Wednesday, August 26, 2020
Thorn Queen Chapter Seventeen
Jasmine almost jumped ten feet noticeable all around when I came tearing through the lobby that prompted her phone. ââ¬Å"You!â⬠I shouted. ââ¬Å"You can call water demons.â⬠She broadened her eyes, puzzled for a change. It seemed like I'd intruded on her doingâ⬠¦well, nothing. In an attack of blame, I'd sent a few books down to her to take a break, yet reports from the gatekeepers said she did pretty much nothing yet mope. All things considered, that and attempt to persuade them to allow her to out. I surmise she figured she'd manage Volusian after she got one of the gatekeepers to break. Recuperating herself a second later, she received a scoff suggestive of Ysabel's. Thinking about their common scorn of me, possibly I ought to have sent her down here to engage Jasmine. ââ¬Å"Maybe,â⬠Jasmine yielded. ââ¬Å"Why? Apprehensive I'll utilize them to break out?â⬠ââ¬Å"No,â⬠I said. ââ¬Å"But I need them to dispose of some fire demons.â⬠Roland had revealed to me the most ideal approach to expel the devils would be by bringing their alternate extremes. I'd excused the thought at that point, realizing it was past my capacity. Simultaneously, I'd thought about how conceivable it is that Jasmine could do itâ⬠¦though it had appeared to be a futile assessment considering I'd had no idea to her whereabouts or any motivation to think she'd help me. Be that as it may, presently? Indeed, things were extraordinary. Workmanship's disposition had left me feeling powerless and insufficient. Presently, I abruptly felt as if I had the way to take control and in reality right a few wrongs in this realm. ââ¬Å"So?â⬠Jasmine asked, not appearing to be frightened at all. ââ¬Å"That has nothing to do with me.â⬠ââ¬Å"Not valid. You're going to support me. We're going to confront them and their lord, and you will gather water animals to bring down those demons.â⬠Jasmine's demeanor was practically funny in its skepticism. ââ¬Å"Why would I help you?â⬠I attempted great cop first. ââ¬Å"Because it's the proper activity. They're harming honest people.â⬠ââ¬Å"So? Like I stated, that doesn't influence me.â⬠ââ¬Å"Spoken like the egotistical youngster you are.â⬠She flushed. Thinking of her as fixation on having a child and controlling over the two universes, she didn't care for having her age or capacities taunted. ââ¬Å"I thought you needed to be the sovereign of this land once.â⬠She frowned. ââ¬Å"Yes. Also, I would have been on the off chance that you hadn't taken it!â⬠ââ¬Å"Why? Why be sovereign in the event that you have no expectation of busy? Did you simply need to wear a crown and have individuals grovel?â⬠She didn't recognize that and rather answered stonily, ââ¬Å"I'm not helping you.â⬠I ventured toward the bars, grinning pleasantly, despite the fact that I was going to enter awful cop mode. ââ¬Å"Oh, you are. Regardless of whether you like it or not.â⬠ââ¬Å"What, you're going to constrain me or something?â⬠Very quickly, I had my Glock out and pointing directly at her. She withered and sponsored in a bad spot, looking especially like she needed to dissolve into it. Behind me, I heard a slight rearranging among the gatekeepers. Firearms were an extremely human weapon, made of steel and combinations and different substances that were utter horror to the upper class. They were similarly savage to people or, for Jasmine's situation, half-people. ââ¬Å"You're crazy,â⬠she said. I shrugged. Ãâ¬Å"i have work to do, and you're vital to completing it. You can coordinate, and possibly I'll improve your living game plans. Give you a room rather than a cell.â⬠I could see contemplations and plans turning behind her eyes. Jasmine was youthful, unpracticed, and self-centeredâ⬠¦but she wasn't dumb. I needed to think to some degree brightly that that too was a family characteristic. ââ¬Å"And in the event that I don't do it, you're going to shoot me?â⬠ââ¬Å"Well, everybody says I should slaughter you anyway.â⬠My voice was quiet, my face hard. I didn't have the foggiest idea whether she would trust me or not. For hell's sake, I didn't have the foggiest idea whether I trusted myself. She realized I had little love for her in the wake of all that she'd done, and I'd since quite a while ago had a notoriety for being a merciless warrior and-the same number of nobility saw it-killer. Jasmine gulped. She was attempting to look quiet as well, yet her eyes sold out her. ââ¬Å"How do you realize I won't call them and have them turn on you once my sleeves are off? You realize I can't wear them and still have that sort of power.â⬠I discharged the wellbeing on the firearm, which was as yet pointed at her. ââ¬Å"Because I'll have this on the rear of your head the whole time.