What Is R&D and Why It Matters to Build Innovative Solutions?

The world is currently experiencing the most significant technological revolution in the last 30 years. Breakthroughs in the development of artificial intelligence, machine learning, Big Data, and the Internet of Things occur almost every month. For the IT sector, this means the need to adapt quickly. Today, competitive IT teams must create high-quality products and offer commercial innovations based on the research and development (R&D) of the most promising technologies.

At Emerline, we deeply understand and strongly support the desire of our clients to get innovative solutions that allow them to get a sharper competitive edge on the market, ensure business modernity, improve customers' engagement, and increase their trust and loyalty. At the same time, we believe that a mindless effort to innovate never (or at least very rarely) leads to the desired results. To ensure a comprehensive approach to delivering hi-tech solutions, Emerline has established an R&D department —  the main hero and point of discussion for this post.

So, let's start with defining R&D and its key values, and then from an interview with Vitalij Usov, the Head of R&D Department, learn how its approach differs from the traditional development model, what the value of R&D to business is, and when a client can consider choosing this service.

What Is R&D (Research and Development)?

The R&D process aims to find innovative solutions. In other words, a team of researchers must invent an entirely new way to solve a specific problem or task - to do something no one has done before.

Unlike the scientific environment, the R&D process in the IT field is applied and commercial. Its goal is to commercialize promising advanced technologies that will be on the market for a long time (the so-called deep tech). For example, scientists and engineers have developed machine learning technologies for decades, but only in recent years have they matured enough for practical use in business products. Today, deep tech includes artificial intelligence, immersive technologies, the Internet of Things, quantum computing, etc.

R&D engineers in IT, research such technologies. They create prototypes based on them, test them, and study the implementation possibilities. The work of the R&D department in an IT company focuses on product innovation and the search for new ideas. So, 20 years ago, experiments by Apple engineers and designers with the new multi-touch touchscreen technology eventually led to the creation of the first iPhone.

Today, typical R&D tasks in IT can look like this:

• Research on new programming languages, frameworks, and development tools for their suitability for specific projects or tasks.
• Studying new directions of deep tech suitability for practical commercial use.
• Creation and configuration of machine learning models to solve specific business problems.
• Research on new cyber threats and finding methods of protection against them.
• Development and testing of prototypes of new software products.
• Creation of innovative startups.

An essential aspect of R&D as a service is that it does not always lead to the discovery of a new solution or the creation of a product. When it comes to research, the lack of a result can be a result. This is a method of testing theories and hypotheses based on trial and error. It also happens that an R&D project gives unexpected results far from the starting goal.

The key idea behind the R&D department is channeling resources towards processes such as investigation and testing. In this way, unique products featuring innovative technologies can be developed, existing ones enhanced, and new, better, and faster ways of doing things can be found. In other words, R&D teams can be characterized as innovators who have first-hand expertise in the latest tech advances.

What Is the Value of R&D Solutions for Business?

If we answer this question briefly, R&D allows companies to develop and master new concepts and technologies, look for new opportunities, and move forward. The strategic goal of the R&D department in any company is to unleash the potential of innovation and open up new development prospects.

If we analyze the value of R&D in more detail, we can identify at least five advantages of this business service. Let's name them.

Creating new and improving old products

A company with a strong R&D department can create innovative products and services that have a chance to "take off" on the market much faster and more efficiently and sometimes even create an entirely new market. For example, the presentation of the first iPhone led to the creation of the App Store, and Apple became a monopolist in the new market for mobile applications for a long time.

But research doesn't always lead to revolutions. More often, a typical R&D department in an IT company conducts research to improve existing products and services, making them more functional, cost-effective, safe, and attractive to customers.

Creation of intellectual property

R&D services help companies create and protect unique intellectual property, such as software, technologies, etc. This allows the business to be self-sufficient and independent of technology vendors and IT giants. For example, an industrial or manufacturing company with its own ERP platform can build its strategy without regard to the policies of software vendors such as SAP or Oracle.

Intellectual protection of R&D is key to maintaining the innovations' competitive advantage and commercial value. Competent development and patenting of intellectual property strengthen the company's position in the market and create additional barriers to entry for any of its competitors.  

Culture of innovation

A relatively small R&D team can significantly change a company's corporate culture. R&D managers almost always face "cultural" challenges: they must convince top management to invest resources in innovative projects without a guarantee of success and stimulate more open and creative thinking at all levels of work.

