Research And Development Flashcards
Research and development
It involves identifying new ideas and turning them into products, services and processes. Businesses who invest in R&D are considered to be innovative and always looking to bring new ideas and products to the market.
Innovation
The commercial exploitation of an invention
Bringing a new idea to the marketplace is known as ‘product innovation’. Doing so in the workplace is known as ‘process innovation’. Innovation is not cheap and resources have to be committed by the businesses to bring new products to the marketplace.
Methods used to generate new ideas include:
Pure research
Labatory research
Evaluation of existing products
Brainstorming
Pure research
research just to find out how or why (no product objective). This type of research is often carried out by universities or research institutes.
Laboratory research
for example, the testing of new pharmaceutical compounds on animals.
Evaluation of existing products
are there problems with this product? How can such problems be resolved?
Brainstorming
Brainstorming using discussion groups – thinking outside of the box, novel ideas for solving existing problems.
Advantages
☑ R&D can lead to the development of new products, which may give a business a competitive edge. Patents can be obtained preventing competition for a period of time – leading to higher profits,
Important because it creates new/innovative products that may appeal to consumers – may have positive impact on image.
Improved working environments. New machinery can be developed, which may cut costs and raise productivity. May also be cleaner, safer and more ergonomically designed, improving the working conditions of employees and, therefore, improve profit margins.
Improved image. Consumers may be impressed with businesses committed to R&D. Pharmaceutical firms may gain a great deal of prestige if they produce a drug that helps in the fight against AIDS, cancer, Alzheimer’s, etc.
Can motivate employees – may help to satisfy their higher order needs. May create optimism and give the organisation a positive feel.
Increased sales - consumers benefit from a wider variety of goods and services – mobile phones, satellite navigation, new drugs, etc.
Important because it helps to adapt products to new technology
Disadvantages
Time consuming
No guarantee of success
Potential damage to brand image
Expensive
Research
Research is the inquiry into, and discovery of, new ideas
Development
Development is the process which changes ideas that result from the research process into commercially viable products or processes.
Product innovation
Product innovation to find new or better products
Better customer needs
>increased prices
Process innovation
Process to reduce unit costs
Reduced waste of materials, components, labour or even time
>reduced costs
