It is no secret that research and development strategies make or break software companies of any size. R&D departments and teams hold the power to determine your brand’s growth and relevancy in the competitive software market space. Your R&D strategies do not only benefit your own company but the software industry as well.
They attract new talent pools, introduce new and efficient product/service development strategies into the market, and solve emerging problems while asking contemporary questions. Software innovation allows knowledge combined with ideas into a profitable reality.
For a software company, if R&D and innovation are a fundamental operation, you’re one step ahead of the game; and if it isn’t then it’s time you incorporate some form of R&D into your operations. If you’re contemplating an investment in your R&D department here are a few reasons:
- Cost Cutting: Targeting overall cost-cutting, effective marketing + attracting a larger audience, increased market participation
- Better Products/Services: Gaining knowledge to develop, design, enhance the design, introduce innovative features, increasing market share, gain attention
- Competitive Advantage: Stay ahead of market trends, maintain business relevancy while creating visionary products
Innovation and R&D not only enhance internal business operations but external business relations as well, especially customer relationships.
Innovation departments to help software companies become faster and more productive for customers. Via the internet and cloud technology, companies have the ability to offer a greater variety of thorough concepts such as software-as-a-service (SaaS). SaaS essentially is software provided with a subscription basis located on external servers rather than in-house, such as Office 365.
Founded on cloud-based technology, this software development is the core of large international software companies. Innovation allows your company’s focus to transition from increasing productivity within the business to increase your customer’s productivity through your product/service. This transition of focus reflects your brand’s prioritization of customers, which is crucial in order to build a loyal customer base.
Bill Gates puts this formula in a simple way, “ [he] believes in innovation and that the way you get innovation is you fund research and you learn the basic facts.” Investment in your R&D department is a direct investment in knowledge and experimentation, the pillar of growth and product sustainability.
If financial limitations impact your ability to invest in R&D within your software companies, look out for Canadian R&D grants and tax credits! Including the Industrial Research Assistance Program (IRAP) and Scientific Research and Experimental Development Tax Incentive Program (SR&ED).