How is the world of R&D being impacted through rapid innovation?

The degree and rate of change in technology development, the adoption, use and application of technology is occurring at such a phenomenal rate. It’s true impact on industries and markets, businesses and consumers is still in its early infancy phase. The fact that this increasingly immersive technological force is constantly and simultaneously compounding is both unprecedented in modern society and its real effects are not even measurable or fathomable to many of the world’s experts.

So, what does this mean to some of the most influential businesses of both the past and present? Those businesses that have previously shaped the world in which we have lived in. Businesses they created, owned or licensed the technology for whole industry and market segments to thrive. How will these businesses compete and survive when the landscape is not as clear or played out along the same rules around technological control and investment returns.

In terms of these challenges, can organisations still control technological development the same way they did in the past? Will patents be still the worthwhile prize or is the game too fast to invest in long term technological breakthroughs that could in some industries be disrupted not in years or months, but weeks, days or hours?

What R&D does mean

Having worked with Canon, one of the leading Research and Development (R&D) companies in the world for over seven (7) years, you always knew that the “R” for research really was looking out 20 years ahead while the “D” for development was looking more at the 5-year term mark for commercialising innovation. Innovation that could be realised and delivered to the market in a shorter space of time.

The ability for organisations to invest in R&D made good sense in terms of long term strategic value.

At the same time, it was also understood that R&D also had its downside. That is, much of the investment in research and development may never see any real commercial use or purpose. This was the strategic choice or dilemma that all R&D camps live with.

Regardless of these considerations R&D is still vitally important as companies such as IBM and Canon who have consistently held the number one (1) and number three (3) positions respectively for around 20 years (this is measured on patents granted in the US) continually prove as they maintain their dominance across different market sectors.

We also acknowledge that R&D takes time, it takes time to invest and gain the huge influx of knowledge needed to develop the next big thing. In this case, potentially a new patent.

However, this dominance may soon be under a more serious threat. Today we are seeing increasing signs that the world around us may be changing at a much faster rate than we first realised especially in relation to technology and the business models that support the use of the technology deployment.

The increasing change and application use of technology is being accepted and adopted much faster than anyone anticipated or expected. In fact, the speed of innovative change is disruptive in many ways and especially to organisations that are focused on longer term research and development.

The main reason is that today you can stand up new products like a new software application and distribute and sell this across multiple market within 24 hours. The impact of this can potentially destroy large research and investment in product development virtually overnight.

As organisations as well as many start-ups and entrepreneurs rapidly develop new skills to accelerate new innovative concepts, business model platforms and innovative technology solutions. This will only lead to further acceleration and disruption in terms of what the future will look like. This may be critically important to businesses that have invested in substantial R&D capability.

It is not to suggest that all R&D is under threat. But we do expect that many R&D camps around the world will be coming under significant pressure not only to manage ongoing invest and returns but also in terms of keeping ahead of what the future is going to look like. This is especially hard as it is changing so rapidly and disrupting onto itself all at a compounding rate.

Organisations who invest in the R&D space may need to reconsider how they shorten their focus and execution.

What we do know is that innovation can be rapidly developed and deployed at a much lower cost than ever before. Today we are continually seeing evidence of new ways to innovate more rapidly. Leveraging aspects of design thinking and prototype development can materialise innovative solutions at lightning speeds.

The additional benefit of rapid innovation techniques is that it also more effectively de-risking the business as decisions around the solution development or prototype can be either quickly iterated or commercially fast tracked or redesigned under a different commercial model.

What this means is that rapid innovation techniques may need to be enlisted by companies that still adopt older R&D labs to accelerate their knowledge around new innovative considerations and market and customer experiences. The ability to test and validate markets may ensure a sharper result for future R&D camps around the world.

In short R&D camps need to look at new innovative ways to adapt. The old way is no longer, the only way.