At Innoplexus, being an AI and data first company, we have been investing heavily in R&D and there has been an ongoing debate on how much is enough. I keep reading on the the topic and today I came across this excellent article in HBR which makes the case clear for higher R&D investment for Digital companies. Here is the link – https://hbr.org/2019/01/its-time-to-stop-treating-rd-as-a-discretionary-expenditure
Here are the key insights:
- R&D is an economically significant expense for digital companies, much larger than for physical product companies.
- A large component of R&D costs for digital companies consists of employee costs for engineering, product management, and information technology personnel.
- Digital companies consider product development as a necessary activity to survive. Digital companies must invest in product development to keep pace with the technological progress, competitive offerings, and ever-increasing customer expectations, or fear becoming obsolete in no time.
- Digital companies routinely rely on third-party software, algorithms, development tools, cloud services, security and data integrity systems, client monitoring, customer databases, and cross-selling platforms for their day-to-day operations.
- Digital companies continuously scout for acquisition targets to obtain readymade R&D and talent teams.
Thanks alot to the authors – Vijay Govindarajan, Shivaram Rajgopal, Anup Srivastava, Luminita Enache – for conducting this investigation and sharing the insights.
Meet me at National Workshop on Artificial Intelligence in Indian Institute of Science Education and Research (IISER) Pune – happening on 12th Jan 2019.
This National Workshop on Artificial Intelligence is organized by Srijan.
“SRIJAN” is a non- government organization (NGO) working in the field of entrepreneurship development, industry-institute interaction and technology transfer. Srijan aims at providing motivation, guidance and mentoring for the aspiring entrepreneurs with a specific focus on the students of engineering. Srijan was established in 1996.
Mr.Abhay Jere Chief innovation officer, Ministry of HRD, Govt. of India will inaugurate the workshop.
I will be talking about “Building the Foundations of AI” covering what one needs to build such systems, what kind of challenges one must prepare to face and how to combine different pieces of technologies like Deep Learning, Computer Vision, Natural Language Processing, Ontologies, Big Data to get Artificial Intelligence into action.
Date: 12th January 2019
Time: 09:00 AM – 06:00 PM
Venue: Lecture Hall Complex, Indian Institute of Science Education and Research (IISER), Dr. Homi Bhabha Road, Ward No. 8, NCL Colony, Pashan, Pune, Maharashtra 411008 ( Google maps link: https://goo.gl/maps/DQ5YNtGibPm )
Here is a short video on the same.