How businesses are wasting billions of pounds on research
British businesses are wasting billions of pounds every year on research that is not of any use, a new study has claimed.
According to cloud knowledge platform InsightBee, more than £14 billion is squandered on research every year across the UK.
The figures are based on findings which show that 62% of nearly three million workers in the technical, scientific and professional industries feel their research is unreliable.
As a result they believe the time spent undertaking it to be wasted, a factor made worse given that it was found that an average of 638 hours was spent on research per person.
That means that more than one billion hours collectively were used for research that provided little or no business insight.
When using average salary data from the Office for National Statistics, this means that an average of £14 billion is wasted on a yearly basis.
It is very easy for companies to overspend on research as it is a sector where spending is often high.
In many instances, research is needed to assist product launches or to develop new concepts and innovatory approaches – yet success is not guaranteed.
Given the high levels of finance that are being used for research, some firms could be taking risks with little reward.
Business rescue methods are available to aid firms that find themselves in financial difficulty but other aspects of the working environment could also be affected.
The study suggests that employees can quickly grow dissatisfied when their research is unsuccessful and that productivity can drop as a result.
Both of these factors can have negative influences on a business and require careful management in the long term.
Taking new approaches to how research is planned and carried out could help to save funds and boost revenues.
Recognising potential opportunities to garner meaningful research should be at the forefront of plans, as it offers the best chances of gaining competitive advantage.
By Phil Smith