London 20th November Future innovation. Success Strategies of Leading Food, Beverage & Ingredient Companies. 20th November 2018 Slide 1
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1 London 20th November 2018 Future innovation Success Strategies of Leading Food, Beverage & Ingredient Companies 20th November 2018 Slide 1
2 Our World is Changing: The Way We Shop 20th November Slide 2
3 Our World is Changing: The Way We Eat Out 20th November Slide 3
4 Our World is Changing: The Way We Choose Where to Eat 20th November Slide 4
5 Our World is Changing: The Way We Buy of Food 20th November Slide 5
6 Our World is Changing: 20th November Slide 6
7 How is This Impacting Food & Beverage Markets? With the growth of alternative delivery channels, it has never been easier to launch a new product but it has never been more difficult to make the launch a success new products are launched each year in US supermarkets 70% are withdrawn during the first year and 90% by Year-3 84% of global executives consider innovation to be important, 94% are dissatisfied with their own company s performance in innovation More and more food producers expect their suppliers to be more than a reliable source of ingredients or technology Unilever, for example, asks ingredient suppliers to provide consumer data and example formulations to support new functional ingredients 42% of executives say product development times are too long and 71.8% of companies now use rapid testing as part of their development process Retail is changing online sales have tripled since 2012, in the US the number of convenience stores has increased by more than 50% over the last 30 years, the share of hyper and supermarkets is forecast to decline from 70% in 2017 to 50% in 2025 and average store size to fall by 35% over the next 10 years 20th November Slide 7
8 How will Changing Markets Influence Product Innovation? 20th November Slide 8
9 How will Changing Markets Influence Product Innovation? 20th November Slide 9
10 How will Changing Markets Influence Product Innovation? 20th November Slide 10
11 How will Changing Markets Influence Product Innovation? 20th November Slide 11
12 How will Changing Markets Influence Product Innovation? 20th November Slide 12
13 The Way We Innovate is Changing Radical Innovation vs. Sustaining Brands OR 20th November Slide 13
14 The Way We Innovate is Changing Where are the Consumer s Pain-Points? 20th November Slide 14
15 The Way We Innovate is Changing Job-to-be-Done 20th November Slide 15
16 The Way We Innovate is Changing Start-Up Thinking Focus on Solving ONE problem 20th November Slide 16
17 The Way We Innovate is Changing Multi-Functional Innovation is Everyone s Responsibility TO 20th November Slide 17
18 The Way We Innovate is Changing Outside the Walls Collaboration Up & Down the Value Chain Supplier Producer Customer 20th November Slide 18
19 Doing the Right Things How is YOUR Market Changing? 20th November Slide 19
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 Slide 20
21 Doing the Right Things Setting Priorities Strategic Fit do we want to go there? Belief = Start-up Thinking Do we have: The Right-to-Play & The Right-to-Win? 20th November Slide 21
22 in the Right Way Organising 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 Slide 22
23 in the Right Way Rapid 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 Slide 23
24 Agile Innovation: OVERVIEW Doing the Right Things in the Right Way What? How? Pain-points Radical vs. Sustaining Different Teams Job-to-be-Done Innovation is Everyone s Job Multi-functional Teams Collaboration Up & Down Ethnographic Data (Design Thinking) Right-to-Play AND Right-to-Win Suppliers & Customers Rapid/Real-Life Testing Start-Up Thinking or Can we Sell It? Visible Methods & Team-Space 20th November Slide 24
25 RW INNOVATION - Future Innovation Thank you for your attention QUESTIONS? Contact: Russell Ward Tel: rw@rwinnovation.com 20th November Slide 25
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