Business vol 5

Innovation

Why do R&D

what is innovation

Innovation can be seen as a thing that can be used to make a better solution to meet the market needs. Or even to make a solution to make things better for the existing market. Another word for innovation is called R&D ( Research & Development). a lot of companies try to improve their innovation/R&D to get them ahead from other companies. This is because their company will get more customers and more customers means more profit.

Why do companies do R&D

companies do R&D to insure that the product in the market are good for the market. meaning how can they take one product and make it better to improve their sales and also their name in the market.


Also they do it to get their name ahead in the competitive market as well. Meaning that they do R&D to beat other companies at what they do and this is how the world works. fighting over the right product and improving them to get customers and make more money.

real life examples

Operational innovation has been central to some of the greatest success stories in recent business history, including Wal-Mart, Toyota, and Dell. Wal-Mart is now the largest organization in the world, and it owns one of the world’s strongest brands. Between 1972 and 1992, Wal-Mart went from $44 million in sales to $44 billion, powering past Sears and Kmart with faster growth, higher profits, and lower prices. How did it score that hat trick? Wal-Mart pioneered a great many innovations in how it purchased and distributed goods. One of the best known of these is cross-docking, in which goods trucked to a distribution center from suppliers are immediately transferred to trucks bound for stores—without ever being placed into storage. Cross-docking and companion innovations led to lower inventory levels and lower operating costs, which Wal-Mart translated into lower prices. The rest is history. Although operational innovation wasn’t the sole ingredient in Wal-Mart’s success—its culture, strategy, human resource policies, and a host of other elements (including operational excellence) were also critical—it was the foundation on which the company was built.

R&D

companies have a R&D department. The reason for this is that they can build their company from looking at other companies and their product, They can see what strengths and weaknesses other companies to help make the right product or help make an existing product better.