Author: Erik Parker, Torch Staff
The Chief Learning Officer of Nestlé USA Richard Vincent gave an interactive presentation about Nestlé’s innovation strategies to a group of about 30 students on October 24. Vincent’s talk was hosted by the Occidental Entrepreneurial Society (TOES).
The presentation addressed “change and how corporations are trying to navigate that change.” Vincent began by introducing Nestlé as “one of the earliest and biggest multinationals in the world.” Nestlé owns approximately 8300 brands, is 140 years old and is “the world’s largest food company by far,” he said.
Vincent views his job as “convincing [Nestlé] that there’s an awful lot more to do in terms of being a responsible company.” His job also entails giving presentations that train the company’s employees in innovations, strategies and methods.
Before presenting these innovation strategies, Vincent spoke of the natural cycle of companies in the corporate world and the cycle of individuals rising to the top of companies and then sinking to the bottom. “You’re hungry at the bottom, conservative at the top,” he said.
Vincent addressed how this conservativeness prevents companies from trying new innovation strategies. “Without extraordinary leadership intervention, you will apply yesterday’s recipe,” he said.
The next component of his presentation was the corporate environment of the past 60 years that affected Nestlé USA’s business strategies. The first period from 1948 to 1973 was the “Golden Age” in which there was a “lack of global competition” that allowed Nestlé to emerge as a powerful corporation. From 1973 to 1983, Japanese businesses became significant competitors. The third period lasted until 1998 and was driven by the use of personal computers. The current period is the age of “Global Hyperflux” in which everyone uses the Internet.
Despite all of these changes, “not one of us went back to rethink the premises of how a business should operate,” Vincent said. He then explained Nestlé USA’s Innovation Development System that tries to “rethink” old business strategies.
Nestlé USA offers an “immersion experience” that introduces the concept of innovation to “hand-picked high potentials,” Vincent said. After a five-day interactive class, the participants have a 90-day intensive project involving “advanced innovation and idea development.” The final stage is an “explorer project” that lasts up to 12 months.
Vincent then spoke about Nestlé USA’s “rapid innovation process.” He said that for a product to be developed at Nestlé USA, it must “change the game” by offering a big innovation. Vincent said most companies do not develop products this way because they stick with old methods and do not promote change.
“In the corporate world, [Nestlé’s innovation strategy] is the equivalent of splitting the atom,” he said.
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