â⬠Long quiet fell. Volusian was still to such an extent that I'd almost overlooked he was there. At long last, Jasmine stated, ââ¬Å"I abhor you.â⬠ââ¬Å"Soâ⬠¦that's a yes?â⬠I accepting her quiet as an affirmation and set the firearm aside, returning the security on and feeling somewhat astounded at the beating of my own heart. Had I extremely simply pointed a weapon at a fifteen-year-old young lady? Roland and Kiyo both thought managing enchantment could change the sort of individual you were. Was meddling with lightning and air transforming me into somebody who could without much of a stretch undermine others to get my direction? No, I chose. This had nothing to do with the enchantment. This was need. I expected to remove those fire evil spirits, and this was the best approach to do it. ââ¬Å"Eugenie?â⬠A delicate voice pulled me from my beating feelings. ââ¬Å"Kiyo!â⬠He remained there in the corridor, and I thought about the amount he'd caught. It didn't make a difference. I was simply so madly glad to see him. The largeness in my heart helped, and if there hadn't been such a significant number of witnesses, I would have run into his arms. He looked stunning, wearing human clothing: pants and a plain dark T-shirt that embraced his muscles impeccably. The luxurious dark hair twisted around his jaw, and his skin looked like caramel. In any case, his eyesâ⬠¦his eyes were hard. I gave Jasmine an admonition look. ââ¬Å"We'll talk later.â⬠ââ¬Å"Fuck you, Eugenie,â⬠she called. I grasped Kiyo's hand and strolled back upstairs with him. Seeing him discharged all the apprehensive strain in me that had been developing since the previous evening. I'd been so twisted up, so stressed and apprehensive. Presently, it resembled everything was directly on the planet indeed. The report about the child was challenging for me, however I despite everything needed to praise him. The words were all the rage when we were separated from everyone else, except he talked first. ââ¬Å"Really, Eugenie? This is what it's come to?â⬠My head was as yet jubilant over observing him. ââ¬Å"What do you mean?â⬠He pointed back toward the prison entryway from which we'd recently developed. ââ¬Å"That! I never expected to discover you with a firearm to a high schooler young lady's head.â⬠ââ¬Å"It wasn't actually to her head,â⬠I said. ââ¬Å"And she can assist us with disposing of those evil presences. Regardless of whether she can't bring genuine water devils herself, we both realize she can call other water creatures.â⬠Kiyo and I had fended off whatever animals including one that had gotten us in a trading off situation in his vehicle and almost executed the two of us. ââ¬Å"Those could give us the edge.â⬠ââ¬Å"And on the off chance that she doesn't, you truly are going to murder her?â⬠I murmured and quit strolling, inclining toward one of the woven artwork secured dividers so I could confront him. ââ¬Å"Do you truly figure I'd do that?â⬠ââ¬Å"She assumed you would, and to come clean with you, I sort of did as well. I don't think you understand how frightening you can be.â⬠He remained before me, with little separation among us, and there was an odd blend of sexual science and hostility noticeable all around. ââ¬Å"There's an odd vibe to youâ⬠¦have you been rehearsing magic?â⬠I didn't answer quickly, which was in the same class as an affirmation of blame. The look he gave me was practically more stunned than when he'd suspected I was going to shoot Jasmine. ââ¬Å"A little.â⬠ââ¬Å"A little! Eugenie,â⬠he murmured, inclining close. ââ¬Å"There's no in the middle of with this stuff. You continue doing it, and you're simply going to fall farther and farther down the bunny hole.â⬠I snickered and hurled my arms, signaling to the stronghold. ââ¬Å"I fell into Wonderland quite a while ago.â⬠ââ¬Å"You recognize what I mean. I figured you weren't going to do it any longer. I thought we concurred it was bad.â⬠ââ¬Å"You agreed,â⬠I revised, feeling my own temper begin to rise. ââ¬Å"I got an opportunity to find out additional, and I chose to take it. What's more, similar to I stated, it's just been a little.â⬠ââ¬Å"Learn from who?â⬠he asked dubiously. ââ¬Å"A lady from Dorian's realm. She has some capacity with controlling air and has been telling me the best way to utilize it. I may be very nearly calling lightning too.â⬠before his irate look, there was an impulse to be sheepishâ⬠¦and yet, I felt sort of pleased at what I'd achieved. ââ¬Å"Of course. Dorian. Some way or another, I'm not surprised.â⬠ââ¬Å"Hey, Dorian's been pleasant to me lately.