RESEARCH AND DEVELOPMENT - Group 5

RESEARCH AND DEVELOPMENT

  • Definition: Research and Development (R&D) is the process of investigating, designing, and improving products, services, or processes to drive innovation and competitiveness.

INDUSTRIAL RESEARCH

  • Definition: Systematic study and development of new products, processes, and technologies aimed at enhancing efficiency, innovation, and competitiveness within industries.

RESEARCH TREND

  • Definition: The manner in which new ideas and discoveries evolve over time.

TYPES OF RESEARCH ORGANIZATIONS

Public Research Organizations

  • Funded by government entities.

  • Conduct research across various fields.

Private Research Organizations

  • Funded by businesses, trade associations, or independent institutions.

RESEARCH COMMUNITY

  • Definition: A collective of scientists, engineers, and innovators collaborating within a specific area to foster development of new technologies and advancements.

TIME FRAME OF RESEARCH

  • Describes the lengthy period from the initiation of research to achievement of commercial success, with profits often reaped over extended durations.

SCOPE OF RESEARCH

  • Defines the range, purpose, and categories of research, including:

    • Basic Research

    • Applied Research

    • Development Research

BASIC RESEARCH

  • Definition: Original investigations aimed at enhancing scientific knowledge without specific commercial objectives.

APPLIED RESEARCH

  • Definition: Investigations focused on discovering new scientific knowledge with objectives pertaining to commercial applications with products or processes.

DEVELOPMENT RESEARCH

  • Definition: Technical activities designed to address non-routine problems in translating research findings into practical product or process applications.

BASIC RESEARCH OUTCOMES

  • Focuses on understanding fundamental concepts and natural phenomena without immediate commercial applicability.

APPLIED RESEARCH OUTCOMES

  • Typically directed towards solving specific problems and adapting basic sciences to meet industrial needs.

MARKET RESEARCH

  • Purpose: Critical for gauging consumer acceptance, developing manufacturing schedules, prices, and generating new ideas for product development.

PRODUCT RESEARCH

  • Importance: Essential for ongoing business success, linked with material research and product development efforts.

LAB VS FACTORY PRODUCTION

  • Focus on replacing manual labor with equipment and process research.

  • Emphasis on quality control, efficiency improvements, and the use of pilot plants.

ADMINISTRATION OF INDUSTRIAL RESEARCH

  • Can be conducted in two manners:

    1. Through dedicated research departments.

    2. By gathering ideas from employees or external stakeholders.

ORGANIZATION PROCEDURES

  • Effective organization of research personnel is crucial. Should be structured by:

    • Specific goals.

    • Research techniques.

BIOGRAPHY OF A TYPICAL RESEARCH PROJECT

  • Path from inception to production:

    • Idea formulation

    • Preliminary approval by research director

    • Marketing research involvement

    • Experimental investigations

    • Progress reporting and final approvals

    • Engineering and manufacturing stages

    • Release to production.

RESEARCH BUDGETS

  • Types include:

    1. Sales-based budget.

    2. Project-cost budget.

    3. Lump-sum budget.

    4. Financial return estimate.

CREATIVITY IN RESEARCH

  • Definition: Combines originality with relevance. It is not a pre-existing talent but can be cultivated.

  • Factors that enhance creativity:

    • Right environment.

    • Application of specific techniques.

BRAINSTORMING

  • A key technique for group ideation aimed at enhancing creativity, originally by Alex F. Osborn.

  • Group size: 5-10 people. Familiarity with the topic is essential.

  • Leader's role: Define problem and maintain an informal, productive session.

CONSUMER ACCEPTANCE

  • Sales rely on consumer acceptance across two markets:

    1. Consumer market: Daily use products.

    2. Producer market: Components for further manufacturing.

FACTORS AFFECTING CONSUMER ACCEPTANCE

  • Ultimate Consumers focus on:

    • Appearance, convenience, usefulness, durability, cost of operation, purchase price.

  • Producer Consumers prioritize:

    • Sustainability, quality, stable supply, pricing competitiveness.

PATENT PROTECTION

  • Vital for safeguarding innovations during development phase.

  • Offers protection for 17 years, post which the invention enters public domain.

EFFECT ON COSTS AND PROFITS

  • Careful forecasting of costs essential for product development profitability.

  • Product development can enhance overall sales and create valuable assets.

PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT)

  • A time management tool to estimate project costs and timelines, detailing the activities necessary for project completion.

NETWORK

  • Depicts all activities essential for completing a project:

    • Design production equipment.

    • Patent applications, market research, approval and budgeting, prototype testing, production processes.

THREE TIME ESTIMATES IN PERT

  • Optimistic estimate.

  • Pessimistic estimate.

  • Most likely estimate.

REVIEW QUESTIONS

  1. What motivates companies to pursue research and development?

  2. What factors should be assessed prior to initiating a product development program?

  3. Why are organized research trends increasing?

  4. Identify and differentiate various external research organizations.

  5. What significance does PERT hold for management in product development?

  6. Define "critical path" and "float". What is the significance of updates in this context?

TOPICS FOR DISCUSSION

  • The advantages and challenges faced by new research-based enterprises compared to established firms in developing new products.

  • Strategies for small-business enterprises to acquire essential research in continuously evolving technological and marketing domains.