Lessons in CPG Innovation | Sopheon

Data analytics have never been more important for obtaining a deep, real-time understanding of market activity. CPG companies that embrace and utilize the knowledge gained from market data will be far more likely to develop and execute product development strategies than their competitors.

This is where the link between corporate strategies and product innovation comes into play. There must be a process for ensuring that the market drivers uncovered by the data team find their way into their innovation systems, decision-making processes and culture. A good innovation management system is essential as the foundation for enabling good decisions and for keeping everyone on the same page.

Historical momentum is not a practical driver for success. There are countless examples. For instance, Blackberry’s early dominance of the mobile phone market did nothing to lock in future success. Apple and Android left Blackberry in the dust ages ago. Why? Innovation execution.

No matter the activity, CPG companies must be committed to doing everything exceptionally well – with an unyielding focus on the company’s strategies. This includes careful scrutiny of innovation and new product development projects. Lean and effective processes are a must. Innovation governance must be solid, but not burdensome. And both processes and governance must have the flexibility to change.

New products will need to be launched in months. Digital products and digital commerce will be key. You need to be able to test and learn and then pivot on a dime with the results. As for failure, it’s inevitable. Keep moving forward. To paraphrase Thomas Edison, you aren’t failing, you’re just finding out what doesn’t work.

Finally, awareness, measurement, and evidence across all levers of CPG innovation and new product development will be critical success factors.