IBM Multifaceted Innovation

8/14/2019 IBM Multifaceted Innovation

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IoatioEablig Mltifaceted

Come Podct CEO eachig beyod the familia

IBM GLOBAL BusInEss sErvICEs


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Expanding the Innovation Horizon


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Enabling Multifaceted InnovationCome Podct CEO eachig beyod the familia

CONSUMER PRODUCTS INDUSTRY

Services-related offerings recognize the fact thatproducts are getting increasingly commoditizedprofitability will be under threat if some form of

differentiation is not achieved. CP industry respondent, IBM Global CEO Study 2006

Introduction

The come podct (CP) idty ha thied fo

oe 100 yea by itodcig ioatie, eeyday

podct that poide coeiece at a eaoable pice.

Hitoically, CP fim tageted the ma maket with

boad maketig ad badig tategie ad widepead

ditibtio thogh a coeiet, ad ofte defeetial,

etail chael. Fo may yea, podct lie exteio,ew adetiig campaig ad packagig chage wee

fficiet to tai acceptable gowth.

Today, howee, may CP fim opeate i low gowth

categoie ad the ability to gow i complicated by may

challege:

rapidly chagig come pefeece ad the

emegece of mltiple come egmet with

diffeet tate, ale ad hoppig patte

Itee competitio fo mid, wallet, tomach ad helf

pace

Pee fom ieto fo both top-lie ad bottom-

lie gowth

Demad fom powefl etaile fo ew podct, ew

eice ad bette tade tem, i additio to competi-

tio fom piate label.

so, how ca CP compaie fid ew way to gow?


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Enabling Multifaceted Innovation

The IBM Global CEO stdy 2006 eifoce that

ioatio i a key eqiemet fo fte cce.

Howee, may eyed CP CEO idicate that thei

cet foc i pimaily o products, services and

marketsioatio. We beliee thi i ifficiet to

achiee log-tem gowth objectie. CP compaie

eed a moe tategic, mltifaceted appoach to io-

atio, oe that alo addee the business model

(BM), operationsad the regulatoryeiomet. Thi

ew appoach hold coide hoppe, come

ad the iceaigly ifletial ole of etaile.

To be ccefl, eio CP exectie mt

commit thei time ad eegy to tategic ioatio.

Etablihig the climate, maagemet ytem ad

ietmet pioitie to pomote ad tai ioa-

tie actio will help adde the majo baie to

ioatio iteal clte ad people ie. Alo,

CP compaie hold be moe willig to embace

exteal collaboatio ad impoe iteal coodia-

tio to bette oce ew idea, deelop ew oltio

ad maage go-to-maket actiitie. Fially, impoig

techology ad bie itegatio paticlaly i

the aea of ctome ad come iight, ad

ew podct deelopmet ca impoe both the effi-

ciecy ad otcome of the ioatio poce.

Ioatio ha the potetial to impoe bad ad

come ale, ehace etaile elatiohip ad

timlate gowth. What i yo ioatio tategy?

How will yo compay ceate ioatio that matte?

The Global CEO Study 2006As part o our Global CEO Study, we conducted in-depth,

consultative interviews with 765 CEOs, business executives

and public sector leaders rom around the world.1 Through

these discussions, we explored CEOs current views on

innovation what was on their innovation agendas, where

their innovative energies were ocused, and what they were

doing to enable innovation. The survey population included

leaders o companies both large and small, some public and

some privately held. Our sample comprised a broad cross-

section o CEOs and public sector leaders, spanning 11

geographic regions and 20 dierent industries.

As part o this worldwide study, we interviewed 49 CP

industry CEOs and senior business executives rom a

diverse mix o operating geographies. O these 49 CEOs, 74

percent characterize their market as mature, 20 percent as

growth and 6 percent as relatively new and emerging.

Considering a multiaceted approach to

CP innovation

I the boadet ee, ioatio i abot ew idea

o cet thikig applied i fdametally diffeet

way, eltig i igificat chage. It i applicableaco may apect of bie tategy ad opea-

tio. While product, market/channelad services

ioatio will cotie a foc aea fo CP fim,

bie model, opeatioal ad ee eglatoy

ioatio hold be coideed to die fte pefo-

mace ad cce. A ppotig clte will be ital

to eablig thi boade, moe tategic ioatio

ageda (ee Fige 1). Thi, i t, will eqie actie

leadehip fom eio CP exectie.

