ITEE ITEE-1 | Page 81

2-2 Technological strategy management 2-2-1 Technological strategy planning and technology development planning Reference R&D “R&D” is research and development, or the department where research and development is engaged. Abbreviation for “Research and Development.” Reference Road map A “road map” displays transitions and changes in decisions and predictions for achieving a technological strategy along a time axis. 75 Development of new technologies and improvement of existing technologies can be considered the most important issues as far as the operation and survival of corporations are concerned. Increasingly, the market and environment surrounding corporations changing from moment to moment, developing technological strength is critical for survival. It is necessary to conduct research and development (R&D) with a long-term perspective, and avoid engaging in passing fads or consumer needs. 1 Technology development strategy and technology development planning A “technological strategy” clarifies the fields in which research and development should be intensified and those in which it should be scaled down, and determines the course of research and development by a corporation as well as the key investment fields. The objective is to secure future competitiveness in the market. When determining a technological strategy, cooperation between management departments and research and development departments is essential. The management departments focus on the future of the corporation, while the research and development departments focus on the future of the technology. Policies are established based on the input of both departments. Once the fields in which research and development should be intensified have been determined through the technological strategy, a “technology development strategy” is determined in order to develop the technologies. The technology development strategy examines how to procure the necessary technology. Specifically, it addresses whether the technology will be researched and developed by the corporation or brought in from outside, what degree of investment will be made, and what kind of results the investment will produce. This is necessary to predict the profits that researc h and development will generate. Furthermore, the decisions and predictions that were made are laid out a road map before proceeding with the development of the specific technology. Sometimes a single technology development strategy can save corporate management that is ailing. A corporation must invest in research and development to increase corporate value, and implement the right technology development strategy to boost the motivation of the employees.