As the costs and the risks of acquiring advanced technology have escalated, businesses have come under pressure to increase the value of their technology by accelerating the pace of its development and expanding its profitable application. This pressure is driving major changes in sourcing strategies and activities. Companies are concentrating internal R&D activities on core technologies and competencies while developing relations with external partners to apply these and related technologies collaboratively to new products and systems. They are relying heavily on increasingly complex technology outsourcing arrangements. Significantly, however, many companies are having considerable difficulty managing these new arrangements. Few are achieving anything close to the hoped-for leveraging of their investments.
Author: Ronald S. Jonash
Source: Prism (Arthur D. Little)
Subjects: Management, Strategy
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