ENABLING MULTIFACETED INNOVATION


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Traditional approaches still dominate

If we dont effectively innovate in the areaof products and services, the others becomeirrelevant, they dont matter. CP industry respondent, IBM Global CEO Study 2006

Compaed to thei pee i othe idtie, CP

compaie hae a aowe ioatio foc,

with emphai o podct, eice ad maket

ioatio. The IBM CEO tdy how thi emphai

may come at the expee of oppotitie ceated

ia bie model (BM), opeatio ad eglatoy

ioatio (ee Fige 2). The IBM CEO tdy

iclded a compaio of the pat fie yea fiacial

Figure 1. A multiaceted approach to CP industry innovation, with supportive culture as the oundation.

Source: IBM Global Business Services.

Operational innovation Acquire/expand process and technology

capabilities to achieve greater dierentiationaround core operational competencies

Migrate non-core competencies to lowercost environments

Regulatory innovation Identiy new business opportunities by

understanding implications and limitationso national, regional, and local regulations

Market/channel innovation

Change mix, ormat, price, and/or other go-to-market attributes

Enter new, or enhance perormance in existing,markets, segments, channels, or geographies

Business model innovation Change undamental business model design to ocus on

strategic markets, categories and core competencies Extend key capabilities through organizational realignment

and/or strategic partnerships

Services innovation Acquire or enhance capabilities that improve

customer and consumer relationships (such asmerchandising) Customize service oerings by channel, retailer,

region and/or store cluster

Facets oinnovation

Deploy systems and tools to encourage externalcollaboration and internal coordination

Enabling culture and foundation Veriy senior executives are responsible or innovation programs Foster culture that encourages communication and managed risk taking Create incentives and measures to drive and sustain innovation

Product innovation Develop completely new products/solutions Change attributes and/or packaging o existing products

Figure 2. Innovation priorities.

(Percent)

Products/services/markets

Operations

Business models

0 10 20 30 40 50 60 70

Source: The Global CEO Study 006.

Consumer products

Other


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pefomace the aeage eee gowth, opeatigmagi gowth ad hitoical opeatig magi of

a idty-accepted lit of eaet competito.

Compaie that hae gow thei opeatig magi

fate tha thei competito wee pttig twice a

mch emphai o bie model ioatio a

thoe who aked i the bottom 50 pecet o thee

fiacial meae.

Product innovation

Deelopig ad bigig ew podct ad oltio

to maket will emai the lifeblood of a CP compay.

Howee, the majority of time and resources is spento

deelopig icemetal chage to exitig offeig,

athe tha o delieig the tly ioatie podct

which may ecoage come to pat with thei

moey. CP epodet epoted that 56 pecet of

thei effot etailed impoemet to cet podct

ad eice, ch a flao o packagig chage ad

lie exteio, while oly 13 pecet wee fdame-

tally ew offeig (ee Fige 3).

A come pefeece diege i both mate ademegig maket CP fim eed to balace time

pet deelopig icemetal impoemet with the

ik of eglectig o miig emegig eed.

Accodig to Ifomatio reoce, Ic, a ecod

mbe of ew podct wee itodced i the

CP idty i 2005.2 Oly 10 pecet of thee ew

podct exceeded us$20 millio i ale ad le

tha 1 pecet eached ale of us$100 millio.3 The

oewhelmig majoity of food ad o-food podct

withi that top gop offeed ew o iqe aietie.4

so, while igificatly ew offeig compied oly

13 pecet of total ew podct, thee podct

geeated ealy two-thid of total ew podct

ale. Leadig die of podct ioatio wee

health ad welle (ch a edced caloie ad

potio cotol), pefomace impoemet fom

ew techologie ad coeiece facto.

