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GGI RapidNews R&D Product Development eZine: Volume 8, Issue 1 - January 3, 2007
GGI RapidNews is published approximately once a month.


In This Issue

GGI NEWS & NOTES - Staff Updates

MANAGEMENT PRODUCTIVITY - IRI Announces 100 Top U.S. and Non-U.S. R&D Investors

MANAGEMENT PRODUCTIVITY - Japan Ranks 2nd in R&D Spending

BOOK REVIEW - Creating Competitive Advantage: Give Your Customers a Reason to Choose You Over Your Competitors

UPCOMING PUBLIC SEMINAR - Mar07 R&D-Product Development Metrics Summit - Early Bird Rates

THE WISDOM iSTORE FEATURED PRODUCT - No new products this month.


BIENNIAL PRODUCT DEVELOPMENT SURVEY - 2004, 2002, 2000, 1998 Results



TELEVISION EVENTS - Alexander Haig's World Business Review


GGI NEWS & NOTES - Staff Updates

We are pleased to announce two new members of our staff. Donald H. Skenderian has joined GGI and will replace Tim Blasko as GGI webmaster. Tim Blasko will continue on with GGI, working on a part-time basis. Marc K. Mansour has been named our new Manager of Executive Education, replacing Timothy Kirby. Timothy will also continue with GGI on a part-time basis.

We would like to express our appreciation for the fine work both Tim Blasko and Timothy Kirby have done during their Northeastern University internship at GGI. We look forward to working with them in their new roles at the company.



Top 100 U.S. and Non-U.S. R&D Investors Named by IRI

Condensed from "Industrial Research Institute's 8th Annual R&D Leaderboard," Research-Technology Management Magazine, November-December 2006, Volume 49, Number 6, pages 11-15, published by Industrial Research Institute,Inc., Arlington, VA, USA, ISSN 0895-6308.

In its 8th Annual scoreboard of R&D Investors, the Industrial Research Institute notes that the top U.S. investors in industrial research increased their total R&D investment again in 2005, but, for the first time in three years, at a decreasing rate.

Ford Motor Company regained its position as the number one U.S. R&D investor, with an increase of 8.1%. Microsoft, with a decrease of -20.5%, dropped from number one to number five behind Pfizer, General Motors and Johnson & Johnson.

Those in the top 100 experienced increases in sales and profits (pre-tax) of 9.1% and 14.7% respectively. As noted above, this same group increased R&D investment by 6.8%. The net result is that R&D intensity decreased from 5.6% in 2004 to 5.2% in 2005. This is down from 5.8% in 2001, 2002 and 2003.

For the top 100 non-U.S. R&D investors, investment increased by 2.9% in 2005 to $112 billion. (This is on a currency-adjusted basis.) The equivalent investment in 2004 was $109 billion.

Only seven of the non-U.S. companies in the top 10 in 2005 were in the top 10 in 2004. Toyota ranked first, with DaimlerChrysler dropping from first in 2004 to second in 2005. The next two companies, Siemens and GlaxoSmithKline, retained their ranking as numbers three and four. Novartis replaced Nokia as number five.

Of the 10 non-U.S. companies that increased their investment by more than 20%, the top two, Shire and Sanofi-Aventis, are in the health care industry.

Data for the rankings came from Standard & Poor's Compustat database as of July 31, 2006. Companies included in the survey were limited to those publicly held firms that reported sales of $50 million or R&D expenses of at least $5 million.

For a subscription to Research-Technology Management magazine, log onto the IRI website.



Japan Second in R&D Spending World-wide

Condensed from "Japan's Fortunes Turn Positive As Third 5-Year Science/Tech Plan Begins" Research-Technology Management Magazine, November-December 2006, Volume 49, Number 6, pages 2-4, published by Industrial Research Institute,Inc., Arlington, VA, USA, ISSN 0895-6308.

