2008 Innovation Awards
In the highly-competitive consumer goods market, the success of a new product among consumers is the result of something much bigger than just a bright idea. Rather, it's a company's hard-earned result of streamlining its innovation processes and supporting them with experienced, dedicated people and enabling technologies. This rare feat -- about 75 percent of new products fail to be hits with the consumer each year -- is why CGT recognized select consumer goods companies for excellence in innovation at the 2008 Growth & Innovation Forum this past September.
The awards process started in August, when nominations in two award categories -- Most Innovative Product and Most Innovative Company -- were collected from consumer goods executives, industry analysts and consultants, and technology providers. Nominations were then narrowed down by CGT's editorial staff based on multiple award criteria, including project challenges and objectives, the resourcefulness used to overcome/meet them, and successes realized since launch. A slimmer nomination list was then sent to CGT's Editorial and Research Advisory Boards, which elected one "Winner" and two "Outstanding Achievement" recipients in each category.
So with the nominations made and the votes tallied, CGT proudly presents the Most Innovative Product and Most Innovative Company award winners for 2008.
Most Innovative Company: Kraft Foods Inc.
This year, Kraft Foods Inc. created a pipeline of new product platforms spanning growth categories such as accessible snacks, quick meals, premium taste experiences, and health and wellness. This accomplishment alone made Kraft an ideal recipient for the Most Innovative Company award, which is intended for the consumer goods company that continually delivered growth through new product and process innovation in 2007/2008.
But there is much more to Kraft's innovation story than meets the eye on the store shelf. Recognizing that the majority of food-related intellectual property (IP) exists outside of Kraft, the company is actively expanding its external networks to tap into this vast pool of innovations. Kraft refined its focus driving reliable, consistent top-tier performance growth through open innovation activities that are complementary to traditional R&D efforts.
"External partnering, or open sourcing of innovation, is not really new at Kraft, but now we're more focused and have it better integrated into our business," says Steve Goers, vice president for open innovation and investment for Kraft.
Starting from Within
In order to succeed in its open innovation efforts, Kraft first needed to strengthen the key foundational elements of innovation: culture, processes and capabilities. Internal alignment at Kraft was a complicated task given the fact that opportunities may exist that span multiple business units. This is complicated even further if the opportunity has potential to be a global platform.
"One of our recent accomplishments is the capability and framework that we've built within the company," explains Goers. "We've established a hub and spoke model where a centrally-led team focuses on the overall strategies, systems, enabling tools, networks, metrics and culture change."
Kraft complements that central team with R&D people -- or open innovation "technical scouts" - who are focused on finding and driving open innovation activities for each of their business units within the company.
External sources of innovation span suppliers and external manufacturers, innovation brokers, start-ups and entrepreneurs, universities and government labs, companies with commercial products/packages/technologies and venture capital firms.
What is Kraft looking for exactly? Emerging technologies, game-changing innovations, "ready to go" products, packages, technologies, commercial partnerships and new business models/services.
"Open Innovation is good for Kraft and good for the partner. Partnering with Kraft means access to our brands, technology, marketing expertise and distribution channels to bring scale. We can help smaller companies or entrepreneurs take a great innovation and make it bigger and even better," says Goers.
Doing Things Innovatively
In order to enable its innovation networks and collaboration tools, Kraft has launched a number of support programs. For example, Kraft recently refreshed its open innovation internet portal, www.innovatewithkraft.com, to attract potential innovation partners that can help create new product platforms and improve existing products and brands.
"It was designed to attract innovation from companies and entrepreneurs in an effort to help meet Kraft's needs," explains Goers. "We've recently refreshed the Web site so it now provides more information on needs that we are looking for and examples of recent product launches."
The company also hosts Innovation Days, which harness the creative minds of its employees.
