SlideShare a Scribd company logo
1 of 18
Download to read offline
MARCH 2015
HOW
COLLABORATION
DRIVES
INNOVATION
SUCCESS
AN UNCOMMON SENSE
OF THE CONSUMER
A BENCHMARK STUDY ON COLLABORATIVE IDEATION
AND ITS IMPACT ON INNOVATION PERFORMANCE
HOW COLLABORATION DRIVES INNOVATION SUCCESS2
03. INTRODUCTION
05. RESEARCH OVERVIEW
ESSENTIAL FINDINGS
06. MORE HEADS ARE BETTER THAN ONE
08. DIVERSE VIEWPOINTS MAKE A DIFFERENCE
10. COLLABORATION REMAINS A PIPDREAM FOR MANY
12. COLLABORATION BARRIERS
14. SOLUTIONS
16. CONCLUSION
17. ABOUT NIELSEN
CONTENTS
Copyright ©2015 The Nielsen Company.
KEY QUESTIONS
• What impact does collaborative ideation have on the performance of new products?
• How should teams be structured to collaborate more effectively?
• What prevents organizations from achieving effective collaboration?
Achieving effective collaboration across functional teams is essential for identifying the most promising opportunities, as each
team brings a different but extremely valuable perspective. For example, the insights team has the pulse on currently unmet
consumer needs; R&D can open up new product possibilities; and the sales team knows what’s most likely to win over retailers.
CPG professionals already appreciate the value of bringing these different viewpoints together. They rank collaboration
among the top three most critical factors for innovation success, outpacing strong leadership and access to financial resources,
according to a recent innovation study.1
Despite this consensus that collaboration is key, recent research suggests that companies are struggling to collaborate
effectively:
• One third of CPG professionals lack confidence in their company’s approach to collaboration2
• 74 percent believe their company is not collaborating effectively at all3
In response to these findings, Nielsen conducted a study to benchmark collaboration practices within CPG and to determine
their real value in the innovation process. For this study, Nielsen focused on collaborative ideation in developing the value
proposition or product concept, as the concept is a key asset that drives many critical business decisions from formulation to
advertising. Using its optimization technology, Nielsen measured the impact of creative collaboration on a concept’s ability to
resonate with consumers.
INTRODUCTION
INSIGHT PROPOSITION PRODUCT PACKAGING
IN-MARKET
EXECUTION
INNOVATION PROCESS
1. Nielsen “2014 Consumer Packaged Goods Innovation Report”
2. IBID
3. IBID
3
HOW COLLABORATION DRIVES INNOVATION SUCCESS
1. More Heads are Better Than One
There is a positive relationship between the number of
collaborators actively working on a new product idea and
its performance with consumers. In fact, ideas developed
by teams of three or more people have 156 percent greater
appeal with consumers than those developed by teams
where just one or two people have played a hands-on role.
Organizations that consistently achieve high levels of
collaboration on product concepts can substantially improve
competitive advantage and revenue.
3. Collaboration Remains a Pipedream for Many
Despite collaboration’s benefits, many organizations are failing
to reap its rewards. Nielsen’s study found that most product
innovation projects have only two or fewer people actively
adding creative ideas or suggestions to the mix, resulting in
concepts that underperform with consumers. Several barriers
prevent teams from maximizing collaboration, including
perceptions that collaboration takes too much time, increases
workload and leads to personal conflict.
2. Diverse Viewpoints Make a Difference
Successful collaboration is not only about the quantity of
people contributing, but also about the degree of variation
in their roles, backgrounds and approaches to the problem
at hand. Involving people with different functional roles can
substantially improve a new product idea’s performance with
consumers. Best-in-class organizations follow a framework
for creative collaboration that maximizes diverse expertise
across different areas of the business.
4
ESSENTIAL FINDINGS
Copyright ©2015 The Nielsen Company.
Nielsen’s optimization technology enables teams to collaborate on a single starting point concept, adding variations (such as
different benefit statements or brands names) to create a larger space of concept alternatives. It then uses a sophisticated
evolutionary algorithm to “learn” from consumers’ reactions to different concept alternatives, adapting and eventually
singling out the most preferred concepts.
Looking at optimization projects over a two-year period, Nielsen examined the impact that collaboration had on creative
performance. Creative performance was measured both in terms of the volume of unique concepts created as well as the
quality of those concepts (i.e., their ability to entice consumers to purchase them over competing options).
Click the product you’d be
more likely to purchase
WATCH THE VIDEO TO
UNDERSTAND THE
TECHNOLOGY
www.affinnova.com/products/
optimizer.html
5
RESEARCH OVERVIEW
HOW COLLABORATION DRIVES INNOVATION SUCCESS
The idea that collaboration leads to better ideas is a commonly held belief in most corporate organizations. The
belief can be traced to the 1960s with the introduction of formal “brainstorming” processes by ad-man Alex
Osborn; today, that belief has spurred an industry of collaboration technologies, such as SharePoint, Jive and
Chatter. Yet, very little research has been done to connect collaboration to actual improvement in creative results.
The few academic research studies that do exist measure more abstract creative exercises using students, not
business people. By measuring the before and after impact of collaborative ideation on the performance of new
product concepts, Nielsen was able to connect collaboration results to a real business case: innovation.
MORE HEADS ARE
BETTER THAN ONE
6
Copyright ©2015 The Nielsen Company.
The more people that provide creative input on a concept, the
more unique concept alternatives are generated. As the chart
to the right shows, teams of six or more people generated a
substantially larger number of unique concept alternatives than
teams with fewer people. Larger teams showed a willingness to
test and try a diverse range of ideas, maximizing their chances
of identifying a truly breakthrough idea.
By testing more ideas with greater diversity, larger teams
increase the likelihood of identifying a concept that will
perform well with consumers.
To test this, Nielsen measured consumer preference for
brands’ “starting point” concepts against concepts optimized
by consumers. Results revealed that teams with six or more
collaborators contributing to the “idea pool” were able to
increase consumer preference share by larger margins for their
optimized concepts.
COLLABORATION INCREASES
CREATIVE OUTPUT
COLLABORATION IMPROVES
CONCEPT PERFORMANCE
This chart shows the creative space (i.e., number of unique concepts in millions) generated
by groups with different numbers of collaborators. Creative space is important because it
forms the “pool” from which the chosen idea will come.
This chart shows the relative preference share lift (i.e., increase in preference
from initial concept to best concept) as generated by groups with the given
number of collaborators.
7
58%
32%
16%
6+ 3-5 2
OPTIMIZED VS. “STARTING POINT” CONCEPTS:
RELATIVE PREFERENCE SHARE IMPROVEMENT
FOR TEAMS OF VARYING SIZES
47M
23M 22M
6+ 3-5 2
NUMBER OF CONCEPT ALTERNATIVES
GENERATED BY TEAMS OF VARYING SIZES
HOW COLLABORATION DRIVES INNOVATION SUCCESS8
Team diversity is often considered essential for effective collaboration, but does it really lead to better innovation?
After evaluating the impact that the number of collaborators had on concept performance with consumers, Nielsen
examined the impact for teams whose collaborators held different functional roles in the organization. Do teams
with greater cross-functional collaboration fare better, and what’s the right team mix?
DIVERSE VIEWPOINTS
MAKE A DIFFERENCE
Copyright ©2015 The Nielsen Company.
Teams that represent multiple business functions create higher-performing concepts than teams that stay within their own
walls and don’t branch out. In fact, concepts developed by teams with representatives from four or more functional groups
outperformed those developed by teams with representatives from just one functional group by 7 percentage points.
What exactly is the ideal make up of a creative team? Assessing
top collaborators, both in this study but also as observed
within client organizations, Nielsen found that best-in-
class organizations follow a common team framework
based on leveraging unique areas of internal expertise.
Broadening the reach of creative collaborators can
have a large impact. For example, while 70 percent
of collaboraters hold marketing and insights roles,
teams that branch out to include other functions
(e.g., R&D, sales, etc.) create concepts that are more
preferred by consumers; they show a preference
share lift of 6 percentage points over concepts
created by teams that do not include collaborators
from outside marketing and insights.
While this data is directional, it suggests that the
improvement in results may justify any extra work required
to involve different groups in the concept development process.
GO BROAD TO GENERATE BETTER IDEAS
WHAT’S THE RIGHT TEAM MIX?
+7 percentage points is the preference share lift (i.e., increase in
preference from initial concept to best concept) as generated by a
group with the given number of functional roles represented.
9
CUSTOMER
EXPERTS
FEASIBILITY
EXPERTS
STRATEGIC
EXPERTS
COMMUNICATION
EXPERTS
Brand
Shopper Insights
Sales
Research
Local Marketing
R&D
Legal
Finance
Agency
Creative Directors
Senior
Management
