Creative Ideas have Value

The Story of Nespresso

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Published August 15, 2019

In 1976, a Nestlé employee named Eric Favre had an idea. He noticed that the best espresso in Italy came from machines that introduced air into the brewing process. This simple observation would eventually become a multi-billion dollar business.

The Idea

Favre's idea was simple: create a single-serve coffee system that could replicate the quality of Italian espresso at home. But simple ideas aren't always easy to execute. It took nearly 10 years of development before Nespresso launched to consumers in 1986.

The Challenge

Initial reception was lukewarm. The machines were expensive, and consumers didn't understand why they should pay a premium for single-serve coffee. Nestlé nearly killed the project several times.

But someone believed in the idea. In 1988, Jean-Paul Gaillard took over Nespresso and transformed it from a product into a lifestyle brand. He focused on premium positioning, direct-to-consumer sales, and exclusive "club" membership.

The Breakthrough

By the early 2000s, Nespresso became a phenomenon. The combination of convenience, quality, and premium branding resonated with consumers. Today, Nespresso generates over $6 billion in annual revenue.

Lessons for Innovation

1. Great ideas take time. 10 years from concept to launch is not uncommon for breakthrough innovations.

2. Initial failure doesn't mean the idea is bad. Nespresso struggled for years before finding product-market fit.

3. Execution matters as much as the idea. Favre's technical innovation was important, but Gaillard's business model innovation made it successful.

4. Protect your ideas. Nestlé filed numerous patents on the Nespresso system, which protected their market position for decades.

The PRE.DO Connection

How many Nespresso-level ideas die in your organization because there's no systematic way to capture, evaluate, and develop them? That's the problem PRE.DO solves.

When Eric Favre had his idea, he was working at Nestlé - a company with resources to develop it. But what if he'd been at a smaller company? What if there was no process to take his idea seriously?

Every organization has employees with valuable ideas. The difference between success and failure is often just having a system to capture and develop those ideas systematically.

Don't let your next big idea get lost

Start capturing and developing ideas systematically with PRE.DO

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