Kraft's refined focus on open innovation, in addition to its supporting programs and tools, has led to "proudly found elsewhere" success stories, including:
The awards process started in August, when nominations in two award categories -- Most Innovative Product and Most Innovative Company -- were collected from consumer goods executives, industry analysts and consultants, and technology providers. Nominations were then narrowed down by CGT's editorial staff based on multiple award criteria, including project challenges and objectives, the resourcefulness used to overcome/meet them, and successes realized since launch. A slimmer nomination list was then sent to CGT's Editorial and Research Advisory Boards, which elected one "Winner" and two "Outstanding Achievement" recipients in each category.
So with the nominations made and the votes tallied, CGT proudly presents the Most Innovative Product and Most Innovative Company award winners for 2008.
Most Innovative Company: Kraft Foods Inc.
This year, Kraft Foods Inc. created a pipeline of new product platforms spanning growth categories such as accessible snacks, quick meals, premium taste experiences, and health and wellness. This accomplishment alone made Kraft an ideal recipient for the Most Innovative Company award, which is intended for the consumer goods company that continually delivered growth through new product and process innovation in 2007/2008. But there is much more to Kraft's innovation story than meets the eye on the store shelf. Recognizing that the majority of food-related intellectual property (IP) exists outside of Kraft, the company is actively expanding its external networks to tap into this vast pool of innovations. Kraft refined its focus driving reliable, consistent top-tier performance growth through open innovation activities that are complementary to traditional R&D efforts.
"External partnering, or open sourcing of innovation, is not really new at Kraft, but now we're more focused and have it better integrated into our business," says Steve Goers, vice president for open innovation and investment for Kraft.
Starting from Within
In order to succeed in its open innovation efforts, Kraft first needed to strengthen the key foundational elements of innovation: culture, processes and capabilities. Internal alignment at Kraft was a complicated task given the fact that opportunities may exist that span multiple business units. This is complicated even further if the opportunity has potential to be a global platform.
"One of our recent accomplishments is the capability and framework that we've built within the company," explains Goers. "We've established a hub and spoke model where a centrally-led team focuses on the overall strategies, systems, enabling tools, networks, metrics and culture change."
Kraft complements that central team with R&D people -- or open innovation "technical scouts" - who are focused on finding and driving open innovation activities for each of their business units within the company.
External sources of innovation span suppliers and external manufacturers, innovation brokers, start-ups and entrepreneurs, universities and government labs, companies with commercial products/packages/technologies and venture capital firms.
What is Kraft looking for exactly? Emerging technologies, game-changing innovations, "ready to go" products, packages, technologies, commercial partnerships and new business models/services.
"Open Innovation is good for Kraft and good for the partner. Partnering with Kraft means access to our brands, technology, marketing expertise and distribution channels to bring scale. We can help smaller companies or entrepreneurs take a great innovation and make it bigger and even better," says Goers.
Doing Things Innovatively
In order to enable its innovation networks and collaboration tools, Kraft has launched a number of support programs. For example, Kraft recently refreshed its open innovation internet portal, www.innovatewithkraft.com, to attract potential innovation partners that can help create new product platforms and improve existing products and brands.
"It was designed to attract innovation from companies and entrepreneurs in an effort to help meet Kraft's needs," explains Goers. "We've recently refreshed the Web site so it now provides more information on needs that we are looking for and examples of recent product launches."
The company also hosts Innovation Days, which harness the creative minds of its employees.
Kraft's refined focus on open innovation, in addition to its supporting programs and tools, has led to "proudly found elsewhere" success stories, including:
- Bagel-fuls: An unsolicited innovation developed in partnership with a third generation bagel baker with proprietary technology and IP. Kraft Bagel-fuls are the first nationally-available, all-in-one bagel and Philadelphia cream cheese.
- "All-Out Squeeze!": New containers of Kraft Mayo and Miracle Whip salad dressings deliver added value and convenience, letting consumers use more of the product with less waste. Open innovation led Kraft to license a partner's packaging technology and apply it to these products.
- Snack 'n Seal packaging: Since resealability was the No. 1 consumer suggestion for biscuits, proprietary technology and IP based upon supplier collaboration led to the "Snack 'n Seal" package first featured with Chips Ahoy! Cookies.
