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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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Enabling Multifaceted Innovation
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
ENABLING MULTIFACETED INNOVATION
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
Source: The Global CEO Study 006.
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.
ENABLING MULTIFACETED INNOVATION
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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ENABLING MULTIFACETED INNOVATION
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
Source: The Global CEO Study 006.
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
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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
Source: The Global CEO Study 006.
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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?
ENABLING MULTIFACETED INNOVATION
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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
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
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Enabling Multifaceted Innovation
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.
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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.
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refeece i thi pblicatio to IBM podctad eice do ot imply that IBM ited to
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