Guiding Innovation
New innovations drive revenue, and corporations always need to develop fuller innovation pipelines. With consumers at the center of the innovation process, it’s become more important than ever to leverage the big data at our fingertips. That’s where sound research principles also come into play.
In addition to the foundations of quant and qual research, AI can provide opportunities to innovate as well. Joyce identifies several avenues that companies can capitalize on with AI processes and systems to employ for improving new product development:
- Ideation and Mapping
- Concept Development
- Refine Execution
- Testing and Validation
AI Inspiration
For Hershey’s Beacher, leveraging AI as a tool for innovation can support new product innovations for the diverse range of brands The Hershey Company offers, whether that be new products, new flavors, new cultural needs or preferences, new snacking categories and the like.
“Can AI come up with new products?” asks Beacher, pointing to the ways AI can find different brand identities and brand opportunities, from generic brands and underserved palettes to identifying which brands or which niche category a product might fit.
AI was able to help Hershey teams develop new opportunities with different flavor profiles, product adjacencies, frozen desserts, and salty snacks, for example, points out Beacher.
“AI really inspired our imagination—and stretched our thinking. It also enhanced how we are communicating,” says Beacher, pointing to how AI was able to capture the excitement of the ideas being presented to various brand, management and marketing teams.
Beacher notes that AI-enabled insights helped the company connect the dots, so to speak, identify cultural trends, and innovate faster and more efficiently. “It was five weeks instead of five months,” she says.
Further, AI-driven initiatives, with human oversight, also maintained a rigorous, quantifiable approach with rich consumer data, and a storytelling narrative, creating a robust framework for future research and development practices.
While AI is still in the early stages and faces challenges, such as legal hurdles and data security issues, Beacher notes that AI was key to inspire both insights and innovation.
“You still need to have parameters, go-to-market feasibility and model constraints,” notes Beacher, pointing out that concept validation and consumer feedback are still key pathways to success.
Still, the upside of AI-enabled insights driving the innovation discovery and journey process are robust while reducing time and complexity. “There are pipeline innovations, merger and acquisition opportunities, partnerships, it really expands our reach,” says Beacher. “It really helps us stay on the pulse of the consumer.”
Check out the video for the full fireside chat presented by ZS and The Hershey Company at TMRE 2024.
