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with Efficiency, Collaboration, and Visibility

An IDC Infographic, sponsored by Dassault Systèmes

CPG Companies Aspire to Greater Innovation and Efficiency

Accelerating innovation is key to speeding new products to market

Accelerating innovation is key to speeding new products to market

TOP 3 BUSINESS PRIORITIES OF CPG COMPANIES

Product innovation

TOP 3 CHALLENGES OF CPG COMPANIES

Source: IDC’s 2015 Product Innovation Survey

63%

Product innovation requires aligned and integrated capabilities:

40% of new products fail in today's marketplaceSource: IDC end-user conversations

3 Reasons Why New Products Fail

What CPG Companies Say

Managing the ProductLifecycle is Key

By 2020, IDC estimates this will climb to 70%

Companies Must Do More with Less – And Do It FasterInnovation helps CPG companies:

The Takeaway

Superior financial performanceCoupling analytics and digital technology to extract broader �nancial insights will be worth 3-5 percentage points of incremental revenue as well as 2-3 margin percentage points for industry leaders within 3 years.

More effective product innovationDigital technology enables a 10% systemic reduction for innovation costs and a 30% reduction in new product lead times.

Better service performanceDigitizing ful�llment and system inventory may improve service by 2-3 percentage points, say manufacturers.

Improved product quality Better products yield higher success rate and improved brand reputation.

Sources: IDC conversations with manufacturers or IDC estimates of future bene�t achievement.

Product designR&D, product

stage-gate process, engineering/supplier

management

ManufacturingProcurement, factory

scheduling, production planning, asset

management/maintenance

Supply chainSupply/demand planning,

sales/ops planning, warehousing, transportation/global

trade management

ScienceExploratory, engineering, formulation,

sustainability, both internal and external

sources

Customer needs and expectations not met1.Quality issues such as performance, safety or sustainability2.Launch execution problems3.

“Product quality is the most important performance

indicator in our business, both in terms of

meeting changing consumer needs with our

new products and ensuring that all of the

things we make and sell are safe and healthy.”

– Global CPG Manufacturer

“The future success of any product is ‘coded into its DNA’ at the very earliest

stages of the R&D process; in other words, if you don't get the science right, none of the rest really matters.’ ”

– Food & Beverage Executive

“Brand reputation takes years to build and seconds to destroy.”

– Global Health & Beauty Manufacturer

Improved supply chain performance

48%

Gain greater control of new product development

38% Manage increasing complexity

of new products

36%Accelerate new-product time

to market/success rate

45%

Better organizational excellence

57%

A new product's early stages are the largest area of development costs and highly correlated to its full future potential.

50% or more of total CPG company revenues, on average, come from products that are under three years old

A science-driven collaborative platform enables access to research data and end-to-end visibility across the

innovation ecosystem. Benefits include:

Reduce initial product

development costsGet products to

market faster with higher revenue

reach

Extend product lifetime with

innovative refresh capabilities

Innovation by Re-Thinking the Process Accelerate

Boost CPGInnovation

For more information, download the IDC White Paper, "Boost Product Innovation in the Consumer Products Industry Through E�ciency, Collaboration, and End-to-End Visibility," sponsored by Dassault Systèmes.