Product innovation is a critical enabler in a global competitive marketplace. Therefore, the ability to prioritize and focus on the right development projects is at the very heart of a successful product innovation program. But Product Innovation is not an easy task.
In a recent interview with Chester Baker, Head of Global Innovation for Abbott Nutrition, I had the opportunity to learn from Chet as he discussed Abbott Nutrition’s innovation strengths, and the winning formula for driving innovation within their company. Chet leads a global team responsible for early stage insights discovery, new product development, and innovation growth strategies.
For more than 85 years, Abbott Nutrition has been behind some of the worldâs most trusted and recognized brands in pediatric, adult and performance nutrition products. In 2010, the company identified gaps in its innovation process that, if filled, could further drive product and packaging innovation. Following a comprehensive assessment, Abbott Nutrition modified its global product innovation system and put a stronger emphasis on how ideas are recognized, developed, evaluated and transformed into products. As a result, Abbott was able to:
MP: Please tell us a little about your R&D organization.
CB:Â For more than 85 years, Abbott Nutrition scientists have set the standard for science-based nutrition, trailblazing the development of innovative nutritional products and packaging solutions to support the growth, health and wellness of people around the world.
Abbott Nutrition research and development efforts focus on solutions for every life stage â from ensuring babies have a strong start to addressing the unique dietary needs of patients with serious illnesses. Powered by a proven science business model and a commitment to science-based nutrition, Abbott Nutrition R&D teams keep the development pipeline filled with products that allow us to deliver nutrition science that matters.
Abbott Nutrition employs more than 700 scientists, clinicians and engineers in the United States, Europe and Asia. The staff has a broad range of scientific and clinical expertise, including nutrition, pediatrics, gastroenterology, immunology, food science, chemistry, biology, medicine, and engineering.
MP: Please tell us a little about your innovation organization.
CB:Â Our Global Innovation Office (GIO) is responsible for leading the global innovation process from early-stage insights and ideation through commercial launch. There are two primary groups in the GIO. The i2i team, embedded in markets around the globe, is responsible for market, consumer and environmental insights that can potentially become breakthrough innovations, while the PPMO focuses on execution, driving projects after they have entered the Stage-GateÂ® process, and handing them off to the commercial team for launch.
Our efforts in innovation focus on six global platforms grounded in key healthcare and healthy living needs: metabolism, immunity, inflammation, cognition, tolerance and lean body mass.
MP: Where is your group located?
CB:Â The GIO team is headquartered near Chicago, IL, with key offices in Columbus, Ohio; UK; Singapore; China; and India to meet the varying needs of the global population.
MP: Why is innovation important to Abbott Nutrition?
CB:Â The way we innovate is critical to our global success in a demanding and competitive business environment.Â Innovation is the lifeblood of our business. It is currently driving a significant percentage our incremental revenue, and that is expected to grow over the next three years.
MP: What is your most important strength when it comes to innovation?
CB:Â At Abbott Nutrition, our most important strength is that we have built global strategy, insights, infrastructure, and processes that are transforming innovation into a competitive advantage for Abbott Nutrition. By enabling more breakthrough innovations and the ability to get them to our customers faster, we are generating greater market share gains, increased revenues and develop pricing power ahead of our competition.
MP: What is a winning formula for driving innovation in your company?
CB:Â Our winning formula is simple:
MP: What is Abbott Nutritionâs biggest innovation challenge?
CB:Â Our biggest innovation challenge is maintaining the right balance between our biggest innovations and necessary, shorter-term brand maintenance and improvement projects.
MP: What is your favorite new product?
CB:Â Ensure Muscle Health with HMB, which is targeted nutrition to help rebuild muscle and strength lost naturally over time, because I think it defines who we are as a science-based, clinically proven nutrition company utilizing relevant consumer insights to develop new products.
MP: Looking into your crystal ball what do you think will be the greatest challenges facing innovators 10 years down the road?
CB:Â While the same holds true today, I think ten years down the road the greatest innovation challenges will be about remaining relevant and differentiated, and doing it faster and better than our competitors.
Chester Baker will also be delivering a case presentation at Stage-Gate Innovation Summit 2013, highlighting the journey Abbott Nutrition took to make innovation a driving force within their company.
Companies, like Abbott Nutrition, rely on new products, technologies, and platforms to advance their business strategies in a variety of ways, and a Product Innovation and Technology Strategy forms the essential link between an organizationâs development efforts and their business strategy. Developing an innovation strategy and the power to propel product innovation results to the next performance level lies in 6 practical steps. Have you considered the following in your organization?
By Michael Phillips
Michael PhillipsÂ is Director, Professional Development Programs and Affiliations at StageâGate International, providing product innovation and New Product Development process professional development programs to clients globally and across a wide range of sizes and types of organizations and industry associations. Michael has extensive experience in adult education, training, and corporate consulting. He has spoken at a number of conferences and has contributed to a variety of industry trade magazines. Michael has significant experience in the oil & gas, medical, plastics, pulp & paper, and manufacturing industries. He holds a BA from the University of Toronto and an MBA from Henley Management College.
Stage-GateÂ® Innovation Summit 2013 returns to provide a powerful exchange and collaboration of cutting-edge ideas, solutions, experiences and free-flowing discussions with industryâs best and brightest innovation leaders. Discover how eight Innovation Champions from leading companies are achieving productivity gains despite the numerous challenges they face. Learn more!