According to the July 2006 survey of the OECD (the Organisation for Economic Co-operation and Development), Japan remained the second largest R&D spender worldwide in 2004. This Asian country accounted for 13 percent of the world's $836 billion spent in R&D, behind first-place U.S. at 38 percent. (China came in a close third at 12 percent.)

Japan's overall research and development spending as a percent of GDP in 2004 reached 3.15 percent compared to an average of 1.9 percent in the European Union, with only Finland (3.51 percent) and Sweden (3.74 percent) higher. In the United States, R&D spending was 2.59 percent of GDP, exceeding Germany (2.49 percent), France (2.16 percent), China (1.44 percent), and Korea (2.63 percent).

Japan still faces major economic issues in the long-term. It must deal with a declining labor force, a rapidly growing aging population, and high public debt. In order to overcome these hurdles, Japan began its third five-year plan to implement its Science and Technology (S&T) Basic Law. This calls for intensive investment in S&T to create new industries that will generate high-quality employment. The plan is also designed to increase people's income, increase tax revenue, and minimize environmental and societal burdens.

For a subscription to Research-Technology Management magazine, log onto the IRI website. To learn more about the Organisation for Economic Co-operation and Development, log onto the OECD website.



Creating Competitive Advantage: Give Your Customers a Reason to Choose You Over Your Competitors, by Jaynie L. Smith, with William G. Glanagan, Currency, 2006. Copyright 2006 by Jaynie L. Smith, ISBN-10: 0385517092.

While competitive advantage is what separates you from your competitors, being able to articulate your competitive advantage is what will make your business thrive, says Jaynie Smith.

Unless you are Wal-Mart, you will not survive as the lowest-cost provider. So your company must point out other ways that it helps customers control their costs, such as 24/7 service, extended guarantees, and subsidized training.

Communicate competitive advantages such as:
high switching costs. A company that uses Microsoft products, for example, would incur great expense if it were to switch to Apple products.
low-cost production. Wal-Mart is the premier example of economies of scale.
ownership of high-value intangible assets. For example, the patents held by major drug companies.
benefits from the network effect. eBay has experienced exponential growth as buyers and sellers continue to join its auction network.

Competitive advantage comes in two varieties: internal and external. Internal competitive advantage is not visible to customers, but it can benefit them. These advantages include market position, buying power, economies of scale, and government regulations.

External competitive advantage is something that the customer can see. Here are some that you might consider offering:
flexible financing terms
ironclad guarantees
a product's rapid inventory turns (applicable to the wholesale market)
material superiority
delivery time
information about industry trends
specialized training

We highly recommend this well researched, concisely written book to all CEOs and  their marketing managers.

For more information on Creating Competitive Advantage: Give Your Customers a Reason to Choose You Over Your Competitors, go to



We are delighted to be offering our Metrics Summit again in March 2007. Many prior Metrics Summit participants were kind enough to share their written comments about the Metrics Summit so that future participants could get a better idea of what to expect. Testimonials.

Early Bird Rates will be effective through EOB Pacific Time Friday January 26, 2006. Discounts are available for individuals and company teams of three or more.

GGI's Product Development Metrics Summit will be held March 20 - 22, 2007 in Metro Boston. Please join us for a series of three seminars, focused on three major areas of importance to R&D executives and managers.

The first seminar [Measuring Product Development II (MPDDII)- March20] addresses the subjects of setting hurdle rates, assessing risk and complexity, tradeoff analysis, measuring capacity, and assessing overall financial performance. Click here to view the MPDII abstract or to download the table of contents.

The second seminar [Proactive and Predictive R&D Metrics (PPRD) - March 21) focuses on three different stages of developing early, predictive metrics that will enable manager to foresee issue on the horizon or to know that success is in front of them. Click to view the PPRD abstract or to download the table of contents.