In addition, the R&D department can actively participate in corporate training processes, such as creating relevant courses, conducting workshops, pitching, etc. R&D can also work closely with a corporate venture fund to design and develop software for internal startups.

Flexibility and competitiveness

An effective R&D direction helps the company adjust its development to remain relevant in the changing realities of the market: to respond to the emergence of new technologies, products, competitors, and consumer demands. Corporate research is vital to virtually any modern business.

Let's give an example from history: just a year before the appearance of the first iPhone, the Canadian brand Blackberry was considered the leader in the American smartphone market. However, neglecting the mobile market trends (touch screens, full-fledged 3G, app stores) led the Canadian giant to a complete defeat against smartphones on iOS and Android. Quality R&D services could have changed everything.

Achieving sustainable development goals

Research helps companies achieve strategic sustainable development goals:

• Reduce the harmful impact of business on ecosystems.
• Minimize emissions and waste.
• Increase the energy efficiency of processes.
• Switch to renewable energy sources.
• Help overcome social problems such as political instability and the security and accessibility of goods.

Moving towards these goals improves the company's image and makes it more attractive to customers and investors. But the most important thing is that in the 21st century, the importance of sustainable development will grow very rapidly for everyone without exception.

So, the R&D sphere gives businesses advantages that can determine their fate and survival in the market. And this is not an exaggeration.

The Who and When of Research and Development Services

R&D solutions are needed by everyone, without exception, because every business strives to be flexible, competitive, and technological. However, in practice, the advantages of R&D are most quickly revealed in bold projects and large-scale tasks. Therefore, we can name several segments where the R&D direction has become incredibly practical.

Startups

Many startups start with research or even with scientific projects. R&D helps conduct market research, determine the project's technical feasibility, develop a prototype, and test it. It also allows you to increase the investment attractiveness of the startup, providing investors with evidence of its viability.

Medium and large business

Companies with a significant history of work and large scale often suffer from inertia in thinking and processes. Therefore, they risk losing the potential for innovation, flexibility, and competitiveness against more courageous competitors. The R&D division can become a robust development driver for such players, offering ideas for new products and commercialization models for the latest technologies.

Governmental organizations

Such players are typically not aimed at the commercial success of their products but at achieving their targets and large-scale sustainable development goals. The use of R&D approaches in public service, healthcare, education, economic regulation, energy, the military-industrial complex, infrastructure, etc., fits perfectly into this logic. R&D allows the state to play a leading role in developing new technologies that work for the progress of the whole society.

Non-profit organizations

The principles of R&D allow non-profit structures to increase the effectiveness of various social projects and programs, providing them with scientific and technical justification, flexibility, and innovation. Non-profit research initiatives aimed at developing specific scientific and technical directions stand apart. A typical example is the OpenAI organization responsible for ChatGPT. It originated precisely as a non-profit initiative to research artificial intelligence technologies.

How R&D Works

In the IT industry, R&D services are primarily focused on transforming an idea or a client's request into a feasible concept for a digital product, eliminating any uncertainties. Emerline specializes in custom software development, tailoring solutions to specific client business needs and requests. Most of our projects incorporate R&D elements, as our specialists conduct thorough research into markets, industries, and client business processes to identify the most suitable solutions and technologies.

Our R&D process is built on three key principles:

• Focus on innovation. The need for R&D means the client is unsatisfied with the solutions available and is looking for new opportunities.
• Measurability and deadlines. The R&D process should not be allowed to turn into a search for the sake of searching. It must have chronological limitations and measurable performance indicators.
• Practicality. The R&D service should aim to find realistic and cost-effective solutions that can be implemented with the level of technology available to the client.

What stages of work does R&D cover?

Detailed study to support the project

During this R&D phase, we will define the project's goals, objectives, budget, and constraints. The team will research the client's problem, market conditions, and potentially valuable technologies for the project.

Specifically, we will address the following questions:

• Is this product necessary?
• How can we ensure demand for this product?

Specifications for the product

Based on the research, the team proposes a product concept to address the project's objective.

Outcome:

• Specification of costs
• Time of development

Development plan

The team will create a design prototype that showcases the solution's main features or a basic functional code prototype to test core functionality.

Outcome:

• Development plan 
• Prototype

Development stage

Different scenarios will open up in the future. The project can move into a full-fledged development cycle, with the creation of frontend and backend, testing, release, and further support. However, the project may require additional research, or the prototype may need improvement to test specific hypotheses. It is always an iterative but creative process.

