Growth-oriented organisations often require new solutions that can enable them to meet new and emerging business needs and expand their market reach and influence. Most organizations set up a research and development unit to help them meet these needs.
An efficient R&D department can be a major source of new growth; it can help companies to deliver innovative products and new technologies and support operational and sales improvements that can increase productivity and profitability.
The R&D department is to the company much like the brain is to the human body system. The brain receives information from the sense organs, interprets them and provides feedback that enables the body to avoid danger or grab opportunities around it. Similarly, the R&D team helps the organization to identify relevant data, analyze these data, develop insights therefrom and recommend policies that can help the company to mitigate risks and maximize opportunities.
As the strategy hub of the organization, the R&D unit is generally known to perform some key functions including market research, process analysis, product development, monitoring and evaluation etc.
The following are key activities of the R&D:
Drive Innovation. The R&D unit inspires innovation through continuous engagement in a series of researches across the different areas of influence of the business. The team mostly directs resources to understand new industry trends and new competitive landscape of a business, and make recommendations that help the business to maximize its competitive advantage.
In doing market research, emphasis is often placed on questions such as who are our customers/clients and what do they need? What is our target market? Who are our competitors, and what are their unique selling products? How are we different in the common market? How can we leverage our strength for competitive advantage and business growth?
Product Development. Organizations depend on their R&D team or Business development unit to design solutions to identify market problems or gaps. The team thoroughly inquires into existing socio-economic problems or market needs, proffer solutions and specify directions and parameters for developing solutions into products or services affordable to the targeted people or market.
In addition to developing new products, the R&D review existing products or offerings of the organization to ensure they are still relevant and functional to the market. If otherwise, it seeks new solutions.
System auditing and quality control check. The team keeps track of and justifies or modifies the products, processes and policies of the company. It prioritizes knowledge about what has failed in the past internally and externally and what has worked well.
Promoting the brand. The team directs resources that generate intellectual contents and foster intellectual discourse. It can also optimize data storytelling to inform positive sentiment and acceptance of the brand in its market. Gathering data and creating compelling stories out of them with specific reference to how the business positively influences the lived experience of people in its setting.
Knowledge –driven partnership. Some Organisation’s R&D units are equipped to partner other brands including research institutes, academics and business ventures towards exploring new possibilities for extending business intelligence and creative solutions.
In a globally competitive economy where only businesses that innovate stand out in the market, no doubt, a business that hopes to maintain a competitive edge and stay ahead of others recognises and prioritizes the role of R&D in its collective operations.
While SMEs rely on their R&D to scale up operations or at least stay in business, the big businesses too massively fund their R&D departments to continue to enjoy market dominance. Essentially, the R&D department is to a company much as the brain is to the body system.
