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Investing in software R&D
Point of view
by Dr. Michael Müller and Dr. Robert Schenk
At a glance
Is your Software R&D budget driving the growth you want?
For decades, industrial companies have built their success on hardware products and after-sales services. Today, a third growth pillar is emerging: hardware-enabling, value-adding software – from smart machine functionalities to digital twins, predictive maintenance, and AI-driven applications.
However, many companies underestimate a critical reality: software cannot be managed as “hardware plus code.”
Building a successful software business requires a fundamentally different approach to R&D:
- Different investment priorities
- Software R&D funding at competitive levels
- Faster development cycles
- A stronger focus on scalability and recurring value creation
In our latest study, we analyzed 180 global technology and software companies, comparing hardware-centric organizations with pure software players.
The findings reveal clear patterns that distinguish companies that successfully scale profitable software businesses from those that struggle to unlock their full potential.
The real question isn’t “Can we afford more R&D?”, but “Can we afford not to?”
