Food and beverage manufacturers rely on their R&D and marketing departments to develop new product ideas that capture market share before the competition can catch up. These departments leverage information available in their business systems to help them analyze trends ranging from buying patterns to cost fluctuations. The trouble is, when R&D and marketing rely on business systems that exist in silos— as is often the case with today’s food and beverage manufacturers opportunities are missed, product development is too slow, and costs creep higher. But when a manufacturer understands that every part of the organization has a stake in the product innovation process, and ensures that all the parts are connected, the organization is better positioned to deliver successful, innovative products quickly.
This white paper discusses a number of considerations that food and beverage manufacturers should make when examining ways to accelerate product innovation. This paper also details how digital technology can be the enabler of this acceleration.
What is product innovation?
Product development and product innovation are not the same thing. Food and beverage manufacturers develop successful, new and improved products all the time. But these are often just iterations of existing products—perhaps with new flavors, ingredients, or packaging to satisfy new consumer trends. There’s not much innovation in that.
The manufacturer that strives to disrupt the market with never-before-seen, unique, or superior products, however, is practicing true product innovation. Not that there’s anything wrong with being second to market—many manufacturers successfully follow that very business model. But the risk-takers who are willing to gamble on something that’s not tried-and true
and get to market before the competition, are the ones uniquely positioned to see margin advantages, grow business, and build brand loyalty.
To learn more about how you can Accelerate successful product innovation in food and beverage, checkout the complete best practices guide.