Get in the Innovation Fast Lane
1
Innovation is more important now than ever to drive company growth, according to PwC’s Annual Global CEO Survey. It takes speed, know-how and a good dose of grit to take home the innovation cup. Move over Jeff Gordon; there’s a new kind of race in town. GET IN THE FAST LANE INNOVATION Mergers & acquisitions (2014; 14%) Product/service innovation (2014; 36%) Increased share in existing market (2014; 37%) New joint ventures and/or strategic alliances (2014; 3%) New geographic markets (2014; 10%) INNOVATION: THE KEY TO FAST GROWTH . . . BUT THE WINNERS ARE FEW... 86% ALTER THEIR AIM TO R&D FUNCTIONS 88% BETTER EXPLORING WAYS OF ARE USING & MANAGING BIG DATA 90% ARE CHANGING THEIR TECHNOLOGY INVESTMENTS 0 10 8 6 4 2 -6 -2 -4 Q: Which of the following do you see as the biggest opportunity to drive growth in your company over the next 12 months? More and more CEOs are citing innovation as a priority. CEOs are investing in innovation. % Change, 2012-2014 +10 INNOVATION +1 -1 -3 -6 Not all products are greeted by raving fans on the other side of the finish line. According to Harvard Business Review: It’s hard to get on the radar. On average, American families repeatedly buy... The average shopping trip includes... 3% 22% 75% Therefore, few launches succeed at the grocery store. SO WHAT DOES IT TAKE? First-Year Sales of CPG Launches Benchmark of a successful launch Considered a flop FUEL THE NEED: KNOW WHAT DRIVES THEM (get it?): MAKE THEIR HEARTS RACE: 1 3 2 4 It’s surprising how many innovation projects begin with a technology or a manufacturing advantage, rather than a consumer pain point, tension or need—the true key to widespread adoption. What problem are you solving, and how are you doing it better than anyone else? Most products tout physical or functional attributes, but connecting emotionally is the secret to winning consumers over now and forever. What is your emotional benefit? For example, try “feeling like a good mom” instead of “provide a superior clean.” BREAK AWAY FROM THE PACK: We all want to one-up the competition, but innovation mavens work harder to set themselves apart from the rest and make sure consumers know it, too. What is the one thing you do better than anyone else? You might know how you’re different, but does the consumer? Changing human behavior is difficult, but it is possible by tapping into your consumer’s habits, mindsets and beliefs and innovating around them. What are their habits when interacting with your product? What cues those habits? What behavorial barriers do you need to overcome to get them to switch to or adopt your product? At Seed Strategy, we believe innovations that take the lead get their fuel from one simple principle: ALWAYS BEGIN WITH THE CONSUMER Below are four questions you can ask yourself and your team to begin the conversation. SAME ITEMS PwC (2014), 2014 US CEO survey: good to grow, PwC. Retrieved from: http://www.pwc.com/us/en/ceo-survey-us/2014/assets/2014-us-ceo-survey.pdf PwC(2013), 2013 US CEO survey: creating values in uncertain times, PwC. Retrieved from: http://www.pwc.com/gx/en/ceo-survey/2013/pdf/us-ceo-survey-2013.pdf Schneider J. & Hall J. (2011, April), why most product launches fail, Harvard Business Review. Retrieved from: http://hbr.org/2011/04/why-most-product-launches-fail/ar/1 NEW ITEMS 85% 15% EARN $50 MILLION EARN $7.5 MILLION ITEMS THE SAME 150 = 1 Million ®
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In the ruthless innovation race, the pace is fast and the winners are few. Across the world, CEOs claim that innovation is becoming increasingly crucial to companies’ future growth. But here’s the thing: most new product innovations crash and burn after a year or two in-market, with only a few making it across the finish line. So what does it truly take to bring home the trophy? Seed’s Young Lee and Jen Hill provide some fuel for your engine.
Transcript of Get in the Innovation Fast Lane
Innovation is more important now than ever to drive company growth, according to PwC’s Annual Global CEO Survey.
It takes speed, know-how and a good dose of grit to take home the innovation cup. Move over Jeff Gordon; there’s a new kind of race in town.
GET IN THE
FAST LANE INNOVATION
Mergers & acquisitions (2014; 14%)
Product/service innovation (2014; 36%)
Increased share in existing market (2014; 37%)
New joint ventures and/or strategic alliances (2014; 3%)New geographic markets (2014; 10%)
INNOVATION: THE KEY TO FAST GROWTH . . .
BUT THE WINNERS ARE FEW...
86% ALTER THEIR AIM TO
R&D FUNCTIONS
88% BETTER EXPLORING
WAYS OF ARE
USING & MANAGING
BIG
DATA
90% ARE CHANGING THEIR
TECHNOLOGYINVESTMENTS
0 108642-6 -2-4
Q: Which of the following do you see as the biggest opportunity to drive growth in your company over the next 12 months?
More and more CEOs are citing innovation as a priority.
CEOs are investing in innovation.
% Change, 2012-2014
+10INNOVATION
+1
-1
-3
-6
Not all products are greeted by raving fans on the other side of the finish line. According to Harvard Business Review:
It’s hard to get on the radar. On average, American families repeatedly buy...
The average shopping trip includes...
3% 22% 75%
Therefore, few launches succeed at the grocery store.
SO WHAT DOES IT TAKE?
First-Year Sales of CPG Launches
Benchmark of a successful launch Considered a flop
FUEL THE NEED:
KNOW WHAT DRIVES THEM (get it?):
MAKE THEIR HEARTS RACE:
1
3
2
4
It’s surprising how many innovation projects begin
with a technology or a manufacturing advantage,
rather than a consumer pain point, tension or need—the
true key to widespread adoption.
What problem are you solving, and how are you
doing it better than anyone else?
Most products tout physical or functional attributes, but connecting emotionally is the secret to winning consumers over now and forever.
What is your emotional benefit? For example, try “feeling like a good mom” instead of “provide a superior clean.”
BREAK AWAY FROM THE PACK:
We all want to one-up the competition, but innovation mavens work harder to set themselves apart from the
rest and make sure consumers know it, too.
What is the one thing you do better than anyone
else? You might know how you’re different, but does
the consumer?
Changing human behavior is difficult, but it is possible by tapping into your consumer’s habits, mindsets and beliefs and innovating around them.
What are their habits when interacting with your product? What cues those habits? What behavorial barriers do you need to overcome to get them to switch to or adopt your product?
At Seed Strategy, we believe innovations that take the lead get their fuel from one simple principle:ALWAYS BEGIN WITH THE CONSUMER
Below are four questions you can ask yourself and your team to begin the conversation.
SAME ITEMS
PwC (2014), 2014 US CEO survey: good to grow, PwC. Retrieved from: http://www.pwc.com/us/en/ceo-survey-us/2014/assets/2014-us-ceo-survey.pdf
PwC(2013), 2013 US CEO survey: creating values in uncertain times, PwC. Retrieved from: http://www.pwc.com/gx/en/ceo-survey/2013/pdf/us-ceo-survey-2013.pdf
Schneider J. & Hall J. (2011, April), why most product launches fail, Harvard Business Review. Retrieved from: http://hbr.org/2011/04/why-most-product-launches-fail/ar/1
NEW ITEMS
85%
15%
EARN $50 MILLION
EARN $7.5 MILLION
ITEMS
THE SAME
150
= 1 Million
®