â⬠My resistance of the nobility lord amazed me-as did reality of it. With such a great amount in mayhem as of late, I'd discovered Dorian's essence practically ameliorating. Kiyo feigned exacerbation. ââ¬Å"Yes, and I'm certain he'd love to be more pleasant still. See, you begin putting each one of those supernatural components together, and you will have some genuine force on your hands. You will resemble ââ¬Å" ââ¬Å"Do not state like Storm King!â⬠I cried. ââ¬Å"I wish everybody would simply quit accepting that that is unavoidable. A lot of upper class utilize enchantment without turning out to be domineering warlords. Give me some credit here.â⬠ââ¬Å"I'm simply stressed over you,â⬠he snarled. ââ¬Å"And do you realize what I'm stressed over? I'm stressed over individuals starving here, about individuals not getting enough water. I'm stressed over scoundrels and evil spirits going after honest people. I'm stressed over young ladies vanishing and potentially being stole by the individuals who face no responsibility. And the entirety of this is on attempting to at present carry on with my human life and keep each goddamned Otherworldly person out of my jeans. So don't come here and begin directing to me. You're never near. You have no clue about what I'm going through!â⬠I was yelling, and it was
Saturday, August 22, 2020
Background of Saudi Aramco Essays
Foundation of Saudi Aramco Essays Foundation of Saudi Aramco Essay Foundation of Saudi Aramco Essay The narrative of Aramcoââ¬â¢s beginnings and the excursion the organization has taken to turn into the biggest oil organization on the planet is as momentous as the excursion that has carried Saudi Arabia to its present remaining in the network of countries. Aramco is an organization portrayed by flexibility and the mental fortitude to make intense strides that have made it a key player in worldwide vitality security (Saudi Aramco 2012). The excursion of the organization is attached to the change the Kingdom of Saudi Arabia has experienced to turn into a cutting edge country state and a key player in the geopolitical circle of the Arab world as well as all inclusive. Having started as only an oil creating organizations that was the same as different organizations in the business at that point, Aramco has consistently developed to turn into the completely incorporated worldwide vitality endeavor that it is today with associations spreading to different pieces of the world including Asia, Europe and North America (Saudi Aramco 2012). Aramcoââ¬â¢s venture started with the marking of an oil concession concurrence with the Standard Oil Company of California on May 29, 1933 which cleared route for the start of airborne overviews the next year. In 1935, the principal oil all around was bored and another wharf was raised at al-Khobar when progressively demonstrated oil finds were situated in Bahrain, Iraq and Persia. In 1936, the Texas Co. made a half procurement of the concession and propelled tasks in Bahrain. By 1939, different wells had been bored and just because, an oil big hauler shipped the main heap of oil from Saudi Arabia. Aramco was authoritatively en route to turning into the enterprise it is today (Saudi Aramco 2012). By the start of the 1940s, the organization was delivering around 15,000 bpd and its workforce had developed to almost 4,000. 1940 started with the disclosure of the Abqaiq oil field yet during the early long stretches of the 1940s, the organization confronted a few challenges including the conclusion of its processing plant at Ras Tanura in 1941 and suspension of field mapping in 1942. 1943 saw development of advancement in the oil and gas industry because of the deficiencies occasioned by the World War II and Casoc was renamed Aramco in 1944 with home office in San Francisco and an astounding excursion of surprising development started. Starting at 1949, Aramco had expanded its profitability to 500,000 bpd. In 1946, the organization appointed its organization working in Dhahran and the decade finished with the fruition of the Trans-Arabian Pipeline empowering Saudi Arabia to send out its oil through the Mediterranean Sea (Saudi Aramco 2012). In 1951, the Safaniya seaward oil field was found and the next year, Aramco moved its base camp to Dhahran. In 1954, the companyââ¬â¢s creation arrived at 1 million bpd changing Aramco into an oil creation powerhouse (Saudi Aramco 2012). Investigation work at Rubââ¬â¢ al-Khali started in 1955 and by 1958; the companyââ¬â¢s creation had topped 1 million bpd. The end of the 1950ââ¬â¢s saw two Saudi nationals joining Aramco board as more Saudis expected administrative situations inside the organization. In 1961, the organization hit one more achievement when it sent out condensed gas from its Ras Tanura office just because. By 1962, creation of unrefined petroleum had hit the 5 billion barrels mark and the next