Introduction to Research and Development
Change is the only permanent thing. With the development in technology and rapid globalization, the business dynamics is constantly changing. Similarly, customers, with the available information and choices, are never settling for less. Due to these reasons, the concept of Research and Development (R&D) has gained popularity. It now holds a great strategic importance. Research and Development (R&D) is a valuable tool for growing and improving business by exploring the internal and external business environment.
R&D involves understand the market and customers’ problems (needs) and developing a new or improved solution either to solve their problem or to ease them. Therefore, businesses that focus on R&D have a greater chance of success in their business than those who don’t.
R&D can also be defined as a process of knowledge accumulation that is used to create a new technology, product, service, or system that it will either solve the existing problem or capitalize future needs.
Importance of R&D in Business Management
- The most important aspect is that R&D offers productivity and product differentiation. R&D provides a non-conventional approach to the existing situation.
- R&D department in any business is responsible for testing new product and concept. This department employs all the required expertise for creating new and innovative concept.
- Research and Development activities are not limited to product development, this function looks after the problems of all the departments. Therefore, R&D guarantees adequate resources for existing problems. R&D allows companies to create a strong interdepartmental strategies. For instance, R&D in marketing will lead to effective marketing strategies. Similarly, R&D assists in major decisions such as mergers, capital investment, talent management by accessing the need etc.
- R&D is futuristic approach. R&D activities support the changing dynamics of business operation. This will help businesses to project the future potentials as well as make us aware of future threats. R&D acts as cushion for future failure.
- Research and Development function is a key strategy to tackle with the current competition. R&D continuously works for product/service improvement which eventually help businesses to gain competitive edge.