Food Processing - May 2008 - (Page 24)

37th ANNUAL R&D SURVE Y The key trend we identified in last year’s survey remains: Marketing & Sales is right behind R&D in terms of being involved in setting the company’s product development goals (see Figure 2). However, the R&D dept. did gain 7 percentage points this year. CEOs and General Management gave up 18 and 12 points, respectively, and Manufacturing lost 10 percentage points. While Marketing is little further behind R&D in numerical representation on the product development team (Figure 3) it outranks R&D in deciding which product concepts to explore further. Figure 5 shows increased power for both Marketing (up 6 percentage points) and R&D (up 11 points). R&D actually ranked just behind General Management on this question last year. As you’d expect, R&D titles are on almost all of the product development teams – 93 percent of respondents have ’em. After Marketing, a tad more than half involve Manufacturing and General Management – 52 percent for each. Purchasing and financial departments are a part of the R&D team to the tune of 29 and 28 percent, respectively. One-fourth of those polled say their suppliers also are involved in helping develop and reformulate products. That’s good news for ingredient companies, proving the increasingly popular trend of providing “solutions” vs. “ingredients” is having a positive impact. One interesting point of contribution is that of outside consultants: 14 percent of those responding said they include such third-parties on the R&D squad. The push for cross-functional teamwork continues, but where last year saw a 64-36 split of centralized over decentralized decision-making regarding new product development, this year the balance tipped toward more greater centralization at 70-30. Once a company’s product development goals have been set, of course, it has to identify new product ideas. Internal research and focus groups are how the vast majority – 92 percent – say they accomplish this. Still, 42 percent rely on research provided by suppliers. Interestingly, nearly a quarter go outside, relying on an external product development company. (Infographics for this and many of the other questions are on our web site.) Let ‘er rip With costs being such a trenchant concern in the new R&D paradigm, the decision-making procedure must move like clockwork. After all, whether creating a new product from the drawing board or reformulating an existing one, each de- cision can make the difference between spending or saving thousands of dollars. The key questions asked before the starting gate even opens include “Does it fit our brand?” “Does it fit our marketing strategy?” “Can we make money on it?” and “Can we make it?” Without the right input, from the right people, a product or reformulation can be stymied before it starts. Figure 1 What will have the most impact on your r&D strategy in the coming year? First-Place Votes Food Safety Manufacturing Cost Reduction Preventive health (preventing arthritis, aging, etc.) Organic/Natural Palliative health (managing diabetes, obesity etc.) Sustainable/Eco-Friendly/Fair trade Kosher Certification halal Certification 40% 24% 10% 9% 8% 5% 2% 1% Score* 2.69 2.71 4.18 4.36 4.93 4.52 5.90 6.70 *Score was figured by assigning one point for a first-place vote, three points for a third, eight points for eighth, etc., so the lower score the better. Figure 2 Which of the following titles/departments set your team’s product development goals? Very involved CFO/CEO/President General Management R&D Marketing & Sales Manufacturing 37% 53% 82% 72% 24% Somewhat Involved 47% 41% 16% 25% 57% Not Involved 16% 7% 2% 4% 20% Figure 3 R&D Marketing Which of the following make up your company’s product development team? 93% 74% 52% 52% 29% 28% 24% 14% 7% 2% WWW.FOODPROCESSING.COM MEthODOlOGy this year’s survey results are based on 217 responses. We sent survey links to Food Processing readers who cover both administrative and R&D titles. Respondents included vice presidents of research and/or R&D, research directors, directors of quality control/assurance, marketing directors and management. Some of the responses included verbatim comments, plus personal interviews were conducted with some of those who provided contact information. In all cases where individuals were quoted by name, permission was secured. as with all Food Processing surveys, personal information is kept confidential and is used only for research purposes. 24 • FOOD PROCESSING May 2008 Manufacturing General Management Purchasing Finance Multiple Suppliers Outside Consulting Other Single Supplier http://www.foodprocessing.com

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Food Processing - May 2008 Editor’s Plate NewsBites The Trends Rollout Food Biz Kids Product Developer turned Bean Counter The top-selling new products of 2007 The open road Back to the Big Easy Managing the global plant A new column with answers to your plant-fl oor questions New Supplier Products Toops Scoops

Food Processing - May 2008

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