Many consumer goods companies have an abundance of ideas. Some don't have enough. Others simply generate a lot of low-value ideas or ideas that end up not contributing to an organization's strategic goals.
Consider these statistics:
- A survey by Sopheon and CGT magazine found that only 18% of new products released by consumer goods companies were considered by the originators to be "highly innovative."
- In the same survey, nearly 60% of consumer firms said that their products weren’t sufficiently differentiated from the competition.
- A Nielsen study discovered that only 6% of new consumer products generate the level of category growth needed by retailers to justify expanded shelf space.
This paper is the second in a series addressing the primary barriers confronting consumer goods firms in their efforts to achieve sustainable business growth. It focuses on one of the most critical phases of innovation management: the front end of innovation.