An ERP system is a software solution that links all areas of a company and covers all areas of the organization. data on a single platform. It is used to optimize the management of business processes and resources. These include, for example, capital, personnel and operating resources, but also intangible resources such as knowledge gained through research and development (R&D). For holistic enterprise resource planning, it is therefore important that all information on developments and processes in the company’s internal research is available at all times.

Tasks of the Research and Development division

Companies must invest in research and development in order to remain competitive. Their aim is to develop innovative products and technologies that help to increase sales or production. Although research is often cost-intensive, if the results are usable, they ensure the maintenance and future viability of a company. VU projects can be divided into four activities or phases:

  • Basic research
  • Technology development
  • Pre-development
  • Product and process development

In addition, research is used for quality assurance and error management.

Integration of the VU into an ERP solution

An ERP system should also be able to map research and development in order to optimally exploit all of a company’s potential. Research works with a wide range of different data. In order for research and development processes to run smoothly, the data must be managed in a clear and structured manner.

This is ensured by an ERP solution. Ideally, it has an embedded document management system that facilitates the integrated management of any file formats and system calls. The integration of the VU into the ERP system naturally presupposes that the company in question has such an area.

This is often not the case for small companies. ERP solutions for SMEs therefore usually consist of basic software that can be individually adapted to the respective needs using modules.

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FAQ on research and development

What is research and development?

Research and development refers to systematic and creative activities with which new knowledge is created and new products, processes or services are developed on the basis of this knowledge.

Which sub-areas belong to research and development?

Typically, R&D is divided into basic research (expansion of knowledge without direct application), applied research (targeted investigation with practical use) and experimental development (implementation of research results in marketable products or processes).

Why is research and development important for companies?

Research and development help companies to develop technologically, secure competitive advantages and introduce innovative products or processes. R&D activities thus make a decisive contribution to long-term competitiveness and growth.

How is research and development typically financed and managed?

R&D activities require investment in personnel, materials and infrastructure, are often risky and must be strategically planned and documented. Companies regularly carry out R&D projects with fixed budgets, milestones and evaluation.

How is research and development linked to an ERP system?

R&D data such as project expenditure, resource consumption or development orders flow together in an ERP system. ERP integration enables R&D processes to be linked with the areas of purchasing, controlling, production or sales, thus creating transparency regarding development cycles and costs.

What are the challenges in research and development?

The challenges include high costs with uncertain results, long development cycles, coordination with other business areas, securing expertise and the need for flexible systems that can map R&D data in overarching business processes.