If your company is currently working to refine its acquisition of external innovations, consider this advice from Goers: "Give your potential partners a good 'reason to believe.' Make sure to do a great job explaining how your innovation will benefit the partner. Maintain your passion, and help set clear expectations on the relationship you are looking for."
Most Innovative Product: Nintendo Wii Fit
CGT awarded Nintendo the Most Innovative Product award this year for the successful development and launch of Wii Fit, a game console based on the idea of health that truly changed the category of video games.
Released in Japan on December 1, 2007, and in additional markets throughout April and May of 2008, this new brand offering uses the Wii Balance Board accessory to assist family members in achieving improved fitness through activities like yoga, aerobics, strength training and balance.
The concept for the Wii Fit was developed by Shigeru Miyamoto, creator of the Mario, Donkey Kong, The Legend of Zelda and other Nintendo franchises, who is known for repeatedly creating games based on his hobbies. For Wii Fit, Miyamoto started with the idea of incorporating his interest in weight management into a product.
Initially called the Wii Health Pack, the project had its share of stalls. Only a mere three people were charged to turn the simple act of measuring one's weight into a viable and exciting consumer product. But despite a rocky start, the Wii Fit would prove to be another sell-out, hard-to-find hit even before its official launch -- one that extended Nintendo's strategy to bring gaming to the masses.
Finding the Right Balance
A key element to the Wii Fit's success was the Wii Balance Board, a concept first born when a staff member brought in two scales for experimentation. The project team found that balancing your weight on them evenly was good fun, and after connecting the two scales to a computer, the project team decided to make balance a theme for the software.
"We were sure there were methods of keeping fit involving balance, and when we looked into it, they did indeed exist," explained Miyamoto in an interview with Nintendo President Satoru Iwata. "After a process of trial and error, we settled on the idea of making it so that you could balance on four points: front, back, left and right, and this in turn led us to the idea that we could also use it as an interface for a game."
Software development for Wii Fit was led by Tadashi Sugiyama and Hiroshi Matsunaga, both from the Entertainment Analysis & Development Division of Nintendo. After overcoming a few more bumps in the road, the Wii Fit offering, using the Wii Balance Board, developed in several directions, with sections organized as Balance Games, Aerobic Exercises, Muscle Workouts or Yoga.
The game starts with a simple measurement that calculates an adult user's Body Mass Index (BMI). From there, the Wii Balance Board accessory can be used as a platform for twirling a virtual Hula Hoop, shredding on a virtual snowboard, performing leg extensions or doing a downward-facing dog yoga pose. Different people in the same household can use Wii Fit and track their progress separately. Users' Mii caricatures reflect fitness levels and change as people become more proficient at the activities.
Wii Fit Turned Consumer Hit
Sales of the Wii Fit broke the one million unit mark just one month after its launch in Japan on December 1, 2007. In the United States, pre-launch sales of Wii Fit sold out on Amazon.com and on the Web sites of Wal-Mart Stores Inc. and GameStop Corp.
Wal-Mart Stores Inc. even persuaded consumers to order Wii Fit ahead of its launch in the United States to bump up its share of the projected $1.2 billion spent on consumer electronics this past Mother's Day, proving the game speaks loudly to unconventional video gamers.
"Wii Fit originally started out with Miyamoto-san's idea that weighing yourself daily can be fun, so this really felt like a project that was started from scratch," said Iwata in his interview series called "Iwata Asks" on Wii.com. "These stories of fateful encounters -- the birth of the Wii Balance Board, getting people who worked on Zelda onboard, and finally bringing the project to completion despite originally having had no idea where to even start -- are what I consider to be the elements that really make product development interesting."
Outstanding Achievement: Innovative Company
While Kraft Foods Inc. took top honors as the Most Innovative Company, the following companies deserve recognition for their outstanding ability to deliver growth through new product and process innovation in 2007/2008.
TerraCycle Inc.
TerraCycle Inc. was founded in 2001 in a Princeton University dorm room by current CEO Tom Szaky based on a simple yet unquestionably innovative idea; take waste, process it and turn it into a useful product. By 2004, Home Depot was carrying TerraCycle's "worm poop" fertilizers, which are now also sold at Target, Whole Foods and Walgreens, among other retailers.
