Discover your next big idea at PACK EXPO Las Vegas this September
Experience a breakthrough in packaging & processing and transform your business with solutions from 2,300 suppliers spanning all industries.
REGISTER NOW & SAVE

Food & Bev Turn to R&D Digitization

The digitization of R&D is a process that, in packaging, enables developers to simulate and demonstrate a product, then thoroughly outline use cases.

Advait Baht Photo

The food and beverage industries are steadily catching up with the medical and pharmaceutical industries, which are considered to be at the forefront of R&D digitization. My comparisons between the industries are made here in terms of business models, data generation methods, its connectivity and traceability, adoption of hardware and software, and maintaining associated human resources.

Food and beverage companies can tap into immense business value through a well-deployed Enterprise Architecture style digital framework for R&D. Digitization can naturally enhance corporate intelligence, resulting in sustainable growth for flagship brands. This can be achieved through new insights derived from analytics that provide a competitive advantage, the ability to anticipate trends, and the agility to adapt to an ever-changing consumer market.

This journey has challenges. I will highlight them from my experience and list four ways through which I believe they can be addressed.

1. Capital investment and clarity on ROI. Food and beverage industries are traditionally light on R&D budget allocations, where typical amounts are 2 to 5% of the net revenue. Most of this R&D budget is spent on tried and tested ways of product innovation to maintain consumer demand and improve brand market share. As a result, incorporation of newer technologies and digitally driven processes to supplement traditional R&D workflows has been slow.

For example, in the beverage industry, new package development would require up to 12 months on an average where the majority of the time could be spent on development, testing, and ensuring compliance. Virtual analysis methods and analytics of legacy data can shorten this time by a few months.

Even when this advantage is known, adoption lags due to costs. Commercially available R&D Enterprise Architecture solutions have a high upfront cost for software and hardware deployment. Out-of-the-box solutions may not fit existing business process, requiring further expenses for customization. Complete support from company top leadership and higher R&D budget allocation is the only way to overcome this barrier. Assuming a commitment is made and sustained, realistic timelines for return on investment could be three to five years for larger organizations.

Coding, Marking, and Labeling Innovations Report
Explore our editor-curated report featuring cutting-edge coding, labeling, and RFID innovations from PACK EXPO 2024. Discover high-speed digital printing, sustainable label materials, automated labeling systems, and advanced traceability solutions that are transforming packaging operations across industries.
Access Report
Coding, Marking, and Labeling Innovations Report
Researched List: Engineering Services Firms
Looking for engineering services? Our curated list features 100+ companies specializing in civil, process, structural, and electrical engineering. Many also offer construction, design, and architecture services. Download to access company names, markets served, key services, contact information, and more!
Download Now
Researched List: Engineering Services Firms