Developing Savory Rosti Crisps at Dreddo Dans

Developing Savory Rosti crisps at Dreddo Dans p.205 Case synopsis This case exercise covers many issues found in new product and service development projects. In particular, the case examines a new type of product that is to be launched in an uncertain and unpredictable market and also carries some development risks. Above all, the project is a significant development for the company, with both the potential for major competitive benefits and some downside risk. Monica Allen, the Technical VP of PJTs snack division, has defined the questions in her analysis of the project. She sees the key decisions as follows: How to resource the project. In other words, how many people to devote to developing the new product. Whether to invest in a pilot plant or, alternatively, experiment with another companys process technology. How much of the total development effort to outsource. How to organize the resources that will be devoted to developing the new project. The important perspective needed to take on this case, is that one does not need to have absolute mastery of the technical aspects of the case in order to make useful comments. And as a reminder, because you may not know much about the technical issues covered in this case, this is not an excuse for either making wildly convenient assumptions about the case, or giving up completely because you do not know enough about the technical issues. This is why the questions deal with process objectives and process resourcing. Question 1 How would you rank the innovation objectives for this project? By order of importance from Monica point of view:

1. Quality Safety of the crisps (200 % safe). 2. Dependability how to use the new extrusion in addition to the ability to operationalise and integrate various technical solutions. Packaging was also an important element that will keep the crisps fresh and increase its shelf life. 3. Speed Monica wanted to make sure that once they decide the launch date they need to work around the clock to conclude the project before any information could leak to the competition and make loose the first entry advantage. 4. Flexibility the ability to respond to competitors once they react and launch a competitive product. This means that they should have a long term strategy for product development, packaging development, marketing strategy that allows the product to retain the first entry advantage. 5. Cost she highlighted briefly that this type offering will be expensive, however it promises high and quick ROI. Question 2 What are the key issues in resourcing this innovation process? 1. Small staff they would require at least twice the number of staff they currently have 2. Technical staff They had no microbiological testing experience 3. Plant they could not depend on the existing baking line capacity management & technology 4. The development department had been organized around loose functional specialisms 5. Outsourcing the division had never outsourced to consultants specialized in the food industry Question 3 What are the main factors influencing resourcing decisions? 1. Budget shortage of 5$ million and from where to compensate this shortage.

2. Insourcing VS outsourcing and the possibility of leakage especially that this is a two years project in addition to compromising on the quality. 3. Launch date a shorter launch date would require more staffing e.g. an increase of 90% 4. Security Question 4 What advice would you give Monica? Option 1: Take extra budget Present to the management and try to get 5 extra million dollars especially that the ROI is expected within just over a year. Option 2: Do not take extra budget use a phasing approach 1. Maximize the usage of resources at the different phases of the project (beginning, peak, delivery), which could make the 70% increase in staffing sufficient. 2. Maximize the usage of interdepartmental resources. 3. Build the pilot plant in phases and consider expansion. 4. Outsource research only