As shared in our launch announcement, Integral CPG was founded to unlock ambitious innovation for food & beverage brands.
But what do we mean by 'ambitious' innovation?
The concept isn't a new one nor something we invented in isolation. Rather it has existed for over a decade.
- Any company that has passed the proof-of-concept stage has established a 'core' product portfolio – this is usually the products they launched and became known for
- For a period, these companies can experience high growth with this core, through things like line extensions and packaging optimizations
- But in time, maintaining higher growth, will require the company to step beyond its core into things that are truly new to it
- This newness doesn't have to be about just the product, but could include changes in how the brand makes products, brings them to market, partners with others or operates in pursuit of growth
- Innovation efforts that go beyond the core are known as 'breakthrough,' 'transformative,' 'disruptive' and more
Regardless of the terminology, the implications remain: the further you want to move from the core with innovation, the greater the ambition involved, and the greater the ambition, the more you’re no longer innovating around the product alone but rather around an expansion of your business
So, why does ambitious innovation require unlocking? Can’t a company just add it to their pipeline?
The short answer is sure, but when innovation efforts move beyond what’s already known to the company, risks can grow exponentially. As such, pursuing such efforts often requires perspectives and approaches that differ significantly from what the company has used previously.
Unfortunately, most companies aren’t great at stepping out of their 'norms' to attack these opportunities. It’s not a criticism, but rather a reflection of reality – it's a similar reason why people hire personal trainers or why doctors don’t perform surgeries on themselves. Beyond the specific expertise required, it is difficult to impose meaningful behavioral change on ourselves, and often an outside agent, or 'catalyst,' is required.
Pursuing ambitious innovation without the right support can create many issues, but there are 3 we have seen to be most common and challenging, and which hold companies back as a result. And these are at the core of our philosophy and resulting approach.
We’ll cover these 3 issues, and Integral's answers to them, in depth over the next few weeks – stay tuned!
Extra credit – check out "Managing Your Innovation Portfolio" by Bansi Nagji and Geoff Tuff, Havard Business Review, May 2012 to dive deeper into the innovation ambition framework
#ambitiousinnovation #breakthroughinnovation #foodandbeverageinnovation
Sounds like a great move, maybe one more should take!