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Understanding Research and Development

Research and Development (R&D) is a systematic activity aimed at solving problems and creating new products or knowledge, focusing on long-term profitability rather than immediate gains. It includes the development of new products and the improvement of existing ones, providing competitive advantages and attracting investors. R&D also offers tax credits for qualified projects and contributes to sales growth by enhancing productivity and supporting a company's mission.

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5 views12 pages

Understanding Research and Development

Research and Development (R&D) is a systematic activity aimed at solving problems and creating new products or knowledge, focusing on long-term profitability rather than immediate gains. It includes the development of new products and the improvement of existing ones, providing competitive advantages and attracting investors. R&D also offers tax credits for qualified projects and contributes to sales growth by enhancing productivity and supporting a company's mission.

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RESEARCH AND DEVELOPMENT

• It’s a systematic activity combining both


basic and applied research.
• Its aimed at discovering solutions to
problems and creating new goods and
knowledge.
TYPES OF RESEARCH AND DEVELOPMENT
STRUCTURES
• THERE ARE TWO TYPES
1. DEVELOPMENT OF NEW PRODUCTS
2. IMPROVEMENT OF CURRENT PRODUCTS
AND OPERATING PROCEDURES
WHY R&D

• MAIN GOAL IS FOCUSED ON LONG TERM PROFITABILITY FOR


A COMPANY
• NOT CONCENTRATED ON IMMEDIATE PROFIT
• WORKS UNDER THE ILLUSION OF A BIG HAIRY
AUDACIOUS GOAL(BHAG)
• R&D IS A TOOL MEANT TO GAIN KNOWLEDGE AND
DOESN’T EXIST AS AN ENTITY ITSELF
CYCLE OF RESEARCH AND DEVELOPMENT

Implement, study efficacy synthesize and theorize


And improve

Design, develop and


test Explore, hypothesize
and clarify
SIGNIFICANCE OF R&D

• Competitive advantage
• Discovery of new product lines
• Attraction of big investors with aggressive R&D efforts
• TAX credits
• Growth in Sales
• Promoting your Mission
COMPETITIVE ADVANTAGE

• R&D promotes a chance for higher productivity and


product differentiation
• This allows for a competitive advantage for a
business
• R&D efforts lead to an improved type of business
process
• i.e. cutting costs and increasing marginal
productivity
DISCOVERY OF NEW PRODUCT LINES

• R&D also leads to a new type of product or service


• Most common in technological areas
• This promotes innovative ideas and see them
through to their perfection
ATTRACTION OF BIG INVESTORS

• R&D showcase innovative ideas in an organization


hence attracting investors
• This acts as an advertising wing in a market
• Investors bring in funds for the R&D process
• Investors also promote a market for products
manufactured from R&D
TAX CREDITS

• Qualified R&D projects allow relief from costs


relevant with that project
• For small firms, it also provides tax credits in cash
• This is all done by the Development Relief for
Corporation Tax
GROWTH IN SALES

• allows the discovery of a method to increase


productivity
• This leads to increase surplus gains
• Hence growth in sales
PROMOTING YOUR MISSION

• R&D is necessary in boosting your business’s


vision and objectives
• R&D helps with other innovative ideas which
support your vision
• Hence make your business flourish
GROUP MEMBERS : SOFTWARE ENGINEERING

• Edmore Mazuruse H160045X


• Ropafadzo Muridzi H160151A
• Watson Pondamali H160152P
• Takudzwa Kuhuni H160475N
• Tafadzwa Matiza H160461X
• Tadiwa Vurayai H160165N

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