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

03-15-21 1431ET