Markets and channel innovation

Eteig gowig maket ch a Chia, Idia, Bazil

ad Cetal Eope ca poide ew eee ad

pofit oppotitie. Howee, ee the mot expei-

eced CP fim may eed to adapt thei tategie,

opeatio ad potfolio to meet local maket eed

ad tate. Kellogg, fo example, ha ecogized that

cold ceeal ad milk ae ot a popla i Chia ad

pat of Aia a they ae i the othe egio. A a

elt, the compay i epotedly lookig ito deel-

opig moe ceeal ba ad hot ceeal which will

eqie moe podct ioatio.5

Like othe etablihed CP fim, Kellogg ha tated

that it i lookig to by local fim a a way to patici-

pate i egioal gowth oppotitie.6 Etablihig

joit ete, pchaig local fim ad eteig

ito local ditibtio patehip ae commo CP


33

Figure 3. Most signifcant innovations products or

services.(Percent)

Improvements tocurrent products or

services

Product line extensions

Fundamentally newoerings, unrelated to

current products orservices

0 10 20 30 40


23

13


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tategie all of which may eqie ioatie thikigto ceate pofitable bie model i maket with

taditioally lowe dicetioay pedig

Chael alo poide ew ioatio ad gowth

oppotitie. A the taditioal gocey toe fomat

cotie to loe god i noth Ameica, ma

mechat, dg ad coeiece chael gai

moe attetio. recogizig thi ted, compaie

like Hehey Food hae applied ioatio aco

thei go-to-maket pogam, eallocatig eoce

ad tade dolla to highe magi ad ew chael,

ch a home impoemet ad electoic toe.

netl, with it fatet gowig bie, nepeo,

ha ceated a etiely ew chael. The wold top

poide of igle-ee coffee caple ell to clb

membe ia mail ad mall botiqe, potig a

whoppig 36 pecet ale iceae i 2005.7

Services innovation

Come ad etaile elated eice ae icea-

igly becomig a ew oce of diffeetiatio ad

ioatio fo CP compaie.

Come-elated actiitie ca iclde tageted

pomotio, i-toe ad othe elated pomotioaleet, ad bad ad podct edcatioal pogam.

I additio, ome bad like Jey Caig, pchaed

i Je 2006 by netl offe ot oly come

podct, bt alo eice to help pomote ew,

healthie lifetyle.

A etaile gow i ize ad iflece, they icea-

igly expect CP compaie to delie moe ctomized

eice to meet thei eed. Thee age fom ctom-

ized podct packagig ad pomotio to floo-eady

pallet, joit ietoy maagemet ad flexible odecycle time. retaile ae alo lookig fo way to diffe-

etiate thei hoppig expeiece fom competito,

ad a ecet IBM ey eeal they ae lookig to

CP pplie to help with ew eice i thi aea.8

Top eice eqeted iclded: price optimization,

improved wholesale pricing agreements, store-level

shopper insightsad customer-targeted promo-

tions. Merchandising and category managementad

retailer-specific products and packagingwee alo top

cotede.

May CP leade ae epodig by tafomig thei

accot team fom podct-oieted ale team

to co-fctioal, bie adio who poide a

aiety of etaile-pecific eice aimed at gowig

the bie togethe. Oe ccefl example i the

E.J. Gallo accot team wokig with Food Lio. The

two compaie eiewed toe leel poit-of-ale data

to detad local hoppe pefeece ad ed

thi ifomatio to impoe categoy plaig ad

podct aotmet mix. The elt wa categoy ale

gowth of oe 14 pecet i tageted noth Caolia

maket, beefitig both compaie.9


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Enabling Multifaceted Innovation6

Turning to other valuable acets o innovationBusiness model

Aco idtie, bie model ioatio i

becomig iceaigly impotat. CP leade ae

applyig BM ioatio pimaily i two aea:

Go-to-market approach Deelopig o ehacig

tategie, podct ad eice fo tageted cate-

goie, chael ad geogaphie

Structure of the organization and the CP value chain

Aimig fo the dal goal of eablig gowth ad

edcig cot.

