innovation funnel

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1 A strong innovation funnel is recognised as critical to future business success “Innovation is a pre-requisite for sustained growth. There is no other path.. And it has to occur across the enterprise” A.G. Laffley, CEO, Proctor & Gamble

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Page 1: Innovation Funnel

1

A strong innovation funnel is recognised as critical to future business success

“Innovation is a pre-requisite for sustained growth. There is no

other path.. And it has to occur across the enterprise”

A.G. Laffley, CEO, Proctor & Gamble

Page 2: Innovation Funnel

Integration of consumer and shopper insight is key to facilitating successful innovation

Inform marketing strategy and identify opportunity areas by brand

Identify ideas which can have a genuine role in consumer’s lives, deliver competitive advantage and are future-focused

Filter out weak ideas at an early stage and ensure we focus resource against ideas with greatest consumer potential

Optimise development and execution from idea to in-market execution

Evaluate success of new products in the market-place

Ensure learning from successes and failures feeds back into future innovation development

2

Page 3: Innovation Funnel

Role of Research in the Innovation Process

Innovation is a Risky Business- only 1 in 100 innovations are successful

Payoff can be HUGE if successful, but very expensive mistake if NOT.

Key to success of any Innovation project is effectively managing the RISK at each stage of the process.

CIF as a tool allows us to do this. However it alone can not answer all the questions stakeholders may have to make informed business decisions.

The right Consumer/Shopper Research at each stage of the CIF process allows the project team to manage this RISK and make informed choices.

Ensures Consumer/Shopper is at the heart of what we are doing- there is a need for this new idea/product and we don’t forget that.

3

Page 4: Innovation Funnel

Aligning research protocols with CIF : we need to be clear about the key consumer and business questions which need to be answered at each stage of the process

4

Decision to Develop Gate

Decision to Launch Gate

Decision toProduce

Gate

Post Launch

Review Gate

Decision to Charter Gate

Idea ScopingStage

Preliminary Business Case Stage

Full Development Stage

Launch Preparation Stage

Market Execution Stage

Iden

tify

Str

ateg

ic p

riorit

ies

and

Por

tfol

io R

oles

- L

RP

Human & Cultural Insights

Usage/Attitudes

Desk research –

Consumer Encounters – explore

opportunity in real world

context

Desk research – refine product

brief

Consumer clinics –

incubate and help build & refine idea

Concept evaluation to

determine potential

(internal or external

depending on risk level)

Qual – mix optimisation

Quant – internal formulation screening

Quant – branded product test / CPT

Quant – STM eg. 4Caster

or

Incubator test mkt

or

Comms devt 3/6/12month reviews post launch

Research and Insight in the innovation funnel

Quant – consumer sensory testing

Page 5: Innovation Funnel

Research & Insight in the Innovation Funnel : HIGH RISK PROJECTS

5

Decision to Develop Gate

Decision to Launch Gate

Decision toProduce

Gate

Post Launch

Review Gate

Decision to Charter Gate

Idea ScopingStage

Preliminary Business Case Stage

Full Development Stage

Launch Preparation Stage

Market Execution Stage

Iden

tify

Str

ateg

ic p

riorit

ies

and

Por

tfol

io R

oles

- L

RP

Human & Cultural Insights

Usage and Attitudes

Desk research

Consumer Encounters – explore

opportunity in real world

context

Desk research – refine product

brief

Consumer clinics –

incubate and help build & refine idea

Concept evaluation to

determine potential

(internal or external

depending on risk level)

Qual – mix optimisation

Quant – internal formulation screening

Quant – branded product test / CPT

Quant – STM eg. 4Caster

and/or

Incubator test mkt

or

Comms devt 3/6/12month reviews post launch

Quant – consumer sensory testing

Page 6: Innovation Funnel

Research & Insight in the Innovation Funnel :MEDIUM RISK PROJECTS

6

Decision to Develop Gate

Decision to Launch Gate

Decision toProduce

Gate

Post Launch

Review Gate

Decision to Charter Gate

Idea ScopingStage

Preliminary Business Case Stage

Full Development Stage

Launch Preparation Stage

Market Execution Stage

Iden

tify

Str

ateg

ic p

riorit

ies

and

Por

tfol

io R

oles

- L

RP

Human & Cultural Insights

Consumer Encounters – explore

opportunity in real world

context

Desk research – refine product

brief

Consumer clinics –

incubate and help build & refine idea

Concept evaluation to

determine potential

(internal or external

depending on risk level)

Qual – mix optimisation

Quant – internal formulation screening

Quant – branded product test / CPT

Quant – STM eg. 4Caster

or

Incubator test mkt

or

Comms devt 3/6/12month reviews post launch

Quant – consumer sensory testing

Usage and Attitudes

Desk research

Page 7: Innovation Funnel

Research & Insight in the Innovation Funnel : LOW RISK PROJECTS

7

Decision to Develop Gate

Decision to Launch Gate

Decision toProduce

Gate

Post Launch

Review Gate

Decision to Charter Gate

Idea ScopingStage

Preliminary Business Case Stage

Full Development Stage

Launch Preparation Stage

Market Execution Stage

Iden

tify

Str

ateg

ic p

riorit

ies

and

Por

tfol

io R

oles

-

Human & Cultural Insights

Habits and Attitudes

Desk research

Consumer Encounters – explore

opportunity in real world

context

Desk research – refine product

brief

Consumer clinics –

incubate and help build & refine idea

Concept evaluation to

determine potential

(internal or external

depending on risk level)

Qual – mix optimisation

Quant – internal formulation screening

Quant – branded product test (skinny test)

Quant – STM eg. 4Caster

or

Incubator test mkt

or

Comms devt 3/6/12month reviews post launch

Quant – consumer sensory testing