Measuring Innovation in Pepsico Essay

Pages: 11 (3240 words)  ·  Style: Chicago  ·  Bibliography Sources: 6  ·  File: .docx  ·  Level: Master's  ·  Topic: Engineering

The BRIC basically stands for Russia, India, Brazil, Russia and China has huge potential in terms of economic and scientific growth.


Humans are not exactly versatile at predicting the future trends. According to Ray Kurzweil, technological change is noteworthy in this regard, as human mind predicts trends linearly (Kurzweil 2005). Hence, humans seemingly are taken aback by small/trivial trends spiraling into major trends. Apart from that, there are other ways where man can't predict the future for instance:

Cycles of change

Equilibrium of generational change

Ideational change

With the help of many processes, the weak signals and trends are manipulated whilst downsizing the cognitive limitations of the human mind. With the help of extrapolation, the team is able to figure out the potential trends which humans are bound to look over. PepsiCo makes use of two foresight tools:

Technology forecasting

Implication wheels

Implication wheels

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It is a nice qualitative rule for examining the way individual trends will work over a certain period of time. Essentially they are mind maps, with one trend in the middle and its relevant impacts in the future spiraling outwards. The implication wheels are worked upon in order to assume the relevance of trends on business environment, market trends and consumer behavior.

Technology forecasting

Essay on Measuring Innovation in Pepsico Assignment

In order to view the relevance of technologies in the future, both qualitative and quantitative models are taken in consideration. The team worked with experts from the outside and leaders in technology to dish out their expert advices on future trends and individual needs. The prediction was based on five to ten years. The participants from the firm inquired the presenters about their reason for choosing models to drive change in their relevant field. Future customer needs were made visible and technical voids were filled in with ease.

With the help of these two methods, the integration phase is kicked into action for PepsiCo. The phase of extrapolation amalgamated qualitative and quantitative methods for developing a map of potential long-term view of trends prevailing.


Corporations seldom shift from particular trends to strategy and innovation formation. When this happens, two problems occur. The first problem is that competitive advantage isn't gained when investments are made in particular trends as everyone is already aware of them, while new entrants are relying on them as well. The second problem is that, a large change occurs when trend combine changing the face of the business, hence companies need to oversee these major changes in order to remain afloat in the market.

The inductive scenario

The inductive scenario planning was the method of choice as it paints a very rich environment for innovation whilst the scenarios are quite transformational (Curry and Schultz 2009). As for PepsiCo Advanced Research (AR) and Long-Term Research (LTR) innovation plans, the audit teams are tasked with focusing on technological solutions that are high rewarding rather than chasing less colorful and potential ones. The inductive scenarios will take in consideration different ways a trend can affect a future. Generally, the top down method is used, but here bottom up method is used. The inductive scenarios will take in consideration the clash between global drivers at work (clash of weak signals and futures audit). Using the Hero's Journey template (Vogler, 1998), the scenarios were created whilst the graphic recorders showed the stories mapped out by the team. The design team and partners collaborated segregated the workshop in three unique scenarios. These unique scenarios were the basis for new and innovative product opportunities as well as business model design. The results showed that advanced packaging systems could be used whilst products could be more customized.

By definition, Participatory futures means latest tools in use developed from technologies which support multiplayer online video gaming. The method was taken in consideration due to the fact that it could involve millions of people in reacting and experiencing the trends of the future (McGonigal 2011). It allowed PepsiCo workforce employed in 30 different countries to analyze and take part in internet gaming viewing the diverse trends which would pervade in the future and public's reaction to that. Joining hands with Institute for the Future (IFTF), PepsiCo embarked on development of an online video gaming venture in order to determine the public's stance on calorie count when they were tasked to make that decision from 20 future vignettes.

From the massive workforce of 1,200 employee of PepsiCo working in 30 countries, they formed a team of 88 people. Solutions were devised and mapped out while teams gathered chips on their game boards. A win was termed as having five chips on one vignette. The employees were gambling with ingredients, packaging, product form and shopping experience. The results were related to audience response to PepsiCo's products in the future whilst pointing out real indicators.

The phase of integration was long and arduous involving the entire participant's involvement in PepsiCo organization as results were compiled and put in effect. Sometimes the results were conflicting with present trends.

The planning phase

Most companies have mapped out commendable research into future trends but at the same time don't implement the ideas with investments and strategies (De Geus 1997). PepsiCo made sure that the research for the future products would be implemented in the future. With PepsiCo's commendable research efforts, planning phase was synced with product innovation.

The team planned to work on this integration by Point-of-View Options Modeling. POV is basically a tool for amalgamating the research aims and company's strategic goals with future trends and products. Particularly, research areas will be explored:

Corporations deploy this strategy to:

Designing a product which sustains their future

Syncing the research portfolio with company's objectives

Sorting out the investments according to the internal research

The POV statements and processes will dictate the future of a company as to how the newly conducted research and present capacity will help attain a competitive edge over the competitors and build value for the consumers. They are able to form better investment choices regarding the future. In case of PepsiCo, two days of Open Space innovation workshop was held to look over the research done until now.

The opportunity briefs along with future customer needs behind which commendable technical research exists will help in drive the foresight process. The LTR and PAR leaders have translated these opportunity briefs into POV statements. They twisted the ideas of the future focusing on those trends which would be prevalent in the future while disregarding non-potential ones. At least twenty POV statements rose from this work which will be sent into R&D project portfolio.

Section 4: Suggestions and assumptions for the company

Companies can learn from PepsiCo's foresight process and apply it themselves. The overall company involvement is necessary for a successful technology-enabled product innovation. On the whole, the workforce has to be entangled within this innovation process, the upper management has to be supportive and finally overall organizational unity creates healthier technology-enabled products and results. In case of all projects, support from sponsors is also necessary while necessary dedication is also important. The foresight process is different as it focuses on the future trends and business environment which is different from the present one. Sponsors must be present at helms to oversee and be kept up to speed on milestones and achievements. In any case otherwise, they won't support future projects when they can't agree with future trends. Working with outside forces is also necessary. For instance working with many vendors can create new avenues and catering to different markets in the future. The collaboration with workers should align with the company goals. The final results will contribute to general technology-enabled innovation process. A key emphasis on the design is needed as well as new technology can be troublesome to handle and integrate.

According to Research Foresights model, it has been proven that foresight methods can help in tackling the future challenges. The R&D operations are affected by these initiatives. The process shows how the market will function in a span of five years. Based on new innovative ideas, new content will be helped along its way into fertile markets. Based on the scenarios, future intentions of other companies are kept in perspective while different scenarios have been taken in consideration. It will ease the future transition into product development and implementation. PepsiCo will be helped along in tackling the long-term future challenges of the company. The current innovation process will still have to go through the uncertainty factor because no matter how much in depth research has been done, future can't be predicted. With the help of continuous testing, PepsiCo can remain alive whilst coming to terms with market conditions and differing consumer's trends and needs. Apart from that, the model is highly interactive along with strong in-depth analysis behind helping making use of new data and drawing new conclusions.


Barker, J. (2011). The implications wheel. http://implicationswheel. com / (accessed December 27, 2011).

Curry, A., and Schultz, W. (2009). Roads less travelled: Different methods, different futures. Journal of… [END OF PREVIEW] . . . READ MORE

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