The Challenge of Commercialising R&D in Big Corporations

THE TOUGH LIFE OF BUILDING A PRODUCT

Lessons from My Experience

I sat in my office, reading an email from a colleague at one of our partner organisations.

It was a familiar story.

Their R&D division had spent years developing a product they were convinced would change the game, only for the product team to shelve it in favour of a faster-to-market solution from an external partner.

As someone who has spent years working in and with R&D organisations, I felt a pang of sympathy.

Yet, I also understood the product team’s perspective.

It’s a tug-of-war I’ve seen too many times — one that often ends with bruised egos and strained relationships.

The Slow Pace of R&D

Let me take you back to my days leading an R&D division.

We prided ourselves on our innovative projects, tackling cutting-edge technology that pushed boundaries.

But there was a catch: innovation takes time.

In an ideal world, we could refine our ideas, test them thoroughly, and ensure they were market-ready before launch.

But the market doesn’t wait.

I remember a heated discussion during one project review. The product team was growing increasingly frustrated with our timeline.

“Dr. Mazlan,” they said, “we can’t wait another 18 months. Our competitors are already rolling out similar solutions. What’s the point of perfection if we’re late to the party?”

I understood their frustration, but I also believed in the importance of doing things right. “If we rush,” I countered, “we risk launching a flawed product that damages the company’s reputation. We need time to get this right.”

Despite my reasoning, the gap between R&D’s timeline and the product team’s urgency grew wider.

And the result?

They brought in an external vendor to deliver a quicker solution.

R&D for Publications, Not Products

Another issue I’ve observed is the focus on publications rather than practical solutions.

Don’t get me wrong — publishing research is important.

It showcases expertise and enhances the organisation’s reputation.

But when the primary goal of an R&D team is to publish papers, the end product often becomes secondary.

I’ve seen brilliant engineers and researchers produce groundbreaking work that earned accolades in journals but had little to no commercial viability.

I once asked a colleague, “Why aren’t we aligning our research with customer needs?”

He smiled and said, “Dr. Mazlan, publications are what we’re measured on. Commercialisation is the product team’s problem.”

That statement hit me hard.

If the R&D division isn’t focused on solving real-world problems, how can we expect their work to translate into products that sell?

Misaligned with Customer Needs

I’ve lost count of how many times I’ve seen products fail because they didn’t address real customer problems.

It’s a classic mistake: assuming we know what customers want without actually engaging with them.

I have known a company that had spent millions developing an IoT device. They were confident it would revolutionise the market.

When I asked how they had validated the concept with customers, their response was telling: “We didn’t. The technology speaks for itself.”

When the product launched, sales were abysmal. It turned out the device was too complex for the target audience, and the features they had spent years perfecting weren’t even priorities for their customers.

Reflecting on that experience, I realised how vital it is to involve customers early and often.

Yet, in many R&D teams, there’s a reluctance to do so.

Perhaps it’s fear of criticism or an overconfidence in their expertise.

Either way, the result is the same: products that miss the mark.

The Strain Between R&D and Product Teams

The friction between R&D and product teams is almost inevitable in such scenarios.

The product team has a clear mandate: deliver solutions that generate revenue.

When R&D timelines don’t align with market demands, the product team often looks elsewhere.

I remember a particularly tense meeting where the product head said, “We appreciate the work R&D is doing, but we can’t afford to wait. Our survival depends on getting something out the door now.”

The R&D team felt betrayed. “We’ve been working on this for years,” one researcher said. “Now you’re telling us it’s not good enough? Why didn’t you involve us earlier if time was such a concern?”

Both sides had valid points, but the damage was done.

The R&D team felt unappreciated, while the product team saw them as out of touch.

Bridging the Gap

Over the years, I’ve come to believe that the solution lies in better integration between R&D and product teams.

Here are a few approaches that have worked in my experience:

1. Early Collaboration: Bringing product and R&D teams together from the start can help align goals. When both sides understand the market realities and technological possibilities, they can co-create solutions that are both innovative and practical.
2. Customer-Centric Approach: R&D teams should be encouraged to engage directly with customers. This doesn’t mean abandoning research but rather ensuring it’s grounded in real-world needs.
3. Flexible Metrics: Instead of measuring R&D solely on publications, companies should include metrics related to commercial impact. This can motivate teams to focus on creating market-ready solutions.
4. Leveraging External Partnerships: While it’s ideal to commercialise in-house R&D, external partnerships can sometimes be the best option. The key is ensuring these partnerships are seen as complementary rather than competitive.

A New Mindset

One of the most important lessons I’ve learned is that success requires a mindset shift.

R&D teams need to see themselves as partners in the commercialisation process, not just creators of technology.

At the same time, product teams must recognise the value of R&D’s long-term contributions.

As I reflect on my own journey, I’m reminded of a project where we managed to get it right.

By involving the product team and customers early, we developed a solution that was both innovative and market-ready.

It wasn’t perfect, but it met the needs of the market — and that was enough.

I still believe in the power of R&D to drive innovation, but I also know that innovation must be paired with practicality.

It’s not an easy balance to strike, but when it works, the results can be transformative.

As I finished reading the email, I decided to share my thoughts with the sender. “I understand your frustration,” I wrote. “But perhaps this is an opportunity to reimagine how your teams collaborate. It’s not about choosing between R&D and product — it’s about finding a way to make them work together.”

It’s a lesson I’ve learned the hard way, and one I hope others can learn without the same struggles.