It is clear that especially the research part of R & D is not very easy. Therefore, to make development with the information previously conducted research, is a priority of most companies. If being pioneer or leader is the targeted position, investment on R & D costs would be slightly higher. The R & D done for the purpose of “Being the first!” has a quite high risk. A research conducted for a long time and spending much money, can result without any particular return. This sometimes is also encountered in the development stage. Although the investment on R & D always contains a high risk, the earnings bar is also very high in case of success. In fact, we can briefly say that R & D is the “investment for the future”.

“Spend today to win tomorrow..!” 

The followed R & D policy of the company, should be in line with the company’s strategy. Carrying out the policy in accordance with strategies is directly indexed with the success of the R & D Management.

So, how should the structure of R & D be in the company?? In fact, as a part of the company’s, implicitly R & D is also managed by the Top Management . Overview, funding or expectations of Top Management for R & D, is the basis of structuring and management of it. First of all, a progressive, beliving to dynamism, open to development, above all, “ready to spend today to win tomorrow” top management is a must…It is very important how the organization is founded; generally vertical management structure like construction contracting companies, often prevents the works to be conducted by R & D with the desired speed, and the procedures, approval mechanisms would be an obstacle to getting effective results. However, the exact horizontal management organization in some respects impair the functioning of the system. Top Management to be in touch with the research or development staff at every second, sometimes transcend the purpose of this communication and can turn to direct intervention. In any type of management style, it is not familiar for the Top Management to know what does each researcher do or the timetable of the work the researcher conducts… Beyond knowing this, if the top management deals with and effects the workplan or division of tasks, we can say that hardly nothing is left to be expected from R & D personnel. Because the R & D staff who knows that his business is directly queried by the top management, now becomes away from the target of doing the job correctly, he dedicates himself to finish it as son as possible, starts the evaluation of the commercial aspect of the business, gives up technical requirements for profitability etc.

I had mentioned the difference of P – D with R & D and as well nowadays most of the commercial companies make Product Development under the name Research & Development, in my previous article entilted “R & D and the Companies”. Therefore it would be more correct to use the term Product Development which is more relevant to companies…

It is very important where the R & D is positioned within the organization of the company. To be located as possible independent place will help to ease the process, but also being in a flow where access to the management is not difficult will accelerate the process. Here the link with other groups in the organization and position, should be shaped according to the company’s strategy and policy. P & D department which is located directly under a management that is Sales and Marketing weighted or in the influence area of it will probably cause some negatives as spending much time investigating unnecessary customer requirements or to be distanced from detailed technical works or quality aspects to increase the commercial profit. An opposite domination in the organization will reversely create different problems to Sales Departments as being forced to sell products not shaped according to the demands of customers but whatever the R & D department has developed… If the company policy has a mission to be pioneer, leader, but without compromising on quality and setting it priority as a condition, then P – D should not have any authority on Quality department in the organization, moreover reverse the dominant hierarchy, the structure becomes P – D managed or driven by quality requirements.

R & D or  P & D organization, no matter where it is in the scheme of the company, the main factor that determines its location of the operation is the proper management. Company management carried out in accordance with correct R & D management and the policy…

In today’s market conditions, competition comes from the state, “early bird catcehs the worm” structure. Therefore, especially in the technology sector, launching  a product before its competitors on the market is crucial… For a very small percent of serial production industries, it is possible to have constant turnover without making almost no changes .. But for most of business, innovation is the condition to grip. For particularly technological industries, the period between the formation of new idea and the release should be roughly 12-15 weeks. Companies who miss this dynamic speed, if showing up in a market of competition, will also miss the train.

Great thinking, leader companies or the ones that want to be a leader therefore give special importance on Research and Development (R & D). Even they give more importance to innovation, R & D, than the production of existing products.

R & D, includes two concepts, when used in combination, that seem a little away from their meaning of singular:

Research can be summarized as, to obtain, to collect and revealing deployment of useful information for today or tomorrow, for use in a specific application, for commercial or scientific purposes.

Development is a more concrete concept. For commercial or scientific purpose, to improve the situation, conversion of the knowledge to practice,  or  even with sharper words serving the information to production that is deployed by research.

We are great importance attached R & D company ..!

So for what purpose does the R & D work? Works for humanity, scientific R & D is carried out and the results are intended for the benefit of humanity. Works for taking the lead of the competition in the business sector. Works for increasing marketing power, sales…and works for prestige… Yes, prestige… for many companies it glorifies the name of the company to say “we are doing R & D“.

R & D, which stands for Research and Development according to the definition I gave above , is widely being used far from its real meaning. It should be noted that the “research” term is primarily part of a very pretentious expression. There are very few companies really engaged in research in the business sector. Research is mainly done by public institutions, research organizations and academic institutions, so mostly do academicians .. As I mentioned in the definition of it, development has a concept that is a bit more practical .

R & D or P – D???

For most of the companies , the structure which is pronounced as R & D, is in fact P – D, “Product Development”. Product Development is more for commercial purposes . P – D has less innovative aspect where certain techniques are usually applied repeatedly . Making improvements over existing products or implementing the information revealed by R & D on their products . P – D costs are often much lower than the costs of R & D because mainly a ready-made infrastructure is used .

Considering all these, especially for medium-sized companies, it is important to do P – D frequently , but in certain periods to do R & D is essential .