year, the organization licensed its oil improving innovation. In 1965, Aramcoââ¬â¢s oil creation arrived at 2 million bpd and the revelation of the Shaybah oil field additionally helped the companyââ¬â¢s profitability. The organization shut the decade with the authorizing of a seaward gas-oil partition plant at the Safaniya oil field, the first of its sort in the historical backdrop of Aramco (Saudi Aramco 2012). Photograph 2: Aramcoââ¬â¢s first seaward gas-oil partition plant at the Safaniya oil field commisioned in 1969 [Source: Aramco] During the 1970s, the Saudi Government started the securing procedure planned for changing Aramco into a completely government possessed organization or a national oil partnership (NOC). It is 10 years that would observer quick development in the oil and gas industry as Aramco was working three of the biggest oil and gas extends on the planet (Saudi Aramco 2012). The organization had formally started to lead the pack in oil and gas creation and assumed its legitimate position in the worldwide vitality security scene. In 1973, the Government gained a 25% stake in Aramco followed by a further securing of 35% in 1974 bringing the Governmentââ¬â¢s responsibility for Aramco to 60%. That year, the Juââ¬â¢aymah seaward unrefined petroleum terminal was commisioned and in 1976, Aramco turned into the primary oil organization on the planet to arrive at a yield of 3 billion barrels in a single year, a fete that had not been achived by some other organization (Saudi Aramco 2012). In 1980, the Saudi Government finished securing of the staying 40% responsibility for however the decrease in oil costs would compel the organization to rethinkk its procedure (Saudi Aramco 2012). At this point, the governemt possessed 100% stake at Aramco and notwithstanding the hardships in the worldwide oil advertise, Aramco made critical steps. For instance, the Exploration and Petroleum Engineering Center (EXPEC) was opened in 1983. Having completely gained the organization, the Saudi Government changed Aramco into Saudi Arabian Oil Company (Saudi Aramco) and in 1989, the organization discovered oil at Hawtah denoting the start of 10 years that would observer enormous creation and interest in the oil and gas industry (Saudi Aramco 2012). Picture 3: Aramcoââ¬â¢s Operations Coordination Center, the biggest of its sort in the Oil and Gas industry [Source: Aramco] Aramco started its development technique decisively with the 1991 securing of a 35% stake in S-petroleum processing plant and harbor, Onsan, Republic of Korea (Saudi Aramco 2012). The next year, the companyââ¬â¢s investigation endeavors yielded disclosure of oil in the focal piece of the nation having bored its first well at Midyan. In 1993, Aramcoââ¬â¢s merger with Samarec was finished and the next year, Aramco gained a 40% stake in Petron, an organization situated in the Philippines and in 1996, Aramco entered its first European joint endeavor. In 1999, the organization finished the repair of the Ras Tanura treatment facility before opening a Research Development Center (RDC) to lead advancement in the oil and gas part (Saudi Aramco 2012). Picture 4: Refurbished and redesigned Ras Tanura treatment facility [Source: Aramco] During the 2000s, Aramco set up organizations with different worldwide organizations with center around gas creation just as licensing of innovation created by the companyââ¬â¢s RDC. On this, Aramco set out on the biggest capital extension in the companyââ¬â¢s history planned for guaranteeing solidness and dependability. To this end, the organization authorized Hawiyah gas plant in 2001 and in the next year, Aramco procured Texacoââ¬â¢s stake in Motiva (Saudi Aramco 2012). This was trailed by the opening of the Haradh gas plant in 2003 preceding further development designs in 2004 prompted rge acquiition of stake in Showa Shell which empowered the organization to raise its yield by a further 800 thousand bpd. In 2005, Aramco went into a joint endeavor with Sumitomo Chemical Company. 2007 saw Aramco go into one more value adventure, this time in China with the Fujian Refining and Petrochemical Co. Ltd. In 2008, Aramco praised its 75th year in the oil and gas industry and the next year, the organization finished its extension program raising its ability to 12 million bpd (Saudi Aramco 2012) yet with real creation averaging 9. 1 million bpd in 2011.
Thursday, August 13, 2020
Research and Development (RD)
