Advantages of Research and Development
1. Enhanced Employee Motivation: Research and Development may encourage a commitment to the duties of the team and serve as motivation for the employees. Generally, employee productivity and happiness at work could increase if they are interested in the potential new feature or product that they are developing. A team that promotes innovation can also find that its employees feel free to express and experiment with their ideas. A team that communicates openly may develop new ideas faster and provide more customer-beneficial goods and services.
2. An Increase in Customer Satisfaction: Teams may give customers more of what they want or need when they use research to create new features, services, and products. A wider range of goods and services can increase customer satisfaction and loyalty. When an organization has happier and more committed customers, it may increase revenue and encourage its department to research and develop even more valuable products for its customers. This begins with creating a beneficial cycle of feedback that can facilitate the easier growth and development of the company.
3. Marketing Assistance: The marketing department can benefit from additional research and development resources that can help sell and advertise a company more effectively. With the research and development department producing new products or features, the marketing department is capable of developing appealing new advertising campaigns to draw in new customers or regenerate the interest of existing ones. Furthermore, the marketing department’s recommendations can also provide direction and focus to the research department. It is so because marketers are better at knowing what consumers want from their products than researchers are, so they can direct studies and help in the development of new products.
4. Remain Competitive: Research and Development is a great approach to remain ahead of the competition. This can help in obtaining a competitive advantage over the most well-established companies by investing in cutting-edge technology that improves their products and services. Research and Development may also be able to help you identify methods for the team to reduce its manufacturing or production costs. This reduced production cost allows businesses to allocate more funds to other departments within the team, like marketing, which can ultimately create a competitive edge.
5. Tax Credits: The Internal Revenue Service (IRS) started providing tax exemptions and other incentives to businesses in 1981 in exchange for appointing additional employees for R&D. The company needs to be a small business or startup to be eligible for the tax advantage, but it can help them reduce their overall costs and taxes. Teams can apply for Research and Development grants from various foundations, companies, and organizations to help them raise money for their research department if they aren’t eligible for the tax benefit.
6. Mergers and Buyouts: Some teams allocate all of their funds and resources to Research and Development to present innovative concepts to already-existing companies. If a small team has an innovative concept but lacks the finances or resources to put it into action, then selling the idea to a larger company can help them raise funds for their next project. Sometimes, larger businesses may find the idea so appealing that they make an actual offer to purchase the company and merge with it. In this way, the smaller group may continue coming up with appealing new ideas that work for them both.