December 9, 2019
There are many things that goes into a successful business and if any business will many any of the important aspects of the business, then it will crumble down like a sandcastle. In the current era, the competition for most of the industries has increased by many folds and that has left no room for error for each and every type of business. Whether you are running a small business or managing a well-established business, you will have to take care of every aspect of the business with the same enthusiasm. In this blog post we are going to look at one such aspect of any business that you should never miss; Research and Development.
When most of the business owners listen about R&D, they start thinking about pharmaceutical companies or high-tech IT companies. But you should know that R&D is not about making a revolution in the market with your innovation. In the current era, R&D has become a very important part of each and every type of business process. So, let’s look at what R&D actually is and why it is important for especially startups to have their own R&D department.
What is Research and Development?
Research and Development is basically a process that is used by the business that is running that process in order to gain new knowledge which is later used in different types of technologies, services, products or the system. You should know that Research and Development have become one of the most important parts of each and every kind of business. You should never related R&D with a particular type of industry because this is one of the biggest misconceptions people have regarding R&D.
As discussed in the outset of the article, most of the people start thinking about pharmaceutical or technological companies when they hear about R&D but even companies making daily usage products invest in R&D in order to come with new and innovative ideas that will either improve their business process or business product or service. For example, a sauce making company that is currently making a single line of tomato ketchup might invest in R&D and get three new categories of sauces like Tomato cheese sauce, Extra spicy tomato sauce, and Tangy tomato sauce.
Research and Development is not limited to giant companies as it takes place in companies of all sizes and shapes. Any type of company that is selling any type of product or service can invest in Research and Development and get expected results from it.
Who does R&D?
In most of the cases, the research and development is carried out by the company through its internal departments. But in many cases, it can also be outsourced, depending on the limitations and needs of the company. Multinational companies use all the approaches of R&D, in-house, outsourcing to companies and outsourcing to universities. If you are looking forward to having your own R&D department then it will be the best investment for your business since it will not only help you in coming up with new product or service ideas but it will also help you in improving your business process as well.
Why startups should have their own R&D department?
If you are running a startup and thinking that having your own R&D department won’t be beneficial for you then you are completely wrong. You should know that having an R&D department is paramount for startups and small businesses because most of the startups have always a new concept for their product or service in their mind but they lack the engineering or the design that is necessary for creating and testing options. If you will work towards building your own R&D department then you will be able to gain a competitive advantage in the market through your innovation.
You should know that R&D embodies a long term vision for the company, especially when the innovation is being operated in a short term model. It is true that you will have to invest money in order to come up with new ideas and test them but the money that you will be able to save or gain through those researches ideas will be much more than your initial investment. The key to success in the current era for business is to stay innovative and it can only be done if you will have your R&D department.
Most of the startups have only one way to survive in the market, to approach the customers in a unique. If a startup will offer the same product or service without any differentiation then there are very few chances that it will be able to survive for a long period of time. But the biggest gap between the concept of new products and service and its launch is the required tool and experience to test the available options. Well, this problem can be solved with the help of R&D. Whether you are at a initial stage of startup or on the growth phase, having an own R&D department will help you to convert your ideas into product and services. It has been seen that most of the startups that have invested in their own R&D have been able to get better result from the market in comparison to those who have completely avoided it.
The knowledge and the experience that your startup will accumulate through the R&D department will directly contribute towards the success of the business. The technology and innovation that you will gain from the R&D department will be eventually converted into new products, services or processes.
So, if you are running a startup and looking forward to staying unique in the market then you should definitely go for your own R&D department without any second thoughts. You might be thinking that R&D will be an expense for the company but when you will look at the bigger picture, you will realize that R&D is actually an investment for the company.
Kashyapi Prajapati has been involved in the world of accounting software, SEO and cloud computing from a very long time and currently, she is working as a lead content writer with Cloudwalks, a QuickBooks hosting company which offers affordable QuickBooks hosting. Cloud computing and SEO is what she eats and drinks.