Research and Development (RD) Companies often spend resources on certain investigative undertakings in an effort to make discoveries that can help develop new products or way of doing things or work towards enhancing pre-existing products or processes. These activities come under the Research and Development (RD) umbrella.RD is an important means for achieving future growth and maintaining a relevant product in the market. There is a misconception that RD is the domain of high tech technology firms or the big pharmaceutical companies. In fact, most established consumer goods companies dedicate a significant part of their resources towards developing new versions of products or improving existing designs. However, where most other firms may only spend less than 5 percent of their revenue on research, industries such as pharmaceutical, software or high technology products need to spend significantly given the nature of their products. © Shutterstock.com | Alexander RathsIn this article, we look at 1) types of RD, 2) understanding similar terminology, 3) making the RD decision, 4) basic RD process, 5) creating an effective RD process, 6) advantages of RD, and 7) RD challenges.TYPES OF RDA US government agency, the National Science Foundation defines three types of RD.Basic ResearchWhen research aims to understand a subject matter more completely and build on the body of knowledge relating to it, then it falls in the basic research category. This research does not have much practical or commercial application. The findings of such research may often be of potential interest to a companyApplied ResearchApplied research has more specific and directed objectives. This type of research aims to determine methods to address a specific customer/industry need or requirement. These investigations are all focused on specific commercial objectives regarding products or processes.DevelopmentDevelopment is when findings of a r esearch are utilized for the production of specific products including materials, systems and methods. Design and development of prototypes and processes are also part of this area. A vital differentiation at this point is between development and engineering or manufacturing. Development is research that generates requisite knowledge and designs for production and converts these into prototypes. Engineering is utilization of these plans and research to produce commercial products.UNDERSTANDING SIMILAR TERMINOLOGYThere are a number of terms that are often used interchangeably. Thought there is often overlap in all of these processes, there still remains a considerable difference in what they represent. This is why it is important to understand these differences.RDThe creation of new body of knowledge about existing products or processes, or the creation of an entirely new product is called RD. This is systematic creative work, and the resulting new knowledge is then used to formulat e new materials or entire new products as well as to alter and improve existing onesInnovationInnovation includes either of two events or a combination of both of them. These are either the exploitation of a new market opportunity or the development and subsequent marketing of a technical invention. A technical invention with no demand will not be an innovation.New Product DevelopmentThis is a management or business term where there is some change in the appearance, materials or marketing of a product but no new invention. It is basically the conversion of a market need or opportunity into a new product or a product upgradeDesignWhen an idea is turned into information which can lead to a new product then it is called design. This term is interpreted differently from country to country and varies between analytical marketing approaches to a more creative process.Product DesignMisleadingly thought of as the superficial appearance of a product, product design actually encompasses a lot more. It is a cross functional process that includes market research, technical research, design of a concept, prototype creation, final product creation and launch. Usually, this is the refinement of an existing product rather than a new product.MAKING THE RD DECISIONInvestment in RD can be extensive and a long term commitment. Often, the required knowledge already exists and can be acquired for a price. Before committing to investment in RD, a company needs to analyze whether it makes more sense to produce their own knowledge base or acquire existing work. The influence of the following factors can help make this decision.ProprietarinessIf the nature of the research is such that it can be protected through patents or non-disclosure agreements, then this research becomes the sole property of the company undertaking it and becomes much more valuable. Patents can allow a company several years of a head start to maximize profits and cement its position in the market. This sort of sit uation justifies the cost of the RD process. On the other