8.5 MANAGING PRODUCT DEVELOPMENT

In food companies there are various ways of managing product development:

1. Top management can organise and control it; it can be planned as part of the business strategy and then the different groups are either organised in project teams or the activities of the various departments is combined, and reporting is to top management.

2. Top management can give a budget for product development and then leave middle management to organise it; reporting can be to the marketing manager or the research and development manager.

3. It can be completely left to the people responsible in the product areas, usually the product or brand managers.

The importance and urgency of new product development to the company determines which method is used.

There are two major considerations in managing product development, the integration of the multi-disciplines involved and the control of the timing and resources in the product development project. Failures usually result from poor integration or poor timing.

In the larger food company, there is often not just one product development project but several running side by side. This needs very good coordination and control so staff and facilities are not cycling through quiet and busy periods. The timing and the resources of all projects have to be carefully controlled so that efficiency and quality are maintained in the overall programme as well as in the individual project.

Although all the stages in the Product Development Process should always be considered, the type and quantity of research in each stage varies. This is related to the degree of innovation in the product, the resources available, the knowledge and expertise in technology and marketing, the size of the company and the risk-taking attitude in the company.

Low-risk takers do more research, high-risk takers do less research; this is usually dictated by the top management through the amount of resources they give to product development.