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From Innovation Pipeline to Business Impact

Where FMCG R&D Often Gets Stuck

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Arda Diribaş
3 min read

Where FMCG R&D Often Gets Stuck

FMCG companies rarely lack ideas. The greater challenge is converting the right ideas into successful products — quickly, consistently and at the right economics.

Between an innovation concept and a product reaching consumers lies a complex system involving Marketing, R&D, Procurement, Operations, Quality, Finance and Supply.

This is where promising innovations often lose momentum.

Too Many Projects, Too Little Prioritization

Large innovation pipelines can create an illusion of strength.

In reality, an organization running too many projects simultaneously may deliver fewer meaningful innovations.

R&D resources are finite. Pilot capacity is finite. Factory trial capacity is finite. Management attention is finite.

Portfolio management therefore requires choices.

A smaller number of strategically important projects, properly resourced and executed, can create significantly more value than a large pipeline of under-resourced initiatives.

The critical question is not simply:

"Can we do this project?"

It is also:

"Should we do it — and should we do it now?"

Technical Feasibility Enters the Conversation Too Late

An attractive consumer proposition does not automatically translate into a commercially viable product.

Questions around formulation, raw materials, processing technology, manufacturing capability, quality, shelf life and cost need to be addressed early.

The later technical constraints are discovered, the more expensive they become.

Early R&D involvement is therefore not a barrier to creativity.

It is an enabler of better innovation.

Scale-Up Is Underestimated

A successful laboratory prototype is an important milestone — but it is not commercialization.

Products behave differently at industrial scale.

Mixing, heating, cooling, forming, baking, coating, filling and packaging processes can all introduce variability that does not appear in the laboratory.

Industrialization should therefore be designed into development from the beginning rather than treated as the final technical step.

Different Functions Optimize Different Outcomes

Marketing may prioritize consumer differentiation.

Procurement may focus on material cost.

Operations may prioritize efficiency.

R&D may focus on technical performance.

None of these perspectives is wrong.

The challenge is integrating them around one business objective.

Strong innovation organizations create cross-functional ownership early and maintain it throughout development.

Launch Is Not the End of Innovation

Commercialization should generate learning.

Did the product deliver the expected consumer experience?

Did manufacturing performance match assumptions?

Did the cost structure deliver the business case?

What should be improved in the next generation?

Organizations that systematically capture this learning strengthen every future innovation cycle.

From Activity to Impact

Ultimately, innovation performance should not be measured by the number of ideas generated or projects initiated.

The objective is to create:

Fewer. Stronger. Faster. More Valuable Innovations.

That requires a system connecting strategy, consumer opportunity, technical capability and disciplined execution.

Because an innovation pipeline creates value only when it becomes business impact.


Arda Diribaş — Founder & Principal, DERAS Globe

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Written by

Arda Diribaş

Founder & Principal of DERAS Globe. 23+ years of global FMCG experience in R&D, Innovation, Strategy and Transformation.