hand, if the research cannot be protected, then it may be easily copied by a competitor with little or no monetary expense. In this case, it may be a good idea to acquire research.TimingSetting up a RD wing only makes sense if the market growth rate is slow or relatively moderate. In a fast paced environment, competitors may rush ahead before research has been completed, making the entire process useless.RiskBecause of its nature, RD is not always a guaranteed success commercially. In this regard, it may be desirable to acquire the required research to convert it into necessary marketable products. There is significantly less risk in acquisition as there may be an opportunity to test the technology out before formally purchasing anything.CostConsidering the long term potential success of a product, acquiring technology is less risky but more costly than generating own research. This is because license fees or royalties may ne ed to be paid and there may even be an arrangement that requires payments tied to sales figures and may continue for as long as the license period. There is also the danger of geographical limitations or other restrictive caveats. In addition, if the technology changes mid license, all the investment will become a sunk cost. Setting up RD has its own costs associated with it. There needs to be massive initial investment that leads to negative cash flow for a long time. But it does protect the company from the rest of the limitations of acquiring research.All these aspects need to be carefully assessed and a pros vs. cons assessment needs to be conducted before the make or buy decision is finalized.BASIC RD PROCESSThe RD may take months or years to yield fruitful results. Manufacturers of a variety of products utilize this process for new product development and innovation. Though each company or industry may have its own unique research methodology, a basic research process will for m the framework for it. Foster IdeasAt this point the research team may sit down to brainstorm. The discussion may start with an understanding and itemization of the issues faced in their particular industry and then narrowed down to important or core areas of opportunity or concern.Focus IdeasThe initial pool of ideas is vast and may be generic. The team will then sift through these and locate ideas with potential or those that do not have insurmountable limitations. At this point the team may look into existing products and assess how original a new idea is and how well it can be developed.Develop IdeasOnce an idea has been thoroughly researched, it may be combined with a market survey to assess market readiness. Ideas with true potential are once again narrowed down and the process of turning research into a marketable commodity begins.Prototypes and TrialsResearchers may work closely with product developers to understand and agree on how an idea may be turned into a practical product. As the process ite rates, the prototype complexity may start to increase and issues such as mass production and sales tactics may begin to enter the process.Regulatory, Marketing Product Development ActivitiesAs the product takes shape, the process that began with RD divides into relevant areas necessary to bring the research product to the market. Regulatory aspects are assessed and work begins to meet all the criteria for approvals and launch. The marketing function begins developing strategies and preparing their materials while sales, pricing and distribution are also planned for.LaunchThe product that started as a research question will now be ready for its biggest test, the introduction to the market. The evaluation of the product continues at this stage and beyond, eventually leading to possible re-designs if needed. At any point in this process the idea may be abandoned. Its feasibility may be questioned or the research may not reveal what the business hoped for. It is therefore important to analyze each idea critically at every stage and not become emotionally invested in anything.CREATING AN EFFECTIVE RD PROCESSA formal RD function adds great value to any organization. It can significantly contribute towards organizational growth and sustained market share. However, all business may not have the necessary resources to set up such a function. In such cases, or in organizations where a formal RD function is not really required, it is a good idea to foster an RD mindset. When all employees are encouraged to think creatively and with a research oriented thought process, they all feel invested in the business and there will be the possibility of innovation and unique ideas and solutions. This mindset can be slowly inculcated within the company by following