ADVENTURE!: Harvard Business Review Case : "Feed R&D -- or Farm It Out"

Wednesday, July 18, 2007

Harvard Business Review Case : "Feed R&D -- or Farm It Out"

This is an interesting case about a high-tech stereophonics company that is facing a changing industry.
The CEO must answer to the board how he intends to face the challenge of reduced demand for high-end stereo equipment, increased costs of R&D, and the adoption of new technologies that are software based.
There is great brand equity in its name, but the company finds it harder to profit from its cutting-edge technologies when customers are settling for second-best.
The scientists who are currently developing mind-blowing products need a technology injection from equally talented embedded software developers. However, the R&D costs for software developers exceeds a comfortable risk level.
It might be do or die. Can he outsource the software development and still hold the scientist's morale?

The financials in this case suggest that he must outsource the development. He has found an Indian company capable of providing the project expertise. If he properly introduces the chief engineer to the software development team and provides incentives for success, the company could pull it off. Morale would be protected if certain financial targets and milestones allowed the company to create a software R&D team for future projects. This project will give the company the necessary experience in selecting and managing software engineers, as well as, critical experience in the systems integration of hardware and software.

The attached document provides additional summary and details.

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As a technical leader, I develop a talent pipeline that can deliver client's expectations in a motivating and productive environment.

I have performed multi-discipline engineering on space launch vehicles, satellite command and control software, electronic medical records, and large data center operations.

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I have delivered management and technology consulting solutions for Deloitte, BearingPoint, Department of the Interior, TRICARE Military Health System, Defense Information Systems Agency (DISA), Raytheon, Lockheed, Northrop, and Boeing on various projects in manufacturing, software development, systems engineering, testing, and ITIL management.

QUOTES

Is it a loophole or an incentive?
MANTRA #2: nobody cares what you have, unless they will get a piece. [Stephen Castellari]
MANTRA #1: nothing can be enjoyed, unless you have earned it. [Stephen Castellari]
perfect parents don't seem to have perfect children, I'd rather make a few 'teaching' mistakes along the way. [Stephen Castellari]
...the world needs ditch diggers. [Ed Baxter]
Be inspired by it [process or framework], don't be burdened by [it]. [Stephen Castellari]
Understeer is when you see the wall coming at you through the windshield. Oversteer is when you see it in the rear view mirror. [www.rmsolo.org]
little things are starting to look little again [Jim Snyder]
some people are so stupid...they couldn't dump the sand out of their shoe if the instructions were printed on the bottom. [Charles Rutter]
the American economy is the 8th wonder of the world and the 9th is the economic ignorance of the American people [past SEC chairman Arthur Levitt]
just because they pay you, that doesn't mean you should call it work.
Some have a perfect head and God gave the rest hair. [Tom Bristow]
In the US, the little line at the bottom is more important than the big one at the top. [overheard]
Always take the offensive, never dig in. [General Patton's standing order]
Eventually, someone is going to have to write something down. [overheard in a meeting]
RTFM, please read the manual. [Phil Keller]
it is amazing that planes fly! (regarding the backoffice bureaucracies) [Scott Gordon]
Imitation crab is made from fish? Should I tell my monk that the dish I made was not really vegetarian? [anonymous]
That's what you get when you skim! [Keely Hicks]
Snet uisng my bclakbrrey, I apologize for the typoes. [anonymous]
Common sense is not so common. [Voltaire]
Money is my best friend, but it is not my boss. [Khoi Nguyen]
Only get married if you cannot live without your partner, even through the difficult times. [John Jeffcoat]
I'm a spirtual ho. [Susan Stafford]
I don't make mistakes, I only gain experience. [Stephen Castellari]
People first. [stephen castellari, in response to irresponsible marketing and sentiment to rescue domestic pets from shelters in an economic downturn]
Let me know if you don't get this so I can send it again. [Tim Stark's email signature]
Not everything that can be counted counts and not everything that counts can be counted. [Albert Einstein]
Bumps are like heartbeats......you've got so many of them in you, and when they're gone.... [Warren Miller, Cold Fusion]
Life is like a coin. You can spend it any way you wish, but you only spend it once. Lillian Dickson
the WHY doesn't matter. [movie:Breach]
The more money you have, the less you spend having a good time. Those who can't rub two nickels together, know how to have a good time. [Donald Genova]
beyond today is beyond my control. Stephen Castellari
Every dollar you waste could've been used for my soldiers. General says to his consultants. [Tony Hussain recalls from an engagement]
Integrity is what you do when no one is looking. [restated by David Morse]
If you want it bad, you'll get it bad! [anonymous Project Manager]
Before you add your two cents, confirm that your contribution will add value. Stephen Castellari
Who here is not an SME on 'something?' [Stephen Castellari]
Change has a considerable psychological impact: to the Fearful, it is threatening, because it means things could get worse; to the Hopeful it is encouraging, because it means things could get better; to the Lazy, it is irritating, because it means work either way. paraphrased from [King Whitney Jr.]
Capitalism works because like the lotteries that we love, anyone can win, but most will not. Stephen Castellari
Using your turn signal is a sign of weakness! Brenda Buckman represents the DC drivers
Be less curious about people and more curious about ideas. Marie Curie
The finest steel has to go through the hottest fire. John N. Mitchell
isn't it surprising that we sent a person to the moon before we invented wheels on luggage?
"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." Warren Buffet
Being deeply loved by someone gives you strength; loving someone deeply gives you courage. Lao-Tzu
a small house can hold as much happiness as a big one

Wednesday, July 18, 2007

Harvard Business Review Case : "Feed R&D -- or Farm It Out"

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Program Manager

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