If we knew what it was we were doing, it would not be called research, would it?
Why we need the Research
Products and Projects of PRC Institute are noticeable, because of the type of processes that are necessary for the development of this particular investment in their own research. Investing in research is the company’s primary focus. Before investing in research companies can be divided into:
- Companies that produce and / or sell products under the “business of refraction”;
- Companies that produce and / or sell generally improved products or services;
- Companies that produce and / or sell their own developed products or services.
The difference in practice is evident in several segments. We will attempt to explain which direction is the right one and why the world’s largest companies (DuPont, Apple, Google, etc.) are the last in the above mentioned examples and why their success is assured.
Companies producing and /or selling “fracture operations” products
U.S., EU and Asian companies play often in the same role on the world market. They usually carry out “fracture operations”, which means carefully planned production cost where the buyer has often pre-determined purchase price. The difference in production and selling price in such companies is extremely small; these companies are known as producers of products with low added value. Traps in this case are in several areas such as: extremely low profits, which do not allow any flexibility of employee’s personal income; dependence on one or two major customers; problems, also arise with the general costs (electricity, services, etc.); the Machine Park has to be up to update so raising new loans is necessary etc. In case of “fracture operations” the company is also under the “stress” of potential price increase of raw materials, drop rates, currency rates etc.
Most of the important things in the world have been accomplished by people who have kept on trying when there seemed to be no hope at all.
Doing business with such companies typically undertakes production for the same contractor for one or more years in advance, while in the meantime the price of raw materials can increase. This can significantly affect income, which can be avoided with the annual booking purchases of large quantities, which in turn again affects the income.
These businesses are always subjected to the fact that the same product can be made faster, better and cheaper by a third party, so each country is not appropriate environment for the development of such business ventures. In principle buyers are interested in quality and are therefore willing to pay more. Of course a good, long-term relationships as well as regular supplies are necessary but only to the point when a third company gives a better offer and becomes a “serious” competition.
Companies that produce and /or sell generally improved products or services
These businesses produce the so-called “upgraded” fracture operations. In this case the companies have the advantage because they produce a product or a service that already exists on the market but the “old” version with certain deficiencies. A company then decides to launch a new enhanced product so that the company can then be presented as a more advanced company that invented or improved specific technical product with a significant difference-priority improvement.
Wealth is the product of man’s capacity to think.
Due to the product of higher added value these businesses can better manoeuvre within cost in relation to the final sale price. It is still necessary to sell the product. Stronger companies have usually their own development department, with established sales network and are known for always improving range of their products or services and remain step ahead of the competition.
We also have a number of new companies with new (improved) products, which are often misunderstood on the market or are not explored enough. Although their success is depended on serious impacts or other factors, such as lack of knowledge of sales networks, bad decision of selling direction, poor strategy, insufficient start-up capital, etc.
In the production of improved products, especially new companies forget that each product be “fine-tuned” down to the last detail. In order to make it to production, which is cheap and easy, a big issue of large quantities still remains unexplored.
Such companies also often forget the durability of new product development and the difference between an established experimental model and standardized industrial manufacture. The difference is big; such type of business often leads to financial collapse. The link between price and optimal production is one of the most important key factors. Only a few companies are properly equipped and effectively designed because it takes a lot of knowledge and financial knowledge.
In such transactions companies use the available data such as: where to sell, what are the general sales statistics, what is the profit of the competitive-successful company, what are the reactions of the market to a competitive sale, etc. A business plan is then created but in most cases these plans lack information or further facts and with lack of understanding of the market these companies usually fail. The competitiveness of the market is remarkable and it raises the question – in what way are such companies better than the already established ones with known how. The next question is how a company can be noticed among 40.000 articles, which a modern store carries and sells.
These businesses are always subjected to the fact that the same product can be made faster, better and cheaper by a third party that has a competitive advantage of well-known companies: market knowledge, development of well-defined improvements that the market needs. These are placing the product on the market with established sales channels, run-standardized production, financial support, etc.
Companies that produce and /or sell their own developed products
Such companies are in the forefront on the world market because they are innovative, pervasive and mostly known for entirely new products, based on their own creativity, knowledge and acumen.
The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.
Completely new products or services are the future of Western civilization as they represent the highest added value, which basically provide growth of our civilization and necessary progress of Western society.
All global companies that have invented a kind of “breakthrough” product have developed and expanded on to the world markets over the years. Some of these companies are newer and some over 100 years old and still at the forefront of the world’s most successful companies.
We advocate the thesis that only 5% of inventions that are yet to come have been discovered. Although some believe that everything has already been invented, this is not true! Energy, health care, ecology, etc. are all based on old inventions and we are sure that we could easily prosper with the new industrial revolution.
The advantage of innovative, breakthrough companies is in design and implementation of a completely new product (nanotechnology, scalar energy, biotechnology, plasma pyrolysis systems, novel materials, social projects, etc.), based on research and facts from various fields. Based on our own research and results (some in cooperation with universities), these types of companies manage to obtain completely new knowledge, which can then be used to design a completely unknown, new product. It can also be used to redevelop a well-known product, improve it to such an extent that the product becomes unique e.g. Apple globally. The fact is that such enterprises are completely withdrawn from the crowd, as they tend not only to develop a new product but also produce it to the last detail, almost to perfection. This market is recognized as advantage above expectations.
The added value of the products of these companies is extremely high, they set milestones and their development is always a few steps ahead of the competition. Because companies can only afford to have the best developers, engineers, scientists, industrial designers, marketing specialists, production and marketing strategists that are generally scarce.
The question remains for the development of new, unknown companies because in this “class” is, as we like to call “running in the long run.” A few years of development and investment in research for several years, development in production and sales is much needed. Everything is becoming the development process as the new products on the market so they are not known despite the large initial financial input is required to place on the market, which in practice is the art in its field.
Despite the fact that someone patented the discovery of the world – innovation of any prize, even the Nobel Prize does not mean much. Many extremely interesting projects are left in drawers because heavier processes still lie ahead. The invention itself often is not enough. The key to success is extremely accurate and strategic planning, willingness to sacrifice, a lot of energy and above all persistence. All of this leads to lack of various new businesses that think success will happen “overnight”. Only a few pervasive companies are able to develop entirely new product in less than 3-5 years. The process takes its period so it is necessary to provide strategic planning, exceptional personnel and adequate financial backing.
Success in these cases may be exceptional and world-recognized. Being few steps ahead of the competition and obtaining unique knowledge is crucial for a good basis for further development.
How to Apply Research to the Industry
Each properly completed research or point “A” is the beginning of another process or point “B”, product development, which is prepared for the appearance on the market. Study (depending on the type of research) offers valuable information that can be launched on the market together with the product.
In much of society, research means to investigate something you do not know or understand.
In such cases, the study provides support for the development of new products that are not known on the market. That’s why it is imperative that the research not only provides but also confirms the real advantage of the product.
The research shows us the organization and the accuracy of strategic movements within the development process. The study is among the first to indicate the needs for highly qualified staff, premises, valuable laboratory equipment. This usually means high financial investment. However, the necessity of this step is justified.
After the completion of research the acquired scientific knowledge and information are used to confirm our assumptions about the efficiency of the new product, its performance, capacity and effectiveness of their actual end-use on the market (which niche in the market, who will be the target user, what will the price be based on needs and efficiency, etc.).
With all the information we prepare a complete “story” also called Structural Integrated product or SCPP. Based on the facts we develop the product and together with other elements (graphic design or corporate identity, support elements, etc.) it is then launched on the market.