resources that were needed by the department involved in R&D;
- D08 - K70- in the amount of accrued earnings to employees who are working on improving products or creating new models and technologies;
- D08 - K69- insurance premiums are reflected, without which it is impossible to accrue and pay salaries legally to hired personnel.
When all the costs have been collected on account 08, the development product is ready and it can be introduced into production or the company's management system, account 08 is credited, and account 04 is debited when the sub-account "R&D results" is indicated. After obtaining a patent or certificate, the result of development becomes an intangible asset and is transferred from the subaccount with the results of R&D to the subaccount of intangible assets on account 04.
If the expenses for the work of developers and researchers did not lead to the expected results, the effect is recognized as negative. The amounts paid for unrealized in accordance with the development expectations are written off by posting D91.2 - K08.
10. PLANNING AND MANAGEMENT OF R&D PROGRAMS
10.1. Specifics of R&D management
R&D management is decision-making in a constantly changing environment, continuous review of the R&D program and re-evaluation of it as a whole and its constituent parts. It is natural for the head of the R&D sphere that any of his actions is surrounded by uncertainties, both internal and external. At any time, an unforeseen technical problem, the need to reallocate resources, new assessments of market opportunities can arise. Therefore, any R&D planning and management system should be flexible enough, and the dynamism of the situation requires more managerial attention than any field of activity.
Every project should start with a clear goal. Since ultimate success is determined by the market, the goals must be determined by market need. First of all, it is the market segment and its interrelated characteristics (size, allowable price, requirements for technical efficiency and time of product withdrawal). The product, in turn, must be defined by its effectiveness, price and date of appearance. All these characteristics are interdependent, and, therefore, a certain iterative procedure for refining the goal is required.
Particular attention should be paid to what technical level of product a given market segment is most likely to require. Redundant parameters will likely increase R&D and production costs, as well as development time, and therefore reduce profitability (Chapter 5).
At the stage of initial project definition, it is essential to focus more on the market need and the degree of its satisfaction than on decisions regarding the type of final product (it should be borne in mind that alternative solutions will appear during the development process). The sequence of decisions should be as follows:
- what should be achieved;
- how to translate it into practice;
- which of the alternatives are the most promising.
Only after an exhaustive search and selection of the most attractive project concept should attention be shifted to the technical details and specification of the program of work. The definition of the project should be concise and should not limit the freedom of the team to find new solutions. At the same time, it should contain clearly formulated goals, guidelines for technical, cost parameters and the duration of development.
10.2. R&D portfolio planning
The R&D portfolio can contain a variety of projects: large and small, close to completion and at the initial stage. Each of the projects requires the allocation of scarce resources. Part of the projects will be terminated in the process of implementation, their components will change in number and need for resources, etc. Thus, the process of planning and updating R&D plans is continuous. The number of projects in the portfolio depends on two factors: the size of the projects and the total R&D budget. The structure of the portfolio depends on the manageability of the portfolio on the part of the management and the firm's R&D policy.
A portfolio of mostly large projects is riskier than a portfolio of small projects. As the number of projects grows, the probability of successful completion of at least some of them increases. In addition, smaller projects are easier to "fit" together in the R&D process with available private resources (eg, pilot plant capacity). However, smaller projects tend to have modest profitability potential, resulting in many products with limited prospects entering the market. It is unlikely that this will be consistent with the marketing policy of the company.
The ultimate success of any project depends as much on technical and market merit as on the quality of project management. Good management is a critical resource for most firms and should not be scattered across many projects. Projects are broken down into stages, and the art of managing them is to time their launches in order to ensure the effectiveness of the entire portfolio. In table. 10.1 compares the cash flows of two options for launching projects: parallel and sequential. In this case, serial implementation provides the following advantages:
- managerial efforts at each moment of time are spent on one project;
- any delay in project A does not require a reallocation of resources within the portfolio;
- new product A starts production two years earlier, its life cycle increases, commercial and financial effects associated with an earlier entry to the market;
- project B can start on a more advanced scientific and technical basis using updated market information;
- the balance of cash flows in the 3rd and 4th years is leveled.
