Talking strategy: Where does R&D belong in your organization?

When and why should a middle market company separate its research and development efforts from its operations?

It is important for managers of middle market firms, as they grow, to understand that at some point they should begin to structurally separate manufacturing and R&D.

Firms with a narrow product focus can effectively use the same teams for R&D and manufacturing activities, but when they expand their product categories using the same people for R&D and manufacturing, performance in both areas starts to diminish.

There is also another option. Some organizations are specializing, opting to outsource R&D and provide the manufacturing or focus on R&D and outsource manufacturing.

Our experts and experienced advisors will help you look at these strategies from all angles so you can weigh the options.

Learning objectives

At the conclusion of this session, participants will be able to:

• Discuss the factors to consider before segregating R&D from operations
• List the pros and cons of segregating R&D
• Relate examples of various approaches to positioning R&D in an organization

Presenters

• Ken Boyer, operations management expert at the Fisher School of Business, The Ohio State University
• Jeff Mengel, a leader on Plante Moran’s manufacturing team and analyst on the firm’s innovation team

Moderator

• Chris Jones, leader of Plante Moran’s service industry team and analyst on the firm’s innovation team