AVERAGE CONSUMER PREFERENCE IMPROVEMENT FOR CONCEPTS
DEVELOPED BY TEAMS WITH VARYING DEGREES OF DIVERSITY
+7pp
1-3 functions
4+ functions
HOW COLLABORATION DRIVES INNOVATION SUCCESS10
Clearly, collaboration has a positive impact on the performance of new product ideas. But how much are
organizations really collaborating? According to Nielsen’s findings, the reality falls far short of the promise.
COLLABORATION
REMAINS A PIPEDREAM
FOR MANY
Copyright ©2015 The Nielsen Company.
Despite the benefits of involving more collaborators, most new CPG product ideas are developed by fewer than two
people. As already shown, concepts developed by smaller teams have a significant competitive disadvantage compared
to those developed by teams of three or more people.
There’s a striking lack of diversity among the people contributing ideas. By analyzing the titles of the collaborators, Nielsen
found that most projects only involve people from one or two business functions — typically marketing and insights. Fewer
than one third of collaborators represented business functions outside of these roles, such as R&D, Strategy or Sales.
TRUE COLLABORATION IS THE EXCEPTION – NOT THE NORM
TEAMS ARE NOT BRANCHING OUT
11
54%
15%
9%
12%
10%
Most times, only one or two
business functions are involved
in collaboration.
One business function
Two business functions
Three business functions
Four business functions
Most times, someone is only
collaborating with one other person.
PERCENTAGE OF CPG PRODUCT CONCEPTS
DEVELOPED BY TEAMS OF VARYING SIZES
PERCENTAGE OF CPG PRODUCT
CONCEPTS DEVELOPED BY TEAMS WITH
VARYING DEGREES OF DIVERSITY
39%
37%
16%
8%
HOW COLLABORATION DRIVES INNOVATION SUCCESS12
COLLABORATION Given collaboration’s business benefits,
why don’t organizations do more of it? For
one, it’s difficult to quantify the value of
collaboration. Lacking ROI measurement,
many leaders are unable to articulate to
employees how essential collaboration
is, which gives project leads a hall pass to
work in isolation or limited partnerships.
A larger barrier, however, may be human
nature. It turns out that many people
are hesitant to collaborate for fear of
inviting more hassle and work. This “tax”
associated with collaboration is felt most
strongly by project leaders and owners
who are in charge of gathering input,
negotiating feedback and managing any
conflict that arises in the process. To avoid
adding complexity, most project managers
are opting out of collaboration, even if it
means sacrificing performance.
BARRIERS
Copyright ©2015 The Nielsen Company.
Time: Consider the time it takes to gather feedback for a concept from several people – and this time is compounded
when key stakeholders (such as Sales or Shopper Insights) work remotely or even globally. Project leads work on tight
deadlines and don’t want to risk missing a deadline to wait on someone’s input — so they move ahead without feedback.
THE 4 “TAXES” OF COLLABORATION
I GENERALLY LIKE TO GET AS MUCH INPUT AND FEEDBACK AS POSSIBLE, BUT
IT’S JUST NOT FEASIBLE WHEN I AM UP AGAINST A TIGHT DEADLINE.”
IF I ACCEPTED EVERYONE’S IDEAS, I WOULD HAVE A HUNDRED DIFFERENT
CONCEPT VARIATIONS… THERE IS NO WAY I CAN PRACTICALLY MANAGE THAT.”
ULTIMATELY, I FEEL LIKE I KNOW WHAT MY CONSUMERS NEED, AND I DON’T WANT TO
FEEL OBLIGATED TO ACCEPT AN IDEA IF I DON’T PERSONALLY AGREE WITH IT.”
TYPICALLY, I GET INPUT FROM 2 OR MORE PEOPLE WHO COMPLETELY DISAGREE,
AND I AM LEFT TRYING TO COME UP WITH A COMPROMISE OR A RESOLUTION.”
13
Burden: It’s difficult for project leads to gather, organize and process a lot of ideas. This is partly a function of the tools that
teams have to work with. Standard software tools such as Microsoft Word and PowerPoint do not have the ability to capture
many layers of ideas within a single document. When the typical brainstorming process can create hundreds of different ideas,
it’s nearly impossible to curate and organize them.
Control: Project leads often hesitate to invite too many people to collaborate, fearing loss of control or quality. Many
project leaders believe they have the best understanding of how to solve the problem, and having “too many cooks in the
kitchen” could derail the process.
Conflict: Inviting many people to provide their opinions and ideas often produces conflict, which places the project lead in the
uncomfortable position of referee. To avoid this, project leads will often invite people whose opinions more closely align with
their own to collaborate, causing a selection bias—or they will defer to the most senior-ranking opinion, unfairly dismissing
potentially good ideas from more junior team members.
HOW COLLABORATION DRIVES INNOVATION SUCCESS
Organizations can repeatedly praise the benefits of collaboration, but if they don’t remove the tax, people
won’t invest in team approaches. Therefore, they need to consider ways to remove the burden.
14
SOLUTIONS
Copyright ©2015 The Nielsen Company.
There are close to 100 different collaboration software systems available in the market. These solutions offer a number of
features to help ease the burden of collaborating with large teams of people by making it faster and more efficient to gather
and review information. Features address a range of needs including project management, timeline and task tracking, document
sharing, capturing feedback in dynamic, real-time environments and more. With so many choices, rushing to the first
collaboration system is not the best approach; organizations need to consider which solution best addresses their specific needs.
For example, if the majority of a company’s needs revolve around version control or making it easy for teams to collaborate
on documents, then most collaboration systems will probably suffice. However, if a company’s creative activity is specific to
concept development and design, they will want to find a system that can maximize creativity for these kinds of assets. Most
CPG concepts follow a standard structure for organizing imagery, benefits, consumer insights and features. While standard
softwares doesn’t accommodate concept formats, there are collaboration technologies which do, providing templates for
effective collaboration as well as tools that make it easy to add variation to different concept elements.
1. INVEST IN THE RIGHT TECHNOLOGIES
Concept-centered collaboration technologies like Nielsen Studio let
teams add variation to a starting point concept. Contributors enter
their input into the application themselves, freeing the project lead
from the burden of collecting and tracking feedback. Visualization tools
make it easy to toggle through concept alternatives, view and curate
collaborators’ suggestions and variations and add comments.
Collaboration systems that have built-in decision support tools can help avoid conflict by providing an objective referee.
For example, some systems allow teams to rank or vote on the best ideas. Other systems, such as those which rely on
evolutionary optimization, use consumer feedback to settle the debate over which idea is best. By introducing a more
objective performance gauge, organizations can help ease interpersonal conflicts and make sure everyone’s ideas have a
chance to compete fairly.
Traditional concept testing tools use consumer feedback to identify the best concept; however, they are typically only
capable of evaluating a handful of options at a time. This puts added pressure on teams to restrict creative collaboration and
variation. In contrast, evolutionary optimization can test thousands to millions of alternatives, allowing everyone’s theories
and assumptions to be put to the test without added time, cost or risk.
2. REMOVE CONFLICT BY PROVIDING TEAMS
WITH ANALYTICAL TOOLS
15
HOW COLLABORATION DRIVES INNOVATION SUCCESS
Based on Nielsen’s research, collaboration may be more important than most organizations believe. By following
collaboration best practices, brand teams have the potential to increase consumer preference for new concepts appreciably.
Teams need to broaden their collaboration efforts, involving more people across the organization. However, none of this is
possible if senior management neglects to removes barriers to collaboration.
CONCLUSION
16
Nielsen’s Studio is a web application that
enables innovation teams to collaborate quickly
and easily on concepts in one central place
– maximizing creative variation to improve
innovation performance. When combined
with Nielsen’s optimization technology, Studio
has been proven to improve the in-market
performance of new products substantially.
WATCH THE VIDEO TO LEARN MORE
HOW NIELSEN CAN HELP
Copyright ©2015 The Nielsen Company.
ABOUT NIELSEN
DISCLAIMER
Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement company with leading market
positions in marketing and consumer information, television and other media measurement, online intelligence,
mobile measurement, trade shows and related properties. Nielsen has a presence in approximately 100 countries, with
headquarters in New York, USA and Diemen, the Netherlands.
For more information, visit www.nielsen.com.
Copyright © 2015 The Nielsen Company. All rights reserved. Nielsen and the Nielsen logo are trademarks or registered
trademarks of CZT/ACN Trademarks, L.L.C. Other product and service names are trademarks or registered trademarks
of their respective companies. 13/7725
The information contained in this report is based on compilations and / or estimates representing Nielsen’s optinion based
on its analysis of data and other information, including data from sample households and / or other sources that may not be
under Nielsen’s control. Nielsen shall not be liable for any use of or reliance on the information contained in this report.
17
HOW COLLABORATION DRIVES INNOVATION SUCCESS
AN UNCOMMON SENSE
OF THE CONSUMERTM