Table 10.1
Cash flows of two portfolio options(in conventional units)
|
Parallel development |
Sequential development |
|||||||||
|
net income |
net income |
|||||||||
|
1 |
5 |
5 |
5 |
5 |
10 |
5 |
5 |
15 |
||
For all its artificiality, the example shows the expediency of concentrating efforts in R&D. The order in which projects are carried out is not necessarily related to their economic importance. For example, it is possible that a less significant project with a shorter product life cycle should be launched first, otherwise the economic benefit from its implementation will be sharply reduced.
When planning specific projects, tape and network charts are used. You should pay attention to the following important provisions of planning:
- allocation of resources in relation to the entire portfolio;
- definition of the work program, resources, time;
- identification of decisive "critical points";
- allocation of the main tasks;
- linking the work schedule with "critical points";
- integration of all activities within the overall plan.
10.3. R&D project management
Accurate and timely information is essential for effective project management in the first place. As an information base for managing an R&D project, the following are used:
- criteria for evaluating projects;
- estimates and assumptions on which the decision to select the project was based;
— project definition (10.1);
- project execution plan.
Naturally, the timely updating of all types of information coming from other departments of the company (marketing, financial, etc.) is extremely important. Organizational management structures of the matrix type are the most conducive to this.
The project management system should be adequate to its volume, complexity, degree of uncertainty, place in the portfolio of R&D projects. It must provide:
- assessment of progress in solving each task, costs and duration of work;
- identification of those tasks, the implementation of which falls out of the schedule, an assessment of the consequences of this for the overall progress of work on the project;
- change in the development of the project as a whole in relation to the planned costs and completion date.
One of the difficulties of R&D management is the efficient allocation of resources. This is due to the following reasons.
1. The total amount of R&D resources needs to be relatively stable over time.
2. Resources are invested either in equipment that has a fixed cost, whether it is used or not, or in staff salaries; both are specific and non-fungible resources.
3. Each project requires a different combination of these resources, and because of the uncertainty in projects, it is not possible to accurately allocate resources in advance.
As the project moves from applied R&D to R&D, it undergoes changes, including in management methods (Fig. 31).
Rice. 31. Changing the factors of managerial decision-making in the R&D process
The art of management lies in the implementation of the intended. In R&D, more than anywhere else, it depends on the people on the project "team". Creativity and entrepreneurship cannot be planned, but the conditions under which they can effectively unfold depend heavily on managerial decisions. Implementation of a plan can only be effective when it is perceived as real by those responsible for its implementation. Therefore, the nature and style of leadership on the part of senior management is a vital component of the success of the project.
The financial profile of the project cannot be determined with sufficient accuracy. However, it is necessary to know that its actual form is largely determined by the decisions of the R&D management.
Really:
- the date of withdrawal of the product from production is largely a function of management based on the principles laid down in the early stages of the project;
- the duration of the product life cycle depends almost exclusively on the date of its entry into the market. Therefore, R&D management should, first of all, focus on reducing the R&D time;
- the conditions for "buying" time are most favorable when the price of time is low. Therefore, strict time discipline should be introduced already in the early stages of the program. As the project progresses, making up for lost time and fixing broken schedules becomes more and more expensive.
Everything stated in this section is illustrated in Fig. 32.
Fig.32. Project planning and management
10.4. Organizational structures in innovation
Organizational structure has a significant impact on project management. Its most important functions are:
- long-term staff development, accumulation of scientific and technical experience to achieve quick commercial results;
- transfer of scientific and technical information for the needs of the company from external sources and bringing corporate policy to the field of R&D;
- ensuring communications of personnel engaged in marketing, production and finance with R&D specialists;
- granting a high degree of autonomy to project managers while maintaining corporate control over the expenditure of resources in the project;
- leadership style that meets social and organizational processes;
- identification of the scientific and technical profile of the company;
- stimulation of staff creativity.
The following organizational structures for innovation management are most widely used:
- discipline management;
- project management;
- product organization;
- matrix organization;
- venture management.
Discipline management is most widely used in innovative firms primarily engaged in R&D. This structure is well adapted to the acquisition of new knowledge in special areas. However, focusing on disciplines detracts from the importance of the project as an organized entity and is hardly suitable for ROC.
Project management assumes that special committees are created to coordinate work on each project, or the administrative head is at the same time the scientific and technical head.
When organized by product, the company's field of activity can be divided into a number of industries, each of which is associated with the sale of products of the same group or the service of the same consumers (divisional management structure). At the same time, R&D can be organized in such a way as to either correspond to the structure of departments, either within the framework of a central R&D unit, or by distributing the scientific and technical program among the corresponding divisions of departments.
