Understanding Why R&D Is So Important

Research and development
 
23 September 2019 563

If you’re not investing in research and development, you will fall behind.

Why?

Competition in the digital age is fierce. This typically means that you’ll need to achieve performance levels that are higher and higher to meet evolving competition, threats and opportunities. Managing R&D activities is a major factor in producing future growth with many countries are recognising this by opening up R&D centres for companies to use as resources. The benefit of increased R&D means having better technological capacities and increased company knowledge, as well as increased innovation with products and processes. 

The management of R&D as a strategic development is key.

If you’re looking to elevate your performance, here’s why R&D matters more than ever.

 

What Is R&D?

R&D stands for research and development. It is done specifically to develop and discover new products which include better versions and higher-quality products than those that already exist. 

This field also includes developing or discovering better ways to produce those products. This means the process of R&D results in new knowledge as much as it does new products, as well as better ways to come up with strategies to create new products and improve the ones that already exist.

Looking for more R&D information? Check out these case studies!

 

How Is The Innovation Of R&D Important?

The process of R&D is considered to be a first phase for making technological innovations within a business. It requires a long-term vision and strategy whereas innovation typically operates with a shorter-term economic model. It means that a company will need to invest money into their R&D in order to gain innovation in its products, processes, and services. Ultimately it should lead to increased profits. R&D will add to your company's knowledge and experience by allowing you to improve your ability to innovate. The investment in R&D allows your company to grow your level of technology and the capabilities the company will have in the future. 

For the hypnotherapy experts from Act Now Hypnosis, R&D is invaluable to their small business. They explain its importance as, “in an industry where weight loss techniques are constantly evolving, R&D is essential to the success of my business. My clients expect the most up to date practices so I am constantly researching and modifying my processes, which keeps me ahead of my competition.”

For all businesses to adopt this methodology will eventually will lead to better processes, new products, and better services.

 

What Are Some Of The Most Important Advantages Of R&D?

There are a great many advantages to implementing and managing the activities of R&D within a business. In part, it means that your company will be able to create the kind of environment that is receptive to questioning the products and processes being used. 

This in turn will encourage an atmosphere of openness and flexibility. It will give the company the ability to better integrate newer concepts and put in place better processes. 

The importance of an open team environment has helped the deep tissue massage specialists from Peak Performance Massage to refine their offering. 

They offered the following exclusive insight, “since introducing R&D processes to our business, we have learned a lot from within our team. By giving them the opportunity to constructively question our processes and relay the feedback they receive from clients, we have been able to understand consumer wants and needs better. This has led us to increasing focus on growth areas and to limit the time spent on services that are less popular, which has ultimately improved our efficiency.”

 

Additional Benefits Of R&D

Patents

Companies can acquire patents through the development of new products and other activities. This can help establish competitive advantages. Using R&D your company can gain a stronghold in the marketplace and that will ultimately benefit the company and lead to long-term profits.

Costs

Effective R&D can lower the cost of manufacturing by improving the process that is used. It can mean that the process costs less to do, which means that the cost of manufacturing products is also less. This allows your company to be more competitive than your competition. That canl lead to growing profit margins.

Financing

Raising funds for the purpose of improving R&D activities is an excellent way to show a company’s vision to its investors. With new and existing investors it is important for them to see that the company has developed a solid structure that allows them to be innovative. It will help them understand that your company has what it needs to achieve sustainable growth. 

Investors are typically drawn to a company with a proactive approach to innovation and that can effectively manage their business. When you can demonstrate good R&D it proves that your company has this capacity. 

Recruitment

Companies will find that as they become more innovative they will attract better talent. Highly talented individuals thrive in an atmosphere that is stimulating. As a result, the best candidates will be excited by a company with a strong R&D program. Whether the company is big or small, this is a great way to improve the company's ability to recruit better talent.

 

R&D Is Not Just For Large Corporations

It is often misunderstood by many thinking that R&D is something that is done only by the largest corporations. It's also thought that R&D is primarily implemented by pharmaceutical companies and those in high-tech. 

If your business is smaller, you may think you can't compete with billion-dollar companies who spend a fortune on R&D. But R&D isn't out of reach. The fact is, there are lots of smaller companies that are amazingly innovative in their approach.

The digital team Search It Local have incorporated elements of R&D into their business structure with great effect. They explain “marketing has become the new R&D. What was once focus groups, feedback forms and questionnaires has become a flow of information in real time through social and digital channels. Businesses of all industries can benefit from this and expand their definition of R&D beyond traditional means. Listen to your audience in real time. What are they saying? What pain they experiencing? Factor in these crucial customer data points alongside traditional R&D to maximise your growth and results.”

 

Final Thoughts

There's no doubt that R&D is an essential element for any business. It is the key to beating the competition and one of many ways to improve your conversion rate

Using the information given you can begin to implement your own R&D program. You’ll be amazed by what you can learn and the improvements you can make, so get started today. 

So, how will you start you R&D process to supercharge your results?

Looking to build an R&D centre that suits your needs? Chat to an Opsway expert today.

 

 

Author Bio

Luke Kurtz is a freelance writer and a student majoring in Accounting in Sydney. Luke’s favourite pastime is watching movies. This is what he does when he is not in school.
 

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