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How important is the role of research cost on product design and how to streamline the cost?

The cost of research and development departments is very crucial now a days. It is clear that the research cost has huge role in designing the most innovative product design. The role of research and development department is very huge in ensuring that the companies should be able to get knowledge about new kind of technologies and new possibilities that could be put into the production or manufacturing process and product design could become very much innovate and attractive. The competition is high and intense the research and development department leading towards gaining the competitive advantage and improving the market positioning of the company. But it contains some cost that could be treated as research cost. The cost that brings a huge level of innovation possibilities, opportunities to ensure distinctive identity, the cost which is worthy to be incurred is the research cost. So many organizations dedicated towards providing the particular investment or financial resources to the research team so that they can provide something new and worthy to the production team. The collaboration is very immense and years of research provide the new technology that makes company ahead of its competitors. Research department has integrated well with other departments and is providing beneficial results to the entire business entity. Operations department, marketing, finance and human resource all have certain interaction or communication upon different decision making aspects or bringing any change into the process.

This essay is an example of a student's work


This essay has been submitted to us by a student in order to help you with your studies. This is not an example of the work written by our professional essay writers.

The importance of this cost is very huge upon the product design. A new kind of designs could be tried at very small scale of an artificial lab and most of the times positive results come out of the shell. The automobile industry, mobile manufacturing industry, FMCG industry, etc. these are the examples of some industries that have a high level of changes in their product design and continuous improvement within the industry could be experienced. The cost occurs because the research team tries to adopt various scientific approaches or changes in the existing process in order to bring changes in existing product design. Developing the new products is the priority work or responsibility of the research team. They need to have such products which are more advanced and have more attractive features. They discover new dimensions within the product range and its design. The outlook of the product is one part of the product manufacturing process and it should gain huge priority by business entities. The research and development team focus hugely on the trying different patterns that can help in improving the looking of product and for he same purpose they do research with certain raw materials. Thus, it also contains certain cost and put burden over the financial department. The financial team needs to prepare the budget related to the fact that how much financial resources or money could be allocated to research department within a year. The output should be more than the set allocation of resources. It's something that might definitely put its impact on the cost structure of the company. Thus the role of research cost on the product design is quiet effective as it promotes the innovation and yielding results for the companies.

The cost structure in research and development department involves the salary structure of the staff working within the research team. The company provides perk and incentives as well to the people who working within the research department. It is clear that the staff needs salary and wages so it is also a part of cost that could be raised upon business entities within the research cost. The research team has various people who work at different hierarchy and have diverse roles and responsibilities. Thus, it is clear that more number of people foster the need of providing more salary slip and cost also increases tremendously. Further, the cost includes the fact that the company invest in the infrastructure as well. The research team always demands very good infrastructure that demands huge investment. The research lab should be technologically enabled, and equipments are supposed to be highly advanced and updated. It helps on the ground of improving the results of the research team. But technologically equipped research departments need to have lots of investment which is also a part of increment in cost structure. Further the noticeable fact is that research department never generates the positive results in a day or two. There is requirement of huge patience and yielding results could be noticed in the long run. Thus the cost always remains high for the research team. Therefore, the role of research cost is positive in product design as the business entity to use advanced technology and it enables them to get positive results related to attractive and innovative product design. Thus, designing the knowledge about the product is something that helps research and development team to provide maximum return on investment and minimizing the cost structure. When research team does something innovative than its results could be noticed in the market and it also compensates the research cost. It is actually a part of strategic management.

The research cost could never be streamlined very easily. There might be lots of troubles in ensuring lowest cost form research team. It actually could be covered only if the product design is as per the expectation or beyond the imagination of customers. As per the government rule the company can never show the future marginal or expected income in their balance sheet. They have to deal with cost and need to focus on long run time period for streamlining the cost. The research process demands huge time in designing the product. This activity never took place in a short period of time. There are varieties of processes like testing the protocols, specification identification, etc. There is need of giving an adequate amount of fund to the research team. Further, the cost could be minimized through accurate efforts in just one attempt. It leads towards the minimum wastage of resources and time as well. The repetition of efforts could be avoided. Thus, these are certain techniques in which the research cost could be streamlined effectively.

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