The most logical and widespread at present (including in Russia) is the matrix structure of R&D management. It provides a clear separation of managerial and professional responsibility for the project. This system has advantages in terms of achieving the goals of the company, the clarity of the functions of the project manager, the head of the specialized unit and the developer.
The ratio of managerial and professional needs established by the matrix organization is a compromise that guarantees the energetic pursuit of the goals of the project and at the same time the interests of the majority of the personnel, the preservation and strengthening of the scientific and technical potential of the company in the long term. Within the framework of the matrix organization, other departments of the company are easily involved in the implementation of the project. The attention of the project manager (research supervisor of R&D, chief designer of R&D) should be focused on project management to a greater extent than on the personal solution of scientific and technical problems. He is the decision maker who applies his experience and knowledge throughout the project. The success of the project turns into the personal success of its leader.
Heads of specialized divisions are in double subordination. However, the clarity of current decisions for them on the project, the ability to quickly take into account their competent opinion compensates for this shortcoming.
Individual scientific and technical specialists, working within the framework of one complex "team", pursue specific and tangible goals. Being specialists in their disciplines, such workers acquire a higher status in the "interdisciplinary team". At the same time, they remain in touch with their discipline and do not lose the opportunity to contact the head of a specialized unit for professional issues. Since most R&D professionals like to work on specific problems, the R&D matrix organization is well received by staff.
The term "venture" (venture - a risky venture) is used to describe an innovative organization created to reproduce within a large company many of the characteristics of a small business. The main goal is to ensure maximum responsibility for the progress of innovation on the part of one person - the "venture manager", who is free to use the resources allocated to him with minimal external interference. In essence, it is a subsidiary innovation firm of the company. Typically, such management is used for a few, exceptionally promising projects and operates alongside the existing organization.
The relatively small size of the organization and short communications provide maximum management flexibility as the project evolves, as the VC is essentially the CEO of the project and ensures R&D, production, and market launch of a new product.
In table. 10.2 provides comparative characteristics of organizational structures in the field of R & D, which will allow the most conscious approach to the choice of a particular management structure for an innovative firm.
Table 10.2
Characteristics of R&D organizational structures
|
Organizational Criteria |
Measure of compliance with organizational criteria |
||||
|
Organization by discipline |
Project Management |
Organization by product |
Matrix Organization |
Venture Management |
|
|
Development of scientific and technical potential |
Low |
||||
|
Professional growth of staff |
Low |
||||
|
Management training |
Very high |
||||
|
Achievement of short-term project goals |
Medium |
Medium |
Very high |
||
|
Involvement of market, production and financial personnel |
Medium High |
||||
|
Technology Transfer |
Low |
||||
10.5. venture company
venture company is a business cooperation between the owners of the company and the owners of venture capital on the implementation of projects with a high degree of risk and the possibility of obtaining significant income.
The work of this company is as follows. A company that has a tempting but untested idea (a risk factor) needs money. The idea turned out to be attractive to venture capitalists. Having a share in the common cause, the venture capitalist takes the bulk of the risk. The greater the risk, the higher the expected return.
Venture capital owners invest in places where banks (by charter or due to caution) do not dare to invest. As a rule, newly created small enterprises are financed from their own funds. Usually bank loans may not be available to them. Such loans are issued against specific property security, which may not be sufficient.
It is in this situation that it is important to attract venture capital. There are at least three stages in the development of a young company when it may need venture capital:
- financing of the early stage (the stage of creation, when capital is needed to lay the foundation for the development of the company);
- financing of the second stage (the stage of development, at which the transition from the creation of product samples to the establishment of the process of normal production and marketing activities is carried out);
- financing of the third stage (the stage of consolidating success, followed by the issuance of the company's shares for free circulation on the stock exchange, and finances are needed to improve production performance).
Financing an early stage is the highest risk, but there is a chance, if successful, to get a fairly high income for this (Table 10.3).
