Your SlideShare is downloading. ×
October 2011  The Process of R+D
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

October 2011 The Process of R+D

252

Published on

Small Business Internet Marketing by http://www.localentrepreneur.com.au

Small Business Internet Marketing by http://www.localentrepreneur.com.au

Published in: Education, Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
252
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. ASB National Conference 19-10-2011 The Process of R&D Bernard Parker Bakels Research Pty Ltd.
  • 2. The Process of R&D
    • Definition of R&D
    • Why should we do R&D?
    • What are the rewards from R&D?
    • What are the critical steps in R&D?
    • What resources are required for effective R&D?
    • How do we go about implementation of an R&D Process to suit our business?
  • 3.
    • Definition of R&D within a business
      • Core R&D activities are experimental activities
        • based on principles of established science
      • principles of established science
    The Process of R&D HYPOTHESIS ? EXPERIMENTS MAKE CONCLUSION OBSERVE & EVALUATE
  • 4. The Process of R&D
    • Definition of R&D within a business
      • R&D is for the purpose of
        • acquiring new knowledge
          • creation of new or improved materials, products, devices, processes and services
      • R&D is a planned activity
        • a thoughtful systematic process
        • documentation of steps
        • good records are kept
    This definition of R&D inspired by an EY presentation on current Tax Concessions!
  • 5. The Process of R&D
    • Why should we do R&D?
  • 6. The Process of R&D
    • Why should we do R&D?
  • 7. “ Insanity is doing the same thing, over and over again, but expecting different results.” Albert Eisenstein OR ?
  • 8. The Process of R&D
    • Why should we do R&D?
      • To regain control of the profitability of our product mix
            • Raw materials , packaging , waste, energy & Labour
            • MFG OH
            • Transport, Distribution, Sales & Admin
            • Profit
      • To improve Profitability with a new
            • Product Mix
            • Customer Mix
            • Efficient process
            • New raw material sources
      • To show market leadership
            • Your Brand is different!
            • So you are the first to be asked!
  • 9. The Process of R&D
    • Why should we do R&D?
      • To grow market share
        • At requests from customers
        • Usually at the expense of competitors
      • To take advantage of new technologies
        • Bring the technical advantage into our business
      • To comply or anticipate new legislation/market requirements
        • GMP/HACCPS/BRC & other compliance
        • Social requirements
            • Eg Palm Oil, 3 rd World Trade
        • Process improvements
            • Reduction energy costs
            • Reduction waste & emissions
  • 10. The Process of R&D
    • Why should we do R&D?
    • So we can change our destination!
  • 11. The Process of R&D
    • What are the rewards from R&D?
      • What examples are there?>>>>Revenue
    • We (Bakels) surveyed 11 of our larger bakery ingredient companies in 2009
      • Isolated true R&D Costs from other technical support
        • Counted staff & project costs
      • Revenue from 12 months sales of new projects was
        • 5 X Spend on R&D in 12 months
      • Revenue from past 24 months sales of new projects was
        • 12 X Spend on R&D in 12 months
      • If we invested the R&D cost at 6% in the bank
        • Bank interest earnt would be 1.2 % of first years new project revenue……. before tax!
        • OK so if we hold onto the R&D spend but we go nowhere fast!
    • R&D spend earnt 500% and was tax deductible!
  • 12. The Process of R&D
    • What are the rewards from R&D in Australia?
      • What examples are there?>>>>Cost Recovery
    • A new tax concession for eligible R&D activities
          • Eligible Expenditure tax credit system from July 2011
            • Salary + O`Heads, Contractor costs, direct costs
            • (travel, accommodation, consumables etc.)
    • It provides a 45% tax offset (biggies @40%!)
            • for entities < $20,000,000 turnover
            • Every $1 identified R&D Spend
            • gives back 15 cents in the dollar.
            • Eligible R&D expenditure: knowledge growth to you, NPD, Baking trials, production & scale up trials, project management etc.
            • $100,000 R&D Expenditure becomes $15,000 after tax benefit
            • Typically a Tax Consultancy takes 15-20% of the benefit / ie $2,500neg. To lodge with AUSINDUSTRY & ATO
    This R&D Tax concession information from an EY presentation on current Tax Concessions!
  • 13. The Process of R&D
    • What are the rewards from R&D?
    • The process of R&D leads you to review and compare your existing practices