the steps mentioned below.Assess Customer NeedsIt is a good idea to regularly scan and assess the market and identify whether the companyâs offering is doing well or if it is in trouble. If it is successful, encourage employees to identify reasons for success so that these can then be used as benchmarks or best practices. If the product is not doing well, then encourage teams to research reasons why. Perhaps a competitor is offering a better solution or perhaps the product cannot meet the customerâs needs effectively.Identify ObjectivesAllow your employees to see clearly what the business objectives are. The end goal for a commercial enterprise is to enhance profits. If this is the case, then all research the employees engage in should focus on reaching this goal while fulfilling a customer need.Define and Design ProcessesA definite project management process helps keep formal and informal research programs on schedule. Realistic goals and targets help focus the process and ensures that relevant and realistic timelines are decided upon.Create a TeamA team may need to be created if a specific project is on the agenda. This team should be cross functional and will be able to work towards a speci fic goal in a systematic manner. If the surrounding organizational environment also has a research mindset then they will be better prepared and suited to assist the core team when ever needed.OutsourceWhenever needed, it may be a good idea to outsource research projects. Universities and specific research organizations can help achieve research objectives that may not be manageable within a limited organizational budget.ADVANTAGES OF RDThough setting up an RD function is not an easy task by any means, it has its unique advantages for the organization. These include the following.Tax breaksResearch and Development expenses are often tax deductible. This depends on the country of operations of course but a significant write-off can be a great way to offset large initial investments. But it is important to understand what kind of research activities are deductible and which ones are not. Generally, things like market research or an assessment of historical information are not deductib le.CostsA company can use research to identify leaner and more cost effective means of manufacturing. This reduction in cost can either help provide a more reasonably priced product to the customer or increase the profit margin.FinancingWhen an investor sets out to put their resources into any company, they tend to prefer those who can become market leaders and innovate constantly. An effective RD function goes a long way in helping to achieve these objectives for a company. Investors see this as a proactive approach to business and they may end up financing the costs associated with maintaining this RD function.RecruitmentTop talent is also attracted to innovative companies doing exciting things. With a successful Research and Development function, qualified candidates will be excited to join the company.PatentsThrough RD based developments, companies can acquire patents for their products. These can help them gain market advantage and cement their position in the industry. This on e time product development can lead to long term profits.RD CHALLENGESRD also has many challenges associated with it. These may include the following.High CostsInitial setup costs as well as continued investment are necessary to keep research work cutting edge and relevant. Not all companies may find it feasible to continue this expenditure.Increased TimescalesOnce a commitment to RD is made, it may take many years for the actual product to reach the market and a number of years will be filled with no return on continued heavy investment.Uncertain ResultsNot all research that is undertaken yields results. Many ideas and solutions are scrapped midway and work has to start from the beginning.Market ConditionsThere is always the danger that a significant new invention or innovation will render years of research obsolete and create setbacks in the industry with competitors becoming front runners for the customerâs business.It is important for any business to understand the advantages and disadvantages of engaging in Research and Development activities. Once these are studied, then the step can be taken towards becoming and RD organization.In the meanwhile, it is good practice to inculcate a research mind set and research oriented thinking within all employees, no matter what their functional area of expertise. This will help bring about new ideas, new solutions and an innovative way of approaching all business problems, whether small or large.
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