More Related Content

What's hot

This Thing Called Co-Creation
This Thing Called Co-CreationThis Thing Called Co-Creation
This Thing Called Co-CreationStephen Cribbett
 
What is Co-Creation and Why is it a Competitive Advantage?
What is Co-Creation and Why is it a Competitive Advantage?What is Co-Creation and Why is it a Competitive Advantage?
What is Co-Creation and Why is it a Competitive Advantage?VoiceBoxer
 
What is value co-creation? For me :)
What is value co-creation? For me :)What is value co-creation? For me :)
What is value co-creation? For me :)Monika Maciuliene
 
Make your social media channels more effective in 4 steps
Make your social media channels more effective in 4 stepsMake your social media channels more effective in 4 steps
Make your social media channels more effective in 4 stepsSteven Van Belleghem
 
Fronteer Strategy - Co-creation's 5 Guiding Principles
Fronteer Strategy - Co-creation's 5 Guiding PrinciplesFronteer Strategy - Co-creation's 5 Guiding Principles
Fronteer Strategy - Co-creation's 5 Guiding PrinciplesFronteer Strategy
 
The Chief Innovation Officer, Redefined
The Chief Innovation Officer, RedefinedThe Chief Innovation Officer, Redefined
The Chief Innovation Officer, RedefinedFahrenheit 212
 
The Chief Consumer Officer at Kongress der Deutschen Marktforschung
The Chief Consumer Officer at Kongress der Deutschen MarktforschungThe Chief Consumer Officer at Kongress der Deutschen Marktforschung
The Chief Consumer Officer at Kongress der Deutschen MarktforschungInSites on Stage
 
"Co-creation" and "Experience Co-Creation" in Health Care
"Co-creation" and "Experience Co-Creation" in Health Care"Co-creation" and "Experience Co-Creation" in Health Care
"Co-creation" and "Experience Co-Creation" in Health CareA.R.J. (Rob) Halkes
 
Think Big and Connect to the Max: How Pepsico (re)connected the Ruffles brand...
Think Big and Connect to the Max: How Pepsico (re)connected the Ruffles brand...Think Big and Connect to the Max: How Pepsico (re)connected the Ruffles brand...
Think Big and Connect to the Max: How Pepsico (re)connected the Ruffles brand...InSites Consulting
 
Be a better business with a better output. Be an Open Business
Be a better business with a better output. Be an Open BusinessBe a better business with a better output. Be an Open Business
Be a better business with a better output. Be an Open BusinessGianluigi Cuccureddu
 
The Power of Co-creation: working with consumers to win in market
The Power of Co-creation: working with consumers to win in marketThe Power of Co-creation: working with consumers to win in market
The Power of Co-creation: working with consumers to win in marketBrand Genetics
 
How structural collaboration leads to value propositions in the financial sector
How structural collaboration leads to value propositions in the financial sectorHow structural collaboration leads to value propositions in the financial sector
How structural collaboration leads to value propositions in the financial sectorTom De Ruyck
 
Social business a shiny object or a golden ticket
Social business a shiny object or a golden ticketSocial business a shiny object or a golden ticket
Social business a shiny object or a golden ticketCraig Broadbent
 
Social Media as Customer-Driven Innovation
Social Media as Customer-Driven InnovationSocial Media as Customer-Driven Innovation
Social Media as Customer-Driven InnovationGet Satisfaction
 
Innovative ways companies are using design thinking
Innovative ways companies are using design thinkingInnovative ways companies are using design thinking
Innovative ways companies are using design thinkingmokshacts
 
Software Exec Summit Social Business Deck 72011
Software Exec Summit Social Business Deck 72011Software Exec Summit Social Business Deck 72011
Software Exec Summit Social Business Deck 72011pchandor
 
Fronteer Strategy Presentation on Sustainability and Co-creation
Fronteer Strategy Presentation on Sustainability and Co-creationFronteer Strategy Presentation on Sustainability and Co-creation
Fronteer Strategy Presentation on Sustainability and Co-creationFronteer Strategy
 
Innovation Reconsidered a White Paper (2015)
Innovation Reconsidered a White Paper (2015)Innovation Reconsidered a White Paper (2015)
Innovation Reconsidered a White Paper (2015)Mark T. Reyland
 

What's hot (20)

This Thing Called Co-Creation
This Thing Called Co-CreationThis Thing Called Co-Creation
This Thing Called Co-Creation
 
What is Co-Creation and Why is it a Competitive Advantage?
What is Co-Creation and Why is it a Competitive Advantage?What is Co-Creation and Why is it a Competitive Advantage?
What is Co-Creation and Why is it a Competitive Advantage?
 
