The first stage of the product lifecycle is R&D: Research and Development. During this phase, a product team will conceptualize and assess the viability of a new product to decide whether it is worth taking to market.
As the old saying goes, “Rome wasn’t built in a day”, and the same goes for products, too.
Any successful product begins with Research and Development. During this phase, a product team will think up ideas for new products or services, assess these ideas’ viability in the marketplace, research the required technologies, then begin to develop them.
Research and Development are unusual among business activities in that it doesn’t always result in a direct return on investment for the company.
That said, without it, no truly new or innovative product would ever hit the market. For this reason, R&D is a cost most businesses are willing to invest in.
All businesses are different in the way they approach R&D, but there are some common factors:
There are many reasons companies invest in a Research and Development, but some of the most common include:
Truly innovative products can transform the fortunes of a business, giving it a competitive advantage and a market leader status almost overnight.
Stagnation is a big problem for businesses that do not innovate often enough, and R&D is the solution.
While R&D doesn’t always result in a positive ROI, all it takes is one best-selling product idea to make it worthwhile.