These slides share the author's experience while leading multiple Captive R&D/ Technology organizations in India. Some of these contents are part of a business case study.

1. R&D CENTRE
TRANSFORMATION
ARUN DUTTA
TECHNOLOGY LEADER
ARUN.DUTTA@INSEAD.EDU
Contents are subject to copyright.
Disclaimer – These contents don’t have any business and IP related information about any company I have been associated.

2. WHY SOME R&D CENTERS
CREATE SUBOPTIMAL VALUE?
 Lack of strategic vision and executive sponsorship
 Lack of alignment & engagement with corporate
 Fail to replicate & align with corporate culture
 Working as IT Services organization
 Focus ONLY on cost arbitrage
 Fail to contribute significantly to core business
 Suboptimal delivery efficiency and quality
 Bereft of innovation in core and adjacent
 Growth is ONLY considered through headcount
 Growing headcount too fast or lack of critical mass
 Staying in status quo for long
 Fail to be independent and drive business
 Lack of technical and business leadership
 Fail to attract, develop & retain talent
 Unable to take global strategic roles
 Talent is not KNOWN globally
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3. SIGN OF BEING IRRELEVANT
 Lack of confidence by corporate
 Diminishing Return of Investment
 HQ team is overloaded while supporting captive
 Consistent Quality and Delivery issues
 Absence of innovation
 Reduction in investment
 High organization sustenance cost
 Absence of R&D culture
 Failed to go up in value chain
 Fail to lead and work independently
 No significant global business contribution
 Absence of engineering excellence
 Low employee morale
 High employee turnover
 Fail to develop strong brand image to attract talent
 Center remains UNKNOWN globally
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4. TRANSFORMATION JOURNEY
Transformation Roadmap
Realignment with corporate
Establish a Lean Organization
Capability enhancement
Foster innovation & accountability
Corporate & customer connect
Implement world class product
development practices
Engineering excellence
Internal & external branding
Impacts delivery & Quality
Earn marketing and sales
teams confidence
Vision & Governing System
Earn leadership and
employees confidence
Product & Services localization
Improved global efficiency
Local talent is visible globally
Go beyond R&D
Enable local sales team to win
Regional VOC and portfolio gaps
Innovate for emerging market
Strategic role creation & rotation
Focus on portfolio improvements
Technology and product roadmap
Incubate ideas into new revenue
Talent Development
Continuous improvement
Best site to invest
Best Place to innovate and
work –Improved brand image
Best in class Organization
Grow core and adjacent
Exemplary operational excellence
Develop and leverage local eco-
system for open innovation
Technology & innovation leadership
Emerge hub for regional products
Maintain transformation rhythm
Culture
Shift
Be
Global
Act
Local
Own
&
Lead
Grow
Lean
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5. INNOVATION LEADS TRANSFORMATION
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Principles People
ProductProcess
Entrepreneurship culture
Business acumen
Customer ambassadors
Innovation Evangelists
Align with technology trends
Consolidate Arch.& Platforms
Innovate with customers
Evolve new revenue streams
Corporate engagement
Lean & agile processes
Career focused org. design
Customer focused lifecycle
Eliminate efforts on non-core
Engage customers thru. R&D
Best in class cost structure
Build Quality upstream

6. R&D
Centre
Corporate
Alignment
Customer
Connect
Regional
Products
Enable
Regional
Sales &
GTM
Access to
Local
Talent
R & D
Operation
Cost
Local Eco-
System
Open
Innovation
Corporate
Culture
Emerging
Portfolio
Business
Acceleration
Operation
Excellence
Developing
Global Talent
R&D CENTRE UPLIFTS BUSINESS
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Winning
in Regions

7. INGREDIENTS FOR TRANSFORMATION
• Optimism for RESULTS
• SUPPORT from corporate head quarter
• TEAM WORK within leadership team
• Strong GOVERNANCE System
• EARLY transformation sign
• TRANSPARANCY with corporate
• Anticipate and manage SETBACKS
• Fast Pace EXECUTION
• CALIBRATE transformation agenda as progress
• Alignment of PEOPLE for collective goals
• Mental STAMINA to drive continuously
• TALENT development
• SUCCESSION Planning
Contents are subject to copyright.