Consumer Goods

The Future of Open Innovation: The Networked FMCG Company

  • CAN376872
  • 57 Pages
  • August 2013
  • Consumer Goods
This report identifies how mature open innovation really is in FMCG, and how and where companies can improve and where the critical points of failure are as more companies transfer to an open innovation model. It provides detailed analysis of the current innovation landscape and the future of innovation for FMCG companies within a networked Randamp;D environment.

- Understand the innovation landscape in FMCG and how mature open innovation really is.

- Identify the key challenges for evolving open innovation in FMCG and what the industry can learn from more advanced sectors.

- Identify who the leading open innovators are and the different models they are using.

- Learn from successes and failures in open innovation and the challenges to implementing successful programs.

- Understand the future of open innovation and the role of the networked FMCG company.

- What is the current Randamp;D landscape in the FMCG industry?

- How can open innovation evolve to open innovation 2.0 and the networked FMCG company?

- What are the current and future business models for success and where are the competency gaps?

- How have leading innovators implemented open innovation and has it been successful?

- How will the use of more open innovation change the Randamp;D landscape for big companies, SMEs, and suppliers?

Key Highlights
From a sample of 40 leading FMCG companies across ingredients, food, beverages, and household and personal care, the average was Randamp;D accounted for 1.6% of spend in 2011. Most companies increased Randamp;D spend over the period 2008-11, especially among some of the companies with much lower Randamp;D intensity.

The move to the networked FMCG model is both a threat and an opportunity for small and medium-sized enterprises(SMEs). The development of open innovation among the top 100 FMCG companies will create a new landscape that places a high premium on innovation and a higher premium on patented innovation.

For 'big' FMCG the move to a more networked model will bring a forking of strategy between nichebuster or blockbuster models, changes in Randamp;D centralization, more pressure from retailer adoption of open innovation, growth in licensing and spinoffs, growth in outsourcing, and the possible emergence of small virtual aggregation companies.
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