Hearin Center for Enterprise Science

 

About the Hearin Center for Enterprise Science

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Prototype Studies

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How the Center provides


Cost of Studies.
Prototype studies can be provided at a low cost because of the empirical research and educational emphasis of the Center, the upper level students who take part in them, under the guidance of Center directors and researchers. Rather than billing at industry rates, which factor in numerous charges beyond the amount that goes to the individuals conducting the study, a prototype conducted by the Center will seek only to cover the amount customarily established for research assistant (RA) support, and the overhead necessary for running the Center as an academic service organization.

Another factor contributing to low cost is the active involvement of the Client/Beneficiary firm in structuring the prototype.


Involvement by the Client/Beneficiary Firm.
Because of the intimate association of the Client/Beneficiary firm with the Center in each phase of designing and executing a prototype study, highest priority is given to the needs of the firm. This contrasts markedly with the  situation where a consulting company solicits prototype studies for the primary objective of getting its software and services used by the client.

Contrasts with "Standard Consulting Practices"
The Center team that engages in a prototype study does not resort to a standard formula for structuring the study. It also does not resort to a restricted base of procedures or implementations such as those that may be embodied in a consulting company off the shelf prototype proposal. Instead, the Center staff and personnel conduct preliminary interactions with the Client/Beneficiary firm to set the stage for a joint exploration of alternatives, where the Client/Beneficiary firm, with support from the Center staff, identifies the objectives at each step.

The prototype study agreement is jointly composed by the Center and the Client/Beneficiary firm. Such a collaborative effort in drafting the agreement has three advantages: (1) it provides a foundation for better meeting the needs of the Client/Beneficiary firm; (2) it removes some of the burden from Center staff and student participants that would result by a unilateral drafting effort; (3) it avoids an orientation of the type that would convert a proposed agreement into a sales document? A jointly drafted agreement also provides a way for the Client/Beneficiary firm to establish the reasonableness of costs for various components of the prototype, and to take part in assessing what these costs should be.

To compensate the Center appropriately in cases where a study provides clear benefits, part of the fee to be received by the Center can be made conditional upon achieving such benefits. This insures the Client/Beneficiary company against paying for outcomes of lesser value and places the motivation where it belongs on producing the best results for the Client/Beneficiary firm. By such an arrangement, the Client/Beneficiary firm and the Center are not in a zero-sum game, where the gains of one come at the expense of the other. Instead, the relationship between them is structured so that benefits to the Client/Beneficiary firm become the greatest source of benefits to the Center. The value of such an association from the Center's standpoint is not only monetary, but in establishing a reputation in the business and engineering communities for the quality of its work.