While research and development are included in the name, the hallmark of R&D is the research that generally takes more time and effort compared to the same stage in the traditional development service model. This is because introducing a brand-new product to the market is quite risky without solid data supporting its relevance and applicability. Along with a phase of research that studies every detail impacting product success, companies can ensure both the return on investments and the ability to outperform their competitors with a unique solution precisely targeted at their individual business needs.

We've talked to Vitalij Usov, the head of the R&D department at Emerline, to provide you with a clearer picture of R&D, its purpose, and its value and to give you a taste of how your business can benefit from its services.

R&D Department at Emerline: Purpose, Value, and Projects

Vitalij, for how long has the R&D department existed in our company, and what were the reasons for its creation?

It was established in the summer of 2017. The main idea behind the creation of R&D was to gain greater experience with technologies such as Data Science, IoT, AR, and Blockchain. Later, we also got interested in chatbots and VR.

Can you please name the main reasons companies need such a department? 

The R&D department is a probe. It allows you to keep up with constantly evolving technologies and scan future markets that may one day produce separate directions for the tech world.

Today, more clients are looking for unique solutions, and because the R&D department is constantly in close touch with new technologies, we can meet the demand and provide a ready-made demo and use case for any request.

Moreover, the established R&D department allows testing of some new, not yet released technologies and beta versions of solutions (operating versions of mobile devices, various frameworks, etc.). So, having such a department, we can warn our clients that something will not work, or vice versa, in advance, before the official release.

But what's the difference between the traditional development department and R&D?

In the R&D department, we devote more time to consultation and analysis phases. The first preparatory phase can take up to a week and comprises meetings, internal discussions, and client data reviews. Only after this phase do we give the client an idea of how exactly we can help, taking into account all the available data and estimating perspectives for the product's future development. If the client is satisfied with our proposal, we start more detailed development, integration, and optimization.

Can you provide some examples of solutions you develop?

Currently, we are working on several projects. The first one to mention is a document scanner.

It is a mobile application developed by our product team. The app's key task is to recognize pages with text. You take a photo of the page, and the scanner needs to figure out if it's text. If it is, the app allows any necessary transformations (cropping and flipping the document) to make the page look like it was scanned. After that, the document can be saved in PDF format.

We are currently working on an improved document recognition algorithm. You can find information here if you are interested in learning more about the product.

The second product is a 3D ColorBook for iOS that offers 3D coloring by numbers with AR mode and a 3D builder. It's a fascinating game that allows you to color reality.

You can learn more details about the game here.

It’s worth mentioning that this product does not limit our experience with 3D and AR. Once, we developed an environment scanner based on LiDAR technology and used it to create a 3D plan for SAP AppHaus, a creative space located in our office.

The product allows you to scan objects in the surrounding area. The resulting image files can be sent to another user or examined in AR Mode. The critical thing to note is that we worked with Lidar technology six months before iPhones with Lidar cameras were introduced.

The first version of the developed product processes data received from a mobile application and generates an image file of the scanned object on the server. We are currently working on improving the scan quality and plan to transfer data processing to a mobile device.

If you want to learn more about how our R&D specialists can help you deliver innovative solutions, whether AR, IoT, AI, chatbots, blockchain, etc., you’re always welcome to contact us for a free consultation.

Conclusion

Research and development in the IT industry helps businesses find optimal digital tools to solve practical problems. Moreover, it reveals the potential of advanced technologies such as artificial intelligence, the Internet of Things, and augmented reality. Companies with strong R&D have broad competitive advantages and opportunities to master new directions and create revolutionary products.

Like any research process, R&D needs patience. This area cannot guarantee quick and positive results for a business. However, it is impossible to do without it. Businesses interested in innovation can develop their research from scratch. However, a partnership with an experienced IT team that understands what R&D service is can give much faster results.

FAQ

What is R&D?

The abbreviation R&D stands for Research and Development, meaning it is the field of scientific research and development. In the context of IT, the R&D process aims to find innovative solutions, unlock the potential of "deep tech," and create new and improved products.

What is the value of R&D services?

The R&D direction opens up several advantages for businesses: launching new products, commercializing the latest technologies, creating intellectual property, and developing an internal culture of innovation. All of this enhances the company's flexibility and competitiveness in any industry.

Which specialists are part of the R&D team?

The R&D team can vary significantly from project to project. It may include R&D engineers, developers, cybersecurity specialists, data analysts, scientists, marketers, product managers, project managers, specialized professionals from the real sector, etc.