??? The Power of Small Steps: Reevaluating Incremental Innovation for Big Wins

Introduction: Hello, LinkedIn community! ?? Today, let's delve into the fascinating world of innovation, particularly in consumer packaged goods (CPG) companies. While we often glorify big, disruptive innovations, recent research shows that small, incremental changes can lead to significant growth and success. Let's explore this strategy and how it contrasts with the traditional 'swing for the fences' approach. ????

?? The Misunderstood Role of Incremental Innovation

In the realm of CPG companies, large-scale innovations often overshadow the less glamorous, incremental changes. Yet, it's these small, steady improvements that can quietly drive sales and growth, proving that innovation doesn't always have to be disruptive to be effective.

?? Focusing on What Works: The Lorenzian Strategy

Companies like Reckitt Benckiser have thrived by following the Lorenzian strategy, named after mathematician Edward Lorenz. This approach involves making marginal improvements in valuable brands, solving real consumer problems, and enhancing sales and profits with each step.

?? Packaging Innovations: Small Changes, Big Impact

Simple packaging innovations can lead to significant sales growth, as seen with McDonald’s shift to plastic milk jugs and Heinz’s upside-down ketchup bottles. These examples show how rethinking the packaging can make a product more user-friendly and boost sales.

?? Balancing Big and Small Innovations

While pursuing ambitious R&D efforts can lead to groundbreaking products, balancing these with more targeted, incremental innovations is crucial. This balanced approach ensures a steady stream of improvements that can continuously engage consumers and grow the business.

?? Collaboration Between R&D and Marketing

In companies where R&D is often overshadowed by marketing, fostering a collaborative environment between these departments is key. When R&D and marketing work together, firms are more likely to succeed in both types of innovation.

?? The Impact of Culture on Innovation Strategy

The culture within a CPG firm significantly influences its approach to innovation. Firms with roots in industries where R&D is more respected tend to have more success with innovation, emphasizing the importance of cultural factors in shaping a company's innovation strategy.

?? Expert Insight: Finding the Right Balance

Industry experts like Sanjay Khosla of Kraft emphasize the importance of finding the right balance between quick wins and long-term projects. This balance is crucial for maintaining growth and staying competitive in the market.

Conclusion: Embracing Incremental Innovation for Long-term Success Innovation in the CPG industry isn't just about making big bets on new products. It’s also about making small, incremental improvements that resonate with consumers and drive sales. By fostering a culture of collaboration and balancing different types of innovation, companies can ensure sustainable growth and success. Let's remember, sometimes the smallest changes can lead to the biggest wins. ????