Here are some basic sources of knowledge that help in better research and development (R&D) practices within small and medium-sized enterprises (SMEs).
Customer knowledge – Being aware of customers’ needs and their opinion of the business might enable the company to develop mutual beneficial knowledge and build relationships with customers by inquiring about their future requirements and discussing the products or services that would meet their needs.
Employee and supplier perspectives – “Asking employees and suppliers for their opinions” is a vital matter since this could provide a different perspective on performance. Formal surveys could be employed to gather this knowledge or this could be done on a more informal basis where they are required to share their views.
Market knowledge - Tracking developments in one’s business field and sector is not to be neglected. This could be done by posing certain questions: Are we tracking the performance of our competitors? How are they acting? Do we know the new entrants to the market?
Business environment - The business may be at any time affected by several external factors. Politics is one of these factors; the economy, technology, society and the environment could all affect business development, so one needs to remain informed. Setting up one employee to monitor and report on changes in one’s personal business sector is advisable.
Associations and trade bodies’ publications – Following business publications, academic publications, and government publications is required. Obtaining one’s own copy of any issued report from the body of research would suffice—in addition to browsing through trade and technical magazines.
Exhibitions and conferences – These two options provide an easy way of getting enough information of what is going around in the market.
Specific product research and development - Scientific and technical research and development can be a vital source of knowledge that can help start up new products – yet retaining one’s competitive edge.
Organizational memory – One caution is to be careful not to lose the skills or experience the personal business builds up. Formal ways of sharing employees' knowledge about the best ways of doing things is an essential feat. For example, procedural guidance based on the businessman/woman’s best practices could be built.
Non-executive directors - These could be an effective way to bring specialized industry experience on board and benefit from ready-made contracts.