In 2008, TerraCycle launched four new environmentally-safe cleaners, all of which are made using the latest technology, turning naturally occurring essential oils into effective and safe cleaners.
"In terms of innovation we continue to spread our wings and move forward to different waste streams," says James Artis, a spokesperson for TerraCycle. "When you observe the anatomy of the items that end up in our landfills from a packaging standpoint they all present an opportunity for us to rescue them and put them to another use."
The next project TerraCycle is excited to tackle is a line of 100-percent recycled office products, including paper, pens, pencils and folders, among other materials.
"TerraCycle continues to press forward in changing the entire idea of garbage and waste. We are proud of all the products that we create," closes Artis.
General Mills Corporation
"At General Mills, we are focused on nourishing lives through innovation; making lives healthier, easier and richer. We do this by delivering significant innovation in taste, health and convenience," says Peter Erickson, senior vice president of Innovation, Technology & Quality, General Mills.
In spring of 2007, General Mills formalized its open innovation initiative and officially launched the General Mills Worldwide Innovation Network (G-WIN). Since launch, it has received more than 200 technology and product proposals in one year, and a 300 percent increase over the prior year. Through General Mills' concept of applied open innovation, the company continues to generate a wide spectrum of collaboration opportunities, everything from applying existing technologies more effectively internally to finding potential new partners in entirely different industries.
Successes from this launch include Progresso Light Soup varieties that carry a Weight Watchers endorsement with 0 POINTS value per serving and 1 POINT value per serving, and Go-Gurt Fizzix, a new yogurt snack that mixes Yoplait yogurt with a blast of carbonation for a fizzy taste that kids will love.
"We're also proud of the continued expansion of the Fiber One brand. We launched Fiber One Chewy Bars in 2007, and in 2008, we expanded the Fiber One brand into yogurt, pancake and muffin mixes," says Erickson.
Outstanding Achievement: Innovative Product
The Nintendo Wii Fit was voted this year's Most Innovative Product for essentially changing the gaming category, but the following products also caught CGT's attention as they succeeded in fulfilling a need that consumers didn't even know they had.
Revlon Custom Creations
Revlon discovered that 50 percent of makeup users have trouble deciding on a type or shade of face makeup. Furthermore, many users vary in shade and coverage by season, according to research from Knowledge Networks Inc. Armed with these insights, Revlon developed Custom Creations, a foundation specially designed to address a consumer's unique shade needs. With the turn of a dial, she can create her perfect shade, going lighter or darker as preferred.
"Custom Creations is the must-have foundation for makeup users who not only want a flawless finish, but want to get their perfect shade," says Katrina Bobell, a spokesperson for Revlon.
Consumers weigh in positively on the innovation of Custom Creations' package design as well as the benefits of the line's shade customization. In addition to recognition from CGT, Revlon also received an award from Packaging Digest in May 2008, and was chosen by ACNielsen to be featured in its top 10 list of new products (by retail dollar sales) this year.
"We are always looking for meaningful and innovative ways to extend our lines. We are pursuing relevant customization opportunities across all of our categories," concludes Bobell.
McCormick Grill Mates Grinders
According to McCormick and Company's annual report, product innovation is driving sales as the company builds on platforms such as health and wellness, convenience and ethnic flavors, and meets consumer desire for reduced fat and sodium with flavorful products in both its consumer and industrial businesses. As time-pressed consumers turn more and more to grilling, slow cookers and seafood preparation, McCormick continues to respond with additional flavor solutions. Grill Mates Grinders is one such solution that was given Outstanding Achievement award from CGT for its Montreal Chicken and Montreal Steak grinders. The flavors were introduced in May 2008 and allow consumers to add fresh cracked flavor to grilled meats and veggies. With a built-in, adjustable grinder, consumers can choose a fine or coarse ground blend of these classic combinations:
Most Innovative Product: Nintendo Wii Fit
CGT awarded Nintendo the Most Innovative Product award this year for the successful development and launch of Wii Fit, a game console based on the idea of health that truly changed the category of video games. Released in Japan on December 1, 2007, and in additional markets throughout April and May of 2008, this new brand offering uses the Wii Balance Board accessory to assist family members in achieving improved fitness through activities like yoga, aerobics, strength training and balance.
