Businesses of all types and sizes face competition every day from all corners of the world. Innovation is what can set one business apart from others. The rise of technology has accelerated the pace of innovation and with it the need to invest in research and development (R&D). Many people argue that only those businesses that are on the cutting edge of technology really need to worry about innovation. Nothing could be further from truth. The industries as old and stable as retail and manufacturing are being upended by the rise of technology. Businesses that do not understand the importance of innovation and fail to invest in R&D run the risk of becoming extinct. History is littered with examples of stellar companies that have gone under due to lack of R&D investment.
When it comes to R&D investment there are several areas where you can spend money, ranging from product development, logistics, customer service, and so on. Depending on the industry you are in you need to think about where to spend the R&D investment. For manufacturing businesses the first place to invest in R&D is in product development. For example, manufacturing of babbitt alloy used to coat bushing bearings for diesel engines and turbines require that they are made from high quality metals and their composition is strictly controlled using modern analytical techniques. Spending your R&D investment to improve the composition of alloy will ensure the coating is applied equally and will last a long time.
In addition to product development, manufacturing business should focus on improving quality of their products by spending money on testing technology as well as manufacturing operations. For example, manufacturing of aluminum flux cored wire requires that you run precise checks on the final product to ensure consistency and maintain quality that meet the strict guidelines required under regulation as well as those required by your customers. Spending R&D investment in testing and quality control will make sure your customers get the consistent products that are of high quality every time.
Many business owners tried to cut corners by underinvesting in R&D. While this may improve your profit in the short-term you will end up hurting your business in the long-term. Many well-known businesses have become extinct by failing to invest their profit in R&D.
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