Table 10.3
Formation of risk capital when creating a venture company
Venture capital companies have become an integral and essential part of business life in the West. The amount of venture capital investments usually reaches a significant level and sometimes significantly exceeds the amount of capital invested by the founders of the enterprise. By investing amounts in excess of the owners' capital, venture capital owners also seek not to own a controlling stake in ordinary shares, and their remaining funds are provided in the form of a loan or an investment in preferred shares. The principles of operation of a venture company are as follows:
- the creation of a venture capital fund in the form of a partnership, in which the organizing company acts as the main partner and bears full responsibility for the management of the fund. To do this, a detailed business plan is being developed in order to convince potential investors of sufficient qualifications, experience of entrepreneurs and their desire for effective project implementation;
- placement of a venture fund on various projects with a risk degree of no more than 25% and with a return on investment in 3-5 years;
- "exit" of venture capital from the enterprise by turning the company into an open joint-stock company with the placement of the company's shares on the stock exchange or the sale of most of the shares of a large corporation.
Each venture fund is interested in its capital being invested in enterprises at different stages of development. In addition, the owners of venture capital, wishing to reduce investment risk, distribute it among various industries, and to control the activities of the venture fund, they appoint "their own" person to the position of financial manager of the venture company.
Venture capital companies only manage funds, but do not own them. They receive remuneration from the owners of capital, in accordance with the terms of the agreement between the company and the founders of the venture fund, although they can invest in these funds and part of their own funds. Demand for venture capital in the West in recent years has caused a rapid growth in the number of financial sources.
In relation to Russia, venture capital can be divided into the following types:
- closed joint-stock companies (cash of pension funds, large individual investors, etc.) with their subsequent transformation into open joint-stock companies;
- open-ended venture capital funds established in the form of partnerships;
- venture capital of concerns, financial and industrial groups with the formation of their own investment pool (usually partnerships), where venture capital investments are considered as a kind of research and development, “a window into new technology”, which in the future can bring companies significant income.
In the early 1990s, there were more than 700 venture capital companies operating in the United States, in which the volume of venture capital investments amounted to more than 4.5 billion US dollars. At the same time, venture capital owners almost never achieve complete success in all projects. According to available data, on average, 1/3 of investments bring them losses, 1/3 - very modest profits, and only 1/3 - large profits.
10.6. Practical organizational structures of research institutes and design bureaus in Russia
As already mentioned, the specific schemes for organizing research institutes and design bureaus involved in the development of new technical products and systems depend on the specifics of the industry, the products being developed, the degree of development completion (documentation, prototype, pilot batch, etc.). However, there are a number of common features related to the unity of the R&D procedure (Chapter 7.8), the presence of project managers (researchers of R&D, chief designers of R&D) and, consequently, matrix management structures, the unity of the planning and reporting procedure for certain types of costs and work. As a rule, there are the following types of subdivisions of research institutes and design bureaus:
- research,
- design,
- pilot production,
- Maintenance,
- management.
As an example of organizing a research institute for the development of complex instrumentation, let's consider a scheme for organizing a hypothetical research institute for navigational instruments for the navy.
The navigation equipment of modern sea vessels includes the most diverse equipment: radar stations; systems of satellite navigation, radio direction finding, acoustic echo sounding; electromechanical logs; gyrocompasses and other devices. The main trend in the development of ship navigation equipment is to create a unified system of these tools with integrated processing of navigation information on the on-board computer. Thus, the functioning of research institutes of the type under consideration is expedient both from a technical and functional point of view. The following abbreviations are adopted on the scheme of the organizational structure of the research institute (Fig. 33):
NIOTd - research department,
KNIO - a comprehensive research department,
NIS - research sector,
NIO-G - research department of generating devices,
NIO-I - research department of indicator devices,
NIO-U - research department of amplifying devices,
NIO-A - research department of automation and computer technology,
NIO-P - research department of power supplies,
PKO - design department,
PKS - design and engineering sector,
OGT - department of the chief technologist,
LTS - laboratory and technological sector,
OTD - department of technical documentation,
OSN - standardization department,
PDO - production and dispatching department,
OGE - department of the chief power engineer,
OGM - department of the chief mechanic,
OTB - safety department,
ONTI - department of scientific and technical information,
OTiZ - department of labor and wages,
PPO - planning and production department,
AKHO - administrative and economic department,
OMTS - logistics department,
VOHR - security department.
Each of the departments, as a rule, consists of several sectors (NIS, PKS, LTS). In the diagram of Fig. 33, for the sake of clarity, one such sector of the department is shown.