What is value co-creation? For me :)
What is value co-creation? For me :)What is value co-creation? For me :)
What is value co-creation? For me :)
 
Incubating Innovation
Incubating InnovationIncubating Innovation
Incubating Innovation
 
The Conversation Company
The Conversation CompanyThe Conversation Company
The Conversation Company
 
Make your social media channels more effective in 4 steps
Make your social media channels more effective in 4 stepsMake your social media channels more effective in 4 steps
Make your social media channels more effective in 4 steps
 
Fronteer Strategy - Co-creation's 5 Guiding Principles
Fronteer Strategy - Co-creation's 5 Guiding PrinciplesFronteer Strategy - Co-creation's 5 Guiding Principles
Fronteer Strategy - Co-creation's 5 Guiding Principles
 
The Chief Innovation Officer, Redefined
The Chief Innovation Officer, RedefinedThe Chief Innovation Officer, Redefined
The Chief Innovation Officer, Redefined
 
The Chief Consumer Officer at Kongress der Deutschen Marktforschung
The Chief Consumer Officer at Kongress der Deutschen MarktforschungThe Chief Consumer Officer at Kongress der Deutschen Marktforschung
The Chief Consumer Officer at Kongress der Deutschen Marktforschung
 
"Co-creation" and "Experience Co-Creation" in Health Care
"Co-creation" and "Experience Co-Creation" in Health Care"Co-creation" and "Experience Co-Creation" in Health Care
"Co-creation" and "Experience Co-Creation" in Health Care
 
Think Big and Connect to the Max: How Pepsico (re)connected the Ruffles brand...
Think Big and Connect to the Max: How Pepsico (re)connected the Ruffles brand...Think Big and Connect to the Max: How Pepsico (re)connected the Ruffles brand...
Think Big and Connect to the Max: How Pepsico (re)connected the Ruffles brand...
 
Be a better business with a better output. Be an Open Business
Be a better business with a better output. Be an Open BusinessBe a better business with a better output. Be an Open Business
Be a better business with a better output. Be an Open Business
 
The Power of Co-creation: working with consumers to win in market
The Power of Co-creation: working with consumers to win in marketThe Power of Co-creation: working with consumers to win in market
The Power of Co-creation: working with consumers to win in market
 
How structural collaboration leads to value propositions in the financial sector
How structural collaboration leads to value propositions in the financial sectorHow structural collaboration leads to value propositions in the financial sector
How structural collaboration leads to value propositions in the financial sector
 
Social business a shiny object or a golden ticket
Social business a shiny object or a golden ticketSocial business a shiny object or a golden ticket
Social business a shiny object or a golden ticket
 
Social Media as Customer-Driven Innovation
Social Media as Customer-Driven InnovationSocial Media as Customer-Driven Innovation
Social Media as Customer-Driven Innovation
 
Innovative ways companies are using design thinking
Innovative ways companies are using design thinkingInnovative ways companies are using design thinking
Innovative ways companies are using design thinking
 
Software Exec Summit Social Business Deck 72011
Software Exec Summit Social Business Deck 72011Software Exec Summit Social Business Deck 72011
Software Exec Summit Social Business Deck 72011
 
Fronteer Strategy Presentation on Sustainability and Co-creation
Fronteer Strategy Presentation on Sustainability and Co-creationFronteer Strategy Presentation on Sustainability and Co-creation
Fronteer Strategy Presentation on Sustainability and Co-creation
 
Innovation Reconsidered a White Paper (2015)
Innovation Reconsidered a White Paper (2015)Innovation Reconsidered a White Paper (2015)
Innovation Reconsidered a White Paper (2015)
 

Similar to How Collaboration Drives innovation

Innovation Guest lecture Tu Delft
Innovation Guest lecture Tu Delft Innovation Guest lecture Tu Delft
Innovation Guest lecture Tu Delft Koen Klokgieters
 
Ri Open Collaboration Innovation
Ri Open Collaboration InnovationRi Open Collaboration Innovation
Ri Open Collaboration InnovationSuresh Fernando
 
R I Open Collaboration Innovation
R I  Open Collaboration  InnovationR I  Open Collaboration  Innovation
R I Open Collaboration InnovationSuresh Fernando
 
Service Innovation.pptx
Service Innovation.pptxService Innovation.pptx
Service Innovation.pptxAnkitaAnki16
 
Strengthen your discovery muscle (Gorman Gottesdiener)
Strengthen your discovery muscle (Gorman Gottesdiener)Strengthen your discovery muscle (Gorman Gottesdiener)
Strengthen your discovery muscle (Gorman Gottesdiener)Cristiano Caetano
 
The Insight Activation Studio: Improving the Return on Insights
The Insight Activation Studio: Improving the Return on InsightsThe Insight Activation Studio: Improving the Return on Insights
The Insight Activation Studio: Improving the Return on InsightsTom De Ruyck
 
How structural collaboration leads to value propositions in the financial sector
How structural collaboration leads to value propositions in the financial sectorHow structural collaboration leads to value propositions in the financial sector
How structural collaboration leads to value propositions in the financial sectorInSites Consulting
 
[PAPER]: The Danone Activation Studio
[PAPER]: The Danone Activation Studio[PAPER]: The Danone Activation Studio
[PAPER]: The Danone Activation StudioTom De Ruyck
 
Stop Isolating Customer Insights: Five Ways to Design the Customer Into Your ...
Stop Isolating Customer Insights: Five Ways to Design the Customer Into Your ...Stop Isolating Customer Insights: Five Ways to Design the Customer Into Your ...
Stop Isolating Customer Insights: Five Ways to Design the Customer Into Your ...Mohamed Mahdy
 
What is design thinking and why should the BPO industry care?
What is design thinking and why should the BPO industry care?What is design thinking and why should the BPO industry care?
What is design thinking and why should the BPO industry care?Sandra Subel [she/her]
 
Success and Impact in Innovation Programs
Success and Impact in Innovation ProgramsSuccess and Impact in Innovation Programs
Success and Impact in Innovation Programspaganibr
 
Why every company needs a Chief Consumer Officer: 5 steps towards becoming a ...
Why every company needs a Chief Consumer Officer: 5 steps towards becoming a ...Why every company needs a Chief Consumer Officer: 5 steps towards becoming a ...
Why every company needs a Chief Consumer Officer: 5 steps towards becoming a ...InSites Consulting
 
A Playbook for Corporate Innovation - Explorium HK
A Playbook for Corporate Innovation - Explorium HKA Playbook for Corporate Innovation - Explorium HK
A Playbook for Corporate Innovation - Explorium HKYangie Chung
 
Achieving Innovation through Outcome Engineering
Achieving Innovation through Outcome EngineeringAchieving Innovation through Outcome Engineering
Achieving Innovation through Outcome EngineeringCognizant
 
A Product-Led Growth Strategy for Enterprise
A Product-Led Growth Strategy for EnterpriseA Product-Led Growth Strategy for Enterprise
A Product-Led Growth Strategy for EnterpriseRocketSource
 