Go-to-maket pioitie ae chagig a may CP fim

adjt thei tategy of maagig hded of bad

i doze of categoie. rathe tha tyig to coe

meo aile i a toe, may CP compaie ae

aowig thei foc to elected gowth egmet

ad categoy-leadig o billio dolla bad. By

acqiig ad deelopig podct i pomiig

gowth categoie ad geogaphie, a well a

heddig depefomig bad, CP compaie

gai eleace ad iceae leeage with etaile.10

I thi way, CP compaie ch a Colgate, Pocte &

Gamble, uilee, Campbell ad othe ae ehapigthei potfolio.

similaly, compaie like PepiCo hae electiely

dieified thei bie model. With it 2001 acqii-

tio of Qake Food ad a iceaed emphai o

ack food ad o-caboated beeage, PepiCo

ha geeated tog gowth ad haeholde et.

PepiCo cotie to exted thi tategy of coce-

tatig it bie model o ew oce of ctome

demad. It ecetly fomed a tategic alliace with

Ocea spay to deelop ad ditibte o-cabo-

ated beeage that hae a healthie pofile thataditioal oft dik.


retctig of ogaizatio ad the CP ale chaii alo eidet thogh ew type of pateig, i

aea ch a eeach ad deelopmet (r&D),

ad ditibtio, a well the otocig of o-coe

pocee.

Oe ioatie r&D example i the joit ete

betwee food compay netl ad LOal, the

cometic, ad health ad beaty podct poide.

Thei io joit ete i aimed at exploig

cometic titioal pplemet. Oe ca oly

imagie the potetial maket fo chocolate that i alo

good fo the complexio! similaly, Geeal Mill, a

food compay, ceated a joit ete with DPot, a

idtial chemical poide, to deelop ad maket

oy milk podct to taget a gowig come ted.

Thee ad othe tategic patehip ae aimed at

deelopig ew categoie ad maket.

O the ditibtio ide, compaie like Daoe

ad stabck hae etablihed mltiple ditibtio

patehip to expad the aailability of thei wate

ad coffee podct ito gocey ad coeiece

chael.

CP compaie may eed to eole thei bie

model a ctome, chael ad come

chage. Amazo.com ecetly aoced it lach

of a olie gocey toe, with a heay lie-p of

atal ad ogaic podct. Thi cold be a majo

oppotity fo CP compaie to deelop ad

itodce podct, offe ad ifomatio eice

to match the byig habit of Amazo hoppe ad

iceae thei hae of the hoppe wallet. It will alo

allow them to gai diect feedback fom hoppe

a capability fo which Amazo i famo ad e

the feedback fo fthe ioatio i thi ad othe

chael.

A diced below, CP compaie ae alo edefiig

thei bie model by adoptig ew opeatig

tategie.


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OperationalMay CP compaie ae iceaigly tafomig

thei opeatig model. The itet i to pioitize iet-

met i maket-diffeetiatig capabilitie, ch a

ctome ad chael maagemet, maketig ad

pply chai. Othe o-diffeetiatig back-office

opeatio ae iceaigly becomig cadidate fo

otocig to lowe cot poide.

Pocte & Gamble, Colgate, uilee, Kaft, Diageo,

Coty ad othe hae aoced otocig pat-

ehip i the lat few yea. Thee elatiohip

pa a aiety of fctio, icldig Hr admiita-tio, IT eice, fiace ad accotig, ad idiect

pocemet. I additio, thid-paty mafactig ha

alo gaied mometm with may CP fim. A we

aid at the otet, the cet appoach to ioatio,

which elie lagely o icemetal podct impoe-

met, i o loge fficiet. Itead, CP compaie

will hae to cocetate o a few capabilitie that ca

tly diffeetiate them i the maketplace.

Regulatory

Gowig coce abot the impact of come

podct o ociety, idiidal health ad the eio-

met ae diig fdametal eglatoy chage.

CP compaie iceaigly face a dizzyig aay of

atioal, egioal ad local eglatio that goe the

igediet, fomlatio, packagig, picig ad ee

pomotio they ca e.

Facig ch eglatoy challege ad thei aoci-

ated cot, may CP compaie eflexiely aim to

achiee miimal compliace at the lowet poible

cot. I ome cae, thogh, a diffeet pepectie

ca eeal iqe gowth oppotitie. By de-

tadig the ted ad motiatio behid cetai

eglatio fo itace, the obeity coce of

come i mch of the deeloped wold ad

poactiely addeig them, CP compaie ca t

eglatoy challege ito oce of eee.

