Research and development Flashcards
Research and development
Research and development (R&D) is essential today for businesses to compete in a dynamic marketplace. 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 inventionBringing 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.
Governments try to encourage innovation within the business community because an innovative culture will help grow the whole economy, creating both employment and wealth.
Research
Research is the inquiry into, and discovery of, new ideas. Methods used to generate new ideas include:
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 using discussion groups - thinking outside of the box, novel ideas for solving existing problems.
Development
Development is the process which changes ideas that result from the research process into commercially viable products or processes. Development is a costly and complicated process which, for some products, may take many years
Research and development process
When it comes to the development of a new product, there are a number of distinct stages that accompany its journey from an original idea to actually being launched:
Identification of problem
Research
Development of ideas and solutions to solve the problem
Development of prototypes
Final design
Testing
Manufacturing and launch
Advantages of R&D
R&D can lead to a reduction in costs and an improvement in how the company is perceived.
Through R&D, a business can launch new products in order to gain a competitive edge.
Consumers benefit from R&D as there is a greater variety of goods and services.
The working environment is improved as a result of R&D - making it safer and cleaner.
Which industries and sectors rely on R&D
For pharmaceutical, aircraft and electronics companies, R&D is their lifeblood - without new products they will die. This is because their existing products are guaranteed to be redundant within a relatively small number of years as customers demand new and improved versions.
For a second group, which include car manufacturers and the construction industry, R&D has an important role to play. However, in these industries there can be an element of waiting to see how the competition behaves. For example, it was only with the launch of the first successful SUV (Sports Utility Vehicle) that design departments in major motor companies throughout the world suddenly became covered in drawings of the Qashqai, Duster, Evoque, etc.
For a third group, R&D can take a back seat - instead, marketing comes to the fore. This group of industries includes retailers, who often just borrow ideas from each other.
