Business Economy

Research & Development as a strategic silver bullet

 

It is said that there is no such thing as a new idea, but rapidly evolving technology, demand for new products and services and the growth of start-up businesses across industrial and geographical sectors means that keeping up with research and development is imperative for businesses large and small, says Andrea Tucker, Business Application Head (R&D) at e4.

In 2019, around 2% of global GDP was ploughed into Research & development (R&D) by industry, governments and research and academic institutions. Most realise that they are playing a long game and that ROI may take time to materialise which is why organisations apply their resources with consistency and continuity.

Traditionally, R&D spend was predominantly in the manufacturing and production sectors – think pharmaceuticals which historically have invested a large proportion of turnover back into new product development. Today, it is common to see equivalent percentages spent by tech companies and new entrants keen to innovate and scale their platforms and processes.

There are a number of challenges, not just for South African tech companies which lag behind in R&D spend of countries like Japan, China, USA, South Korea, and Germany. Irrespective of budget, anywhere in the world, integrating R&D thinking through company structures requires both budget and big-picture thinking on the part of company leadership.

R&D no longer means consigning eccentric professor types to a backroom and waiting for a ‘eureka’ moment. Today’s most successful R&D departments are fully integrated into a company’s operations and open to inputs from all employees who may have a good idea that can be developed to benefit the company.

The most successful R&D departments are also those that are well-resourced financially, with relevant skills, and are able to protect their intellectual property when a new idea flows out of the creative process, and this is often beyond the capacity of SMMEs. But what large companies have in terms of these resources, they often lack in agility, and can be slow to adapt and implement new products and services. There is room for collaboration here.

If a large corporation is not thinking strategically and is allowing R&D to happen in isolation, or if they outsource this service to a company that does not have its finger firmly on the current pulse of the company, it runs the risk of developing in the wrong direction and losing sight of the customer, wasting time and money in the process on a product that was never wanted in the first place. R&D goes firmly hand in hand with market research.

This is not to say, however, that R&D should focus only on the core activities of a business. Failing to plan for the future is planning to fail. Kodak is a great example of a company that did not invest in forward-thinking R&D projects, or at least not in time enough to save the company from extinction.

Strategically applied, R&D can be a silver bullet solution to maintaining a competitive advantage in an extremely competitive world. Companies’ R&D progress is generally a closely guarded secret. Until a product or service is ready to launch publicly and commercially it is often kept closely under wraps, for obvious reasons. There is a case, however, for sharing resources between large and small companies. The dynamism within small business structures can be leveraged by large juggernauts to pilot projects for eventual rollout. This is a ‘win-win’ scenario that can benefit many parties.

With a potentially low or at least long-time-coming ROI on many R&D projects, it is not surprising that in lean times companies see fit to trim their budgets, but we contend that this is short-sighted and can damage a company’s growth potential.

Failing to invest in R&D in virtually any industry sector, but most especially within tech companies, is to be running a business without a vision for a future. There may be a degree of trial and error that businesses must be prepared to accept – not all new ideas will land and work for the business – but if a company never tries, it will never find out.

Leave a Comment

Your email address will not be published.

You may also like

Business Economy News

Zoracom® Marks a Decade of Innovation and Excellence in Nigeria’s IT Sector

post-image

 

Zoracom®, a leading technology solution company specializing in cybersecurity, celebrates its milestone tenth anniversary with pride and gratitude. Since its inception, Zoracom® has been at the forefront of empowering businesses with seamless solutions, driving operational efficiency, and ensuring end-to-end visibility.

From its humble beginnings as a startup offering IT services, Zoracom® has evolved into a dominant force in Nigeria’s IT landscape. Renowned for its expertise in business automation and cybersecurity, Zoracom® has continually raised the bar in delivering cutting-edge solutions tailored to the needs of its clients.

Reflecting on this remarkable journey, Kesiena Ogheneruru, Chief Operations/People Officer at Zoracom®, emphasized the company’s steadfast commitment to innovation in Nigeria’s IT industry. Ogheneruru stated, “Zoracom® has been leading the charge in business process automation and cybersecurity solutions, consistently pushing boundaries and driving positive change in the ecosystem.”Zoracom

At the core of Zoracom®’s operations lie infrastructure management, observability,…

Read More
Announcements Business Economy Government

Dr. Bosun Tijani joins Ethnos Cyber for High Impact cybersecurity Erudition Series

post-image

Dr. Bosun Tijani, renowned for his contributions in the field of cybersecurity, is set to join forces with Ethnos and OneIdentity/Quest for the launch of the Ethnos Cybersecurity Erudition Series. This groundbreaking initiative aims to bolster Cybersecurity awareness and expertise among key stakeholders in Abuja, particularly within the public sector.

In an age where digital governance is becoming increasingly prevalent, cybersecurity emerges as a critical concern for governments worldwide, including Nigeria. The integration of modern technologies has undoubtedly improved efficiency in governmental operations, but it has also introduced new vulnerabilities such as Identity Theft and Phishing. Hence, there is an urgent need for comprehensive Cybersecurity education and readiness.

The Ethnos Cybersecurity Erudition Series seeks to address these pressing issues by providing a platform for security experts and public-sector stakeholders to engage in informative discussions and knowledge sharing. With the theme “Navigating Cybersecurity Risks: Strategies for Securing Your…

Read More
Business Economy Investments News Opinion Society

Moppet Foods’ Founder, Roberta Edu, Aims for Global Excellence in Baby Food Manufacturing

post-image

In a remarkable pursuit of manufacturing excellence, Roberta Edu, the visionary IT expert and co-founder of MOPPET, a rapidly growing baby food brand, expressed her commitment to adhering to global best practices. From packaging to meal quality, Edu’s goal is to establish MOPPET as a benchmark in the competitive baby food industry.

