By John McCormick
Consumer-packaged goods companies, in a push to develop more
connected devices, are deploying their information technology
talent, experts in machine learning and app-building, to work
alongside research and development groups to design and build new
products.
"In this world of the internet of Things...where we've got
software embedded, it is somewhat of a no-brainer that we need to
combine those skills all together," said Mike Crowe, chief
information officer at Colgate-Palmolive Co.
Recent products include a smart toothbrush introduced last year
that is designed to make recommendations on how a person could
brush better. Colgate R&D staffers worked on the brush head,
sensors and other aspects of the physical product, while members of
the IT team developed the underlying application, including the
machine learning that analyzes the data to make recommendations.
"It is really about maximizing the use of the combined skills,"
said Mr. Crowe.
Although IT and R&D have worked closely in electronics and
manufacturing, which have strong engineering traditions, it is a
relatively recent occurrence in other industries, said Erik Roth, a
senior partner at McKinsey & Co. and the leader of the firm's
innovation and growth practice.
The increased adoption of the Internet of Things, where sensors
transmitting data in real time are embedded in various devices, as
well as artificial intelligence to analyze that data, have extended
it is reach.
So, too, has the expectation among more companies for IT to
deliver more value.
Within the consumer-goods industry, some 70% of CIOs reported an
increase in business leaders asking their departments to work on
higher-value, more-strategic projects as a result of the pandemic,
according to a 2021 Gartner CIO Agenda survey. Those projects
include adding digital experiences to physical products, said
Michelle Duerst, vice president, analyst at Gartner.
"The IT function as a separate entity, operating as a service or
a central center of competence alone, doesn't work," said Procter
& Gamble Co. CIO Vittorio Cretella.
Like Colgate, the consumer-packaged goods company also has its
IT and R&D teams working together, creating its own smart
toothbrush as well as the Olay Skin Advisor personalized skin-care
analyzer, and the Gillette Style Advisor facial-hair style
assistant.
"Our partnership is now getting very, very pervasive in
everything we do, " said Victor Aguilar, P&G's chief research,
development and innovation officer.
How P&G and Colgate bring IT and R&D teams together is
somewhat flexible and can vary depending on the project.
The IT side often provides the software engineers who can build
platforms and applications, data scientists with expertise in
artificial intelligence, and Internet of Things specialists with
connectivity skills.
The R&D department, which may also have data scientists,
will enlist clinical researchers who can advise the team on the
usefulness and safety of a device as well as industrial designers
and product developers who can plan and build a first, basic model
of the product.
The teams work together on initial research and create
prototypes to prove the concept has legs, the companies' executives
said.
But teaming up IT and R&D isn't without its challenges,
McKinsey's Mr. Roth said.
"It's not a natural pairing," Mr. Roth said, adding that the two
units are staffed by people coming from different cultures. For
instance, IT traditionally runs and maintains equipment while
R&D's role has been to deliver research and products, he
said.
To help the two teams break down barriers and build trust,
Colgate says it uses agile management, a common software
development methodology, in which participants break development
into small tasks, develop various functions and features in short
sprints and quickly adjust if something isn't working or if a
better idea surfaces.
As IT and R&D departments work more closely together, they
can learn from each other and get a better appreciation for the
types of innovative products their companies might want to develop,
said Mr. Roth.
The teams could gain, he said, "a much greater appreciation, and
role, in thinking about their work [being] directly tied to value
creation," he said.
Write to John McCormick at mccormick.john@wsj.com
(END) Dow Jones Newswires
March 15, 2021 14:31 ET (18:31 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
Procter and Gamble (NYSE:PG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Procter and Gamble (NYSE:PG)
Historical Stock Chart
From Apr 2023 to Apr 2024