Fo example, Kaft cceflly deeloped a icheegmet with 100-caloie, potio cotolled ack

pack. By epackagig exitig podct ito ew

ize, Kaft addeed paetal coce fo potio

cotol at the ame time it blted the impact of ay

potetial legilatio aod thi ie. Othe mafac-

te hae qickly followed with thei ow igle-ize

potio. uilee effot to efomlate it sf Excel

Qick Wah deteget podct ae a example of

eiometally-cocio, eglatoy-die ioa-

tio. I epoe to hap etictio o wate age

i ome Idia tate, whee the had wahig of

lady i pealet, uilee eegieeed it podctto eqie mch le wate dig iig. sice it

elach, ale of sf Excel i thoe tate iceaed

by oe 50 pecet.

reglatio ca alo die the eed to chage

opeatio. Fo example, legilatio i Eope, the

u.s. ad Caada iceaigly eqie detailed food

taceability ifomatio, icldig lit of igediet

ad thei oce o the package. seig the

oppotity thi legilatio ceate, ome CP

compaie hae delieed mch geate leel of

ifomatio tha eqied. Eiometally-cociocompaie ch a seeth Geeatio ad Tom

of Maie hae bilt thei biee ad iteified

ctome loyalty by poidig highly detailed

ifomatio abot thei podct igediet, icldig

thei impact ad thei oce.

Of coe, eglatio a a ioatio die ca be a

doble-edged wod. I 2006, a die to offe healthie

food to tdet i u.s. chool led to a combia-

tio of goemet ba o the ale of oft dik

ad ack, ad oltay ageemet with eeal

majo CP compaie etictig ale of thee ameitem. Thi aie the qetio, had CP compaie

bee moe poactie i ceatig ioatie, healthie

alteatie, cold thi impotat chael fo yog

come hae bee peeed?


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Primary innovation barriers: Culture andpeople

The issue is employee mindset most employeessee innovation as the responsibility of the R&Dhead or the marketing manager. The challenge isto drive a culture that encourages innovation atall levels, in all functions and in all activities. Global CEO Study Participant, 2006

A eablig clte i citical fo ioatio a it

fote iteal coodiatio, exteal collaboatio

ad pdet ik-takig. Howee, the top two baie

to ioatio mot feqetly cited by CEO wee

a unsupportive culture and climatead internal

workforce issues(ee Fige 4).

The eed fo exectie leadehip i fthe high-

lighted by the elatiely poo elf-aemet gie by

CP CEO egadig thei ioatio eablig capa-

bilitie. Jt oe half of CP epodet aeed

themele a haig limited to moderateidea genera-

tion ad climate for creativity capabilities. Incubation

and funding structures, ad metrics and incentives

wee alo ated limited to moderateby 73 pecet of

CP epodet.

Othe key CEO tdy fidig decoe the eed fo

iteal impoemet to ppot ioatio:

Oly 49 pecet hae challeged leade to deelop

the poitie ad ceatie clte that pomote mat

ik takig

Oly 27 pecet ated thei ability to meae

ceatie otcome ad ewad talet a significanto strong

Oly 19 pecet had etablihed a fomal poce to

maage all facet of ioatio.

While hitoically led by the Maketig fctio, leadig

CP fim ae iceaigly tig to eio exec-

tie to poide ioatio leadehip. Chief Ioatio

Office ad Chief Gowth Office hae become moe

pealet i the idty ad ome hae bee taked

with leadig ioatio effot. ultimately, we beliee

the CEO mt etablih the climate fo ioatio.

Still not enough collaboration

We need third parties to help benchmark andact as sparring partners. This also helps our staffto broaden their view.-- CP industry respondent, IBM Global CEO Study 2006

External collaboration

Hitoically, ioatio wa coideed o impotat

it had to be kept iide the bie. I a complete

taod, today it i ee a o impotat that itha to iole otide expet to make e the bet

idea ad iight ae boght ito the compay. still,

althogh the top three sources of ideas among CP

firms areexternal bie pate, ctome ad

coltat ealy 60 pecet of CP epodet

epoted that they ltimately executed on those ideas

that were internally generated.

19

Figure 4. Barriers to innovation among CP frms.

