Pepsico Research Foresight

The Use of Strategic Foresight Methods for Ideation and Portfolio Management

Aim
o Transcend BUs horizon and focus (Ignorance argument)

o Discover future markets, breakthrough ideas

o Transition Innovations to Operations
o Embed portfolio orientation in innovation PM
o Reciprocate influence between innovation and strategy
o Avoid stop-and-start approach to innovation

Studygroup #8 1
 Pepsico Research Foresight
Methods/Tools
System-dynamics
Company Explore 1st, 2nd models and Additions to
strategy & and 3rd degree Scenario R&D project
future beliefs impacts of trend generation portfolio

Internal Implications Inductive Point of view

Internal futures audit wheels scenarios options
workshop
Extrapolatio
Discovery Integration Planning
n
External Weak signals Technology Participatory
output environment forecast futures
al scan
Externally Technological Interactive
sourced global future discovery simulation of
trend audits (What does it scenarios
support?) Studygroup #8 2
Pepsico Research Foresight
Benefits
o Positively impacted challenges the
longer-term R&D departments
o Identified future markets
o Enabled investment based on
technology foresight
o More flexible R&D PM through
portfolio approach
o Smoothened business operations’
transition to new innovations
Takeaways
o Engagement from members critical, both
during group work and on deliverables
o Engagement from management for
reciprocating influence between innovation
and strategy
o External input critical for finding unique and
challenging views
o Need for continual testing of assumptions
about future for calibration
Studygroup #8 3