“Alphabet, and some other major modern tech companies seem to have not learned the lessons of the last generation of engineers and business leaders regarding R&D’s role in commercial innovation and its management. Especially as it pertains to coming up with high-value commercial successes in relatively short time periods in order to meet shareholder and board of director demands,” PLM Investments writes. “Major new innovations are rarely managed into existence.”
“Here is the crux of my argument. Alphabet revenue will be around $80B in 2016. To make a 10% positive impact on that, you’d need to come up with a new business that adds $8B/year in revenue today. That number will presumably keep growing every year,” PLM Investments writes. “Do you really think such a business, or combination of multiple smaller businesses, will pop out of the “Other Bets?” I believe that to be very unlikely. ”
Read more in the full article here.
MacDailyNews Take: Our Lady of Perpetual Beta certainly doesn’t suffer from a lack of hubris.
No major tech company gets more bang for their R&D buck than Apple.
Is Apple underinvesting in R&D? – January 12, 2016
Apple gets much more bang for its R&D buck than Google and other tech companies – November 30, 2015
Massive R&D increase suggests Apple is working on something huge – May 4, 2015
Apple set new R&D spending record last quarter – January 29, 2015
[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]