(Percent)

0 5 10 15 20


7

7

10

12

12

14

Unsupportive culture andclimate

Workorce issues arisinginternally

Limited unding or investment

Insufcient access to necessaryinormation and data

Process immaturity

Economic uncertainty

Inadequate enablingtechnologies


11/16

It a good ig that CP compaie ae iceaigly

lookig otide; howee, may ae ot yet

embacig exteal patehip ad collaboatio

fo idea geeatio, co-deelopmet ad deig

aitace. sixty-fie pecet of epodet

decibed thei leel of exteal collaboatio a

agig fom tosome extentto not at all(ee Fige 5).

Reaching beyond company boundaries Procter &

GambleProcter & Gamble (P&G) is among the CP companies

looking outside o its internal research and development

group to capture new ideas and develop new products,

anticipating that hal o its new products in the next ive

years will come rom outside sources.11

Through its Connect and Develop program, P&G has

adopted many open innovation principles by leveraging

a broad network o scientists, design irms, trade partners

and ventures or new product concepts. They have also

established innovation champions within their market

development organizations to identiy and explore localmarket ideas. As o March 2006, more than 35 percent o

new products had at least partly originated outside P&G, up

rom about 15 percent in 2000.12

Internal coordination

Coodiatig ew oltio lache hold agably

be a coe competecy fo ay CP compay ot

like the phamacetical idty. Howee, may

CP compaie ffe fom log podct deelopmet

cycle time, ideciiee oe whethe to ct iitia-

tie ad a lack of effectie lach coodiatio aco

iteal fctio. Of the CP compaie eyed, 63

pecet cited improving the new product development

processa the mbe oe actio they will take to

ioate i the podct ad eice aea.

O expeiece idicate the compaie that ae

ccefl i thi aea demotate the followig cha-

acteitic:

seio leade take a actie ole i the deciio

makig ad potfolio maagemet poce

Podct deelopmet pocee ae exected i a

paallel o cocet fahio, a oppoed to a tadi-

tioal eial poce

Meae ae highly iible ad ed to tack pe-

fomace ad poge (ch a percent of sales

from products introduced in the last three yearsad

product development cycle time).

Techology ca help make the poce moe

efficiet. Fo example, the piit compay Diageo

adopted ew wokflow ad collaboatio tool to

bette itegate iteal eoce with exteal

packagig ad deig pate. Thee tool, alog

with catalogig ad tadadizig podct pecifica-

tio, eabled all patie to wok cocetly with

acce to accate ifomatio. I additio, afte ew

exectie leadehip teamlied deciio makig

ad coodiatio, Diageo edced it ew podct

itodctio cycle fom oe 20 moth to jt 4moth. Thi impoemet eabled Diageo to capte

ealy maket hae ad eee leadehip i the

emegig eady-to-dik categoy.

Figure 5. Extent organization adopted collaboration andpartnership to drive innovation CP companies.

(Percent)

Very large extent

Signifcant extent

Some extent

Limited extent

Not at all

18

6

20

39

16

0 10 20 30 40



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Enabling Multifaceted Innovation0

An integration gap: Realizing the importanceo integration, versus reaping the beneits

If we had 10 percent more budget, we would...focus on innovationspend more on IT R&Dget more engaged around analytics to betterenable the business in that area-- IBM/GMA 2006 IT Study respondent13

A ecet IBM/GMA ey fod that, while CP

compaie tate that gowth i thei mai pioity ad

that techology i a key eable ad aet, oly 10

pecet of techology ietmet ae allocated to

eee gowth iitiatie.14 I additio, 74 pecet

of CP CEO idicated that bie ad techology

itegatio i impotat to ioatio, bt oly 41

pecet ackowledge itegatig the two to a

igificat extet.15

Techology ca ppot may aea of a ioa-

tio pogam, icldig idea geeatio, iteal ad

exteal collaboatio, ad lach maagemet. It ca

alo help adde oe of the top baie to ioatio

a epoted by CP CEO, insights and related data

analytics. (ee Fige 4).

