R&D Department - How important is it to your Organization?
If you look at the Human Body, there are many vital organs in our body that help in the smooth functioning of our life. Similarly, the various Departments in an Organization play key roles in the success of an Organization. This article is an attempt to highlight the importance of Research & Development (R&D) Department and it's key role in growth and sustenance of an Organization.
1. Human Resource Department - Heart. The Human Resource Department deals with the management of People resources in the Organization. Since it deals a lot with people's emotions, fear, anxiety and growth in an organization, it can be related to the Heart.
2. Finance Department - Blood. You need blood circulating to all parts of the human body for energy source. Similarly, Finance is needed for all departments to function effectively.
3. Audit & Controller - Eyes. Eyes provide sight. Similarly, Audit departments can provide useful insights into how the organization is managed and operated.
4. Sales & Marketing - Mouth. We use mouth to talk, and to eat the food the body needs. Similarly, Sales & Marketing Department ensures that the product or service is known to our customers and to generate money from the Customers.
5. Hands, Legs - Operations. Hands, Legs are used to do our day-to-day work. Similarly, the Operations department is responsible for building our products and solutions and delivering it to our Customers.
6. Nerves - IT Department. Since the IT Department connects all departments through the different IT systems, I am linking nerves to IT department. An argument can be made that organizations existed even before IT Department came into existence. But, the point is IT department is a department that links all departments and improves productivity within the Organization.
7. Finally, Brain - Research & Development (R&D) Department.
The Research & Development (R&D) Department is like the Brain of an Organization. Similar to how a Brain (Mind) continuously improvises and finds ways to enhance life, the R&D Department is setup not only to improvise the current products, but also to find new products and solutions for the long-term success of an organization. Can an Organization function without a separate R&D Department? Maybe Yes. Each Departments can have 1-2 people assigned to improvise their day-to-day operations. But, Organizations that have been sustaining for longer periods and successful have a separate R&D Department. Around 5-10% of Total Revenue each year is assigned to R&D Teams to function effectively. This ensures that products and solutions are continuously refreshed and kept relevant in the market.
R&D Departments also have a key say in the strategy of an Organization. Based on the products and solutions invented, Management can take a call on which market to enter, how it has to be packaged, and at what time they need to enter. People in the R&D department should have good understanding and knowledge on the company's products and solutions. At the same time, they should also keep a close watch on the technology trends in the market and what the competitors are doing. This will ensure that your organization is able to maintain its competitive edge in the market.
To summarize, the purpose of this article is for Management Teams to encourage and grow R&D Departments in their organizations. The nature of R&D Departments (like Brain), is to enhance your Organization's growth and success. If we decide to not use the Brain effectively, it will be opportunity wasted.
I look forward to your feedback and suggestions in the comments section below. Thanks for reading !!