R & D in Private Sector

CHAPTER 5 Basic research (experimental or theoretical

work undertaken primarily to acquire new
knowledge without a specific application or
use in mind).
ENGINEERS Applied research (original investigation
undertaken in order to acquire new knowledge
& directed towards a specific practical aim or
objective)
PRIVATE SECTOR Experimental development (systematic work,
drawing on existing
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CONTENT R & D in Private Sector

R & D in Private Sector Contribution of private sector in R & D

Engineer Contribution in Corporate such as:
Sector Introduce research grant
Structure of Industry in Engineers Vision Introduce innovate product that
environmental friendly
Engineers & Globalization Investment in new technology and
product
Most of well-known company have their
own R&D department.
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R & D in Private Sector R & D in Private Sector
TOYOTA
Known as Toyota Technical Center, USA, Inc. (TTC)
The company's mission for the future is to continue to
support Toyota's reputation for excellence by
developing automotive parts and materials that
represent the best in quality, cost, function and timing.
TTC in community
Environmental and Public Protection Cabinet Uses Toyota
Prius to Save Gasoline, Tax Dollars Hybrids replace larger
sedans once commonly used
Toyota Thinking Green - Toyota Motor Sales Headquarters
Announces Zero Waste to Landfill
SAMSUNG
Our mission is to help Samsung become a leading
supplier of network infrastructure products.
Tasks in R&D:
Research and develop system requirements
System architecture design
Software and hardware design, implementation, and
integration testing
Standards body participation
North American customer and marketing support
Monitor telecommunications network and technology trend
Propose new products and develop new network
infrastructure technology

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R & D in Private Sector R & D in Private Sector

PETRONAS IJM MALAYSIA
Known as PETRONAS Research & Scientific Services
Sdn Bhd (PRSS) Constructing the RM603 million Putrajaya
PRSS's principal activities are research, technology International Convention Centre (PICC)
development and technical services in:
Geoscience Introduce new construction methods for
Petroleum Engineering speed, new skills for systems integration and
Facilities Engineering
Process Technology so forth.
Petroleum Products Production of the first lightweight oil palm fibre
Environment Management
Laboratory Services reinforced cement composite panels was
Data Management accredited by the Malaysian Book of Records
Award as the first such product in Malaysia.
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Engineer Contribution in Corporate Engineer Contribution in Corporate
Sector Sector
Dianne Chong, a Boeing engineer who
manages three engineering departments
and oversees a staff of 200 while
devoting much of her free time to work in
the St. Louis community, will receive a Abdul Wahab Mohamed Khalid Head,
2002 National Asian American Corporate Engineering
Achievement Award on Friday, Oct. 18.

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Full Name In-Joo Kim, President & CEO

Samsung
1980 M.E. in Industrial Engineering, Korea
Advanced Institute of Science and Technology
1976 B.E. in Industrial Engineering, Seoul
National University

