Why You Should Create an R&D Team in Your Company

r and d

It seems that innovations in the world of IT appear independently of anything or anyone else. It looks like this, but it is not actually the truth. There is specified on the task of research and development team. Every company which aspires to keep up with times should have an R&D team, so we found even 5 more reasons for the creation of such a team.

R&D Team

The R&D team provides consulting services for the company and its clients. Usually, this approach is used for car production, pharmacy, digital marketing, though in IT the R&D necessity appeared in 2012-2014. Research and development reasons occurred when technology made an essential leap in its development. The role of R&D in the software industry is huge, as research and development teams are responsible for a great variety of tasks, starting from an analysis of risks and ending with the promotion of a ready product.

Projects R&D works with:

  • Integrated technologies (augmented reality, the creation of colonies on Mars).
  • Projects that are not fully studied and require more in-depth analysis (new technologies and devices that no one has worked with yet and they have not entered the consumer market).
  • Projects that require special knowledge and skills.
  • Innovative technologies that will potentially become popular in the near future.
  • Newest methodologies, processes, approaches, and trends that are not widely used for now.

The R&D department can also hold conferences and events, where they share their experience with the company’s employees, consider the most interesting and popular topics in the field of IT and business.

$120,349– this is a salary of R&D manager in the USA.

In modern companies, the number of R&D department can reach more than 20 people. For example, in Kaspersky Lab, the R&D department has a third of the total number of company employees. Work on integrated R&D is not just the provision of quality services, but also the company’s full responsibility for the development process at all stages. In one of the successful Ukrainian IT companies GlobalLogic, 90% of developments are devoted to R&D projects. The company is sure that the development of R&D will soon become a relevant trend for the entire IT industry. Another good example is the Samsung corporation, where R&D expenses are $12.7 billion annually.

5 Advantages of Research and Development

  1. Money saving. To spend money wisely and understand whether the idea of ​​failure or success awaits the department works really thoroughly. If the client has $ 300,000 and he intends to immediately invest them in the project, then the R&D task is to take only $50,000 and make a prototype of the idea. This is how a client or company saves money.

2.Crash test. First of all, goes research and then business. R&D team   conducts crash test of a product at the initial stages and reduces the risk of failure if it enters the market or when the project is launched.

3.An understanding between investors and developers. For this research and development benefit, there must be an R&D manager who speaks the language of both sides. This person is able to explain to the client why the project will work or not, and also convey the idea of a customer to developers.

4.Obtaining knowledge and experience in areas new to the company. Preparing for the development team should firstly conduct research. The study of relevant materials, scientific articles, consultations with specialists in various fields are necessary for further work. Therefore, the company develops with its employees.

5.Professional development of employees and increasing their motivation. A key aspect of the research activities to be effective and complete is the maximum interest of the employee implementing an idea. For such employee, research is the development of their own skills, the acquisition of additional experience and knowledge. Plus, participation in such activities is a good distraction from routine work. R&D team develops strategies for the technological development of the company, looks for promising developments and is carrying out production modernization. Sometimes they have to solve non-standard tasks for the industry and master new areas of knowledge.

How to Create a Dedicated R&D Team?

R&D in software industry requires strong knowledge and professional specialists. Managers who have relevant hard skills, technical education, and also have good communication skills, can present a product are key figures in the R&D team. After all, R&D services are for selling: exhibitions, seminars, forums, meetings with high-ranking delegations. Other members of the team must be aware of all the requirements and specification of a project. R&D department creation requires diversity in a team: designer, accountant, marketing specialist, and R&D engineer. Also, the specialization of an R&D specialist depends on the direction of the R&D department of the company. This may be Computer Vision, Embedded Engineering, Machine Learning, Data Science, Artificial Intelligence.

How to Calculate R&D Cost?

The price of R&D can be formulated in a cost calculation method. First, it is necessary to estimate how much time it will take to develop, taking into account the collection of basic data, writing documents, and carrying out the work itself. Employees’ rate is taken and multiplied by the number of hours, days, months for which the work is done.

Outsourcing expenses, if such are needed should be added to the price. Setting a budget framework in advance lets the company keep it up.

Bottom Line

R&D partnership and the creation of new products become major trends in the IT sector, affecting most modern industries. IT companies are successfully introducing new business models, understanding that they will ensure stable growth and the possibility of development in the future. R&D is a profitable business tool. The experiment helps to find the most effective specific tools for different tasks and projects. Bringing this approach and creation of R&D department to a company helps save money, grow, experiment and compete in the modern IT industry and business.