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Oct07

Kraft: the “$40 Billion Start-Up” Spurs Innovation

Point: Open innovation can accelerate new product development

Story: When Irene Rosenfeld took over as CEO of Kraft, she saw an anemic innovation pipeline. The company had 2000 corporate R&D staff — scientists, engineers and chemists — but new products weren’t flowing rapidly enough. Her solution to encourage innovation? To get everyone to “Think of Kraft as a $40 billion start-up,” she said at the World Business Forum on October 7, 2009. One way to emulate start-up thinking is to be open to new ideas from anywhere and quickly turn them into something valuable. Kraft reached out beyond its corporate R&D to enlist the help of employees across the whole company, as well as suppliers and partners, to spur innovation.

For example, Kraft runs an online “Innovate with Kraft” program whereby anyone can submit product ideas. Although skeptics call such programs gimmicks or fads, Rosenfeld maintains that they’re not gimmicks if the programs and the ideas generated from them are being used.

Kraft’s recent new product introduction, Bagel-fuls (frozen bagels pre-filled with Philadelphia brand Cream Cheese), for example, came from an unsolicited idea from a third-generation bagel maker in a niche market. The idea was a win-win for both companies: it solved some technical challenges that Kraft had faced in delivering a bagel and cheese combo, and it expanded the bagel-makers product beyond his niche.

Rosenfeld also mentioned the value of platform-based innovation (ideas that span multiple brands and geographies) in the innovation process. Now, “Our innovation pipeline is quite full,” Rosenfeld remarked, with new products coming out in four core areas: Snacking, Quick Meals, Premium and Health & Wellness.

Action

Look for ideas in the corners: reach out to employees and suppliers, especially niche people, to uncover obscure ideas that merit more widespread use
Celebrate the use of submitted ideas to show the value of participation in innovation submission programs.

For more information:
Irene Rosenfeld at the World Business Forum on Oct 6, 2009 #wbf09

http://www.usatoday.com/money/companies/management/profile/2008-12-10-ceo-forum-kraft-irene-rosenfeld_N.htm

Staggs, Sandy. Foster Innovation at Kraft Foods, Oct 27, 2008.

New York Times, Sept. 9, 2009

Comments Off on Kraft: the “$40 Billion Start-Up” Spurs InnovationCase study, CEO, Innovation, Strategy

Oct06

George Lucas Innovates Outside the Hollywood Box

Andrea Meyer

Point: Consider the role and value of outsiders in innovation

Story: George Lucas, legendary producer, director and screenwriter of the Star Wars and Indiana Jones blockbuster hits, shared these thoughts at the World Business Forum. Lucas described how he got his start making movies by going outside the insular Hollywood system. When he graduated from film school, Hollywood was not receptive to new ideas and Lucas didn’t want to go there. He and Francis Coppola moved to San Francisco to start American Zoetrope in 1969. Befitting their 1960’s cultural background, Lucas and Coppola “didn’t trust anyone over 30.”

The choice of San Francisco had paradoxical properties for young Lucas and the new film company. The bad news was that San Francisco had little of the movie making ecosystem of supporting companies and infrastructure that make Hollywood the mecca for film making. The good news is that San Fransisco therefore had little of the movie making ecosystem that constrained the industry to the prevailing ways of doing things. As a result, Lucas had to invent his own ways of making movies, which led him to develop a long string of innovations in camera handling, special effects, sound, and editing.

Lucas also benefited from the corporate buyouts of Hollywood. As mega corporations bought Hollywood studios, the new outside owners of the movie industry realized they didn’t know how to make movies. These new owners decided to hire people fresh from film schools, like Lucas, to bring in new blood. The ownership change also created a tumult that allowed people like Lucas freer reign. Sometimes innovation benefits from benign outsiders.

Action:

Consider how the prevailing ecosystem of suppliers and partners could be hindering innovation
Take innovation outside of the existing company and industry boundaries to start true greenfield ventures
Look for times when outsiders take over an industry (e.g,, foreign investors, industry transformation) — the tumult of ownership changes combined with owners who don’t know “tradition” provide opportunity.

Source:

George Lucas at the World Business Forum October 6, 2009 #wbf09

2 Comments »CEO, Creativity, Innovation

Sep30

Social Media at the World Business Forum

Andrea Meyer

Point: Extend the conversation of a conference beyond its four walls

Story: Open innovation, crowdsourcing, and new product development all depend on expanding the conversation from a narrowly defined in-group of people to broader, more inclusive global participation. The World Business Forum, for example, is already the largest conference of senior executives in the US. But HSMAmericas, creators of the World Business Forum, wanted to extend the conversation beyond the walls of the conference’s Radio City Music Hall location. They’re doing this through the Bloggers Hub, a concept which they pioneered with sponsor Pitney Bowes at the World Innovation Forum in May.

First, HSMAmericas created the infrastructure to support a global conversation about the conference. With the aid of hub sponsors IBM and ExecuNet, they wired a block of front & center reserved seating on the mezzanine at Radio City Music Hall. The hub space includes ample power outlets and high-speed internet access.

Second, HSMAmericas invited a diversity of some of the best business bloggers to participate. (See categorized list below.) The featured bloggers will be blogging and tweeting the conference in real time as well as posting articles and interacting in conversations during and after the event. Each blogger brings his or her own spin and segment of the global audience. Some bloggers, like me, emphasize innovation. Others emphasize economic issues, entrepreneurship, technology, etc. This ensures that the conference reaches a wide variety of global participants and extends the conversion along multiple dimensions of specialization.

Third, HSMAmericas created coordinated points of contact and content access. This includes a Facebook page, a LinkedIn group, and a Twitter hashtag. Bloggers will be using the #wbf09 hashtag on their real-time updates of the conference.

For example, anyone — executives, managers, entrepreneurs and all interested parties — can participate in the action of the Forum in real time by following the #wbf09 hashtag on Twitter. Bloggers will be using the #wbf09 hashtag on their real-time updates of the conference. They will append #wbf09 not only to their updates from the Forum but also to conversations they have with anyone using the #wbf09 tag. To join in, simply use the #wbf09 tag in your tweet. You can pose a question, share an opinion, or reply to anyone directly. To reach a specific blogger, just start your tweet with their Twitter ID. (For example, to reach me, simply start your tweet with @andreameyer and use the #wbf09. I’ll see it and reply.) Including #wbf09 in any of your tweets will make it visible to anyone participating in the conversation.

During the time of the World Innovation Forum (May 4-13), for instance, 4514 tweets mentioned #wif09. World Innovation Forum speakers Paul Saffo and Fred Krupp are on Twitter as @psaffo and @Fred Krupp, respectively. Previous World Business Forum speakers on Twitter include management guru Tom Peters (@Tom_Peters) and legendary CEO Jack Welch (@jack_welch).

Here is a list of the World Business Forum Featured Bloggers and their Twitter IDs.

Women’s Business Perspectives
Hot Mommas Project | Kathy Korman Frey | @chiefhotmomma

Action:

To invite participation in your conference from anywhere in the world, create a central blog space that aggregates links to all the blogs
Designate a Twitter hashtag (simply choose an abbreviation or word preceded by a pound sign (#) You can register and define hashtags at Wthashtag.com
Create a page on LinkedIn and on Facebook to let individuals know which of their colleagues and friends are attending or interested in the event.

Further Information:

I will be live-tweeting and blogging from the World Business Forum on Oct. 6-7, 2009. Join me in person or follow along on this blog or on Twitter @AndreaMeyer and @WorkingKnowledg or any of the above sites for full coverage!

4 Comments »How-to, Innovation

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