Daily Management Review

Nestle’s New Strategy And Models For Speeding Up Innovation


Nestle’s New Strategy And Models For Speeding Up Innovation
Food giant Nestle has set for itself a new strategy for innovation with the setting up of new structures that will help to turn new and innovative ideas from both outside and inside of the company into marketable new products. This was said by the technology head of the company while talking to journalists before the publication of the full-year results of the company.
This new structure comprises of two modes. The first is called a “shark tank”, the company's internal ideas factory, and a platform that can be utilized by those employees of the company - often belonging to the research teams of the company, to seek funding from nestle for the development of new products. The second model will allow startups or students with a new or a novel idea to work with scientists and resources of the company which includes the lab space, at so-called "accelerators".
In recent years, with the increase in demand for eco-friendly and healthy food by consumers, there has been emergence of small local rivals that are coming up with health and eco-conscious products and satisfying the needs of such consumers by offering them with trendy foods and drinks – ranging from cold-brew coffee to plant-based burgers. This has put pressure for hastening up pace of innovation on the traditional food and beverage companies such as Nestle and its packaged food peers.
But Nestle is also trying to prove that it is also possible for a big group like to be fast in innovating under its Chief Executive Mark Schneider who took over in 2017.
"We're inaugurating three accelerators this year, one in each geographical zone, and are working on two others as well. We should have five to six at the end of the year," Chief Technology Officer Stefan Palzer said at the group's headquarters in Vevey on Lake Geneva.
"We already launched 10 products in this way. In 12 months, we want to see a launch, that's the only condition," Palzer said, adding Nestle's plant-based burgers and Roastelier coffee-roaster had been fast-tracked in this way.
Last year, Nestle had managed to shorten the time required for a novel idea or innovation – from its conception to the commercial launch of a product, by about 25 per cent which has helped the company to increase the number of new products that it launched by 30 per cent.