Rice. 33. Organizational structure of the Scientific Research Institute of Navigation Technology
End of Fig. 33. Organizational structure of the Scientific Research Institute of Navigation Technology
The basic principles of organizing research institutes are as follows. Integrated subdivisions (NIOTD, R&D, NIS) are responsible for the integrated development of R&D (compilation and approval of technical specifications, development planning, communications with other systems, general construction and layout, release of general documentation for the system). The specialized scientific subdivisions of the antenna research and development department and the radio engineering research and development department are responsible for the development of the corresponding blocks of the system according to the specific technical specifications of the complex departments (the product of their activities are electrical, hydraulic and other circuit diagrams, as well as private specifications for blocks and devices). The design and technology department develops working design documentation and new technological processes that ensure the production of a prototype and serial production of the R&D product.
The chief designers of R&D (researchers of R&D), as a rule, are part of complex research units, which form the management groups for a specific R&D. The staff position of project managers depends on the nature, importance and proportion of the work. They can hold positions from the director of a scientific research institute to the leading engineer (leading researcher) of the NIS. The most characteristic is the appointment of the head of the development of the head of the NIS.
In Appendix 2, the organization of R&D in such a research institute is illustrated by an aggregated network work graph.
10.7. Summary of Chapter 10
The planning and management of R&D projects bear the imprint of R&D's inherent uncertainty.
The main elements of planning and management: defining the project and setting its goals, a plan for achieving these goals, means for comparing the achieved and planned levels of parameters, managerial impacts. As the project moves along the path of "R&D - R&D - production - market", management undergoes significant changes.
When planning a portfolio of projects, it is advisable to limit the number of projects based on an acceptable level of risk. The most important thing may be to prioritize the timing of the project, rather than its importance.
None of the organizational structures satisfies all the criteria for meeting R&D objectives. The matrix management structure and venture management are most suitable for R&D. In the future, large firms will probably use hybrid forms of R&D organization: matrix for long-term "ordinary" projects and venture capital for "special" short-term ones.
It should be noted that the organizational structure only forms the basis, but does not guarantee the achievement of the goals of scientific and technological innovation.
| Previous |
The term R&D (Research and Development) means "Research and Development" or R&D. These works are aimed at obtaining new knowledge and its application in practical life.
For companies that know firsthand what R&D is in management and, accordingly, are oriented towards R&D, this means being at the forefront in creating new types of products and (or) services and promoting them on the markets.
The research institutes and design bureaus that were widespread in the Soviet period carried out similar developments, mainly in the field of weapons. But not only, but, for example, in the fundamental fields of science and, practically, in all sectors of that economy. In modern times, many companies also use R&D as an important element of their development strategy and detuning from competitors.
But this strategy has its problem areas. First of all, it is the cost of such projects and their payback periods. Modern business does not even make it possible to spend a lot of time on development, their development, implementation, and promotion. And what can we say about small and medium-sized businesses.
However, if a company considers R&D to be an important element of its development, then it should not skimp on such projects. Companies of this kind create their own research centers, attract leading specialists and scientists to them on a permanent basis and as temporary consultants. They create for them the conditions required for research, experimental development, industrial serial development.
Automobile companies, together with automotive component manufacturers, create new car models, and this is a prime example of R&D.
Food companies, in cooperation with manufacturers of food components and raw materials, constantly offer their consumers new types of products, and this is also R&D.
Various gadgets (computers, smartphones, tablets, phones, etc.) are constantly developing, and this is also a consequence of ongoing R&D. Similar examples can be given in any industry, in many areas of commercial and non-commercial activities of enterprises.
The most important element of the R&D (Research and Development) strategy is the speed of research and development, you need to have time to do it ahead of competitors. And here a very essential element of the business of such companies is the protection of intellectual property so that the developments are not used with impunity by competitors who are eager to be the first to make and offer consumers what more successful business rivals invented and designed.
Despite the complexity of organizing R&D, despite the costs associated with "designing the future", many companies, including small ones, use R&D as a competitive tool. Not only new products are being designed, but also new types of services, which is also important in the competition for consumers.
In large corporations, under R&D (Research and Development), not only separate divisions are created, but also entire enterprises, research institutes. Small companies can create R&D departments, or they can implement R&D functions in conjunction with marketing or production. That is, small companies may have an R&D function, but not have a specially dedicated unit in the organizational structure for this. Regardless of the form of implementation, the R&D function, if it is present in the company, allows the enterprise to develop through the creation of new types of products and (or) services.