The concept for the Wii Fit was developed by Shigeru Miyamoto, creator of the Mario, Donkey Kong, The Legend of Zelda and other Nintendo franchises, who is known for repeatedly creating games based on his hobbies. For Wii Fit, Miyamoto started with the idea of incorporating his interest in weight management into a product.
Initially called the Wii Health Pack, the project had its share of stalls. Only a mere three people were charged to turn the simple act of measuring one's weight into a viable and exciting consumer product. But despite a rocky start, the Wii Fit would prove to be another sell-out, hard-to-find hit even before its official launch -- one that extended Nintendo's strategy to bring gaming to the masses.
Finding the Right Balance
A key element to the Wii Fit's success was the Wii Balance Board, a concept first born when a staff member brought in two scales for experimentation. The project team found that balancing your weight on them evenly was good fun, and after connecting the two scales to a computer, the project team decided to make balance a theme for the software.
"We were sure there were methods of keeping fit involving balance, and when we looked into it, they did indeed exist," explained Miyamoto in an interview with Nintendo President Satoru Iwata. "After a process of trial and error, we settled on the idea of making it so that you could balance on four points: front, back, left and right, and this in turn led us to the idea that we could also use it as an interface for a game."
Software development for Wii Fit was led by Tadashi Sugiyama and Hiroshi Matsunaga, both from the Entertainment Analysis & Development Division of Nintendo. After overcoming a few more bumps in the road, the Wii Fit offering, using the Wii Balance Board, developed in several directions, with sections organized as Balance Games, Aerobic Exercises, Muscle Workouts or Yoga.
The game starts with a simple measurement that calculates an adult user's Body Mass Index (BMI). From there, the Wii Balance Board accessory can be used as a platform for twirling a virtual Hula Hoop, shredding on a virtual snowboard, performing leg extensions or doing a downward-facing dog yoga pose. Different people in the same household can use Wii Fit and track their progress separately. Users' Mii caricatures reflect fitness levels and change as people become more proficient at the activities.
Wii Fit Turned Consumer Hit
Sales of the Wii Fit broke the one million unit mark just one month after its launch in Japan on December 1, 2007. In the United States, pre-launch sales of Wii Fit sold out on Amazon.com and on the Web sites of Wal-Mart Stores Inc. and GameStop Corp.
Wal-Mart Stores Inc. even persuaded consumers to order Wii Fit ahead of its launch in the United States to bump up its share of the projected $1.2 billion spent on consumer electronics this past Mother's Day, proving the game speaks loudly to unconventional video gamers.
"Wii Fit originally started out with Miyamoto-san's idea that weighing yourself daily can be fun, so this really felt like a project that was started from scratch," said Iwata in his interview series called "Iwata Asks" on Wii.com. "These stories of fateful encounters -- the birth of the Wii Balance Board, getting people who worked on Zelda onboard, and finally bringing the project to completion despite originally having had no idea where to even start -- are what I consider to be the elements that really make product development interesting."
Outstanding Achievement: Innovative Company
While Kraft Foods Inc. took top honors as the Most Innovative Company, the following companies deserve recognition for their outstanding ability to deliver growth through new product and process innovation in 2007/2008.
TerraCycle Inc.
TerraCycle Inc. was founded in 2001 in a Princeton University dorm room by current CEO Tom Szaky based on a simple yet unquestionably innovative idea; take waste, process it and turn it into a useful product. By 2004, Home Depot was carrying TerraCycle's "worm poop" fertilizers, which are now also sold at Target, Whole Foods and Walgreens, among other retailers. In 2008, TerraCycle launched four new environmentally-safe cleaners, all of which are made using the latest technology, turning naturally occurring essential oils into effective and safe cleaners.