Innovation reconsidered, a white paper
Innovation reconsidered, a white paper Innovation reconsidered, a white paper
Innovation reconsidered, a white paper Mark T. Reyland
 
OperatingModelForProductCos
OperatingModelForProductCosOperatingModelForProductCos
OperatingModelForProductCosRavi Padaki
 
Innovation and Hart Agency
Innovation and Hart AgencyInnovation and Hart Agency
Innovation and Hart AgencyLuis Rosado
 
Executive Innovation Survey
Executive Innovation SurveyExecutive Innovation Survey
Executive Innovation SurveyStefan Rohrbach
 
Design thinking fuels innovation
Design thinking fuels innovationDesign thinking fuels innovation
Design thinking fuels innovationOmar Khan
 

Similar to How Collaboration Drives innovation (20)

Innovation Guest lecture Tu Delft
Innovation Guest lecture Tu Delft Innovation Guest lecture Tu Delft
Innovation Guest lecture Tu Delft
 
Ri Open Collaboration Innovation
Ri Open Collaboration InnovationRi Open Collaboration Innovation
Ri Open Collaboration Innovation
 
R I Open Collaboration Innovation
R I  Open Collaboration  InnovationR I  Open Collaboration  Innovation
R I Open Collaboration Innovation
 
Service Innovation.pptx
Service Innovation.pptxService Innovation.pptx
Service Innovation.pptx
 
Strengthen your discovery muscle (Gorman Gottesdiener)
Strengthen your discovery muscle (Gorman Gottesdiener)Strengthen your discovery muscle (Gorman Gottesdiener)
Strengthen your discovery muscle (Gorman Gottesdiener)
 
The Insight Activation Studio: Improving the Return on Insights
The Insight Activation Studio: Improving the Return on InsightsThe Insight Activation Studio: Improving the Return on Insights
The Insight Activation Studio: Improving the Return on Insights
 
How structural collaboration leads to value propositions in the financial sector
How structural collaboration leads to value propositions in the financial sectorHow structural collaboration leads to value propositions in the financial sector
How structural collaboration leads to value propositions in the financial sector
 
[PAPER]: The Danone Activation Studio
[PAPER]: The Danone Activation Studio[PAPER]: The Danone Activation Studio
[PAPER]: The Danone Activation Studio
 
Stop Isolating Customer Insights: Five Ways to Design the Customer Into Your ...
Stop Isolating Customer Insights: Five Ways to Design the Customer Into Your ...Stop Isolating Customer Insights: Five Ways to Design the Customer Into Your ...
Stop Isolating Customer Insights: Five Ways to Design the Customer Into Your ...
 
What is design thinking and why should the BPO industry care?
What is design thinking and why should the BPO industry care?What is design thinking and why should the BPO industry care?
What is design thinking and why should the BPO industry care?
 
Success and Impact in Innovation Programs
Success and Impact in Innovation ProgramsSuccess and Impact in Innovation Programs
Success and Impact in Innovation Programs
 
Why every company needs a Chief Consumer Officer: 5 steps towards becoming a ...
Why every company needs a Chief Consumer Officer: 5 steps towards becoming a ...Why every company needs a Chief Consumer Officer: 5 steps towards becoming a ...
Why every company needs a Chief Consumer Officer: 5 steps towards becoming a ...
 
A Playbook for Corporate Innovation - Explorium HK
A Playbook for Corporate Innovation - Explorium HKA Playbook for Corporate Innovation - Explorium HK
A Playbook for Corporate Innovation - Explorium HK
 
Achieving Innovation through Outcome Engineering
Achieving Innovation through Outcome EngineeringAchieving Innovation through Outcome Engineering
Achieving Innovation through Outcome Engineering
 
A Product-Led Growth Strategy for Enterprise
A Product-Led Growth Strategy for EnterpriseA Product-Led Growth Strategy for Enterprise
A Product-Led Growth Strategy for Enterprise
 
Innovation reconsidered, a white paper
Innovation reconsidered, a white paper Innovation reconsidered, a white paper
Innovation reconsidered, a white paper
 
OperatingModelForProductCos
OperatingModelForProductCosOperatingModelForProductCos
OperatingModelForProductCos
 
Innovation and Hart Agency
Innovation and Hart AgencyInnovation and Hart Agency
Innovation and Hart Agency
 
Executive Innovation Survey
Executive Innovation SurveyExecutive Innovation Survey
Executive Innovation Survey
 
Design thinking fuels innovation
Design thinking fuels innovationDesign thinking fuels innovation
Design thinking fuels innovation
 

Recently uploaded

2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis Usage2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis UsageNeil Kimberley
 
8447779800, Low rate Call girls in Rohini Delhi NCR
8447779800, Low rate Call girls in Rohini Delhi NCR8447779800, Low rate Call girls in Rohini Delhi NCR
8447779800, Low rate Call girls in Rohini Delhi NCRashishs7044
 
Annual General Meeting Presentation Slides
Annual General Meeting Presentation SlidesAnnual General Meeting Presentation Slides
Annual General Meeting Presentation SlidesKeppelCorporation
 
Contemporary Economic Issues Facing the Filipino Entrepreneur (1).pptx
Contemporary Economic Issues Facing the Filipino Entrepreneur (1).pptxContemporary Economic Issues Facing the Filipino Entrepreneur (1).pptx
Contemporary Economic Issues Facing the Filipino Entrepreneur (1).pptxMarkAnthonyAurellano
 
Digital Transformation in the PLM domain - distrib.pdf
Digital Transformation in the PLM domain - distrib.pdfDigital Transformation in the PLM domain - distrib.pdf
Digital Transformation in the PLM domain - distrib.pdfJos Voskuil
 
Ms Motilal Padampat Sugar Mills vs. State of Uttar Pradesh & Ors. - A Milesto...
Ms Motilal Padampat Sugar Mills vs. State of Uttar Pradesh & Ors. - A Milesto...Ms Motilal Padampat Sugar Mills vs. State of Uttar Pradesh & Ors. - A Milesto...
Ms Motilal Padampat Sugar Mills vs. State of Uttar Pradesh & Ors. - A Milesto...ShrutiBose4
 
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607dollysharma2066
 
APRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfAPRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfRbc Rbcua
 
Kenya’s Coconut Value Chain by Gatsby Africa
Kenya’s Coconut Value Chain by Gatsby AfricaKenya’s Coconut Value Chain by Gatsby Africa
Kenya’s Coconut Value Chain by Gatsby Africaictsugar
 
Buy gmail accounts.pdf Buy Old Gmail Accounts
Buy gmail accounts.pdf Buy Old Gmail AccountsBuy gmail accounts.pdf Buy Old Gmail Accounts
Buy gmail accounts.pdf Buy Old Gmail AccountsBuy Verified Accounts
 
Independent Call Girls Andheri Nightlaila 9967584737
Independent Call Girls Andheri Nightlaila 9967584737Independent Call Girls Andheri Nightlaila 9967584737
Independent Call Girls Andheri Nightlaila 9967584737Riya Pathan
 
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...
Global Scenario On Sustainable  and Resilient Coconut Industry by Dr. Jelfina...Global Scenario On Sustainable  and Resilient Coconut Industry by Dr. Jelfina...
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...ictsugar
 
