Essay Sample on Integration R&D Techniques in Company

Paper Type:  Essay
Pages:  7
Wordcount:  1849 Words
Date:  2022-11-06


This report highlights how Hi-Tech Company can integrate R&D techniques during product development and in their supply chain functions to ensure they can meet the rapid changes in the market. Some of the highlighted ways include purchasing robotic applications which will integrate R&D in various production phases, hence saving on time and ensuring the staff is well equipped on how to handle the robots. The other way is through installing software's like RFID, MRP and EDI to integrate the supply chain and logistical functions of the company.

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Background and Significance

The need of having robotic applications in various production phases and the reason of installing software's like RFID, MRP, and EDI was to ensure the company produces computer electronics that are of modern quality and with new specifications, moreover the software's would help in streamlining the supply and logistics functions whereby deliveries will be done on time. Timely delivery and quality of the products developed are the main factors that necessitated me to write this report to the manager.

A Brief Analysis of the Problems

Since there are numerous rapid changes in the business environment such as the rivalry from the competitors like Alibaba, Killmall, Microsoft, who had already established and were making huge sales revenue, there was a need for us to benchmark and embrace the changes they used in their transformation. We started experiencing low sales revenue, and this affected our net profit, hence hindering our operations. Since we did not have enough finances to change the organizational structure of the company, the company opted to get a loan, and it was tough for the company to convince the bank that the transformations we were about to make would respond positively in the market.

Number of Possible Solutions

The company was able to get a loan that would support the installation of software's and training the employees on how to operate the program with efficiency. However, on incorporating robotic application in production, we had to outsource the operations and services from companies with well-structured IT system and the profits from sales would help us acquire our robotic use in the future.

Concluding Statement

It is recommended the company should concentrate on the option of outsourcing the production processes and use the existing supply chain operations since the product is a critical component and it needs to meet the tastes and preferences of the customers and the revenue raised through sales will allow the company to purchase a new robotic application to integrate operations. This will help them save up the cost of training its workers and buying a new app which is costly. These are the techniques I propose the company to follow and address their short term challenges.


The main issue is how this company make changes to its organizational structure to enable the business to thrive in a competitive business environment. The business issue states should the organization make changes to its corporate structure in the rapid changes in its business environment an example can be automation. Regulatory reform is ubiquitous in today's world as organization structures especially in the IT sector struggle to adopt in this dwindling global economic environment. The management functions that the company should employ is ensuring they automate their operations such as automating the ordering process, delivery process, supplier management, and inventory management. They should use software like Electronic Data Interchange and Material Requirement Planning for inventory management. The issue of ensuring there are rapid changes to the organization in the business is mainly through providing they automate their operations in crucial areas like inventory management, ordering, and payment process among others.

Defining and Framing the Issue

According to (Krishnan 2017), the main problem with the company is that it has not automated its supply chain operations and this has mainly been due to the following reasons. The cost of developing and deploying new equipment's and systems is high since most of this equipment's will be purchased by the suppliers who will amortize the price. For robotic operations it will even cost way a lot hence this becomes a challenge to them, bearing how robotic applications will be vital in the production process once bought. For instance companies with higher revenue are spending a lot in boosting their operations and they are mainly focused on R&D. The other problem is labor costs (Hitpass, 2019). The cost of hiring experts to come and fix technological applications or some to install some of this software's, moreover even those who will teach employees on how to handle new equipment's is always high, and this becomes a challenge to this company (Hsu, 2017). Labour markets are dynamic systems. The internal environment across are hindering automation include control. The management has not highlighted the need to automate there is a quick and smooth streamlining of operations in the organization since there has not been an effective communication between in those in the senior management, conflicts among employees are another which has made automation challenging to implement and the policies of the company to focus on another developmental issue due to the capital they have (Parthasarthy, 2012). Some of the external factors which have made implementation of automaton difficult include economic factors where variations in economic cycles has brought about the inadequate availability of capital that can be used in the automation process, (Oswald, 2017), labor costs have also made the process of automation difficult is you will need to hire experts to install systems software's to and teach employee n how to handle them as well as purchasing the stock which will be rather expensive hence the company will result in procrastinating the automation process. The other thing that is making labor costs derail automation is the management is relying solely on new labor workers currently in the market who lack the skills of handling IT operation in the company. High turnover rate is another glaring problem delaying automation, and the reason for the significant percentage turnover rate is that employees are doing the same activity al through and they are not getting any challenge nor motivation hence resulting in them not getting satisfaction, therefore compelling them to work for a different place. The final problem is competition, and since rival companies surround the company this, they might find it very hard to fit in the rapidly growing business environment.