The third seminar, a capstone, [Product Development Metrics Portfolios (PDMP) - March 22] covers the areas of metrics for R&D and product development that are not discussed in the prior two seminar days and then shifts focus. Company teams gather and working groups form around Innovator, Innovator/Extender, Balanced, And Extender R&D strategies for the purpose of developing a set of measures for the R&D organization as a whole, including the few measures that should be used by the corporation to measure R&D productivity, output, and overall performance results. Click to view the PDMP abstract or to download the table of contents.

All three seminars are geared to executives and top-level professionals that manage entire organizations, departments, and budgets. It is also of benefit to senior program management executives.

Registration is easy. If you represent a team, you can register any number of people in one transaction. Please note, however, that the site accepts only a single name for a team registration. We will contact you for the information for the remaining registrants. Once you register, leisure time activities are provided regarding transportation, meals and personal time outside of the Summit.


THE WISDOM iSTORE FEATURED PRODUCT - No new items were added to The Wisdom iStore since last we wrote you. For more information, or to order any GGI products, please go to The Wisdom iStore.



Five new items have been added to the Wisdom iStore since we last wrote. Please click on the item number for a more detailed description and ordering information.

T65 "Innovation's Growing Impact On: Strategy, Tactics & Metrics," Copyright 2006 by Goldense Group, Inc., Needham, Massachusetts, USA, ISBN 1-932468-73-0, November 7, 2006, [65 pages]. $198.00 Hard Copy.

A new baseline for innovation benchmarking is developing in industry today. Business Week's Second Annual ranking of the 25 top innovative companies (April 24, 2006), is the beginning of this emerging definition. Among new indicators are product/storefront design (witness Apple computer and IKEA), and the broadening of the definition of innovation itself (with some companies remaking their supply chains, sales channels, and even their business models.)

T65 presents the results of a global benchmarking study conducted by GGI on what top management can do to foster innovative and strategic culture/behavior in its organization. It also provides seven tangible techniques for senior managers to encourage productive corporate climates.

Additionally, the report presents primary market research on the tactics most companies use in their product development process, such as  Voice of the Customer, product specification techniques, and FMEA. The paper lists the top six innovation tools used out of 21 surveyed.

In 2006, GGI conducted additional primary research related to an emerging group of tools designed to foster innovation, fifty-six of which are now in existence. The paper also discusses several senior management decision areas such as cost of ownership, length of time to learn, and cost of acquisition.

The paper concludes with a list of the top 30 metrics used by companies to measure innovative behavior, including average case expense cost per project/product, and percent of ideas/concepts accepted or rejected.

For more information, please go to The Wisdom iStore. T65 is specifically located in the Wisdom iStore Technical Papers section.

A66 "A Measure of Innovation," Copyright 2006, Pure Insight, Ltd., Newcastle Upon Tyne, UK, August 2006 [4 pages]. $30.00 Hard Copy.

This article provides a brief history of the evolution of innovation tools and techniques from the 1970's through the early 2000's. It discusses the rapid creation and obsolescence of new tool offerings as the demand for tools rose dramatically in the early phases of the innovation market.

The 56 innovation tools that are currently available today are categorized into four groups. Parameters regarding pricing, cost of ownership, length of time to learn, manual verses software, and relative value are discussed. The article concludes with comments on measurement of innovation and measure of innovation.

For more information, please go to The Wisdom iStore. A66 is specifically located in The Wisdom iStore Article section.


A67 "Can Innovation Be Taught?" Copyright 2006 by Machine Design, Cleveland, OH, USA, November 22, 2006, [1 page]. $30.00 Hard Copy.

This article provides a brief history of Western efforts to spur innovation and lists some of the more established techniques that have developed over the decades. It also reviews the 57 most common innovation tools in use today and categorizes them into four levels. Each successive level is characterized by an ever increasing use of domain knowledge within the organization. Costs for various tools and techniques are also summarized.

For a copy of the article, please go to The Wisdom iStore. A67 is located in the Wisdom iStore Articles section.

