Breakdancing Meets Supply Chain: Lessons for New Product Launches

The Olympic Games in Paris are witnessing an unprecedented event this summer: the debut of Breaking, known by most of us as breakdancing, as an official Olympic sport. What began as a vibrant expression of street culture in the 70s has evolved into a recognized competitive discipline, marking a significant shift in the sporting landscape. This addition to the Olympic program got us thinking about New Product Introductions (NPIs) in supply chain, especially through the lens of AI-driven demand planning and market prediction.

The journey of Breaking to the Olympics began with its successful debut at the Youth Olympics in Argentina back in 2018, where it captivated more than a million viewers. The overwhelming reception demonstrated Breaking’s potential to engage a global audience, setting the stage for its inclusion in the 2024 Summer Olympics. The Men’s Final of Breaking at the Olympics is estimated to garner 30K attendees, and the projected spending of local businesses is $2M.

Much like predicting which sport will be the next big hit, companies must anticipate market trends and consumer preferences to successfully launch new products while understanding the impact on their current portfolio.

Adapting to Changing Consumer Preferences

According to a 2024 McKinsey report, the sporting goods sector remains resilient despite fluctuating consumer confidence. Notably, there has been a surge in participation in more accessible activities. For example, pickleball saw a 159% increase in participation from 2019 to 2022, while off-course golf grew by 57%. These trends underscore a shift towards sports that are easier to pick up, require less commitment, and foster social interaction. For companies, this highlights the importance of identifying opportunities to meet changing consumer preferences, focusing on market size, market prediction, and the potential impact on existing products.

Predicting the popularity of new products, or the success of new sports such as Breaking or pickleball, involves analyzing trends data to inform supply chain planning. Understanding the market size and consumer behavior relative to existing sports can help companies make informed decisions about product launches. AI, for example, can play a crucial role in this process by working through the vast amounts of data available to identify patterns and inform future action.

Practical AI in Demand Planning

AI-driven demand planning is more than a buzzword – it's particularly vital in navigating the complexities of today’s supply chains, enabling companies to quickly and effectively sense and respond to variable market conditions. For instance, sporting goods companies can use AI to cluster products based on sales patterns and understand causal relationships within their data. This approach enhances forecasting and efficient resource allocation, allowing companies to adapt quickly as and when they receive signals (such as early orders, demand increase from social media exposure, or a specific award or high-profile endorsement/recognition).

Similarly, many industries beyond sporting goods can turn to AI to better understand buying behavior, identify complementary and halo products, and optimize inventory levels. Where sporting goods companies might look at pickleball rackets and balls as complementary items, furniture companies, for instance, can analyze the relationship between sofas and recliners, or bedframes and nightstands. Recognizing these patterns enables businesses to improve their strategies and drive sales.

Leverage Internal and External Data

Leveraging internal and external data is a game-changer. By combining internal insights from across the enterprise with market trends, planning teams can anticipate demand shifts, optimize their supply chains, and capitalize on new opportunities. It’s about creating a holistic approach to supply chain planning to both mitigate risk and drive growth and innovation. 

For organizations where this may be a bit beyond their current capabilities, there are several quick ways to leverage your internal data to uncover hidden relationships and improve forecasting. As you start to master these capabilities, you can then start to introduce external data to further refine decisions that enhance strategic planning. As you advance, incorporating AI and external data enhances your ability to respond to market changes and maintain a competitive edge.

You have access to a wealth of information; information that is likely not utilized to its fullest and in many cases, not at all. To drive greater agility and responsiveness, you need to turn the vast amounts of data into actionable insights. This capability is crucial for successful NPIs and maintaining a competitive edge in the market.

Just like new trends can reshape industries and consumer behaviors, the adoption of AI in supply chain is revolutionizing how businesses approach NPIs. By harnessing the power of AI, companies can turn data into a strategic asset, ensuring they are well-positioned to meet the challenges and opportunities of the future. 

3 Key Capabilities to Jumpstart NPIs

As we've highlighted, NPIs rely heavily on a lot of data to ensure the best path forward. Here are three capabilities your organization should have to stay on the right track.

1. Powerful Analytics

Analytics go beyond KPIs to deliver true, actionable insights that accelerate better decision-making. Truly advanced supply chain planning software like the Atlas Planning Platform enables you to drill down into the data to uncover hidden patterns, anticipate demand and trends, and identify opportunities. Powerful analytics transform data into strategic insights to drive better decision-making and successful NPIs.

2. Data and Insights Based on Your Role and Workflow

Launching a new product requires the orchestration of activities, data, and insights across different roles within the organization. Your dashboard should deliver the information you need when you need it, based on your role within the team. For example, marketing teams need insights on market size and trends, sales teams need data on the effectiveness of promotions and sales activities, and planners need to understand forecasts and inventory levels. The Atlas Workspace allows you to configure drag-and-drop microapps that display the most relevant data for your responsibilities. This user-friendly and personalized interface makes it easy for any type of user to grasp complex data, deepening their understanding of market trends and facilitating quick and effective supply chain planning.

3. AI-Infused Planning Systems

The truth is AI is too powerful to be ignored – and it can help on so many levels. Ensure your AI capabilities are practical and easy to use. It shouldn’t be an addon either; AI should be part of the system to help solve the challenges you face today, while supporting innovative and strategic priorities into the future, ensuring that your organization stays agile and competitive in an ever-changing market.

By infusing these capabilities into your NPI process, your organization can effectively leverage advanced analytics, harness data, and employ AI to stay ahead of market trends and consumer preferences. Get in touch to discover the power of AI-driven supply chain planning to capitalize on new market opportunities and outperform, much like Breakers dazzling the Olympic stage with their moves.