Browse Definitions :
Definition

research and development (R&D)

Research and development (R&D) is the initial, exploratory stages of product and service development. In the United Kingdom (UK) and some other areas of the world, research and development is known as research and technical development (RTD).  

R&D is often conducted within a company’s development unit, but it may also be outsourced to a service provider. Within the enterprise, research and development is considered a cost center because it is a consumer of resources rather than a direct source of profit. R&D doesn’t offer any immediate payoff and potential return on investment (ROI) is uncertain. Nevertheless, it’s essential to the development of new products and services and the continued profitability of existing ones.

Best practices recommended to minimize the financial risk associated with R&D include: 

  • Conducting preliminary research to determine the competitive environment and the market for a proposed product or service. 
  • Performing a cost/benefit analysis (CBA) to evaluate the potential payoff of a product or service in contrast with the resources required for R&D.  
  • Defining a budget for all projects and adhering to them. As with other types of projects, formalized processes should be employed to avoid unnecessary expenditures.
This was last updated in December 2017

Continue Reading About research and development (R&D)

SearchCompliance

  • information governance

    Information governance is a holistic approach to managing corporate information by implementing processes, roles, controls and ...

  • enterprise document management (EDM)

    Enterprise document management (EDM) is a strategy for overseeing an organization's paper and electronic documents so they can be...

  • risk assessment

    Risk assessment is the identification of hazards that could negatively impact an organization's ability to conduct business.

SearchSecurity

  • Transport Layer Security (TLS)

    Transport Layer Security (TLS) is an Internet Engineering Task Force (IETF) standard protocol that provides authentication, ...

  • PKI (public key infrastructure)

    PKI (public key infrastructure) is the underlying framework that enables entities -- users and servers -- to securely exchange ...

  • obfuscation

    Obfuscation means to make something difficult to understand.

SearchHealthIT

SearchDisasterRecovery

  • risk mitigation

    Risk mitigation is a strategy to prepare for and lessen the effects of threats faced by a business.

  • call tree

    A call tree is a layered hierarchical communication model that is used to notify specific individuals of an event and coordinate ...

  • Disaster Recovery as a Service (DRaaS)

    Disaster recovery as a service (DRaaS) is the replication and hosting of physical or virtual servers by a third party to provide ...

SearchStorage

  • cloud storage

    Cloud storage is a service model in which data is transmitted and stored on remote storage systems, where it is maintained, ...

  • cloud testing

    Cloud testing is the process of using the cloud computing resources of a third-party service provider to test software ...

  • storage virtualization

    Storage virtualization is the pooling of physical storage from multiple storage devices into what appears to be a single storage ...

Close