Chapter 9
Managing the Research Function
DISCUSSION QUESTIONS
9-1. Q: Contrast the application of Blanchard’s product life cycle with that of Betz’s technology life
cycle.
9-2. Q: Would the same kind of leader be suitable throughout Betz’s technology life cycle? If not,
what kind of leader would be effective in each portion of it?
9-3. Q: Summarize the principle contributions to U.S. R&D activity by each of (a) the federal govern-
ment; (b) industry; and (c) universities.
A: R&D funding and performance is shared as shown in Table 9-1. The large amount funded by
9-4. Q: In an industry with which you are familiar, give an example of one or more firms that appear
to have chosen each of Ansoff and Stewart’s new product strategies.
A: Many examples can be given. Apple and Tandy (among others) were early to market with
personal computers. When IBM joined in with a powerful entry, Apple tried to maintain
9-5. Q: Discuss the relationship between the central corporate research laboratory and divisional
research in a corporation you know or have found described in the literature.
A: Two examples provided by students who had worked in both corporate and division
laboratories of corporations provide some background. At Hercules, the corporate laboratory
conducted research of a longer term nature, evaluating the logical alternatives and extensions of
9-6. Q: Why are simple checklists used as a first screening of ideas in research projects by many
companies?
A: They are, indeed, a screening method used to ascertain whether a research idea justifies the
9-7. Q: As an R&D manager, what actions might you take or programs might you implement to assure
your organization got maximum benefit from patentable ideas?
A: Certainly you will want to be sure R&D personnel rigorously document progress as discussed
9-8. Q: How do the kinds of ideas best protected by patent differ from those best protected by keeping
them a trade secret?
A: First, it is hardly practical to try to maintain as a trade secret anything that may be discovered
9-9. Q: What are some of the steps a manager can take to encourage creativity in his or her technical
employees?
A: Refer to the material on “Creativity,” especially the section on “Providing a Creative
9-10. Q: Make a mindmap of a project you have done or are working on. Does the mind map assist
with more ideas?
9-11. Q: How would you try to evaluate the effectiveness of researchers if you were their research
manager?
A: This question is, of course, related to the previous one, but gross measures such as increases in
9-12. Q: What are some of the support services an organization might provide to make the work of
researchers and design engineers more effective?
A: Student responses to this question can be categorized into several areas: (1) technical support
9-13. Q: Discuss how the management functions of planning, organizing, leading, and controlling relate
to research and development.
PROBLEMS
9-1. Q: An engineer proposes to buy a machine for $100,000 today that will save $60,000 in labor
costs at the end of each of the next two years. If the company demands a 15% retum on
investments such as this, what is the net present worth (NPW) of the proposal? Should it be
funded?
9.2. Q: Your company has two alternative opportunities, each requiring your entire capital investment
budget of $325,000. Alternative A will return $390,000 at the end of one year; alternative B will
return $216,000 at the end of each of the first two years. Which (if either) alternative should you
recommend on the basis of (a) simple payback time?; (b) net present worth?
9-3. Q: If you have been exposed to capital investment analysis and/or engineering economy,
comment on the proposal to invest $1,000,000 in a new product now that is projected to generate
$200,000 profit at the end of each year for eight years, assuming that your company requires 15%
return on investment before taxes.
A: The present worth of a net profit of a dollar at the end of each of eight years at a 15% discount