Research and development strategy
Since it is said that on average, out of every 7 ideas, only 1 idea leads to the creation of a commercial product. Examining the company’s internal capabilities and limitations is very important. Therefore, the intensity of research and development in the organization (that is, the percentage of sales revenue that the company spends on research and development) is a basic tool for gaining market share in global competition.
Most innovation in different industries is done by medium-sized companies. Because small companies often do not have enough resources to create new products. In addition to money and budget, the most important and vital factor in the company’s research and development management is its timing with the market
Time to market
Almost 60% of the innovations registered during 4 years are imitated by others at a cost equal to 65% of the innovation cost.
But should a company develop and create the technology itself or buy from others?
Technology sourcing is called the decision to make or buy technology. That is, even though internal research and development is usually considered as an important source of technical knowledge of companies, companies can use the R&D capabilities of competitors, suppliers and other organizations through contractual agreements (such as granting concessions, agreements research and development and joint investment) also exploit. The point here is that in the early stages of the product life cycle, product innovation is the most important. This is because the physical characteristics and capabilities of the product have the greatest effect on its financial performance. In the later stages, process innovations such as improved production facilities, increasing product quality, and faster distribution become important to maintain the economic return of the product. Therefore, it can be said that product innovation to realize the differentiation and innovation strategy and research and development in the process, For the success of the cost leadership strategy, it plays a vital and central role. Unlike German and Japanese companies, American companies focus more on innovation and research and development on products rather than processes. Naturally, companies that are not able to finance the costs of new technology design alone, may coordinate their R&D with other companies through alliances or joint ventures.
But what technologies should the company buy or receive its points?
The company must purchase technologies that are easily accessible, but must build and maintain technologies that are valuable, rare, imitable and replaceable. Supplying technology from outside the company is appropriate when:
It has little importance to become a competitive advantage. If the supplier has exclusive technology, the company’s strategy is based on the design of the marketing, distribution and service system, or if it requires a technology development process, special expertise or new people and resources, which is expensive and time-consuming, so it is better to source the technology from outside the company. to do
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Sincere
@startup_30T
This post is written by Rimaazz1