“When I decided to become a manufacturer, my aim was clear: to provide the very best for Nigerian children and eventually export globally,” stated Roberta Edu. Not seeking to emulate existing products in Nigeria, she emphasized her focus on surpassing global standards in the baby food category.

Edu recounted her determination to attain the highest quality, even rejecting a machine made in Nigeria for not meeting her stringent standards. Turning to China for a solution, she shared her relentless pursuit of excellence, including a noteworthy incident with an Indian machinery store in Oregun.

Undeterred by…

Read More
Art Business Culture

Award-winning Director Biodun Stephen takes the reins for “Aso Ebi Diaries” produced by Lady Laide Films in Lagos, Nigeria

post-image

 

Lady Laide Films is thrilled to announce the commencement of shooting for its latest project, “Aso Ebi Diaries,” in the vibrant city of Lagos, Nigeria. With leadership from renowned director Biodun Stephen, whose creative talents have earned global recognition, the film promises to captivate audiences with its compelling narrative and stellar cast.

Production responsibilities are shared by Laide Daramola and Taiwo “Bossteewo” Adebayo. Laide Daramola is currently riding the success of her debut feature film “Hotel Labamba” which catapulted to success upon its release on Prime Video. The film’s quality was merited by its #1 ranking on the platform in Nigeria for eight consecutive days and currently holds a top 10 position in nine other countries. A household name in film and television production, Taiwo Adebayo’s slate of films boasts a gross budget of N26.8 billion. Such numbers have made her one of the highest indigenous-grossing producers of all time,…

Read More
Business News

NDPC Strengthens Sectorial Regulation, Signs MoU with NLRC and SMEDAN

post-image

 

The Nigeria Data Protection Commission (NDPC) signed two significant Memoranda of Understanding with the National Lottery Regulatory Commission (NLRC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), aimed at bolstering data protection initiatives across various sectors.

The National Commissioner/CEO of NDPC, Dr Vincent Olatunji, represented NDPC, Director General, NLRC, Mr Lanre Gbajabiamila, represented NLRC, and DG of SMEDAN, Mr Charles Odii, represented SMEDAN during the signing of the MOU at the Headquarters of SMEDAN and NLRC respectively.

The partnership with SMEDAN seeks to promote data protection within the Small and Medium Enterprise ecosystem, with approximately 40 million SMEs.

The MoU establishes a framework for collaboration, including the formation of a working group to focus on capacity building in data protection. This initiative aims to educate SMEs on adopting appropriate technical and organizational measures towards safeguarding data privacy.

Dr Olatunji who expressed optimism about the implementation of the memoranda with the…

Read More
Art Business Economy

Unlocking the future of Journalism: Anambra ICT Agency, Activ8 Hub Empower Media Professionals on AI

post-image

 

In line with its vision aimed at digitally revolutionizing the media landscape, the Anambra State ICT Agency, in collaboration with Activ8 Hub, on Thursday, hosted an enriching workshop on Artificial Intelligence in Journalism for media professionals.

Th workshop took the practitioners through emerging AI models, such as ChatGPT, Gemini, Bing AI, Microsoft Copilot, among others, with the aim to enhance their journalistic practices, ensure more efficient, accurate, and compelling reportage.

The workshop facilitated by experts including Mr. Chukwuma Mezie-Okoye, co-founder of Activ8 Hub, and Nehemiah Onyekachukwu Emmanuel, an AI Engineer with Microsoft, offered deep insight into the transformative impact of AI in journalism. With a focus on leveraging AI to bolster productivity, fact-checking, and narrative crafting, the session illuminated the path for journalists to integrate these cutting-edge tools into their work responsibly.

The event also marked a significant stride in Anambra’s technological advancement, as was highlighted by Chukwuemeka Fred Agbata, CFA, the…

Read More
Business Culture Economy Government Opinion Society

Nigeria Commemorates International Women’s Day 2024

post-image

Today, Nigeria joins the global community in celebrating International Women’s Day, recognizing the remarkable progress and contributions of women worldwide.

This year’s theme, “Celebrating International Women’s Day!” underscores the importance of acknowledging the strength, resilience, and achievements of women in various spheres of life.

From influential leaders to nurturing mothers, women continue to shape our societies, driving positive change and inspiring future generations. International Women’s Day serves as a poignant reminder of the ongoing journey towards gender equality and empowerment.

While celebrating the milestones achieved, it is crucial to recognize the persistent challenges that women face and reaffirm our commitment to creating a more inclusive and equitable world. Empowering women to reach their full potential is not only a moral imperative but also essential for sustainable development and progress.

As…

Read More
Business Economy Gadgets Government International

Tanta Innovative Guides Nigerian Businesses Through Cross-Border Data Transfer Complexities

post-image

 

 

In today’s digitally interconnected world, individuals and organizations often find themselves managing data across international borders, a practice known as Cross-Border Data Transfer. As Nigerian businesses expand globally, navigating the legal and regulatory landscape surrounding data protection becomes paramount.

Tanta Innovative limited, an indigenous cybersecurity firm specializing in data advisory and solutions for Nigerian businesses, is at the forefront of addressing these challenges. Led by Founder and CEO, Abraham Tanta, the company offers valuable insights and solutions to mitigate the risks associated with cross-border data transfers.

Cross-border data transfer presents significant challenges, including potential breaches and legal implications,” stated Abraham Tanta. “At Tanta Innovative, we provide Nigerian businesses with free advisory services and deploy various solutions to preemptively address data breaches.”

Tanta elaborated on the complexities of cross-border data transfer, emphasizing the importance of compliance with regulations such as the Nigerian Data Protection Regulation (NDPR). He…

Read More