Analysis of Product Innovation Implementation at Fast Moving Consumer Goods Company in Indonesia (Case Study at PT. Blue Lunar)

Abstract

As one of Fast-Moving Consumer Goods (FMCG) companies in Indonesia, PT. Blue Lunar (a disguised name) believes that innovation is at the core of everything they do as a business. Furthermore, the company thinks that innovation is the key to their business growth. So, they continuously think about how they can provide the most impactful innovation to the consumers. However, over the last 5 years, the total business level of business waste as a percentage of turnover is still higher than their internal parameter which is 0.5% of the sales turnover – equal to a couple of hundreds of billions of rupiah in absolute amount. Innovation failures become one of the biggest contributors to this business waste. The conceptual framework being used is the innovation funnel which consist of several gates. The conclusions of this research are that in terms of compliance, the product innovation process in the company has been following the standard operational procedures. However, there are several quality problems in performing the process that makes the product innovation does not perform well in the market.

Keywords: Innovation Failures, Business Waste, Analytical Tools for Product Innovation Implementation