FORTH innovation project
Huntsman
challenge
As a multinational in the chemical sector, how do we manage to develop new products that really appeal to the end customer?
approach
Using the FORTH innovation method, the internal team developed 5 promising mini new business cases in 5 months. Each of these MNBCs was good for a minimum contribution margin of $5 million in year five after launch and EBITDA/sales > 20%.
five FORTH steps
Full steam ahead - We draw up a concrete innovation assignment, made a concrete project plan and putted together a diverse, enthusiastic, internal team.
Observe & learn - The team explored different trends & technologies and discovered customer frictions.
Raise ideas - In an extensive brainstorming session, 15 concepts were developed and elaborated for initial qualitative target group testing.
Test ideas - By testing directly with the target group, we were able to choose the best concepts to develop further.
Homecoming - The best five concepts were developed into a mini new business case and pitched to the management.
results
This case is a great example of how customer insights can shape a future proof strategy.
before…
technology-driven innovation: ideas are developed within the walls of the R&D department
ideas are only tested by the customer after the development phase by the R&D department
new products cannot count on much enthusiasm among customers
sustainability is not on the agenda and is not discussed
there is a belief that the company knows everything about its own industry
the company is structured in departments and employees work in strict silos
5 months later…
ideas are developed by a diverse innovation team, with people from different levels and different departments
a relief for the innovation team: they can sit down with customers to identify pain points and needs, not to sell
5 promising concepts, in which sustainability is central, are on the table
customer-oriented innovation: all concepts start from a concrete customer friction and have been tested in the market
sustainability is at the top of the strategic agenda
the innovation team discovers that there is so much to discover 'out there', including by gathering inspiration from other sectors
the 5 promising concepts are currently in the innovation pipeline or have already been successfully introduced into the market