The importance of the R&D department in the retail technology sector
The research and development department brings innovations, a sense of sustainability, and constant growth to a company.
No product on the market would be successful if it did not evolve. There is always the possibility of being replaced by something more interesting, brighter, and cheaper.
That is why companies conduct their own innovative activities and develop R&D projects.
The creation of such projects has many long-term advantages in solving various problems, such as compliance with standards and ensuring environmental safety, use and sale of intellectual property products, maintenance of production, implementation of new equipment and technologies, etc.
According to Statista Research Department, total global spending on R&D in 2020 was 198 billion USD. The process of research and development is a time consuming and resource intensive operation. The US and China are the countries that invest in the R&D department the most.
Leading countries by gross research and development (R&D) expenditure worldwide in 2022
(in billion US dollars)
Source: Statista
Research and development is suitable for almost every industry in the world, because obviously everything can be improved. However, healthcare and software and technology areas are the most valuable right now. Approximately 20% of R&D global spending goes to these fields.
It is also worth mentioning that different areas and countries invest depending on their needs; for example, Japan sends bigger investments into automotive, chemical, and energy industries, while North America invests in software, healthcare, and aerospace and defence.
The scope of application of R&D projects is very broad and includes:
● creation of that requires special knowledge and experience;
● formation of projects with a high level of uncertainty, which requires additional information and research;
● taking into account the possibility or threat of the appearance on the market of the latest technologies that will make a breakthrough in the field of interests of this organisation.
Why businesses need an R&D department
R&D (research and development) are unique solutions that are absolute innovations (no one has done them before you).
R&D is what helps organisations to occupy a new niche in the market by creating a new addition to their product. Businesses pursuing innovation eventually overtake their competitors and occupy a higher place in the market.
The structure of the R&D team gives the opportunity to:
● Identify new technologies for product innovation that will provide businesses with a new place on the market.
Companies become competitive if they find something that can distinguish them from many other competitors. Product and business process improvements will help reduce costs and increase productivity.
One of the most important functions of the research and development department is to monitor product quality. In collaboration with other departments, in particular, the quality assurance department or IT service companies, they check the quality of the product and its compliance with the standards at appropriate periodicity.
● Develop new products, services, and patent solutions.
The result of constant research may be the appearance of a completely new product or the expansion of the sales market. Sometimes, when we are looking for improvements, we may find something else.
● Advertising and marketing R&D benefits
Every day from our screens, we hear something about new technologies and new developments that will change our lives. This causes an increase in demand for something new.
For example, every year, consumers wait for the release of a new iPhone and stand in huge queues just to be the first who buys a new product. That is why the R&D lab is a good marketing investment these days.
As a result of the invention of new products, R&D service providers start working on new marketing campaigns that increase the number of consumers.
The role of the R&D department in the retail technology space
Trends toward creating a personalized experience for customers are growing every year. Companies are investing more and more in IT services to create a comfortable online platform for a customer base that will stay with them for a long time.
Those companies that have more money create separate departments for development and research. There, they work on developing new products and improving existing ones.
Companies with fewer funds turn to an IT managed service provider with extensive experience in the market and who, after analyzing the local, can offer innovative solutions.
Here are some of the solutions that the R&D department may offer to improve retail technology:
● Creation of a personalised platform or CRM system that increases conversions and improves customer experience;
● Development of new transportation technologies that make the journey of a product safe and protected;
● Creation of a software platform to collect information about customers, shopping data, satisfaction, etc. This information will ease the strategy creation process;
● Renew and improve tools the company works with to increase efficiency, reduce costs and grow customer satisfaction.
Those are just a few small basic examples. Developing new technologies can bring a lot more unexpected results because the e-commerce industry continues to grow and bring new products to market. Changes are a necessary component of development.
A brief summary
R&D plays a major role in the growth and existence of the company. Without them, the product would not be able to stay on the market for a long time and compete with similar things in its niche.
The purpose of the Department of Development and Research is to create complex technologies, new profitable projects, and risk management conduction.
Businesses choose to create an R&D department or outsource such services to stay competitive, create a new place in the market, develop new products or services, and increase marketing and advertising volume.
The R&D department is also a great opportunity for the retail industry to develop new technologies and be relevant to consumers.
It is worth noticing that companies with smaller capacities choose to outsource IT services and choose, for example, IT service provider Germany as it is a country that provides quality specialists without any doubt.
