The following HTML text is provided to enhance online
readability. Many aspects of typography translate only awkwardly to HTML.
Please use the page image
as the authoritative form to ensure accuracy.
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)
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.