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Making IT Better: Expanding Information Technology Research to Meet Society's Needs (2000)
Computer Science and Telecommunications Board (CSTB)

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. "Resources for Information Technology Research." Making IT Better: Expanding Information Technology Research to Meet Society's Needs. Washington, DC: The National Academies Press, 2000.

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MAKING IT BETTER: EXPANDING INFORMATION TECHNOLOGY RESEARCH TO MEET SOCIETY'S NEEDS

such as Lockheed Martin and the Boeing Company, which developed their systems integration experience by designing complex weapons or command-and-control systems for the military and by operating their own substantial information and communications systems.

In general, systems integrators support limited R&D, and most of what is funded is development. Neither Andersen Consulting nor EDS—two of the largest systems integration firms—report R&D expenditures in their annual reports (Table 2.6). Andersen does have a small research division that employs about 200 computer scientists and business analysts to identify interesting technologies and build prototype applications for testing with potential customers; however, the division constitutes a small part of the company.29 Its work focuses on areas such as e-commerce, intellectual asset management, and work group productivity.30 Lockheed Martin, a diversified company with approximately $1 billion in R&D

TABLE 2.6 Research and Development Investments of Representative Systems Integrators, 1998 (millions of dollars)

Company

Systems Integration Revenues

Systems Integration R&D

Services-only firmsa

   

Andersen Consulting

8,307

0

American Management Systems

1,058

77

Computer Sciences Corporation

7,660

0

Electronic Data Services

16,891

0

Keane

1,076

3.5

Diversified firmsb

   

IBM

28,916

25% of research division budget

Hewlett-Packard

6,956

50

Lockheed Martin

5,212

36.4

aData on the services-only firms was taken from annual reports to the Securities and Exchange Commission. Andersen Consulting reports no research and development expenditures in its annual filings to the Securities and Exchange Commission, but it does operate a research group with about 200 members.

bData for the diversified firms shows systems integration revenues out of total corporate revenues and systems integration R&D out of total R&D. Data on IBM provided by Irving Wladawsky-Berger, vice president of technology and strategy at IBM, personal communication, October 6, 1999. Data on Hewlett-Packard provided by Curtis Hoyle, special assistant to the director, Hewlett-Packard Laboratories, personal communication, November 2, 1999. Data on Lockheed Martin provided by B. Clovis Landry, vice president of technology, Lockheed Martin Information and Services Sector, personal communication, October 11, 1999.

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