Practical Innovation helps food companies develop innovative products, with similar ideas to those used by start-up companies.
The aim is to get companies, stuck in their old ways, to take more risks that will benefit them long-term.
Practical Innovation pushes companies to break the old paradigm of marketing the same products on a reduced margin, which can set the product up for eventual failure.
Practical Innovation CEO Tal Leizer said gambling a company’s reputation in the market with a new product that might not survive on-shelf was a huge impediment.
“If you want to succeed in the competitive food market, the very first step is to take failure off the table and start thinking audaciously, like a start-up.”
There is a huge gap between start-ups that launch innovative products and traditional companies that don’t, irrespective of company scale.
Using the multidisciplinary expertise of professional innovators is necessary to drive the changes required and to launch win-win products.
Many established food companies want to develop new products and increase sales and revenues, but to do so involves harnessing tremendous efforts and resources that are not always available to traditional companies such as bakeries and sweetener companies.
Starting an innovation process in an existing company that has produced the same products over many years comes with challenges.
With so much at risk, older, and larger, companies often only make minor changes rather than introducing new ideas.
Being inherently risk-averse, they might only add a new flavour, improve packaging, or simply cut costs.
Leizer shares a few tips on how to revive a company’s innovation process, which include searching for creative ideas, even if those ideas seem impossible.
Identifying important food trends, and knowing what the market wanted, now and five years from now, was also important, he said.
Company’s also had to make the concept feasible and scalable, said Leizer.