R&D at Indian Organic Chemicals Limited (IOCL) – from a service to an enterprise: a case study

IOCL is a pioneer in the country in the field of bulk chemical manufacture. The company achieved its leadership position by utilizing the locally available feedstock i.e. ethyl alcohol from molasses and homegrown technologies to produce a range of bulk chemicals. The R&D activity in the company started almost simultaneously with the erection of the first production plant. It was envisaged to play a role of a typical ‘in-house’ R&D set up. Thus, its activities encompassed the traditional spectrum that most in-house R&D departments of the times were built to perform. These were: 1. Supporting ongoing production activity. 2. Value addition by extending the product line. 3. Improving the quality of the products. The R&D department played these roles competently. Towards this end, the department was well served by trained task oriented staff. However, perhaps the very success of its efforts led to the development of a highly inward-looking culture. However, the post liberalization era brought with it a new set of challenges. With entry barriers slowly diminishing, the company was no longer able to sustain its position of pre-eminence in the fields that it was a leader. Local competition by leaner and meaner players equipped with better technology also played its part in this erosion. Unfavourable economies of scale and lower margins on the traditional products led to the management to rethink on future business strategy. A change of course was called for. For a company with IOCL’s resources, the course change that the management thought would preserve share holder value, was to shift the product mix from bulk chemicals characterized by high volume/low value to fine and specialty areas characterized by low volumes and high value. It decided that the R&D would provide the driving force for this strategic change. In essence, the R&D would be supporting a cluster of new activities, which would be revenue generating and thus be able to metamorphose from a cost center to a profit center. In order to play its new role, the R&D required to redefine its own character. Several changes in the existing systems and introduction of some newer management practices were necessary. The steps to be taken were identified as follows: 1. Shifting from a skill-based to knowledge-based staffing; 2. Creating a structured approach to project management; 3. Initiating a multi functional approach to shorten the project time cycles; 4. Putting in place mechanisms to interface and interact with the customers; 5. Inculcate a business orientation into a traditionally groomed group of scientists and technicians; 6. Integrating the activities of R&D into the enterprise resource planning network of the company; 7. Most importantly, set up a mechanism to market the R&D services.     

The 1989–92 Credit Crunch for Real Estate: A Retrospective

This study surveys a broad range of information to establish the degree to which real estate lending and construction activity decreased in the 1989–92 period owing to a "credit crunch." It reviews the conditions that led up to the contraction in mortgage lending and construction and then documents the extent to which the evidence is consistent with a credit crunch in lending for residential and nonresidential construction, permanent financing of income properties, and residential mortgage lending. Also, this study weighs the relative importance of the credit crunch and other factors that contributed to the falloff in real estate lending and contrasts the recent period with earlier credit crunch episodes.     

The Accuracy of Owner-Provided House Values: The 1978–1991 American Housing Survey

The American Housing Survey (AHS) includes the owner's valuation of the house as a measure of the house's value. If owner-stated values are accurate, the AHS (as well as other survey instruments) can be used by researchers studying a variety of topics. In this study we use the metropolitan version of the AHS for three cities over fourteen years to compare owners' valuations with sales prices of houses that sold in the twelve months prior to an interview. We find that, on average, recent buyers report house values that are 8.4% higher than the stated sales prices. Further analysis indicates that these recent buyers, when compared with owners with longer tenure, overvalue their houses by 3.3%, on average. Thus, we find that the average owner overvalues his house by 5.1%. Also, differences between sales prices and owners' valuations are not related to particular characteristics of the house, occupants (other than length of tenure), or neighborhood. Thus, the use of the owners' valuations will result in accurate estimates of house price indexes and will provide reliable estimates of the prices of house and neighborhood characteristics.     

From Bermondsey to Canary Wharf: The Social Context of Change in Industrial Relations, 1880–2000

This paper presents evidence on some of the key variables that have determined the economic status of different groups in the working population. Economic status is set by the level and security of real income and consumption. These are themselves determined by access to resources in the areas of the labour market, public services and social security, and in housing. The paper reviews the period between 1880 and 1990, and puts forward the likely situation in the year 2000. The century began with an agenda set by the problems of falling real incomes and poverty. It is likely to end with the problems of economic and demographic ageing as the main focus.     

Management of scientific institutions NPL 1995–98: the transition from agency to government-owned contractor operated (GOCO)

The last 10 years have seen a number of changes taking place in the management of publicly funded research institutions. Some have been transferred wholesale to the private sector, some closed and most encouraged to diversify their sources of funding. One management approach is that of the Government Owned Contractor Operated (GOCO). In this approach, the assets of the institute remain in state ownership but the responsibility of managing the institute and its research programmes is passed to a private sector management company. The UK’s National Physical Laboratory (NPL) has been managed under such an arrangement since 1995. NPL is responsible for the physical measurement standards which underpin much of the UK industrial base. This study, undertaken three years after the change in status, was concerned to identify what changes had taken place and what general management lessons could be learnt which might be applied elsewhere. The study wanted to discover if there had been any change in the ‘values’ of NPL, such as quality, integrity etc., as seen by industry, partner research groups and the research staff at NPL itself. The interviews of staff took place at the end of 1998. The study found that the contract has led to significant savings in the cost of research programmes through the adoption of greatly improved programme formulation processes and better resource management. Better commercial practice in marketing, finance, procurement and general business administration has permitted significant one‐off and on going savings in the costs of operating the facility. Less restrictive recruitment has led to an influx of new, younger, scientific staff bringing in new ideas and values. At the same time GOCO has not adversely affected the quality of scientific work, diminished the high international standing of NPL or led to significant staff demotivation. But neither has the change made much progress in changing deep rooted cultural factors nor resolving certain internal communication challenges. Improved responsiveness to customers is still an issue. GOCO has undoubtedly started to release the remarkable potential of NPL and has brought into much sharper focus some new challenges. Continuous rapid change is taking place in many of the eventual users of NPL work. Companies are looking for new ways of meeting their needs. This will create science and business opportunities.     

A Long Run House Price Index: The Herengracht Index, 1628–1973

This article introduces a biennial historic index of real estate values for the period 1628 through 1973. This index is based on the transactions of the buildings on the Herengracht, one of the canals in Amsterdam. Since its development, the quality of the buildings on this canal has been on a constant, high level, which makes the Herengracht a unique sample to base a long run house price index upon. The index is a hedonic repeated-measures index and is estimated in real terms. An index is also constructed in nominal terms. The average real price increase after World War II is about 3.2% per annum. Nevertheless, the real value of the index in 1973 is only twice as high as it was in 1628.