Making Innovation Global – How to Support Standard Innovation and NPD Processes Across the Organization Presented By PepsiCo and Kimberly Clark
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Growth through globalization is a part of nearly every organization’s strategy and ambition today. Many companies have already embarked on a global innovation strategy – but as they look to mature and refine their efforts, they’ve likely discovered that innovating globally comes with a distinct set of challenges. As companies turn to the global market as a driver for growth and competitive advantage, there is a significant change in how and where companies need to innovate. How do you make innovation strategy and processes structured, yet remain adaptable to the unique needs of markets and regions? How do you bring together knowledge that is globally dispersed and capture regional insights to infuse that knowledge into the innovation process? Furthermore, how can you support collaboration and visibility throughout the organization on a global scale? During this interactive event, you will hear real-life stories from two different peers in leading consumer goods organizations as they share information about their initiatives, the challenges they’ve encountered and the practices that helped them succeed. During this session, you will learn: • How consumer goods leaders like PepsiCo and Kimberly Clark transformed business globally; • The practices that helped drive success; and • Key learnings from the journey – the hurdles they encountered, and what they might have done differently. To view this webinar in its entirety, please visit: http://budurl.com/22r5
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Making Innovation Global – How to Support Standard Innovation and NPD Processes Across the Organization Presented By PepsiCo and Kimberly Clark
- 1. Making Innovation Global How to Support Standard Innovation and NPD Processes Across the Organization Featuring speakers from Interact with us throughout today’s session #InnovX
- 2. Strategy OfficeInnovation Initiative About Our Facilitators Scott Siegel, Senior Manager, Kalypso Scott is a senior manager specializing in innovation strategy, global design and implementation of new product development and portfolio processes. He brings over 15 years of product management and product development experience with several leading brands and companies to Kalypso's clients. Bryan Seyfarth, Ph.D., Director of Consumer Goods, Sopheon Bryan is the consumer goods segment leader for Sopheon. Bryan works with consumer goods companies globally to define and implement innovation best practices to improve new product output and financial success. His perspectives and analysis have appeared in such publications as CGT and Retail Leader, and he is a frequent conference presenter.
- 3. Welcome to the Consumer Goods Innovation Exchange • Virtual series featuring knowledge- sharing, storytelling & discussion with innovation professionals • Real-life experiences, successes & challenges from leading consumer goods companies • Insight into real solutions for approaching and tackling your biggest innovation and NPD challenges Innovation in practice, not theory
- 4. Crowdsourcing the Discussion Strategy OfficeInnovation Initiative
- 5. Crowdsourcing the Discussion Strategy OfficeInnovation Initiative
- 6. Strategy OfficeInnovation Initiative About Our Presenters Ron Brown, PepsiCo Senior Director, CIO Global R&D & Global Nutrition Group Dr. Barbara Burns, Kimberly - Clark Global Phase-Gate Process Owner, Corporate Innovation Team
- 7. Consumer Goods Innovation Exchange Program April 24, 2014
- 8. Who We Are Global Beverages Global Snacks Global Nutrition Brands 22 billion-dollar brands Performance More than $65 billion revenue Scale >200 countries & territories People ~280,000 employees PepsiCo is a global food and beverage powerhouse. Our broad range of more than 3,000 delicious products offers consumers convenient, nutritious and affordable options in nearly every country around the world.
- 9. We are on a journey to transform PepsiCo 2012 • Develop Standard Global Stage Gate Process • First Global Stage Gate • First Global Portfolio Reviews 2013 • First Global Stage Gate • Initiate Global Commercialization Forum • Roll-out standard process to Sectors and Regions • Initiate deployment of supporting system capability 2014 • Complete global Accolade roll-out • Continue to evaluate & improve process • Visible Leadership Commitment • Communication • Burning Platform • Clear Goal • Global reporting • Process, Organization and Capability • Training • Why Change • Process • Execution • Rapid Execution • Defined Governance • Global SME network • Engagement • Reinforce • Change • Process • Discipline • Celebrate the wins VISIBLY • Expand the capability • Set the vision for the future High-level Plan How/Why it has worked
- 10. Our Journey Going global ! Overcoming the barrier of change • Sr Leadership commitment • Global defined process • Aggressive timeline Training, rollout, and change management • Delivered in three parts Why, Process and Tool • Regional led and owned, centrally facilitated Localization of Global Processes • Global governance • Clear guardrails • Defined enhancement process
- 11. Our Journey Current “global” state – organization structure, global decision- making processes • Strategic view, Commitment (market), Execution (near term) • Established review processes and set cadence Strategies for innovation in emerging markets • Focus on enabling • Increasing visibility Technology support for global innovation • Established a single tool to support the process • Global reporting and portfolio dashboards • Active enhancement process Global “front-end” of innovation • Next phase of our journey
- 12. • About Kimberly-Clark Corporation • “Global Innovation Journey” • Closing Comments 12
- 13. Location: Dallas, TX – World Headquarters Sales: $21.1B History: ◦ Founded in 1872 – A Paper and Newsprint Company ◦ Evolved to a Consumer Products Company ◦ K-C has five $1 Billion dollar brands ◦ 57,000 employees worldwide ◦ Operations in 35 countries ◦ Products are sold in more than 175 countries ◦ #1 or #2 position in more than 80 countries Product Offerings ◦ Tissue products, diapers, wet wipes, ◦ Incontinence products, FemCare products ◦ Sterile wraps, safety products, medical devices ◦ Surgical and infection prevention products Segments ◦ Baby & Child Care ◦ Adult Care ◦ FemCare ◦ Family Care ◦ K-C Professional ◦ Health Care ◦ Global Nonwovens 13 Well-Known Global Brands Our Vision “Lead the world in essentials for a better life”