Othe ecet CP idty fidig fthe emphaize

the eed fo bette itegatio of bie ad

techology:

CP compaie iew accot-pecific come

iight deelopmet, ad come data maage-

met ad aalytic a two of the top fie capabilitie

eqied to impoe eee gowth ad pofitability16

Today, the typical CP compay ped 80 pecet of

it time o data collectio ad maagemet itead

of deelopig ad leeagig iight17

O aeage, CP compaie ped le tha 0.6 pe-

cet of eee o come ad hoppe iight

deelopmet.18

Techology-eabled capabilitie ch a captig,aalyzig ad leeagig come, ctome ad

hoppe-elated data hae become high pioitie fo

may CP leade. Data-die maket iight ca be

ed to efie maketig ad pomotio campaig,

impoe podct aotmet plaig ad eable

ew picig tategie, i additio to helpig coe

boade maket ad come ted. I additio,

a etaile tie to diffeetiate thei ow hoppig

expeiece, CP compaie that detad hoppe

pefeece by etaile ad toe clte will be i

a bette poitio to iflece toe-leel maketig,

podct placemet ad pomotioal pogam.

Conclusion: Deploying new approaches

Ioatio hold be a key compoet of a CP

compay gowth tategy. Howee, CP compaie

eed to moe beyod familia teitoy ad act moe

tategically. Fo key ecommedatio ca help

CP compaie ealate thei cet capabilitie ad

pioitize ext tep.

1. Design a broader innovation agenda that

considers opportunities beyond the current

product and service orientation.Ioatio holdot be eeed fo jt podct ad eice. CP

compaie eed a moe tategic, mltifaceted

appoach to ioatio, oe that addee the

business model (BM), operationsad the regulatory

eiomet

What i yo ioatio tategy?

Doe it coide bie model, opeatio ad

eglatoy aea?

How ae yo commicatig ad eactig yo

tategy etepiewide?



13/16

2. Build a culture and management systems toencourage and sustain innovation. Commit the time

ad eegy of eio leade to etablih the climate,

maagemet ytem, icetie ad ietmet

pioitie to pomote ad tai ioatie actio.

Who i leadig yo ioatio ageda?

What i yo pla to etablih o ehace the ma-

agemet ytem, metic ad icetie to pomote

ad tai a ioatie clte?

3. Be more willing to collaborate externally, and

make internal coordination more effective, to

source new ideas and improve go-to-market

opportunities. Etablih ew ita- ad ite-compay

pocee to hae idea fom ew oce ad

eqip people with tool to itegate ad execte moe

effectiely. Defie a appoach to ietigate ad bild

exteal patehip oppotitie fom idea geea-

tio to oltio deig ad pototypig to ditibtio

elatiohip.

Ae yo leeagig ipt fom come, etail

ctome ad exteal patie?

How ophiticated ae yo pipelie maagemet

pocee ad tool?

How ae yo coodiatig iteal pocee ad

team to effectiely lach ad maage ew ol-

tio itodctio?

4. Improve analytical capabilities and technology

integration to gain useful consumer and customer

insights. Thogh bette aalytical capabilitie ad

tool, CP compaie ca e ctome, come ad

hoppe iight to die maketig, pomotio, picig,

ctome ad pply chai pogam.

How ae yo captig ad leeagig maket adctome iight?

How ae yo ig thi kowledge to impoe yo

go-to-maket pocee to impoe eice to co-

me ad etaile?

What woked i the pat i o loge eogh totai gowth. ultimately, we beliee CP compaie

eed to adopt a mltifaceted appoach to ioatio to

cceed i the global maketplace.

Further inormation

To fid ot moe abot thi tdy o to peak with the

Come Podct Leade fom yo egio, pleae

ed a e-mail [email protected].

To egite to eceie a copy of the complete IBM

Global CEO stdy 2006, pleae iit:

ibm.com/bc/ceotdy

About the authors

sea Campbell i a Pate i the Come Podct

stategy ad Chage coltig pactice. sea ca be

eached at [email protected].

Bill Gilmo i a Pate ad IBM Global Come

Podct Idty Leade. Bill ca be eached at

[email protected].

Gy Bliett i a Maagig Coltat ad the

Come Podct lead with the IBM Ititte foBie vale. Gy ca be eached at guy.blissett@

us.ibm.com.

