The world of the Agro-Food industry as well as that of consumer goods tends to reduce their range of innovation to the new products chosen by the market and by that of consumer’s demands. This “Market Pull” approach covers an innovation potential much greater than these companies can receive profit from.
In the Valorial-KPMG Study in 2014, we discover that the strategies used for innovation aren’t always well defined. This study demonstrates an almost general absence of measures for the performance of an innovation- in an age where innovation has become necessary. It is therefore difficult to determine the “ideal innovation” without specific measures and objectives on past innovations.
- Products constantly undergo alterations linked to the demands of distributors and those linked to the renewing of ideas,
- Innovation can be easily copied,
- The cycles of innovation are very short,
- Companies generally renew 1/3 of their product portfolio per year.
Why do breakthrough innovations have more value than incremental innovations?
This new globalized environment in which evolve Agro-food industries and retail products requires from its companies constant and frequent innovation efforts in order to differentiate themselves from other companies.
In order to do so the company must have a clear idea of their return on investment at each step of the development of their innovation. They need to be able to manage their innovation projects and profit from the experience of past innovations. By observing the innovation as a global cycle, companies can view their project from idea to product as a cycle with individual steps that can be reproduced and used as experience for future projects.
The companies of the sector can’t content themselves with marginal innovations:
They need to create even more value through breakthrough innovations as well as optimize and manage their return on investment of an innovation as a top priority for their projects now and in the future.