A product line for a government-oriented R&D company

Some of the problems involved in shifting an organization from a research orientation to a product orientation are discussed. Emphasized is the importance of planning in the process, including the evaluation of what the existing company is really doing, where it is going if it continues as it is, where does it want to go, and how is it to get there. After presenting some reasons often given for developing a product line, two are offered which are considered to be most valid: to increase a company's return on its human resources and to actualize the entrepreneurial bent of management. An organization has a character or profile, which depends upon the purpose for which it was put together, and there are four basic factors that can be used to distinguish between organizations. With regard to the development of products, there is stress on the importance of knowing what the customer wants and on the need for a sales organization to provide the necessary information. In the transition from a research orientation to a product orientation, it is necessary to de-emphasize the technical aspects of a product and emphasize cost. As a result, in EG&G's experience, there was little product fallout from Government R&D, or product development by the engineers in that activity.