Contributors

Elya Back, Coltat, stategy ad Chage, IBM

Global Bie seice

stephe Hie, Aociate Pate, stategy ad

Chage, IBM Global Bie seice


14/16


About IBM Global Business ServicesWith bie expet i moe tha 160 cotie,

IBM Global Bie seice poide cliet with

deep bie poce ad idty expetie aco

17 idtie, ig ioatio to idetify, ceate

ad delie ale fate. We daw o the fll beadth

of IBM capabilitie, tadig behid o adice to

help cliet implemet oltio deiged to delie

bie otcome with fa-eachig impact ad

taiable elt.

The IBM Ititte fo Bie vale, pat of IBM GlobalBie seice, deelop fact-baed tategic

iight fo eio bie exectie aod citical

idty-pecific ad co-idty ie.

Related publications

Gilmo, Bill ad Jlia Ch. Come Podct 2010:

Exectig to lead i a wold of exteme. IBM Ititte

fo Bie vale. May 2004. http://www-1.ibm.com/

eice//idex.w/ibtdy/imc/a1002489?ctxtId

=a1000046

Bliett, Gy, Caola Katze, Joh Witead, Bill

Gilmo ad richad Hedeo. 2006 GMA

Ifomatio Techology Ietmet ad Effectiee

stdy. IBM Global seice ad the Gocey

Mafacte Aociatio. May 2006.

Beewitz, scott, Jey McClay ad sea Oneill.

Itegated data aalytic: Exectig with peciio.

IBM Ititte fo Bie vale. Mach 2005. http://

www-1.ibm.com/eice//idex.w/ibtdy/imc/

a1009215?ctxt=a1000046

Reerences1 Expadig the Ioatio Hoizo: The Global CEOstdy 2006. IBM Global Bie seice. Mach

2006. http://www.ibm.com/bc/ceotdy

2 2005 new Podct Paceette: Leadig new CPG

Bad. Ifomatio reoce, Ic. Mach 2006.

3 Ibid.

4 Ibid.

5 Kellogg Eye Chia with Ceeal. BBC new

Olie. Jly 6, 2006.

6 Ibid.7 Bchaa, sa. Coffee-Pod ue stat to

Pecolate i u.s. Wokplace. Wall Street Journal.

Jly 19, 2006.

8 Beewitz, scott, Joh Be, Joh Bee ad sea

Oneill. IBM retail Mechadiig ad spplie

Maagemet sey, 2004 a diced i The

tategic ageda fo come podct ctome

maagemet. IBM Ititte fo Bie vale.

Decembe 2004.

9 Dowdell, stephe, Bidget Goldchmidt, et al.

Captai of Idty. Progressive Grocer.

noembe 15, 2004.

10 o Hoffma, Cotatie. P&G Hoecleaig

May sweep Away Claic. Brandweek. May 15,

2006.

11 Weima, robet. Fim t r&D o it head,

lookig otide fo idea. The Boto Globe.

Boto.com Bie. May 14, 2006.



15/16

12

Hto, Lay ad nabil sakkab. Coect adDeelop: Iide Pocte & Gamble new Model

fo Ioatio. Harvard Business Review. Mach 1,

2006.

13 Bliett, Gy, Caola Katze, Joh Witead,

Bill Gilmo ad richad Hedeo. 2006

GMA Ifomatio Techology Ietmet ad

Effectiee stdy. IBM Global seice ad the

Gocey Mafacte Aociatio. May 2006.

14 Ibid.

15 Expadig the Ioatio Hoizo: The Global CEO

stdy 2006. IBM Global Bie seice. Mach2006. http://www.ibm.com/bc/ceotdy

16 Beewitz, scott, Joh Be, Joh Bee ad

sea Oneill. The tategic ageda fo come

podct ctome maagemet. IBM Ititte fo

Bie vale. Decembe 2004.

17 Beewitz, scott, Jey McClay ad sea Oneill.

Itegated data aalytic: Exectig with peciio.

IBM Ititte fo Bie vale. Mach 2005.

18 Ibid.


16/16

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IBM Global seicerote 100some, nY 10589u.s.A.

Podced i the uited state of Ameica07-06All right reeed

IBM, ad the IBM logo ae tademak oegiteed tademak of Iteatioal BieMachie Copoatio i the uited state, othecotie, o both.

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