Kraft Foods has
started a program to pursue “open innovation”. It was covered in an article in the Wall Street Journal Online on June 2nd,
Kraft
Looks Outside the Box for Inspiration (registration required).
“Hungry for new
ideas, Kraft Foods Inc. is turning
to a new source of inspiration: its customers. The nation’s largest food company is launching a program to weigh
unsolicited ideas from customers and others. The move represents a departure
from past practice…”
Here are two
excerpts from the Innovate
With Kraft website where you can submit your ideas.
“Each year, Kraft
receives many ideas from people and organizations outside our company. While we
are always interested in new ideas, you should know that most of what we receive (or will
receive in the future) is not (or will not be) new to us. This is
because, as you might guess, Kraft has a large staff of scientists and
marketers who are continuously working to develop and improve our products,
packaging and processes. Therefore, many submissions from "outside"
Kraft actually duplicate Kraft’s current or past research and development
efforts.”
“Kraft is
accepting ideas under this policy for new products, packaging, and business process/systems
only. We are most interested in
ideas that are more than a concept, in particular new products & packages that
are ready to be brought to market (or can be brought to market
quickly)…” (All emphasis added)
Do Kraft customers
normally have ideas concerning Kraft business processes and systems?
Do these
customers have patents and products that are ready to be brought to market? If they do, why do they want to work with Kraft?
While soliciting
ideas from outside of the confines of their own company is a step to be
applauded, this sounds to me like they’re looking for the proverbial “silver
bullet”.
It doesn’t sound
like a conversation.
It doesn’t sound
like a partnership.
It doesn’t sound
like a commitment to listen to their customers.
It’s still
virtually a one way dialogue. Give us
your idea and if we like it we might call you (that is, if we haven’t already
thought of it ourselves).
How can Kraft
improve on this program?
What would you do
if you were in charge?
What can you do
with your own customers?
Technorati tags: Business, "Kraft Foods", "Open Innovation"
The nation’s largest food company is launching a program to weigh unsolicited ideas from customers and others. The move represents a departure from past practice
Each year, Kraft receives many ideas from people and organizations outside our company.
I certainly enjoyed the way you explore your experience and
knowledge of the subject! Keep up on it. Thanks for sharing the info
Happy New Year! Happiness and success in 2011.
Happy New Year! The author write more I liked it.
Hi Merry Christmas and Happy New Year, a cool site I like
Hi Merry Christmas and Happy New Year, a cool site I like
Happy New Year! Happiness and success in 2011.
Merry Christmas! I wish you a lot of gifts and luck in the new year.
You write well will be waiting for your new publications.
MY PRODUCT IDEA FOR KRAFT INVOLVES SELLING INDIVIDUAL CARD BOARD “READY MADE” LUNCH BOXES TO PARENTS OF KIDS, CONTAINING 5 GREAT KRAFT PRODUCTS(INCLUDING BEVERAGE)FOR THE PRICE RANGE OF $2 TO $4 DOLLARS A PIECE.EACH LUNCH BOX WOULD CONTAIN FULL DETAILS OF CALORIES, AND NUTRITIONAL INFO OF THE COLLECTIVE LUNCH BOX. THIS PRODUCT WOULD HELP KIDS, AND THE PARENTS CONTROL SPENDING, AND RAISE AWARENESS OF HEALTH CONSCIOUSNESS, THANKS TO KRAFT.
It’s a great idea to ask customers for ideas. Usually companies frown on such input, (probably for legal reasons). Kraft is embracing customer ideas, but I think they could improve it with some two way dialogue not just one way ideas. What frustrated me in prior jobs is how little companies do to bring up internal ideas.
I took a great course at Ross (Michigan) as part of my MBA program taught by Venkatram Ramaswamy. The courese content was based on a book called The Future of Competition: Co-Creating Unique Value with Customers and it was cowritten by C.K. Prahalad.
See a write-up here…
http://harvardbusinessonline.hbsp.harvard.edu/b01/en/common/item_detail.jhtml;jsessionid=RSSRCXRD2GEJKAKRGWDR5VQBKE0YIISW?id=9535
Atul
I think you hit the nail on the head there, Tim. The way they approach this is very “unwelcoming”. They need to pull customers in to feel comfortable sharing their ideas.
Probably the clearest change that many people would come up with would be to start a blog.
They could talk about the company, give consumers a chance to be a part of the discussions and from there they might feel welcome enough to actually share ideas.
Oh, and be rid of the ridge ‘this is how its going to be’ tone.