Addressing the Issue

According to (Sandberg, 2019), in order to address some of the underlying issues noted on company will address the issue on cost through ensuring they will have proper budget plans that will incorporate the ideas they have on automation of their operational services and especially supply chain and logistics operations which are very important to some extent they will need to borrow financial institutions to highlight this issue. On costs still they can raise revenue through reducing miscellaneous expenditure and ensure they only incur only reliable expenses which will help to raise capital for purchasing necessary equipment's which will enhance on streamlining the operations of the in the supply chain and logistics sector, since this is a critical process an organization whereby the products need to be transported to distribution points which later carry them to the final consumer, so it is a process that needs to be continuous, and automation will help its effectiveness, having equipment's like RFIP, ERP, MRP, EDI will help enhance on excellent service delivery alongside robotics which will in the production stages as opposed to human workforce. Labor costs will be addressed once the company trains its employees on how to handle the equipment's and robotic machines, instead of outsourcing labor from other organizations who hike the prices. Since we are in the 21 century, the company should consider having a new pool of employees like highly skilled engineers, technical and manufacturing staffs who will bring a revolution on how business is conducted in the IT sector. High turnover rate will be addressed automatically one we automate our processes and reduce a lot of manual and, and this will make the employees have a challenge, and this will increase employee satisfaction and retention as well. If the political environment is peaceful business will thrive, for economic factors if there is a balance in commercial demand and supply, this will enable circulation of working capital which will allow the company to have the financial resources to expand or improve operations in the organization (Smith, 2018). The company should restructure its organization where it should have owners who are willing to invest on innovation as a growth factor in the company to expand on the functionality and products through new product development techniques and most importantly R&D an important component they ought to consider. There should be proper rules and regulation which will benefit the employees. The company can ensure that it is competitive and keeps up to date with the changes in the business environment due to competition through analyzing its key performance indexes which may include sales revenue, customer value, conducting a SWOT analysis and PESTLE analysis to make them cope in the business environment.


According to (Davies,2018), Due to technological advancements the company needs to focus on how it catches with the bigwig companies like Amazon, Microsoft, Apple Inc. who have invested big in ensuring they have automated there production processes and R&D, and this company is not an exception once they decide to embrace R&D during product development and automating supply chain and logistical operations in the company, s they are essential in streamlining the workflow hence leading to more chances of generating revenue. Some of the equipment they can bring include RFID, EDI, ERP, MRP, Supplier Information Management portal, this will help in hastening the whole business operations from production process to the point when the final product will reach the clients the market. The company should have robust techniques that will ensure they thrive in the rapidly growing competitive business environment, through providing they have useful SWOT analysis (Identification of strengths, weaknesses opportunities and threats to the company), PESTLE analysis, assessing the company against Porter's Five forces which include; analyzing the risks of new entrants which may be brought about by government policies like monopoly, product differentiation in the market among others. Explaining the dangers of substitutes, it will be risky if the company does not diversify its production as rival companies will offer alternative products at lower prices and clients will opt for that. The other forces include the bargaining power of clients, Bargaining power of suppliers, and rivalry from competitor companies will necessitate the need to automation and innovation at the company.


According to ,(Kolberg,2015), I would recommend the following to ensure the company is completive and automotive to meet the rapid changes in the business environment; The Company should provide they automate the most natural processes which require less capital investment and provide it saves time during product development, design, logistical and other processes. The second and most important thing to recommend the company for is the must ensure they focus on a specific business function during the automation and that is...

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