Research and development are a valuable tool for growing and improving your business. Research and development involves researching your market and your customer needs and developing new and improved products and services to fit these needs. Businesses that have a research and development strategy have a greater chance of success than businesses that don’t. A research and development strategy can lead to innovation and increased productivity and can boost your business’s competitive advantage.
Your research and development strategy depends on the size of your business. In small businesses, research and development tends to focus more on product improvement because of budget and cost limitations. Larger businesses may be able to dedicate more time and resources to research and development to introduce new products as well as improve existing ones. The benefits of research and development are often long-term, so it’s important to remember that your investment in it may not result in short-term profits. As well as product development and improvement, research and development can help you develop more efficient processes and new ways of delivering services. Spending more time and money on research and development does not guarantee it will be successful.
The key to successful research and development is extensive market research to identify the needs and desires of your customers. You will need to revisit this research regularly as customer preferences frequently change. Research and development can lead to innovations in your business. These may be in terms of new products and services, improved processes and new ways to interact with your customers. These innovations can result in greater profits and lower costs. Innovation is also a useful way to grow your business. Once new and improved products have been developed through research and development, businesses often seek to commercialize them so they can be sold on the market.
Functions of Research and development:
• To come up with research vision of the Institute.
• To provide administrative support to sponsored research.
• To play an active role in creating state-of-the-art research facilities of the Institute.
• To coordinate distribution of Institute funds for research to faculty.
• To coordinate consultancy.
• To provide administrative support in filing patents.
• To attract research fellowships.
• To closely interact with other Institutes and Industries – national and international.
• To play an active role in establishing Research Centers, when situation demands.
Firms invest in Research and development because they want to grow by developing new products. It’s hard for a company to remain competitive if it does not stay ahead of the technology curve. Imagine a world in which TVs look the same as they did in the 1940s. Over the years, manufacturers have researched, developed and brought to market new features for the TV, everything from color and remote controls to high-definition–to entice consumers to upgrade. Research and development are also a major reason a flat screen HD TV today costs significantly less than it did a decade ago, as firms discover new materials and manufacturing techniques that bring down costs.
Research and Development is a key component of many organizations and, when well-planned and used, enables a business to produce increased wealth over a period of time.
Research and Development plays a critical role in the innovation process. It’s fundamentally an investment in technology and future capabilities which is transformed into new products, processes, and services. In industry and technology sectors Research and Development is a vital component of innovation and a key factor in developing new competitive advantages. When a company takes the time to invest in Research and Development they gain a huge influx of knowledge.
Research and development is of great significance in business as the level of competition, production processes and methods are swiftly increasing. It is of special importance in the field of marketing where companies keep a sharp eye on competitors and customers, in order to keep up with modern trends, they study the needs, demands and desires of their clients.