How Do You Drive Faster Time To Market
I recently returned from the UK where I attended Campden BRI Day in Chipping Campden. During this event, CampdenBRI, UK’s largest independent R&D organization for the food and drink industry, provided updates on technological developments to help the industry as well as an opportunity to network. I have to say that the guest lecturer for the day, Dr. Mehmood Khan, Executive Vice President and Chief Scientific Officer of PepsiCo Global Research and Development, offered an enlightening perspective on the impact of innovation and research and development driving top line growth in a large global company such as PepsiCo.
During the lecture, we heard that PepsiCo is about a $70B annual revenue company with 22 billion-dollar brands. In fact, one in five people globally consume a Pepsi product every day. Every year, internally it mandates that innovation must drive $6-7B in new business.
Pepsico, like many North American food and beverage companies, historically grew by scaling through distribution channels and opening up new markets in developing locations. But with increasing consumer demands and a tough competitive market, companies like PepsiCo have had to adjust their innovation and growth strategies. Impressively, through these new strategies, it has been able to contribute a one percent improvement in top line growth just based on new product innovations in one year.
For example, according to Dr. Khan, it took upwards of a year from idea to inception for the Doritos Los Taco. I, for one, think the idea is brilliant, but can you imagine trying to produce a chip in that shape (without breakage!) that has the perfect even coating of seasoning? Yikes! I can only imagine the manufacturing headaches. So how can companies scale these ideas quickly into reality in the manufacturing facilities?
Speaking from personal experience, back in my manufacturing/operations days, both in brewing and in baking, when we would work to get our lines/processes qualified to run new products, it was a very manual and time consuming process, most often yielding in high waste and high labor inefficiencies.
But manufacturing software technology today can make it easier to develop new recipes, compare batch to batch quality and consistencies and understand better the utilization of assets – all advantages needed to gain market share, improve scalability and increase time to value. How do you introduce new products into your manufacturing facilities?
Join us at our User Summit October 27th-30th to learn how our customers are leveraging technology to improve their speed to market for new products.