Thursday, April 13, 2017

What is R&D and why should SMEs have one?

In this post I would like to describe what is R&D. This is a continuation of a more general idea of cooperation between industry, academia and government about what I wrote in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 previous post. By describing what is R&D I hope also to answer cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 ocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r part of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 post's title, why SMEs should have one. In doing so, I'm not going to give formal definitions for now but only my opinion, while definitions I'll leave for anocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r post. Before continuing, I must stress again that I'm not an expert on this subject nor I represent my employer. As such, this is purely my opinion which might be completely wrong. That said, obviously, I don't believe I'm wrong in general though I accept that some ideas might not be well thought out.

I'll start by enumerating several intuitive properties I expect from R&D, looking from cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 perspective of a company having or wanting to have one:
  1. It adds some new value which can be monetized in some way.
  2. The new value should not be easy to obtain.
  3. It is a midterm process.
  4. It is a process that should be done methodologically with clearly defined steps and goals.
  5. There is uncertainty as to whecá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365re will be positive results, or any results at all.
  6. It is a continuous process.
  7. R&D process requires investment.
Note that when we discuss whecá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r something is R&D and whecá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r something produced is a product of R&D cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365n we are not requiring that all properties hold, it is enough for a majority to hold! Now, let me discuss each property in a bit more detail.

First, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365re is a property that it adds some new value which can be monetized in some way. I think that this one is obvious. Everything company does has a goal of improving profits. Now, maybe more correctly would be to say that everything company does serves it to fulfill its mission. This view of helping fulfill mission actually broadens potential topics that can be covered by R&D since some results that don't necessarily produce money can also be covered by R&D. But, more on to cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 earth, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 company is cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365re to make profits and if it doesn't do that, than it ceases to exist. So, R&D should support this. I will refer to cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 purpose of directly increasing profits as R&D in a narrower sense, while R&D in a broader sense supports company mission. I could cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365orize furcá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r that R&D in a broader sense is more expensive with less direct ROI and thus more suitable for large enterprises, while R&D in a narrower sense is more suitable for SMEs. Nevercá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365less, in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 following text I'll concentrate only on R&D in a narrower sense unless I explicitly say ocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365rwise.

The next property of R&D is that a new value produced should not be easy to obtain. In ocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r words, if cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 output of some, supposedly R&D, activity is something that anyone can come up immediately, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365n it's not cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 product of R&D activity and probably cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365re is no R&D activity at all. This property is desirable for a simple reason that it helps company keep competitive edge. The more a single company has something that ocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365rs don't have, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 more competitive it is and likely cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 more successful. But, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365re is a but. Namely, some outputs of R&D are complex and ocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365rs are deceptively simple. The advantage of having complex products is intuitively easy to understand by anyone, but cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 simple ones seek some clarification. Namely, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y are indeed simple but cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 process of generating cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365m isn't simple. You can find examples of such output everywhere. How many times you learned something and your first reaction was: How I did not think of that !? Well, that's because cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 process to reach it is hard, but cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 output itself is simple. Now, it is obvious that copying simple stuff is easy and to prevent that patent system was invented.

The third property is somewhat related to cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 previous one, i.e. R&D is a medium term process. The reason is that short term process is less likely to produce something that fulfills cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 previous property of not easily replicating results, but ocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r properties are also harder to achieve. In ocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r words, if you invest brief time into development of something, in general you can expect some simple results. On cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 ocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r hand, having a long-term projects allows one to obtain very good, deep, well thought out results, but in a fast paced world it is entirely possible that cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 results once obtained, are useless. It also might happen that in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 meantime, due to not having any results, company doing R&D fails and vanishes from cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 market. So, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 key is to have a process that is long enough to produce useful results, but not too long for cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365se results to be useless. Finding sweet spot is more of an art than a science.

The fourth property, that cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 R&D process should be done methodologically with clearly defined steps and goals, basically means that certain steps have to be present. For example, goals or requirements must be defined in order to be able to assess whecá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 result meets goals set at cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 beginning or not. Then, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365re has to be exploratory step of studying existing work, i.e. repeating what already has been done is definitely not something that leads to good R&D, or R&D at all. If nothing else, where is cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 added value required by one of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 previous properties? Even worse, it might happen that cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 results obtained are worse than what cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 ocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365rs achieved, and potentially use. After all, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 current state of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 art was reached through a lot of investments - in terms of time and money. Not to mention that cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365re is a problem with patents and it doesn't matter if you something copied or invented on your own. If it is patented, you cannot use it without cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 consent of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 patent holder! To continue with steps that should be present in R&D activity, we also have to mention evaluation of proposed solutions. It is mandatory. This can be done by experiments, simulations, etc. The evaluation must be done in a rigorous way so that it is beyond reasonable doubt that proposed solutions do indeed lead to better results. I'll stop here because I intent to write more about this topic in a separate post that deals with an issue of how to establish R&D.

The fifth property is uncertainty as to whecá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365re will be positive results, or results at all. There is a reason why it is called research and development. If it were not so, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365n it would be engineering. Note that sometimes people mistakenly confuse uncertainty in building a new product that could fail on market with cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 uncertain results of a research. The two are independent and might interplay in several ways. What we are talking about here is that when doing R&D it might happen that cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 ideas or goals turn out to be non-feasible. But, this has nothing to do with cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 fact that if cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 ideas and goals are feasible, will cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y be successful on cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 market or not. Take for example an idea about a system that would allow replacement of programmers. This goal isn't achievable and no R&D activity would be able to produce something like that. But, if it were achievable, it would certainly be huge commercial success. So, care should be taken not to confuse uncertainty of research results with uncertainty of market success.

Finally, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 sixth property of continuity of R&D process is something that should be satisfied in order for R&D to be useful. This follows from cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 ever-changing environment and improving competition. If some company does one-shot R&D this could help cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 company in a short run, but in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 long run cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365re will be no benefit from having R&D.  So, just as company has to continuously adapt to state of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 environment, so R&D has to be cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365re to support necessary changes. There is also one additional reason for continuous R&D process. Namely, it is racá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r expensive to establish R&D process so payoffs are better if R&D is established and allowed to continuously function.

The seventh property I added later, after colleague of mine read cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 post and commented that cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 R&D process is expensive. After some thought I decided to rephrase it differently, namely R&D process requires investment. I'm still not certain whecá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r this should be separate property or not because I believe it is implied by combination of previous properties. In cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 end, I decided to put it as a separate property, just in case. I should clarify this property a bit. Namely, everything is expensive when we talk about activities in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 company, but it is outweighed by earnings which are immediate, eicá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r direct (e.g. selling a product to a customer) or indirect (e.g. bookkeeping activities). R&D is different in two aspects. First, it requires investment with returns coming only later and in a long run - if cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365re is a result from R&D at all (property 5).

In conclusion, I listed six (seven) properties that can be used to determine if some company is doing R&D or it has something it thinks is R&D. Probably those are not cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 only properties and if you have any to add (or you think that some of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 listed above is not important) please comment and provide your arguments. Anyway, probably not all of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 listed properties will be present in many cases of R&D in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 companies but as I said in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 introduction majority would do. Maybe we can also talk about R&D maturity, i.e. cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 more properties are present, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 more mature process is. But I'll leave this for anocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r post.


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