Research and development is one of the key to future of any field. Discovery of the fire was also a part of research and development which started from the ancient times. When we raise the word R&D, we often think and get the meaning that it relates to the field of science and doctors followed with pharmacy business. The only difference with the past and the present is that research and development have taken new modifications with the changing times.
In today’s world innovation we all know that research and development plays a powerful potential to develop and grow the business. In the era of globalization research and development plays a momentous role even replacing the role played by top corporate honchos and management gurus. Since without research and development the future of business will come to any end resulting no place for the management honchos to enjoy the premium business growths.
Like wise each profession whether it belongs to the profession of doctors, lawyers, engineering, architecture or any profession research and development plays an invisible role of modification and growth for the future development of the profession.
Cost Accountants profession which deals with one of the most intricate field of cost management and cost control followed with strategic cost management needs a high volume of research and development .Now before I proceed further I would like to bring forth few glimpses of the cost management applied during the 2nd greatest recession after 1930.Please don’t get board and stop reading this article and move to something else. The hidden treasure lies from here.
During recession times we witnessed that the whole world went for strategic cost management. Strategic cost management aims to optimize costs rather than minimize them. Take a really important business activity for many manufacturers and service businesses – research & development. While R&D costs might seem like an easy target for cutting, the innovation that they might provide for the business could give it a long-term competitive advantage. The best strategic response is to take care before blindly cutting an R&D programme. Another good place to look for examples of cost optimization rather than cost minimization is the IT function in businesses. This is what you mean by strategic cost management.
But how strategic cost management came into evolution after only cost management. That is the birth given by research and development. I hope now one is clear that if no research and development have been applied to cost management profession then strategic cost management techniques would not have evolved and resulting to blind cost control mechanism applied to fight out recession times.
We all know that research and development plays a crucial role in doctors and pharmaceuticals business. Since with the innovation of medicines today we are able to live long and get capsules to work longer and handle work load. Likewise cost management is the medicine for the today’s globalised competitive market particularly after recession.
As competition and global economy have become challenging the role of cost management becomes a complicated and mandatory part for the business process. Professional research development in the cost management profession have helped the hospital industry, clinical services, education sector, water irrigation facilities have now being developed in remote rural areas by private sector due to efficient cost management strategies. Now my readers my be bit frowned at me since I did not use any technical terms or gave elaborate description of the various technical aspects of the areas covered by me. I did this only to make the lame man understand the simple things without getting it complicated. If I use management jargons then the article might get a very cool sophisticated cost management article but not an blind man’s language.
We should all appreciate that making the lucid is the role of Cost Management. Cost Management simplifies things which are complicated.
Efficient cost management is now helping the Indian villages to develop and grow and become a part of every resources being developed and shared by the world. Today even a farmer from a small remote village uses a mobile and feels comfortable to pay bills due to efficient cost structure designed by the telecom industry. With the help of cost management distance is no longer a problem. Farmers and remote villages are now getting connected with the urban developments through efficient use of technology. That technology is designed in such a way that it becomes cheap for them to use. This cheap pricing is developed through cost management and that cost is developed through rigorous research and development.
Research and developments have made Indian pharmacy business to produce cheap and competitive life savings drugs. I remember many situations when many poor and middle class family people were unable to afford medicines which were costly. The prime reason was high price as most of the drugs were imported from overseas. Today India produces those drugs at home in cheap price regime with the judious use of strategic cost management. If their have been no R&D in cost management profession then still today life’s should have been lost due to high prices of drugs. Thanks to cost management and its never ending R&D.
Today India dreams to become a developed economy. It does not want to be recognized as third world country. We are proud to say that today is on the tope of investments table of every nation across the world. We are recognized as a country which will save the other nations by doing investments in our country. Cost management plays the most important role. If a farmer feeds us, if a doctor saves our life, if a lawyer provided justice then cost accountants helps to develop cost management and helps the entire nations through its expertise knowhow of strategic cost management. One of the finest examples where we can find the demand as well as the new cost management strategies is that today cost management is not centered to manufacturing/production house.
We have spread our knowledge to every corner which will bring new growth and opportunities to compete with the world. Inclusive growth will come only through efficient use of cost management techniques.What we need in future is to explore new concepts and themes where cost management will play a bigger for cos