Honeywell Inc.

Honeywell Inc. and Global Research & Development

International opportunities in: China Asia and Eastern Europe

Dilemma: Honeywell’s R&D is centralized in Minneapolis—far from the potential new markets

Reasons for spreading R&D capability:

1. Time to market is the most significant competitive advantage of a company now.

2. There are talented people around the world which a company can take advantage of.

3. Personal contacts and connections are invaluable in the business world & there is a great loyalty among alumni of certain institutions.

4. It is much easier to get to know what the unique product requirements of a country are if you spend time there.

Growing consensus: Honeywell has to become more international to support its growth opportunities.

Issues to be addressed:

1. How should Honeywell attempt to build effective global R&D capabilities?

2. Honeywell had developed a unique entrepreneurial, interaction-based culture. Could this culture be replicated outside the United States?

3. How quickly should Honeywell move?

4. Who would manage new R&D organizations?

5. How would these organizations be funded?

6. Should international R&D sites be centers of excellence for specific technologies, or should they be application centers using technology developed in Minneapolis, or should they be a combination of both?

HONEYWELL BACKGROUND

Honeywell Sections in 1997

International Opportunities

Competition

RESEARCH AND DEVELOPMENT

HONEYWELL TECHNOLOGY CENTER

HTC Organization

THE RESEARCH PROCESS

Technology Transfer

Technology Transfer Example

HTC’S RELATIONSHIP WITH HONEYWELL EUROPE

HTC Prague

REASONS FOR CENTRALIZED R&D

REASONS FOR DECENTRALIZED R&D

FUTURE OPPORTUNITIES