Columbia Southern University Mba 5652 Explain why research i

Columbia Southern University Mba 5652

Explain why research is important to an organization.

Solution

An organization needs to continuously focus on upgrading its existing products/services and developing new ones to stay ahead of its competitors. Gone are the days when monopoly existed and it is the organization that dictated the product features which customers have to buy with no choice of their own. Current business environment is highly competitive with customers deciding the fate of the product/service that a company launches. Hence, research plays an important role in ensuring customer preferences are taken into account.

A typical extended product life cycle has the below phases:-

Research--->Product Design---->Product Development---->Market inroduction---->Growth---->Maturity----->Decline

Research is vital to an organization\'s success. Depending on the industry, research takes its prominence.

In pharmaceutical and life sciences industry, Research and Development costs account from 25% to as high as 50% in some cases. As a single drug can change the fate of the pharma organization, a major portion of the time is spent in research and development to ensure the effectiveness of the drug.

In high tech industries, the products have a shorter life time and it requires a continuous research be it market/consumer research to ensure the organization is up to date with the latest technologies.

Classic example of the camera giant Kodak\'s failure to research and identify the latest technology resulted in its downfall and its competitors\' success. Kodak was the biggest camera company before the digital age and has lost its market share to companies like Canon,Sony etc.

Research plays a pivotal role in an organization\'s success and assists in decision making regarding its product/service, its design, development and marketing strategy. Forward looking organizations should contribute their time and money on research to keep up with the latest trends and technologies.