Are You Turning Your Product R&D Spending Into Smart Decision Making?

Product research and development (R&D) is an integral part of any business that wishes to design, develop and enhance their products and services. Without it, innovation is left largely at a stand still. R&D should be seen not as an expenditure, rather an investment that, when spent diligently, can have enormous positive benefits for your company’s development. The common case, however, is that most businesses fall into the trap of not spending wisely on their R&D, resulting in considerable expenditure with little ROI or notable gains. Smart spending and smart decision making when it comes to your product R&D, on the contrary, will guarantee the sustainability of your business and give you a competitive advantage when it comes to staying ahead.

Why is R&D so important?

Technological advancements, scientific discoveries and new innovative inventions that continue to push us all forward, are born from research and development. Rarely have successful ideas ever come about simply on the back of good fortune. As a provider of top quality products and services that you want to deliver to your clients, R&D must be an essential part of your business plan to not only maintain consistency, but to keep pushing the boundaries of what you're offering.

  • Innovation - Innovation is the catalyst to economic growth. New ideas bring new market space and the ability to further strengthen the economy.  Research and development bring about new ideas, designs and inventions that could hold huge value for your company. R&D is the only means by which innovation can continue to flourish -- investing in the future of your company begins with investing in the ideas that are going to take you there.

 

  • Sales Growth - There is a direct correlation between companies that invest significantly in R&D and their sales figures. Successful businesses, and those that have developed a competitive product or service, are much more likely to have a solid R&D strategy behind them.  And it pays dividends in terms of growth.

 

  • Cost Management - Smart decision making when it comes to your product R&D can actually help reduce total costs. As part of your R&D, new prototypes can be experimented with, production methods can be refined to optimize efficiencies leaving room to reduce the overall costs of production.

 

  • Market Trends - R&D has invaluable advantage when it comes to staying on top of market trends. Things are changing all the time. Your product may have been designed with a certain concept in mind, however during the process of research and development, you may often find that it will take on a new direction directly because of changing market trends. Staying relevant is only made possible through smart R&D expenditure.

 

While the importance of product R&D remains undisputed, like any part of your business development, it can bring with it its unique challenges. Reaching out to a specific provider of R&D products related to your company’s requirements -- for example a developer of IT products is best if you need the latest technology to streamline your business processes -- is one way to keep costs down.

  • Timescale - Successful product R&D doesn’t happen overnight. It can be a lengthy process, and one that requires time and dedication in order to produce market ready, high quality, competitive products and services at the end.

 

  • Anticipating Future Trends - While R&D allows you to stay on top of market trends, it can be difficult to straddle the boundaries of the future and the present. Looking 5-10 years ahead while still keeping your feet on the ground in the here and now can be a challenging balancing act.

 

  • Costs - Investing sufficiently into your R&D does come with a price tag --  but for those that have an ironclad strategy and make informed decisions when it comes to investing in R&D, the returns at the end wholly outweigh the initial costs. 

 

In order to get the most out of your product R&D while navigating common pitfalls, here are some top tips to help you make smarter decisions when it comes to your spending!

 

  1. Set out your goals -- It may seem obvious but having a clearly defined set of metrics and goals allows your decision making to be guided in relation to a predefined objective rather than on an optimistic whim. Try to narrow down your product needs and reach out to a specific provider who can support the R&D your company requires.

 

  1. Create a sustainable and realistic pipeline -- Maintaining a sustainable workflow ensures expenditure is kept in line with your budget, while still upholding innovative progress.

 

  1. One size doesn’t fit all -- Your product R&D should be unique to your company. A competitor may be spending a lot more or a lot less on their product R&D, but in order to manage your own business growth and expectation, you must invest in R&D which is going to meet the specific needs of the market you are targeting and is aligned with the future of your business.

 

In order to turn your product R&D spending into smart decision making, the first thing on your radar should be recognizing its importance. R&D is the driver of innovation and economic growth. In order to provide the best possible opportunity for your business products and services to thrive, your R&D spending strategy should consistently remain a top priority. 

Find out how Seldat can help you with your product R&D needs now!