Investing in Product Engineering - Increase Revenue and Decrease Cost

This IDC Perspective explores the correlation between the cost of R&D, cost of goods sold, and revenue growth for almost 1,000 discrete product manufacturers across five industries. A strong correlation has been identified where higher engineering costs results in lower production costs (higher gross profits) and higher revenue growth. While the precise nature of this cause-effect relationship is beyond the scope of this document, there is enough evidence to provide specific recommendations for technology customers, vendors, and consultants."Investing in engineering and R&D isn't just a cost, it's a strategic lever for financial success and market competitiveness. As manufacturers face increased competition and production costs escalate, it is important for them to invest in engineering and R&D, with an eye toward driving both revenue and profits," said John Snow, research director, Product Innovation Strategies at IDC.