      • To want to improve on “something” indicates
        • you have measured/quantified current
        • you can still see a potential for the future
      • You plan these potential “improvements” into the business strategy
      • You have an eye to the future!
  • 14. The Process of R&D
    • What are the rewards from R&D?
      • Reduced R&D Cycle time as you do more projects
      • Risk evaluation better with project teachings
          • Less inconsequential projects started
          • Less resource wasted
    • Customers ask us for help with tomorrow
        • Our customers are part of a changing market
        • Our customers have changing needs
        • Properly directed R&D puts us in lockstep with our customers
  • 15. The Process of R&D
    • What are the critical steps in R&D?
    “ The Market” Food Needs & Food Wants Other Inputs Internal External The Project Brief If we were able to make an “XYZ loaf” For sale to “??? Sector” we would increase our revenue by $$$ And our profit by $ “ EXPERIMENTS” Prototype Development Use of Scientific method !
  • 16. The Process of R&D
    • What are the critical steps in R&D?
    HYPOTHESIS ? This is the best thing we can do with our R&D Resources “ EXPERIMENTS” Prototype Development Background Knowledge research NPD Plan, Bake Tests, trial costings To develop a prototype XYZ Loaf The Project Brief If we were able to make an “XYZ loaf” For sale to “??? Sector” we would increase our revenue by $$$ And our profit by $ MAKE CONCLUSION Use of Scientific method ! OBSERVE EVALUATE
  • 17. The Process of R&D
    • What are the critical steps in R&D?
    “ EXPERIMENTS” Small scale experiments to develop prototype Background Knowledge research NPD Plan, Bake Tests, trial costings To develop a prototype “ XYZ Loaf” XYZ BREAD PIC Prototype is good Will it scale up in our process? “ Large Scale EXPERIMENTS” “ Bakery Trials” Yes It Scales Up “ XYZ Loaf” Use of Scientific method ! Use of Scientific method ! OBSERVE & EVALUATE
  • 18. The Process of R&D
    • What are the critical steps in R&D?
    “ Large Scale EXPERIMENTS” “ Bakery Trials” Yes It Scales Up What Activities need to be completed? To satisfy the Project Brief To ensure all compliance To enable proper Launch of the product To ensure after launch support To ensure ongoing project review Launch XYZ Bread
  • 19. The Process of R&D
    • What are the critical steps in R&D?
    Was the project worthwhile? How can we do it better next time around? Can we reduce the R&D Cycle time next time around? Track the Launch Review/Modify Product if it needs optimising Review the total Project / SWOT Review the Process Implement changes/teachings for future projects Ensure all documentation & project records up to date & filed Launch XYZ Bread MAKE CONCLUSION
  • 20. The Process of R&D
    • What resources are required for effective R&D?
    • Commitment from the MD/CEO
        • To own the Project brief
        • to work the R&D process across the buisness
        • to engineer the people
            • Facilitate teamwork!
        • to follow the process through
            • to market!
        • to evaluate cost/risk/reward
    • An allocation of time/resource to the project
            • Project Management & Timelines
            • People + R&D Costs
            • Compatible with other goals in the buisness
  • 21. The Process of R&D
    • What resources are required for effective R&D?
    • A basic system for R&D
        • You can keep developing it with each project
        • R&D steps/stages in the preceding slides
    • People with enough skills
        • Organised people
        • Able to keep records
            • its your IP! So don’t loose it
        • Communicators & “Doers”
        • Skilled Bakers
        • Food Technologists / engineers (larger companies)
            • As consultants for the project in smaller Cos.
  • 22. The Process of R&D
    • What resources are required for effective R&D?
    • Adequate record Keeping
      • to track & record the R&D process
      • It`s IP that the business has paid for!
      • to obtain the tax benefit
  • 23. The Process of R&D
    • How do we go about implementation of an R&D Process to suit our business?
    • Follow the steps in the proceeding slides
        • “ What are the critical Steps in R&D ?”
          • The Project Brief
          • The Prototype development
          • The scaled up process
          • Preparation for Launch
          • Launch & Follow up
          • Review
        • These steps co–incident with requirements for
            • Tax Concession for Cost Recovery
            • A “Stage–Gate” process
  • 24. The Process of R&D
    • How do we go about implementation of an R&D Process to suit our business?
    • The Project Brief
        • A written (policy)document which fully describes the intention of the proposed works
          • Do we have the resources to do this work ?
          • Can we make it?