Q29 "Framework & Overview: Portfolio Decision Making," Copyright 2005-2006, Management Roundtable,Inc., Waltham, MA, USA, [5 pages] $30.00. Hard Copy.

This article explores the many aspects of portfolio management and the beneficial role it plays in new product development and R&D projects. Boeing's Ben Almojuela's insight to successful portfolio management is noted. Almojuela shares the essential elements that define portfolio management and lays out its benefits in relation to key areas of product development. Additionally, Almojuela identifies essential tools for enabling portfolio management.

A case study conducted by The Adept Group is also noted. This study illustrates process component grouping and the role it plays in portfolio management. Through process component grouping a framework is set up that allows for different stages of development to be experienced. Another study discussed in the article pertains to portfolio management and its direct effects on product development performance. Topics include: Time-to-Market, development efficiency and overall strategic impact.

The article concludes with key points for developing portfolio management. GGI's Bradford Goldense offers insight on the importance of portfolio management. Noting key decision-making tips as well as portfolio benchmarks, Mr. Goldense expresses key points useful to putting together a successful portfolio.

For a copy of the article, please go to The Wisdom iStore. Q29 is located in The Wisdom iStore Quotations section.


Q30 Patrick Mahoney, "The Best Of The Best: The Consumer Service Honor Roll," Copyright November 22, 2006, Machine Design, Penton Publishing, Cleveland, Ohio, USA, Volume 78, Number 22, Pages 78-82, [3 Pages], ISSN 0024-9114. $30.00. Hard Copy.

This article celebrates extraordinary customer service efforts by the personnel at RAF Automation and MicroMo Electronics. Every year a panel of Machine Design judges chooses among multiple nominees to select the most customer-friendly companies. Whether a buyer orders standard off-the-shelf part or custom goods, they want the same level of attention to their needs, explains Bradford L. Goldense, CEO of Goldense Group, Inc., and a panel judge.

The article notes that when the Solon, Ohio-based RAF Automation got a weekend call from a customer, it proved itself to be a "start-to-finish" distributor, working to solve the problem. At a second company, a customer service representative from MicroMo (Clearwater, Florida), was able to help a customer maintain its project schedule by scouring MicroMo's inventory of off-the-shelf gearmotors after determining that the custom part the customer needed would take several weeks to manufacture and deliver. The article lists the top 16 companies nominated for the award and discusses the traits that distinguish these companies from their competition.

For a copy of the article, please go to The Wisdom iStore. Q30 is located in the
Wisdom iStore Quotations section.



2004 Product Development Metrics Survey - Product Selection, IP Management, and Top Corporate Metrics:  The Summary Report (MR32h) and Highlights Report (MR31h) for GGI's 2004 Biennial Product Development Metrics Survey are now available for purchase by the public through GGI's Wisdom iStore.  These reports are completely based on primary research performed by GGI researchers.  The research includes 202 respondent companies.  There was a 5% response rate.

McKinsey & Company, Texas Instruments, Rockwell, Kimberly Clark, JDS Uniphase, Shure, Curtiss Wright Flight Systems and Datacard are representative of companies that purchase market research from GGI.

The 2004 Survey focused on the following five areas of product selection and IP management:
Product Selection Process
Product Selection Tools
IP Management Process
IP Management Tools
Top Corporate Metrics Used in Industry RD&E

We have already shared many results with GGI RapidNews readers since we began this line of business in 1998.  2004 Survey results ran in six RN issues, RN V5I11 - RN V6I5, which may be found in the RN archives, along with results from prior years.

