OM - R+D Flashcards
Define research
Research is the inquiry into, and
discovery of, new ideas
Research methods used to generate new ideas
- Pure research – research just to find out how or why, with 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, etc.
Define innovation
The commercial exploitation of an
invention.
Give the two types of innovation
- Product Innovation – bringing a new idea to the marketplace.
- Process Innovation – bringing a new idea to the workplace.
Describe 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.
Define development
The process that changes ideas, which result from the research process into commercially
viable products or processes
Explain development
Development is a costly and complicated process, which for some products may take many years. It is important that businesses reduce the development time of new products. Shorter product life cycles are now the norm. Development can be phenomenally expensive, costing hundreds of millions of pounds for car manufacturers, and even then success is not guaranteed.
Describe Research and Development
Research and development (R&D) is essential today for businesses to compete in a dynamic marketplace. It involves the identification of 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
Benefits to a business of investing in research and development
☑ R&D can lead to the development of new products, which may give a business a competitive edge. Patents can be obtained preventing competition for a period of time – leading to higher profits, e.g. Dyson bagless cleaner, Microsoft operating systems.
☑ Important because it creates new/innovative products that may appeal to consumers – may have positive impact on image.
☑ Improved working environments. New machinery can be developed, which may cut costs and raise productivity. May also be cleaner, safer and more ergonomically designed, improving the working conditions of employees and, therefore, improve profit margins.
☑ Improved image. Consumers may be impressed with businesses committed to R&D.
☑ Can motivate employees – may help to satisfy their higher order needs. May create optimism and give the organisation a positive feel.
☑ Increased sales - consumers benefit from a wider variety of goods and services – mobile phones, satellite navigation, new drugs, etc.
☑ Important because it helps to adapt products to new technology, such as microwaveable food
