How R&D helps companies grow: a deep-dive into Mitgo’s R&D division
Mitgo’s R&D department has a unique and difficult task: along with solving any challenges as they arise, they also have to find and create new solutions, projects and products that can seamlessly integrate into Mitgo and grow into strong, independent business over time. Because of this, it has one of the most dynamic structures in the company.
We started experimenting with R&D back in 2015, with a small department tasked with launching new products tailored to top management requests. In 2016, an investment fund was established within the company and, later in 2019, a dedicated division was formed. Over time, it evolved into a fully-fledged startup studio (which you can read about in detail here). In 2023, R&D kicked back into action, finding solutions to better meet the objectives of our newly-formed parent company, Mitgo.
Here is a Q&A deep-dive into how R&D helps Mitgo grow:
Why does a modern company need an R&D division?
In short: to survive and overcome new challenges.
The world never stands still, and companies that survive through to the long term are often those who have mastered moving with the times, never becoming complacent and constantly evolving their services to fit the changing tastes and trends of their audiences.
By investing in R&D, you give your business a lifeline to evolve, having a department dedicated to facing new challenges head-on. While not all of the projects that come out of R&D are a success or get implemented, enough of them should give you the momentum to keep your business afloat (if not ahead), and the alternative is that… you simply sink.
How does R&D set goals and align them with company objectives?
R&D’s goals and output should closely align with a company’s growth strategy.
In the case of our R&D division, we look to our company’s growth gap. Growth gap is the monetary difference between a company’s strategic ambitions for a coming time period and the true predicted ‘reality’ of what the company will deliver over the same period.
Sometimes there is a disparity between how we want to grow, and how we’re actually growing. To align these two factors, we call upon our R&D division.
Using the growth gap as a goal works because it’s simple, transparent and easy to explain to the team at all levels. It also gives the R&D team a clear-cut way of seeing how their work directly impacts and benefits the company, its strategy and performance.
How does R&D contribute to the growth of Mitgo?
There is no one single answer for this (because they contribute in so many ways) so, instead, we’ll look at three innovations that have come out of our R&D division and actively aid Mitgo in closing its growth gap.
PMF Startup Studio: This is a tool that enables founders to give their new-found businesses the highest chance of survival by building strong foundations, as well as providing access to investment funds. Working in specific industries, our primary interests lie in growth sectors like Fintech, generative AI (Chat GPT apps) and AI for different verticals. Key markets for the studio are the USA, EU and India.
Startup Hub: Along with Startup Hub’s corporate venture fund, we will personally be investing several million dollars into startups in the SAAS, MarTech, CPA, EdTech, FinTech and AdTech sectors, sourcing and developing many new routes for future growth. Key markets will be the USA, EU and India.
Venture Client: This exciting new direction allows us to build a bridge between big corporations and startups through the formation of a special procurement structure. It will enable us to quickly and efficiently purchase services from promising startups, something that used to take up to a year to achieve. However, with Venture Client, we can quickly execute pilot projects without significant risk to the core business because the experiment remains within the boundaries of a unique business sandbox.
These are just three projects that came out of the R&D pipeline and prove that R&D is vital for sustainable company development in the long term.
It is necessary for a growing company to engage in R&D – in a planned, focused, transparent manner and with understandable goals, tasks and implementation tools.
If you have an exciting promising project you would like us to look at, or seeking co-founders or more investment opportunities, please contact our Chief Entrepreneur Officer Max Volokoff for any direct inquiries.