Traction part 2 - EOS Model JAX Bridges.
Traction part 2 - EOS Model JAX Bridges.Traction part 2 - EOS Model JAX Bridges.
Traction part 2 - EOS Model JAX Bridges.Anamaria Contreras
 
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort ServiceCall US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Servicecallgirls2057
 
Memorándum de Entendimiento (MoU) entre Codelco y SQM
Memorándum de Entendimiento (MoU) entre Codelco y SQMMemorándum de Entendimiento (MoU) entre Codelco y SQM
Memorándum de Entendimiento (MoU) entre Codelco y SQMVoces Mineras
 
NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdf
NewBase  19 April  2024  Energy News issue - 1717 by Khaled Al Awadi.pdfNewBase  19 April  2024  Energy News issue - 1717 by Khaled Al Awadi.pdf
NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdfKhaled Al Awadi
 
Innovation Conference 5th March 2024.pdf
Innovation Conference 5th March 2024.pdfInnovation Conference 5th March 2024.pdf
Innovation Conference 5th March 2024.pdfrichard876048
 
FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607dollysharma2066
 

Recently uploaded (20)

2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis Usage2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis Usage
 
Japan IT Week 2024 Brochure by 47Billion (English)
Japan IT Week 2024 Brochure by 47Billion (English)Japan IT Week 2024 Brochure by 47Billion (English)
Japan IT Week 2024 Brochure by 47Billion (English)
 
8447779800, Low rate Call girls in Rohini Delhi NCR
8447779800, Low rate Call girls in Rohini Delhi NCR8447779800, Low rate Call girls in Rohini Delhi NCR
8447779800, Low rate Call girls in Rohini Delhi NCR
 
Annual General Meeting Presentation Slides
Annual General Meeting Presentation SlidesAnnual General Meeting Presentation Slides
Annual General Meeting Presentation Slides
 
Contemporary Economic Issues Facing the Filipino Entrepreneur (1).pptx
Contemporary Economic Issues Facing the Filipino Entrepreneur (1).pptxContemporary Economic Issues Facing the Filipino Entrepreneur (1).pptx
Contemporary Economic Issues Facing the Filipino Entrepreneur (1).pptx
 
Digital Transformation in the PLM domain - distrib.pdf
Digital Transformation in the PLM domain - distrib.pdfDigital Transformation in the PLM domain - distrib.pdf
Digital Transformation in the PLM domain - distrib.pdf
 
Ms Motilal Padampat Sugar Mills vs. State of Uttar Pradesh & Ors. - A Milesto...
Ms Motilal Padampat Sugar Mills vs. State of Uttar Pradesh & Ors. - A Milesto...Ms Motilal Padampat Sugar Mills vs. State of Uttar Pradesh & Ors. - A Milesto...
Ms Motilal Padampat Sugar Mills vs. State of Uttar Pradesh & Ors. - A Milesto...
 
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
 
APRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfAPRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdf
 
Kenya’s Coconut Value Chain by Gatsby Africa
Kenya’s Coconut Value Chain by Gatsby AfricaKenya’s Coconut Value Chain by Gatsby Africa
Kenya’s Coconut Value Chain by Gatsby Africa
 
Buy gmail accounts.pdf Buy Old Gmail Accounts
Buy gmail accounts.pdf Buy Old Gmail AccountsBuy gmail accounts.pdf Buy Old Gmail Accounts
Buy gmail accounts.pdf Buy Old Gmail Accounts
 
Independent Call Girls Andheri Nightlaila 9967584737
Independent Call Girls Andheri Nightlaila 9967584737Independent Call Girls Andheri Nightlaila 9967584737
Independent Call Girls Andheri Nightlaila 9967584737
 
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...
Global Scenario On Sustainable  and Resilient Coconut Industry by Dr. Jelfina...Global Scenario On Sustainable  and Resilient Coconut Industry by Dr. Jelfina...
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...
 
Traction part 2 - EOS Model JAX Bridges.
Traction part 2 - EOS Model JAX Bridges.Traction part 2 - EOS Model JAX Bridges.
Traction part 2 - EOS Model JAX Bridges.
 
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort ServiceCall US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
 
Corporate Profile 47Billion Information Technology
Corporate Profile 47Billion Information TechnologyCorporate Profile 47Billion Information Technology
Corporate Profile 47Billion Information Technology
 
Memorándum de Entendimiento (MoU) entre Codelco y SQM
Memorándum de Entendimiento (MoU) entre Codelco y SQMMemorándum de Entendimiento (MoU) entre Codelco y SQM
Memorándum de Entendimiento (MoU) entre Codelco y SQM
 
NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdf
NewBase  19 April  2024  Energy News issue - 1717 by Khaled Al Awadi.pdfNewBase  19 April  2024  Energy News issue - 1717 by Khaled Al Awadi.pdf
NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdf
 
Innovation Conference 5th March 2024.pdf
Innovation Conference 5th March 2024.pdfInnovation Conference 5th March 2024.pdf
Innovation Conference 5th March 2024.pdf
 
FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607
 

How Collaboration Drives innovation

  • 1. MARCH 2015 HOW COLLABORATION DRIVES INNOVATION SUCCESS AN UNCOMMON SENSE OF THE CONSUMER A BENCHMARK STUDY ON COLLABORATIVE IDEATION AND ITS IMPACT ON INNOVATION PERFORMANCE
  • 2. HOW COLLABORATION DRIVES INNOVATION SUCCESS2 03. INTRODUCTION 05. RESEARCH OVERVIEW ESSENTIAL FINDINGS 06. MORE HEADS ARE BETTER THAN ONE 08. DIVERSE VIEWPOINTS MAKE A DIFFERENCE 10. COLLABORATION REMAINS A PIPDREAM FOR MANY 12. COLLABORATION BARRIERS 14. SOLUTIONS 16. CONCLUSION 17. ABOUT NIELSEN CONTENTS
  • 3. Copyright ©2015 The Nielsen Company. KEY QUESTIONS • What impact does collaborative ideation have on the performance of new products? • How should teams be structured to collaborate more effectively? • What prevents organizations from achieving effective collaboration? Achieving effective collaboration across functional teams is essential for identifying the most promising opportunities, as each team brings a different but extremely valuable perspective. For example, the insights team has the pulse on currently unmet consumer needs; R&D can open up new product possibilities; and the sales team knows what’s most likely to win over retailers. CPG professionals already appreciate the value of bringing these different viewpoints together. They rank collaboration among the top three most critical factors for innovation success, outpacing strong leadership and access to financial resources, according to a recent innovation study.1 Despite this consensus that collaboration is key, recent research suggests that companies are struggling to collaborate effectively: • One third of CPG professionals lack confidence in their company’s approach to collaboration2 • 74 percent believe their company is not collaborating effectively at all3 In response to these findings, Nielsen conducted a study to benchmark collaboration practices within CPG and to determine their real value in the innovation process. For this study, Nielsen focused on collaborative ideation in developing the value proposition or product concept, as the concept is a key asset that drives many critical business decisions from formulation to advertising. Using its optimization technology, Nielsen measured the impact of creative collaboration on a concept’s ability to resonate with consumers. INTRODUCTION INSIGHT PROPOSITION PRODUCT PACKAGING IN-MARKET EXECUTION INNOVATION PROCESS 1. Nielsen “2014 Consumer Packaged Goods Innovation Report” 2. IBID 3. IBID 3
  • 4. HOW COLLABORATION DRIVES INNOVATION SUCCESS 1. More Heads are Better Than One There is a positive relationship between the number of collaborators actively working on a new product idea and its performance with consumers. In fact, ideas developed by teams of three or more people have 156 percent greater appeal with consumers than those developed by teams where just one or two people have played a hands-on role. Organizations that consistently achieve high levels of collaboration on product concepts can substantially improve competitive advantage and revenue. 3. Collaboration Remains a Pipedream for Many Despite collaboration’s benefits, many organizations are failing to reap its rewards. Nielsen’s study found that most product innovation projects have only two or fewer people actively adding creative ideas or suggestions to the mix, resulting in concepts that underperform with consumers. Several barriers prevent teams from maximizing collaboration, including perceptions that collaboration takes too much time, increases workload and leads to personal conflict. 2. Diverse Viewpoints Make a Difference Successful collaboration is not only about the quantity of people contributing, but also about the degree of variation in their roles, backgrounds and approaches to the problem at hand. Involving people with different functional roles can substantially improve a new product idea’s performance with consumers. Best-in-class organizations follow a framework for creative collaboration that maximizes diverse expertise across different areas of the business. 4 ESSENTIAL FINDINGS
  • 5. Copyright ©2015 The Nielsen Company. Nielsen’s optimization technology enables teams to collaborate on a single starting point concept, adding variations (such as different benefit statements or brands names) to create a larger space of concept alternatives. It then uses a sophisticated evolutionary algorithm to “learn” from consumers’ reactions to different concept alternatives, adapting and eventually singling out the most preferred concepts. Looking at optimization projects over a two-year period, Nielsen examined the impact that collaboration had on creative performance. Creative performance was measured both in terms of the volume of unique concepts created as well as the quality of those concepts (i.e., their ability to entice consumers to purchase them over competing options). Click the product you’d be more likely to purchase WATCH THE VIDEO TO UNDERSTAND THE TECHNOLOGY www.affinnova.com/products/ optimizer.html 5 RESEARCH OVERVIEW
  • 6. HOW COLLABORATION DRIVES INNOVATION SUCCESS The idea that collaboration leads to better ideas is a commonly held belief in most corporate organizations. The belief can be traced to the 1960s with the introduction of formal “brainstorming” processes by ad-man Alex Osborn; today, that belief has spurred an industry of collaboration technologies, such as SharePoint, Jive and Chatter. Yet, very little research has been done to connect collaboration to actual improvement in creative results. The few academic research studies that do exist measure more abstract creative exercises using students, not business people. By measuring the before and after impact of collaborative ideation on the performance of new product concepts, Nielsen was able to connect collaboration results to a real business case: innovation. MORE HEADS ARE BETTER THAN ONE 6
  • 7. Copyright ©2015 The Nielsen Company. The more people that provide creative input on a concept, the more unique concept alternatives are generated. As the chart to the right shows, teams of six or more people generated a substantially larger number of unique concept alternatives than teams with fewer people. Larger teams showed a willingness to test and try a diverse range of ideas, maximizing their chances of identifying a truly breakthrough idea. By testing more ideas with greater diversity, larger teams increase the likelihood of identifying a concept that will perform well with consumers. To test this, Nielsen measured consumer preference for brands’ “starting point” concepts against concepts optimized by consumers. Results revealed that teams with six or more collaborators contributing to the “idea pool” were able to increase consumer preference share by larger margins for their optimized concepts. COLLABORATION INCREASES CREATIVE OUTPUT COLLABORATION IMPROVES CONCEPT PERFORMANCE This chart shows the creative space (i.e., number of unique concepts in millions) generated by groups with different numbers of collaborators. Creative space is important because it forms the “pool” from which the chosen idea will come. This chart shows the relative preference share lift (i.e., increase in preference from initial concept to best concept) as generated by groups with the given number of collaborators. 7 58% 32% 16% 6+ 3-5 2 OPTIMIZED VS. “STARTING POINT” CONCEPTS: RELATIVE PREFERENCE SHARE IMPROVEMENT FOR TEAMS OF VARYING SIZES 47M 23M 22M 6+ 3-5 2 NUMBER OF CONCEPT ALTERNATIVES GENERATED BY TEAMS OF VARYING SIZES
  • 8. HOW COLLABORATION DRIVES INNOVATION SUCCESS8 Team diversity is often considered essential for effective collaboration, but does it really lead to better innovation? After evaluating the impact that the number of collaborators had on concept performance with consumers, Nielsen examined the impact for teams whose collaborators held different functional roles in the organization. Do teams with greater cross-functional collaboration fare better, and what’s the right team mix? DIVERSE VIEWPOINTS MAKE A DIFFERENCE
  • 9. Copyright ©2015 The Nielsen Company. Teams that represent multiple business functions create higher-performing concepts than teams that stay within their own walls and don’t branch out. In fact, concepts developed by teams with representatives from four or more functional groups outperformed those developed by teams with representatives from just one functional group by 7 percentage points. What exactly is the ideal make up of a creative team? Assessing top collaborators, both in this study but also as observed within client organizations, Nielsen found that best-in- class organizations follow a common team framework based on leveraging unique areas of internal expertise. Broadening the reach of creative collaborators can have a large impact. For example, while 70 percent of collaboraters hold marketing and insights roles, teams that branch out to include other functions (e.g., R&D, sales, etc.) create concepts that are more preferred by consumers; they show a preference share lift of 6 percentage points over concepts created by teams that do not include collaborators from outside marketing and insights. While this data is directional, it suggests that the improvement in results may justify any extra work required to involve different groups in the concept development process. GO BROAD TO GENERATE BETTER IDEAS WHAT’S THE RIGHT TEAM MIX? +7 percentage points is the preference share lift (i.e., increase in preference from initial concept to best concept) as generated by a group with the given number of functional roles represented. 9 CUSTOMER EXPERTS FEASIBILITY EXPERTS STRATEGIC EXPERTS COMMUNICATION EXPERTS Brand Shopper Insights Sales Research Local Marketing R&D Legal Finance Agency Creative Directors Senior Management AVERAGE CONSUMER PREFERENCE IMPROVEMENT FOR CONCEPTS DEVELOPED BY TEAMS WITH VARYING DEGREES OF DIVERSITY +7pp 1-3 functions 4+ functions
