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How to manage the interface between market and R&D
In the process of innovation, the interface between marketing and R&D is the key point that affects the innovation performance of enterprises. In this paper, we will analyze the problems of market /R&D interface from the perspective of process management through the investigation of several enterprises. Function, Role and Responsibility Marketing and R&D take many forms in the process of innovation. For example, they can be equally important in the process in the form of partners; Or one of them plays a leading role and the other plays an auxiliary role. Of course, in most cases, the distribution of responsibilities between marketing and R&D is still traditional. Most enterprises (accounting for 64% of all survey feedback) advocate that the market and R&D have equal weight in the evaluation of product development projects; It is suggested that the proportion of enterprises in which R&D and market share the same weight in the following processes is: the selection and evaluation of innovative new products (56%); Generate brand-new product ideas (54%) or product expansion (52%); Review R&D innovation and advanced development projects (52%). In our investigation, we found that some enterprises think that some key processes in the process of innovation are unique to R&D department or marketing department. For example, marketing department is responsible for formulating product strategy and life cycle, and discovering the trend of competitors' products, while R&D department is responsible for selecting R&D projects and formulating technical strategies. This distribution of responsibilities is unreasonable, because it hinders the mutual penetration and sharing of various experiences and ideas. Without the active participation of R&D personnel, how can a company make a product strategy to win the market? If technology strategy is not linked with product strategy, how can enterprises make correct decisions on core technology and outsourcing? If no project developer proves its feasibility, how can a product's life cycle plan be effective? In a well-integrated company, all innovation processes are managed through equal cooperation between market and R&D. The research on the effectiveness of the interface between marketing department and R&D department shows that most enterprises feel that the interface between marketing and R&D is invalid or very invalid in its upstream process involving long-term factors. These processes include the selection of basic research fields, the formulation of technical strategies, the selection of research and development projects, and the formulation of product life cycle plans. On the contrary, most enterprises think that the interface between marketing department and R&D department is relatively effective or very effective in the process of involving current or short-term factors. For example, the generation of ideas for product expansion and improvement, the evaluation of product development projects, the approval of new product technical specifications, and the study of competitor product trends. In fact, it is no coincidence that R&D-driven processes have more interface problems than market-driven processes. R&D usually needs a lot of market information, but the marketing department can rarely provide it. According to our experience, the following factors partly explain why the demand of R&D department is not fully supported by the marketing department. ★ The time range between the two functions is different: marketers often judge the current product performance, and the time range involved is much smaller than that of research and development. ★ The marketing department is unwilling to get involved in technical problems, either it doesn't understand or it's not interested. ★ There is no clear definition of the marketing department's investment in the R&D process: the clear responsibilities of the marketing department, the specific mechanism, and the necessary pressure to have a dialogue with the R&D department on long-term issues. ★ Marketing departments are generally unwilling to bear the risks brought by uncertain long-term problems, which usually shows that the market is more inclined to judge based on results than R&D (management can not tolerate market failure, but can tolerate certain R&D risks). Our research shows that although the marketing department and the R&D department have some communication, they often can't really consider the problem from each other's perspective. The reason is that one of them thinks that some jobs are his own business and should be controlled by himself. The survey feedback shows that there are four processes that need to be strengthened: creative development of brand-new products, creative development of product expansion and improvement, selection and evaluation of innovative product ideas, R&D innovation and advanced development projects. Many of the above problems have some organizational and cultural factors, among which "the lack of job rotation between marketing personnel and R&D personnel" and "a certain function occupies a dominant position in the company culture for a long time" are considered as one of the key factors leading to the problems. R&D shows that the technicians of FMCG companies tend to keep a low profile, do things as required, and do not argue too much, because they firmly believe that their companies are market-oriented and market-driven. On the contrary, for companies whose business is driven by technology or engineering, their marketers tend to follow and sometimes even imitate their colleagues who work in the technical department. Our investigation also shows that the defect of business process is an important reason for the interface problem between market and R&D department. Even after the organizational and cultural factors are solved, the problem still exists, because the interface of the marketing /R&D department is not properly organized, especially those upstream processes that do not need to be carried out every day. In this case, the role of employees is not clearly defined, and they often don't know what to do because they lack relevant tools and technologies. In order to solve the interface problem through organizational mechanism, the company adopted various organizational mechanisms to improve the effectiveness of the interface between marketing /R&D departments. For example: ★ Cross-functional product committee: more than 60% were adopted by the surveyed enterprises. ★ Divide the marketing department into different sub-departments according to different time series, so that the R&D department can easily find its own partners in the marketing department. ★ Establish strategic marketing department (different from operation marketing department). ★ Set up a marketing manager to be responsible for formulating long-term product policies and guiding research and development. ★ Separate the responsibilities of long-term market research and operational market research, and different personnel are responsible for it. ★ Establish a small market team in the R&D department: 10% of the surveyed enterprises adopt this mechanism. This team actually belongs to the R&D department, but actually reports to the marketing department. Teams are usually small and keep a low profile to avoid conflicts with sensitive marketing managers. They are rarely called marketers, preferring irrelevant names such as customer application team and senior concept team. But their mission is the same: to help R&D departments decide what technologies and ideas to choose from a long-term market perspective. Two suggestions are to establish an "advanced" marketing department. In order to establish sustainable innovation ability, management needs to constantly reflect information and data from different functional departments in strategy and planning, and implement the best technology and product concept through efficient project management process. For a large multi-level company with different levels of R&D teams in headquarters, business divisions and business departments, the challenge lies in how to let multiple laboratories cooperate to develop and transfer new technologies, products and processes. We suggest setting up an "advanced" marketing department at the headquarters or business department level, which focuses on the expectation and innovation of the future market, so it emphasizes the long-term nature more than the traditional marketing department. This department can be located in the existing headquarters marketing department and should have a separate budget. It is necessary to encourage its personnel to widely participate in the activities of the market sector and the implementation of various innovative measures, and rotate their work every few years. Review and reform the current enterprise innovation process. It is suggested that enterprises evaluate and improve innovation-related processes in the following ways, and optimize the interface of marketing department /R&D department. ★ Describe the current process carefully. Through this work, enterprises can find the actual process that exists but has no formal written design, or the process that only appears under special circumstances. ★ Evaluate the weak links of existing processes one by one and find out the root causes. ★ Clearly assign management responsibilities for each process. Determine the person in charge of the process (an individual or team who can check the process and ensure continuous improvement of the process) and the person in charge of the process (a senior leader of the enterprise or a multi-functional committee with the right to guide multiple processes). ★ According to the specific situation of the enterprise, various measures listed in the research results of this paper are selectively implemented. (Li Guanghai is the president of Ritter Management Consulting Company in China, and Wu Congjian is the consulting manager of Ritter Management Consulting Company).