          • Can we sell it?
          • Will we make money out of it?
        • YES or NO to proceed
    • The Prototype development
        • Project management timelines in-place
        • Documentation & Records Kept/ its your IP
        • Good Scientific Method to set out steps
          • Recipe Understanding
          • Process Understanding
          • Benchmarks / Controls!
        • Experimentation / trials etc.
        • Is the final prototype that of the Brief ?
        • Does the prototype satisfy all criteria?
        • YES or NO to proceed
    • The scaled up process
        • Project management timelines in-place
        • Documentation & Records Kept / its your IP
        • Good Scientific Method to set out steps
        • Larger Scale trials & likely modifications etc.
        • Is the final scaled up prototype that of the Brief ?
        • Does the scaled up prototype satisfy all criteria?
        • YES or NO to proceed
  • 25. The Process of R&D
    • How do we go about implementation of an R&D Process to suit our business?
    • Preparation for Launch
        • Project management timelines in-place
            • Who, What &When!
        • Good Scientific Method to set out steps
        • Documentation & Records Kept / its your IP
        • What Activities need to be completed?
          • To satisfy the Project Brief
          • To ensure all compliance
          • To enable proper Launch of the product
          • To ensure after launch support
          • To ensure ongoing project review
        • IF launched will product satisfy all criteria?
        • YES or NO to proceed with Launch
  • 26. The Process of R&D
    • How do we go about implementation of an R&D Process to suit our business?
    • Launch & Follow up
      • Project management timelines in-place
      • Good Scientific Method to set out steps
      • Documentation & Records Kept What Activities need to be completed?
        • Track the Launch
        • Review/Modify Product if need be to optimise
        • Review the total Project / SWOT
        • Review the Process
      • Implement changes/teachings for future projects
      • Ensure final documentation & project records up to date & filed / its your IP
    • Review
      • Was the project worthwhile?
        • Did the launched product satisfy all criteria?
      • Can we do it better next time around?
        • Can we reduce the R&D Cycle time next time around?
        • Reward the R&D Team if launch meets criteria
  • 27.
    • How do we go about implementation of an R&D Process to suit our business?
    • Tax Concession for Cost Recovery
        • If you kept adequate records of R&D works & costs
        • Obtain assistance for Tax Concession
    • A “Stage–Gate” process
        • To the “steps” or “stages” detailed above we asked
        • YES or NO to proceed at each Gateway
        • In this way we managed journey to our new destination !
            • We minimised risk & wasted effort
    The Process of R&D
  • 28. The Process of R&D
    • Why should we do R&D?
    • So we can change our destination!
  • 29. The Process of R&D
    • So using the process of R&D !
    • We changed our destination!
  • 30. Summary-----The Process of R&D
    • Definition of R&D
    • Why should we do R&D?
    • What are the rewards from R&D?
    • What are the critical steps in R&D?
    • What resources are required for effective R&D?
    • How do we go about implementation of an R&D Process to suit our business?
  • 31. Some Thoughts Research v Product Development
    • Research Projects are usually
        • Riskier
          • Cost More
          • Higher chance of failure
        • Longer in duration
          • harder to hold on course
          • “ short term views prevail”
        • More challenging technically
          • New technology
          • More unknowns
        • More complicated
          • Involve more fundamental reviews of the business
          • Harder to deliver successfully in a business
          • Path to market not always clear
            • Even if the new technology is!
  • 32. Some Thoughts Character/Personality for PD
    • Suitably qualified
      • by experience
      • Technically competent
    • motivation
      • enthusiasm overcomes many obstacles
      • energy to get the tasks done
      • belief & persistence
      • able to work with minimum instruction
      • teamworker
  • 33. Some Thoughts Researcher V s P Developer!
    • Researcher has
      • Good PD Experience
        • Across several industries
      • Open & enquiring intellect
      • Strong goal focus for the long term “struggle”
      • Self driven
        • The outcome is the motivation!
      • Superior communication
      • Superior teamwork awareness
  • 34. Questions???? The Process of R&D Bernard Parker Bakels Research Pty Ltd. Acknowledgements **Bakels Colleagues **Ernst & Young for current Tax Benefit Information

×