IMPROVING R&D STRATEGY AT A EUROPEAN INDUSTRIAL COMPANY
The client is a European industrial company with >EUR 2 billion in yearly R&D spending. The technology landscape relevant to the client’s business was broadening, converging and getting increasingly complex. New technology areas related to e.g. connectivity, automation and data analytics did not fit in the scope of the current organizational structures or with traditional ways of assessing R&D investments. At the same time there was pressure on the company's CTO to reduce R&D spend while securing access to critical technologies. To meet growth and profitability targets the client could not afford to build internal technology development competence across the entire landscape and technology needed to be cost-effectively accessed externally.
Konsert Strategy & IP supported the client by developing and implementing a customized technology & innovation strategy framework. The framework used a data-driven method for identifying technology fields of long term strategic importance by cross-matching the fields’ impact on long term business strategies. Selected technology fields where then evaluated based on business rationale, the client’s current capabilities and the IP & technology landscape in order to set R&D investment strategies for how and to which extent the client should engage in each field. The project resulted in a high-precision corporate-wide technology engagement strategy guiding R&D budgets, internal R&D project proposal and selection processes, externalization of R&D activities as well as collaborative efforts.
Based on the technology & innovation strategy the client is able to secure cost-efficient access to critical technologies from internal and external sources and thereby increased the R&D output. At the same time, the client has been able to make conscious R&D spend reduction decision through focusing activities in prioritized technology fields. The technology portfolio and investment strategy framework allows the client to recurrently identify critical technology fields and select the best ways to access the technology from a cost and capability perspective.