20th November 2018 – Slide 1
Future innovationSuccess Strategies of Leading Food, Beverage & Ingredient Companies
London20th November 2018
20th November 2018 - Slide 2
Our World is Changing: The Way We Shop
20th November 2018 - Slide 3
Our World is Changing: The Way We Eat “Out”
20th November 2018 - Slide 4
Our World is Changing: The Way We Choose Where to Eat
20th November 2018 - Slide 5
Our World is Changing: The Way We Buy of Food
20th November 2018 - Slide 6
Our World is Changing:
20th November 2018 - Slide 7
How is This Impacting Food & Beverage Markets?
• With the growth of alternative delivery channels, it has never been easier to launch a newproduct but it has never been more difficult to make the launch a success
• 10000 new products are launched each year in US supermarkets – 70% are withdrawn duringthe first year and 90% by Year-3
• 84% of global executives consider innovation to be important, 94% are dissatisfied with theirown company’s performance in innovation
• More and more food producers expect their suppliers to be more than a reliable source ofingredients or technology – Unilever, for example, asks ingredient suppliers to provideconsumer data and example formulations to support new functional ingredients
• 42% of executives say product development times are too long and 71.8% of companies nowuse rapid testing as part of their development process
• Retail is changing – online sales have tripled since 2012, in the US the number of conveniencestores has increased by more than 50% over the last 30 years, the share of hyper andsupermarkets is forecast to decline from 70% in 2017 to 50% in 2025 and average store sizeto fall by 35% over the next 10 years
20th November 2018 - Slide 8
How will Changing Markets Influence Product Innovation?
20th November 2018 - Slide 9
How will Changing Markets Influence Product Innovation?
20th November 2018 - Slide 10
How will Changing Markets Influence Product Innovation?
20th November 2018 - Slide 11
How will Changing Markets Influence Product Innovation?
20th November 2018 - Slide 12
How will Changing Markets Influence Product Innovation?
20th November 2018 - Slide 13
The Way We Innovate is ChangingRadical Innovation vs. Sustaining Brands
OR
20th November 2018 - Slide 14
The Way We Innovate is ChangingWhere are the Consumer’s ‘Pain-Points’?
20th November 2018 - Slide 15
The Way We Innovate is ChangingJob-to-be-Done
20th November 2018 - Slide 16
The Way We Innovate is ChangingStart-Up Thinking – Focus on Solving ONE problem
20th November 2018 - Slide 17
The Way We Innovate is ChangingMulti-Functional – Innovation is Everyone’s Responsibility
TO
20th November 2018 - Slide 18
The Way We Innovate is ChangingOutside the Walls – Collaboration Up & Down the Value Chain
Supplier
Producer
Customer
20th November 2018 - Slide 19
Doing the Right ThingsHow is YOUR Market Changing?
20th November 2018 - Slide 20
Doing the Right Things
What is the Job-to-be-Done? Where are the Pain-Points?• Product Service• Mass Market Made-for-Me• Anonymous Belonging (My Tribe)
Design Thinking – Observing what do consumers really do/need!
20th November 2018 - Slide 21
Doing the Right ThingsSetting Priorities
Strategic Fit – do we want to go there?
Do we have: The Right-to-Play & The Right-to-Win?
Belief = Start-up Thinking
20th November 2018 - Slide 22
…in the Right WayOrganising for Success
• Radical Innovation vs. Sustaining Products: Different Jobs = Different Teams• Multi-Functional Innovation – especially for radical new developments
• Collective Intelligence - use ALL the expertise available• New skills: Designers, Anthropologists, Psychologists…..• Project Cells – focussed on specific innovations
• Look outside the walls – can we work with:• Start-ups
• Source of Ideas• Route-to-Market
• Suppliers• Flavour-houses• Packaging Suppliers
• Customers• Data from the market• Testing in selected outlets
• Open Innovation• Visible indicators/shared project space
20th November 2018 - Slide 23
…in the Right WayRapid Testing
• Do we like it? WOW or YUK?• Informal Testing Circuits – how would a Start-Up do it?• Design Sprints - 1 week/multiple iterations (remember the 80/20 rule!)• Minimum Viable Product (MVP)• The Voice of the Consumer (or Customer) is what matters• Sell-it – the ultimate test!
• On-line• Pop-up stores• Selected distribution partners…
20th November 2018 - Slide 24
Agile Innovation: OVERVIEWDoing the Right Things in the Right Way
What?Pain-points
Job-to-be-Done
Ethnographic Data (Design Thinking)
Right-to-Play AND Right-to-Win
How?Radical vs. Sustaining – Different Teams
Innovation is Everyone’s JobMulti-functional Teams
Collaboration Up & DownSuppliers & Customers
Rapid/Real-Life TestingStart-Up Thinking or Can we Sell It?
Visible Methods & Team-Space
20th November 2018 - Slide 25
Thank you for your attention
RW INNOVATION - Future Innovation
QUESTIONS?Contact: Russell Ward
Tel: +33 6 15 57 43 84E-mail: [email protected]