expressed opinion entrepreneur Contributors are their own.
You are reading Entrepreneur India, the international franchise of Entrepreneur Media.
What makes a business successful? While the obvious answer may be profitability, that’s not all. Any business exists primarily to solve a problem or fill a void; only if it does this can it be a successful venture in the long run. Today, India is the hub of many new startups and businesses that have emerged in response to the challenges. Some thrive initially but may fade away or repurpose their business goals. This is not a bad feature in itself, but speaks volumes about the current situation where startups need a rigorous R&D culture if they want to be sustainable. R&D equals innovation!
free
It is a misconception to think that R&D is primarily valuable to, and implies, larger organizations. R&D does not yield immediate profits; however, it contributes to long-term profitability and the creation of future patents, trademarks and copyrights. A business, no matter how big or small, has a goal to achieve. In fact, the first step in any business or enterprise, even before it even begins, should be to indulge in a comprehensive R&D process to test the waters and improve the efficacy of its product or service. This is as important as conducting market research to understand customer needs. In addition, as various fields are constantly changing, startups must also innovate and stay one step ahead of market trends. The competition is now also fierce enough to catch up with every innovation at their disposal, so there is constant pressure to offer something new. Here, R&D acts as a catalyst by driving positive measures.
Although the need to innovate today is synonymous with startups, it is still far from reality and may be limited to a few areas. Take Food and Beverage (F&B) for example. Due to its rapidly evolving nature and need for scalability, R&D opportunities in this area are limited. On the contrary, however, this is the area that requires the most R&D investment due to consumers’ changing lifestyles and taste preferences. In the catering industry, taste fatigue occurs from time to time, and consumers seek more varieties. In the wake of the COVID-19 pandemic, regular customers have become more health conscious and are looking for solutions that boost energy, help build immunity and revitalize their lifestyle. In short, start-ups in the restaurant space must offer new, wholesome, fresher, tastier, hygienic, attractive, cost-effective products and deliver them faster than others, All while addressing taste fatigue without sacrificing quality. Therefore, continuous research on new products is a top priority.
R&D is necessary to improve and maintain the delivery of a product or service. This will help to reach customers in the shortest possible time. It will also ensure the quality and efficiency of services and increase profitability by reducing service costs.
In addition to technological advancements, R&D also helps to improve the back-end or production process. For a manufacturing sector or sector that relies on machines to deliver products/services, it is important to invest in R&D to improve the overall functionality of the machine, making it smarter and more energy efficient. Companies need to think about the direction of machines for every pocket and every industry (including MSMEs) as this will ultimately maximize their potential. This also contributes to the “Make in India” initiative and helps to provide Indian businesses with cost-effective yet technologically advanced machines.
Startups today are an important driver of economic growth in the country. The impact of initial R&D on company growth is critical because they are able to leverage external knowledge. Early R&D also helps maintain momentum in new product development, which is more strategic than reactionary. R&D provides brands with greater opportunities to grow and succeed. Through the R&D process, companies will work efficiently to respond to changes in the market. In turn, customers are satisfied with constant innovation, leading to greater profits.
Startups need to strategize R&D, not as an add-on, as it is a sign of changing times. Competition is as fierce as ever, and staying on top is critical.
Having an R&D team and investing in it is not enough. Businesses often fail in R&D projects because they need an effective R&D strategy. That said, making an R&D strategy effective is more complicated than it sounds. In addition to having enough money to drive it, it’s critical to make it a core part of your organization’s business goals. Only a holistic approach can deliver tangible results, allowing businesses to complete their projects with clarity and agility.
While many factors underlie the growth of startups, innovation remains a key driver today. Innovation can be achieved through research and development.