- 14. 14 2004 Re-launch Stage Gate Process NA Consumer 2010 Check and Adjust of NA Process 2012 Global Process Launched 2014 Beyond Global – Local Processes Outside of NA
- 15. Global Sectors Regions Adult Care Baby & Child Care Family Care Feminine Care Asia Pacific Europe / Middle East Africa Latin America North America 15 Global Process Regional Process • Global Templates • Global Standard Work • Minimum Standard Success Criteria • Global Standard Work • Regional Templates • Regional Success Criteria
- 16. Gate 1- Explore Gate 2 - Develop Gate 3 - Commercialize Post Launch Assessment Global Project Global Project R R R Regional Portion of Global Project R (optional) R R Regional Project Domain Expansion R R R R Line Extension R R R R Major Product Improvements R R R R Minor Product Improvements R R R Packaging Upgrade R R 16
- 17. Strategic Planning Portfolio Stage – Gate Process Project Management 17
- 18. One size does not fit all Different Capabilities Different Needs Freedom within a Framework Local Ownership
- 19. “Crowd-sourced” Q&A • What are Benefits to ‘Going Global’ with Innovation Process? • How to Manage Training, Deployment, Change Management? • To What Degree Should We Allow for Localization? • What is the Right “Global” Organization Structure? • What is the Right “Global” Decision-Making Process(es)? • How to Best Promote Innovation in Emerging Markets? • How Can Technology Help Enable Global Innovation? Ron Brown, PepsiCo Dr. Barbara Burns, Kimberly -Clark
- 20. Events in the Series Driving Innovation Process Effectiveness How to overcome challenges in the execution & adoption of NPD processes Thursday, March 20th Making Innovation Global How to support standard innovation and NPD processes across the organization Thursday, April 24th Improving Decision-Making in Gate Meetings The right data, people and processes to deliver value Thursday, May 15th bit.ly/innovationx • Register for upcoming events • Watch for content • Access onDemand Join us in May
- 21. scott.siegel@kalypso.com www.kalypso.com US: 1-216-378-4290 Europe: +31-651-186-191 bryan.seyfarth@sopheon.com www.sopheon.com US: 1-952-851-7500 Europe: +44 (0) 1483 685 735 Thank You! Feel free to address any follow-up questions to:
Editor's Notes
- SCOTT: The Consumer Goods Innovation Exchange is a recurring Roundtable series of 3 web events this Spring that will feature knowledge-sharing, anecdotes and discussion from a variety of leading consumer packaged goods organizations. Kalypso and Sopheon have teamed up with Innovation leaders from Pepsico, Kimberly Clark, the JM Smucker Company and others to share with you their real-life experiences, challenges and successes of leading the Innovation processes and cross-functional teams at their organizations.Our vision for this series is that we can present firsthand experiences, but then from there, more importantly – through this Series - foster a dialogue and a shared learning environment that will bring you insight into real solutions taken by your consumer goods peers. Many of you face exactly the same external (market) and internal (adoption & execution) Innovation challenges - it is our hope that many of these solutions and ideas can be introduced or adopted at your individual organizations so that you too can overcome some of your innovation challenges to deliver better results in-market.Today’s session is focused on Innovation Process Effectiveness and how to overcome challenges in the execution and adoption of NPD processes.Part 2 of the series will be held in April focusing on ‘Making Innovation Global’ and then finally in May we will wrap up with an engaging 3rd session on ‘Improving Decision-Making in Gate Meetings’Add something else to tie up this slide and move to the next
- With over $65 billion in net revenue and approximately 300,000 employees, we are among the largest food-and-beverage companies in the world. PepsiCo is the #1 Food and Beverage company in North AmericaIn Europe, we are #1 in juice, dairy, ready-to-drink tea, and savory snacksIn Russia, we are the market leader in dairyOur foods and beverages are consumed nearly 1 billion times each day nearly every country around the world.PepsiCo is made up of three global businesses – beverages, snacks and nutrition.Twenty-two of the brands in our portfolio – including Pepsi-Cola, Quaker Oats, Tropicana, Lay’s and Gatorade – generate more than $1 billion each in retail sales every year.
- Speaker Notes:2004 – Re-launch = Templates and consistency of data Prior to this, each business had their own process, and this initiative was to get everyone on the same playing field with process2004-2010 – We ran the process, but did not really have clear ownership of the process – Process management suffered – Recognized we had gaps2010 – Fix - added a NA process owner to re-align the consumer businesses2012 – Launched our global sectors, developed process to support our global initiatives 2014 – Right sizing the process to win in the local market – One shoe does not fit all – Using the global guiding principles, but scaling to win
- Approach with regions – Listening = KeyK-C’s culture of inclusion and collaborationKey to process owners is that they understand what the business do and what their challenges are – if you don’t, you will struggle / more challengingSustainability key – Getting people to own the local process and ownership at the leadership level.As our businesses and markets have different end consumers, our challenge is to define flexible process and data requirements that reflect those different consumer needs but also allow an appropriate level of standardization:Freedom within a Framework: Give each business/market the freedom to collect data that is important for local decision making, but also needed a standard data set to enable corporate reporting on key metrics.Different capabilities: Many of our processes are adapted from North America (most advanced). We must understand that overseas markets will have capability work to do to get to any standards, and we must work with local teams to bridge those gaps.Different needs: Markets and businesses have different needs and constraints that they are solving for; our solutions must provide them local benefit or we will experience adherence challenges.
- a series of complimentary resources to provide insight into best practices for approaching and tackling your biggest innovation and NPD challenges.Focus on peers in the consumer goods industry, and will include time for interactive discussion around key topics
- a series of complimentary resources to provide insight into best practices for approaching and tackling your biggest innovation and NPD challenges.Focus on peers in the consumer goods industry, and will include time for interactive discussion around key topics