  • 10. HOW COLLABORATION DRIVES INNOVATION SUCCESS10 Clearly, collaboration has a positive impact on the performance of new product ideas. But how much are organizations really collaborating? According to Nielsen’s findings, the reality falls far short of the promise. COLLABORATION REMAINS A PIPEDREAM FOR MANY
  • 11. Copyright ©2015 The Nielsen Company. Despite the benefits of involving more collaborators, most new CPG product ideas are developed by fewer than two people. As already shown, concepts developed by smaller teams have a significant competitive disadvantage compared to those developed by teams of three or more people. There’s a striking lack of diversity among the people contributing ideas. By analyzing the titles of the collaborators, Nielsen found that most projects only involve people from one or two business functions — typically marketing and insights. Fewer than one third of collaborators represented business functions outside of these roles, such as R&D, Strategy or Sales. TRUE COLLABORATION IS THE EXCEPTION – NOT THE NORM TEAMS ARE NOT BRANCHING OUT 11 54% 15% 9% 12% 10% Most times, only one or two business functions are involved in collaboration. One business function Two business functions Three business functions Four business functions Most times, someone is only collaborating with one other person. PERCENTAGE OF CPG PRODUCT CONCEPTS DEVELOPED BY TEAMS OF VARYING SIZES PERCENTAGE OF CPG PRODUCT CONCEPTS DEVELOPED BY TEAMS WITH VARYING DEGREES OF DIVERSITY 39% 37% 16% 8%
  • 12. HOW COLLABORATION DRIVES INNOVATION SUCCESS12 COLLABORATION Given collaboration’s business benefits, why don’t organizations do more of it? For one, it’s difficult to quantify the value of collaboration. Lacking ROI measurement, many leaders are unable to articulate to employees how essential collaboration is, which gives project leads a hall pass to work in isolation or limited partnerships. A larger barrier, however, may be human nature. It turns out that many people are hesitant to collaborate for fear of inviting more hassle and work. This “tax” associated with collaboration is felt most strongly by project leaders and owners who are in charge of gathering input, negotiating feedback and managing any conflict that arises in the process. To avoid adding complexity, most project managers are opting out of collaboration, even if it means sacrificing performance. BARRIERS
  • 13. Copyright ©2015 The Nielsen Company. Time: Consider the time it takes to gather feedback for a concept from several people – and this time is compounded when key stakeholders (such as Sales or Shopper Insights) work remotely or even globally. Project leads work on tight deadlines and don’t want to risk missing a deadline to wait on someone’s input — so they move ahead without feedback. THE 4 “TAXES” OF COLLABORATION I GENERALLY LIKE TO GET AS MUCH INPUT AND FEEDBACK AS POSSIBLE, BUT IT’S JUST NOT FEASIBLE WHEN I AM UP AGAINST A TIGHT DEADLINE.” IF I ACCEPTED EVERYONE’S IDEAS, I WOULD HAVE A HUNDRED DIFFERENT CONCEPT VARIATIONS… THERE IS NO WAY I CAN PRACTICALLY MANAGE THAT.” ULTIMATELY, I FEEL LIKE I KNOW WHAT MY CONSUMERS NEED, AND I DON’T WANT TO FEEL OBLIGATED TO ACCEPT AN IDEA IF I DON’T PERSONALLY AGREE WITH IT.” TYPICALLY, I GET INPUT FROM 2 OR MORE PEOPLE WHO COMPLETELY DISAGREE, AND I AM LEFT TRYING TO COME UP WITH A COMPROMISE OR A RESOLUTION.” 13 Burden: It’s difficult for project leads to gather, organize and process a lot of ideas. This is partly a function of the tools that teams have to work with. Standard software tools such as Microsoft Word and PowerPoint do not have the ability to capture many layers of ideas within a single document. When the typical brainstorming process can create hundreds of different ideas, it’s nearly impossible to curate and organize them. Control: Project leads often hesitate to invite too many people to collaborate, fearing loss of control or quality. Many project leaders believe they have the best understanding of how to solve the problem, and having “too many cooks in the kitchen” could derail the process. Conflict: Inviting many people to provide their opinions and ideas often produces conflict, which places the project lead in the uncomfortable position of referee. To avoid this, project leads will often invite people whose opinions more closely align with their own to collaborate, causing a selection bias—or they will defer to the most senior-ranking opinion, unfairly dismissing potentially good ideas from more junior team members.
  • 14. HOW COLLABORATION DRIVES INNOVATION SUCCESS Organizations can repeatedly praise the benefits of collaboration, but if they don’t remove the tax, people won’t invest in team approaches. Therefore, they need to consider ways to remove the burden. 14 SOLUTIONS
  • 15. Copyright ©2015 The Nielsen Company. There are close to 100 different collaboration software systems available in the market. These solutions offer a number of features to help ease the burden of collaborating with large teams of people by making it faster and more efficient to gather and review information. Features address a range of needs including project management, timeline and task tracking, document sharing, capturing feedback in dynamic, real-time environments and more. With so many choices, rushing to the first collaboration system is not the best approach; organizations need to consider which solution best addresses their specific needs. For example, if the majority of a company’s needs revolve around version control or making it easy for teams to collaborate on documents, then most collaboration systems will probably suffice. However, if a company’s creative activity is specific to concept development and design, they will want to find a system that can maximize creativity for these kinds of assets. Most CPG concepts follow a standard structure for organizing imagery, benefits, consumer insights and features. While standard softwares doesn’t accommodate concept formats, there are collaboration technologies which do, providing templates for effective collaboration as well as tools that make it easy to add variation to different concept elements. 1. INVEST IN THE RIGHT TECHNOLOGIES Concept-centered collaboration technologies like Nielsen Studio let teams add variation to a starting point concept. Contributors enter their input into the application themselves, freeing the project lead from the burden of collecting and tracking feedback. Visualization tools make it easy to toggle through concept alternatives, view and curate collaborators’ suggestions and variations and add comments. Collaboration systems that have built-in decision support tools can help avoid conflict by providing an objective referee. For example, some systems allow teams to rank or vote on the best ideas. Other systems, such as those which rely on evolutionary optimization, use consumer feedback to settle the debate over which idea is best. By introducing a more objective performance gauge, organizations can help ease interpersonal conflicts and make sure everyone’s ideas have a chance to compete fairly. Traditional concept testing tools use consumer feedback to identify the best concept; however, they are typically only capable of evaluating a handful of options at a time. This puts added pressure on teams to restrict creative collaboration and variation. In contrast, evolutionary optimization can test thousands to millions of alternatives, allowing everyone’s theories and assumptions to be put to the test without added time, cost or risk. 2. REMOVE CONFLICT BY PROVIDING TEAMS WITH ANALYTICAL TOOLS 15
  • 16. HOW COLLABORATION DRIVES INNOVATION SUCCESS Based on Nielsen’s research, collaboration may be more important than most organizations believe. By following collaboration best practices, brand teams have the potential to increase consumer preference for new concepts appreciably. Teams need to broaden their collaboration efforts, involving more people across the organization. However, none of this is possible if senior management neglects to removes barriers to collaboration. CONCLUSION 16 Nielsen’s Studio is a web application that enables innovation teams to collaborate quickly and easily on concepts in one central place – maximizing creative variation to improve innovation performance. When combined with Nielsen’s optimization technology, Studio has been proven to improve the in-market performance of new products substantially. WATCH THE VIDEO TO LEARN MORE HOW NIELSEN CAN HELP
  • 17. Copyright ©2015 The Nielsen Company. ABOUT NIELSEN DISCLAIMER Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and related properties. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA and Diemen, the Netherlands. For more information, visit www.nielsen.com. Copyright © 2015 The Nielsen Company. All rights reserved. Nielsen and the Nielsen logo are trademarks or registered trademarks of CZT/ACN Trademarks, L.L.C. Other product and service names are trademarks or registered trademarks of their respective companies. 13/7725 The information contained in this report is based on compilations and / or estimates representing Nielsen’s optinion based on its analysis of data and other information, including data from sample households and / or other sources that may not be under Nielsen’s control. Nielsen shall not be liable for any use of or reliance on the information contained in this report. 17
  • 18. HOW COLLABORATION DRIVES INNOVATION SUCCESS AN UNCOMMON SENSE OF THE CONSUMERTM