In short, the R&D department deals with technology optimization and verification of hypotheses, which are then transformed into concrete, tangible solutions. It should be emphasized that effective R&D departments are composed of people with expert knowledge in their field and highly developed communication skills.
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How can R&D help your business?
These are the most important areas in which this department can help:
- New services and products – when operating in a market where there is a lot of competition, it is important to focus strongly on innovative solutions. By developing appropriate patents, it is possible to become a monopolist on the market. Customers will be more willing to spend money on goods that provide them with what no other company offers, and this in turn will translate into the overall profit of the business.
- Company value – if you are fresh on the market or operate in a specific niche, with a developed R&D department your company value can grow rapidly. Establishing cooperation with a large corporation or selling licenses for your solutions will allow for rapid development and consolidation of your position.
- Possibility of receiving grants – R&D departments are willingly subsidized by the state budget. Whether it is a research and development center or a laboratory, you have a chance to get a large injection of cash.
- Scientific confirmation of effectiveness – people appreciate confirmation of effectiveness by authorities or scientific research. Thanks to the presence of the research and development department, you will be able to advertise your product and service that has been confirmed by scientists.
R&D can be used by companies from the pharmaceutical, health, industrial or educational sectors.
How to introduce R&D into your company?
Is R&D implementation difficult? Contrary to popular belief, at the beginning of the adventure you don’t need billions of dollars for research to work efficiently. Research and development can be as effective in start-ups as it can be in small and medium enterprises. The first step to success is to build a team that will consist of enthusiasts in their field. They will be in charge of pushing innovative ideas forward without fear of failure. Secondly, it is worth thinking about what percentage of profits should be devoted to research. R&D should work continuously, therefore, it should be remembered that every stage of idea testing is related not only to the work of engineers but also to the cost of necessary materials. This is directly related to the third step, which is the analysis of specific investments. It is necessary to pay attention to their usefulness, originality, as well as chances for success and gaining new customers. The idea must stand out from the competition and meet customers’ current needs. What is left is to determine the time when the introduction of R&D to the company will be most appropriate. In fact, there is no single correct answer to this. If you work in the technology industry, your customers certainly demand constant refreshing of products. In this case you can say that the R&D department has always existed in your company but has not been formalized. The last question to be addressed is profitability – will the development department be profitable from the very beginning? You need to periodically verify your investments through their return rate – many unsuccessful attempts that cost a lot of money may be worth less than one successful idea that is ahead of the competition by several generations. A great example in this field are smartphone companies like Apple or Vivo.