About R&D organization
In R&D (Research and Development), as a rule, design organization of work. Each new type of product or service is a separate project. Projects may overlap or even merge into so-called mega-projects. To manage such projects or megaprojects, it is convenient to use project management methods, project organization of work. In each project, a project manager can be appointed, who develops a project plan, attracts executors to the project, forms and protects the project budget.
Unlike processes, which are one of the most modern forms of enterprise management, projects can also be considered as processes, but with a limited lifetime. The project must always be completed, while the process can exist in the company almost indefinitely.
Completion of projects is their most important feature.
This is what allows, with the correct use of project management mechanisms, to achieve the completion of projects, and with a positive result. It should not be thought that the project itself is already a success. No. Success can only be considered a fully completed project, completed on time, within the planned budgets.
R&D example
An example of R&D is the experience of Apple, in which R&D (Research and Development) has been and still remains (?) the basis of its progressive development. Will it stay on? What do its leaders think about this topic after the departure of Steve Jobs - certainly one of the brightest project managers in the world?
This company has almost the same long history as Microsoft, but in this case we are talking not only about computers, but also about a wider range of equipment and electronics that this company produces.
Given that it appeared in America, and sales are all over the world, this company can be called transnational and international, since most of the parts for equipment are not produced in America, but in other countries. In addition, some of the models are not only produced, but also assembled abroad, which means that such a principle of operation definitely allows us to consider this corporation international. In addition, a large number of employees who work in this company (and this is more than 65 thousand people) are multinational, so the question of how to call Apple in this case has been resolved.
Until 2007, the second word was present in the company's name, but it was decided to remove it, since the company produced not only computers, but also other equipment. By the way, the range of products produced is quite wide, because if earlier it created only computers, now there are players, phones, laptops and netbooks, as well as tablets.
In addition, it is planned to create a number of devices that will also occupy their niche in the market. Well, it seems that the company has become very successful, because its phones are the most recognizable, and its computers, created on the principle of monoblocks, also have good characteristics.
At the same time, a lot of scandals are connected with the company, but everything that Apple now has was created or borrowed during the life of its founder, Steve Jobs. Currently, the development of the company has slowed down, despite the fact that the new management is trying to take the company to a new level.
Its revenues have not fallen, they are more than 25 billion dollars a year. But at the same time, the company has done almost nothing in the last two years, while before each year brought people new devices.
Now it remains only to wait for the moment when the next head of the company will make a decision on how to create new devices, and whether people need them. The company's shares have not risen to the level of two years ago, although all the products it announced are actively bought. At the same time, it does not produce any revolutions in the world of technology, continuing its smooth development.
R&D (short for Research and Development, R&D) is the process by which a company obtains new knowledge that it can apply to create new technologies, products, services or systems for use or sale. The ultimate goal is most often to increase the company's net income.
Many people think of pharmaceutical and high-tech industries when they mention R&D. However, in practice, many consumer goods firms also invest time and resources in R&D. For example, variations of one original sauce, such as "four cheeses", "tomato with basil and garlic", "with pieces of vegetables" are the result of extensive research and development.
Such work is carried out in companies of any size. Every business that produces and sells a product or service - be it software or spark plugs - invests in R&D at some level.
Theoretical and applied research
Research work can be theoretical or applied. Theoretical (fundamental) research helps the company to acquire new knowledge, but has no practical application or benefit. This is research for the sake of research.
Applied research is also carried out with the aim of obtaining new knowledge, but this knowledge is necessary to achieve a certain practical goal, for example, to create an improved mousetrap.
Who does it?
R&D is often carried out by an internal company department, but it can also be outsourced to an outside specialist or institute. Large multinational corporations may use all three options, and some research work may even be carried out on the territory of another country. Thus, the company uses the local labor force and the local market.
Outsourced R&D is especially attractive to small companies that have a new product concept but lack the resources and expertise to build and test it. For example, sole proprietors offering software as a service can be an example of such companies on a small scale, as they sometimes turn to outside experts for research, which results in the development of new software.
R&D and accounting
Unlike phenomena such as death or taxes, scientific research cannot be guaranteed. A company may spend a lot of money developing a new drug that is better than an existing one, or finding a more efficient way to do something, and get no return on investment as a result. Thus, R&D is not an asset. This is an expense item.
For this reason, general accounting standards prescribe that all research and development costs be expensed.