Some additional complimentary information about the survey is available:
Marketing Brochure
Descriptive Brochure
Detailed Description of Research Topic Areas

The three commercial versions of the survey results that we currently offer for public purchase are:

1. 2004 SURVEY HIGHLIGHTS: A text-only report (75 pages), including the full text of all the results and analysis of the survey population analyzed as a whole, and
2. 2004 SURVEY SUMMARY: A report of composite results, where the survey respondents are analyzed as a whole (149 pages, includes a full set of graphed answers for every survey question).
3. 2004 SURVEY RESULTS:  A report of composite results, where the survey respondents are analyzed as a whole AND five different cross-sections of the survey data contrasting Public vs Private, High Tech vs Low Tech, Big vs Small Revenues, Large Number of Employees vs Few Employees, and Process vs Repetitive, vs Discrete vs Job Shop (313 pages, includes a full set of graphed answers for survey questions).

Individual sections of the research reports, as well as logical combinations of sections are also available.  All reports are available in printed or electronic versions.

These reports are available in the Market Research section of GGI's Wisdom iStore.

2002, 2000, 1998 Product Development Metrics Survey:  The Summary and Highlights Reports for GGI's prior Biennial Product Development Metrics Surveys are also available for purchase by the public through GGI's Wisdom iStore.  These reports are completely based on primary research performed by GGI researchers.  Information about the purpose and focus of prior surveys may be found in our biennial survey archives.



GTK- Gateway To Knowledge is a DIRECTORY OF THOUSANDS OF LINKS to providers of engineering, purchasing, and manufacturing technologies and services.  If you hit the right subjects, it is more useful than a search engine! The "main entrance" to GTK can be found at:

For those of you that do not want to go through the main entrance above, some of the Gateways that we believe you will find useful or entertaining are highlighted below.

Technology Providers
Service Providers
Professional & Trade Associations
Government Services



GGI's Calendar of Industry Events contains an up-to-date listing of links to Conferences, Seminars, Distance Learning Centers, Colleges & Universities, Executive Education, and Corporate-Sponsored Universities.   The calendar has just been updated with 60 upcoming conferences and seminars throughout 2007.  The categories we follow are:
Distance Learning Centers
Colleges & Universities
Executive Education
Corporate-Sponsored Universities

The categories of conferences, seminars, and distance learning are further organized into the following subject areas:
Strategic, Knowledge & General Management
Marketing & Sales - Mechanical, Electro-Mechanical, Electrical, & Electronic
Marketing & Sales - Pharmaceutical, Biotechnology, & Life Sciences
Product Development - Mechanical, Electro-Mechanical, Electrical, & Electronic
Product Development - Pharmaceutical, Biotechnology, & Life Sciences
Manufacturing & Automation - Mechanical, Electro-Mechanical, Electrical, & Electronic
Manufacturing & Automation - Pharmaceutical, Biotechnology, & Life Sciences
Software, Internet & IT
Project Management

If you are looking for a conference or other learning opportunity, check out the Calendar.  This free service for our readers is front and center on GGI's Home Page.  Or, go directly to the Calendar of Industry Events MEGA Gateway.



Alexander Haig's World Business Review: Brad Goldense has made several appearances on Alexander Haig's World Business Review. Streaming video is available for all shows, which aired on August 4, September 29 and December 15, 2002 and on May 20, 2003. See below for details.

May 20, 2003 Broadcast of September 29th In-Studio with Alexander Haig (22.5 minutes): Streaming video for this segment is available on GGI's web site.

December 15, 2002 In-Studio with Alexander Haig (7.5 minutes) on CNBC paid programming: Streaming video for this segment is available on GGI's web site.

September 29, 2002 In-Studio with Alexander Haig (22.5 minutes): Streaming video for this segment (as well as the entire 30-minute show) is available on GGI's web site.

August 4, 2002 On-Location at GGI (3.5 minutes): This On-Location field report is available in streaming video on GGI's web site.

The web page includes links to download a streaming video player, if you do not currently have one installed on your computer.

For more information on any of Brad's appearances on television, go to:


GGI RapidNews is an e-mail publication from Goldense Group, Inc (GGI). Its subject matter includes survey findings, company news, book and article reviews, key industry conferences and R&D information of interest to clients and associates. Please send communications to rn(at) Thank you.