"In terms of innovation we continue to spread our wings and move forward to different waste streams," says James Artis, a spokesperson for TerraCycle. "When you observe the anatomy of the items that end up in our landfills from a packaging standpoint they all present an opportunity for us to rescue them and put them to another use."
The next project TerraCycle is excited to tackle is a line of 100-percent recycled office products, including paper, pens, pencils and folders, among other materials.
"TerraCycle continues to press forward in changing the entire idea of garbage and waste. We are proud of all the products that we create," closes Artis.
General Mills Corporation
"At General Mills, we are focused on nourishing lives through innovation; making lives healthier, easier and richer. We do this by delivering significant innovation in taste, health and convenience," says Peter Erickson, senior vice president of Innovation, Technology & Quality, General Mills. In spring of 2007, General Mills formalized its open innovation initiative and officially launched the General Mills Worldwide Innovation Network (G-WIN). Since launch, it has received more than 200 technology and product proposals in one year, and a 300 percent increase over the prior year. Through General Mills' concept of applied open innovation, the company continues to generate a wide spectrum of collaboration opportunities, everything from applying existing technologies more effectively internally to finding potential new partners in entirely different industries.
Successes from this launch include Progresso Light Soup varieties that carry a Weight Watchers endorsement with 0 POINTS value per serving and 1 POINT value per serving, and Go-Gurt Fizzix, a new yogurt snack that mixes Yoplait yogurt with a blast of carbonation for a fizzy taste that kids will love.
"We're also proud of the continued expansion of the Fiber One brand. We launched Fiber One Chewy Bars in 2007, and in 2008, we expanded the Fiber One brand into yogurt, pancake and muffin mixes," says Erickson.
Outstanding Achievement: Innovative Product
The Nintendo Wii Fit was voted this year's Most Innovative Product for essentially changing the gaming category, but the following products also caught CGT's attention as they succeeded in fulfilling a need that consumers didn't even know they had.
Revlon Custom Creations
Revlon discovered that 50 percent of makeup users have trouble deciding on a type or shade of face makeup. Furthermore, many users vary in shade and coverage by season, according to research from Knowledge Networks Inc. Armed with these insights, Revlon developed Custom Creations, a foundation specially designed to address a consumer's unique shade needs. With the turn of a dial, she can create her perfect shade, going lighter or darker as preferred. "Custom Creations is the must-have foundation for makeup users who not only want a flawless finish, but want to get their perfect shade," says Katrina Bobell, a spokesperson for Revlon.
Consumers weigh in positively on the innovation of Custom Creations' package design as well as the benefits of the line's shade customization. In addition to recognition from CGT, Revlon also received an award from Packaging Digest in May 2008, and was chosen by ACNielsen to be featured in its top 10 list of new products (by retail dollar sales) this year.
"We are always looking for meaningful and innovative ways to extend our lines. We are pursuing relevant customization opportunities across all of our categories," concludes Bobell.
McCormick Grill Mates Grinders
According to McCormick and Company's annual report, product innovation is driving sales as the company builds on platforms such as health and wellness, convenience and ethnic flavors, and meets consumer desire for reduced fat and sodium with flavorful products in both its consumer and industrial businesses. As time-pressed consumers turn more and more to grilling, slow cookers and seafood preparation, McCormick continues to respond with additional flavor solutions. Grill Mates Grinders is one such solution that was given Outstanding Achievement award from CGT for its Montreal Chicken and Montreal Steak grinders. The flavors were introduced in May 2008 and allow consumers to add fresh cracked flavor to grilled meats and veggies. With a built-in, adjustable grinder, consumers can choose a fine or coarse ground blend of these classic combinations:- Grill Mates Montreal Steak Grinder: This blend of coarsely ground peppers, garlic and spices is perfect for bolder-tasting steaks and burgers.
- Grill Mates Montreal Chicken Grinder: This blend of garlic, sea salt, spices and herbs aims to liven up the flavor of grilled chicken, pork or seafood.