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Structure of Industry in Engineers
Vision
What is Structure of Industry?
An industry is a group of firms that market
products which are close substitutes for each
other (e.g. the car industry, the travel industry).
Some industries are more profitable than
others. Why? The answer lies in
understanding the dynamics of competitive
structure in an industry.
The most influential analytical model for
assessing the nature of competition in an
industry is Michael Porter's Five Forces Model,
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Structure of Industry in Engineers
Vision
Porter explains that there are five forces that
determine industry attractiveness and long-run
industry profitability. These five "competitive
forces" are
- The threat of entry of new competitors (new
entrants)
- The threat of substitutes
- The bargaining power of buyers
- The bargaining power of suppliers
- The degree of rivalry between existing competitors
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Structure of Industry in Engineers
Vision
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Structure of Industry in Engineers
Vision
Threat of New Entrants
New entrants to an industry can raise the level of
competition, thereby reducing its attractiveness. The
threat of new entrants largely depends on the barriers
to entry. High entry barriers exist in some industries
(e.g. shipbuilding) whereas other industries are very
easy to enter (e.g. estate agency, restaurants). Key
barriers to entry include
- Economies of scale
- Capital / investment requirements
- Customer switching costs
- Access to industry distribution channels
- The likelihood of retaliation from existing industry players
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Structure of Industry in Engineers
Vision
Threat of Substitutes
The presence of substitute products can
lower industry attractiveness and
profitability because they limit price
levels. The threat of substitute products
depends on:
- Buyers' willingness to substitute
- The relative price and performance of
substitutes
- The costs of switching to substitutes
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Bargaining Power of Suppliers
- There are many buyers and few dominant
suppliers
- There are undifferentiated, highly valued
products
- Suppliers threaten to integrate forward into the
industry (e.g. brand manufacturers threatening
to set up their own retail outlets)
- Buyers do not threaten to integrate backwards
into supply
- The industry is not a key customer group to the
suppliers
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Structure of Industry in Engineers
Vision
Bargaining Power of Suppliers
Suppliers are the businesses that supply
materials & other products into the industry.
The cost of items bought from suppliers (e.g.
raw materials, components) can have a
significant impact on a company's profitability.
If suppliers have high bargaining power over a
company, then in theory the company's
industry is less attractive. The bargaining
power of suppliers will be high when:
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Structure of Industry in Engineers
Vision
Bargaining Power of Buyers
Buyers are the people / organizations who
create demand in an industry
The bargaining power of buyers is greater
when
- There are few dominant buyers and many sellers
in the industry
- Products are standardized
- Buyers threaten to integrate backward into the
industry
- Suppliers do not threaten to integrate forward into
the buyer's industry
- The industry is not a key supplying group for
buyers 20
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Structure of Industry in Engineers
Vision
Intensity of Rivalry
The intensity of rivalry between competitors in
an industry will depend on:
- The structure of competition - for example, rivalry
is more intense where there are many small or
equally sized competitors; rivalry is less when an
industry has a clear market leader
- The structure of industry costs - for example,
industries with high fixed costs encourage
competitors to fill unused capacity by price cutting
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Engineer & Globalisation
Phase I: Imagining the future and the
challenges it will present to engineering.
Phase II: Considering how engineering
education should prepare for that future.
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Structure of Industry in Engineers
Vision
- Degree of differentiation - industries where products are
commodities (e.g. steel, coal) have greater rivalry; industries
where competitors can differentiate their products have less
rivalry
- Switching costs - rivalry is reduced where buyers have high
switching costs - i.e. there is a significant cost associated with the
decision to buy a product from an alternative supplier
- Strategic objectives - when competitors are pursuing aggressive
growth strategies, rivalry is more intense. Where competitors are
"milking" profits in a mature industry, the degree of rivalry is less
- Exit barriers - when barriers to leaving an industry are high (e.g.
the cost of closing down factories) - then competitors tend to
exhibit greater rivalry
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Context for engineering
Breakthrough to Technology
Challenges
Economic & Societal Forces
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Breakthrough to technology Challenges

Nanotechnology Increasing in WORLD POPULATION 2020

Asia
Biotechnology/ Nanomedicine Population will
Logistics cause many Western
Hemisphere
problems
Photonics/Optics Africa

Manufacturing Middle East

Distribution of
Microelectronics world population Eastern Europe

in 2020 Western Europe

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Challenges due to increasing of Challenges due to increasing of

World Population World Population

Population is more diverse.

Fresh water shortages Social, cultural, political forces will shape and
Aging infrastructure affect the success of technological innovation.
Consumers will demand higher quality,
Energy demands customization.
Global warming Growing imperative for environmental
sustainability.
New diseases Increasing focus on managing risk and
Security assessment with view to security, privacy, and
safety.

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Aspirations for the Engineer of 2020
Engineerings image
Public that understands and appreciates the
impact of engineering on socio-cultural
systems.
Public that recognizes engineerings ability to
address the worlds complex and changing
challenges.
Engineers who are well grounded in the
humanities, social sciences, and economics as
well as science and mathematics.
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Aspirations for the Engineer of 2020
Engineering a sustainable society
Lead the way toward wise, informed,
economical, and sustainable
development.
Assist in the creating of an ethical
balance in standard of living for
developing and developed countries
alike.
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Aspirations for the Engineer of 2020
Engineering without boundaries
Embrace potentialities offered by
creativity, invention, and cross-
disciplinary fertilization.
Assume leadership positions that enable
influence on public policy and the
administration of government and
industry.
Recruit, nurture and welcome
underrepresented groups to engineering.
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Aspirations for the Engineer of 2020
Educating the engineer of 2020
Reconstitute engineering curricula and
related educational programs to prepare
todays engineering students for the
careers of the future.
Create a well-rounded education that
prepares students for positions of
leadership and a creative and productive
life.
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Attributes of the engineer of 2020

Strong analytical skills

Practical ingenuity, creativity
Good communication skills
Business, management skills; leadership skills
High ethical standards, professionalism
Dynamic/agile/resilient/flexible
Lifelong learner
Able to frame problems in their socio-technical
and operational context

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