Whirlpool Global Strategy
Case
Open innovation helps Whirlpool
Corporation discover new market opportunities Amy Muller and Nate Hutchins
pen innovation – the practice of sourcing ideas and expertise from outside a company to stimulate or supplement internal initiatives – can promote new business opportunities when applied at all stages of the innovation process – idea generation, idea development and commercialization.[1] To manage the process effectively, each company needs to learn to understand which stages of the innovation pipeline will benefit the most from recruiting outside perspectives and expertise. By selectively applying open innovation, companies can enrich their stock of valuable ideas, effectively manage product development and upgrade their emerging businesses without wholesale changes to their innovation initiative.
Amy Muller is a Director and
Nate Hutchins is a Principal with Strategos, a global strategy and innovation consulting firm (www. strategos.com) and the
Strategic Services division of Innovaro.
O
Whirlpool Corporation (Whirlpool), a successful innovator that is embracing open innovation, offers a case study of an innovation journey in progress. Its new line of consumer products, affreshw appliance cleaners, is an example of open innovation in action. Since its successful launch in 2007, affresh has grown into a family of related cleaners and products and has opened doors to further success for Whirlpool in the consumer goods space.
Open innovation at Whirlpool Corp: a set of principles and tools
Whirlpool began its innovation initiative in 2000 with the objective of establishing innovation as a core competency. Today, its innovation process is deeply embedded throughout the company.[2,3] In 2010, Whirlpool reported revenues from innovation of $3.6B, approximately 20 percent of its total 2010 revenue.[4] In 2010, Whirlpool was named one of the ten most innovative companies in consumer products by Fast Company magazine.[5]
Open innovation helps Whirlpool
Corporation discover new market opportunities Amy Muller and Nate Hutchins
pen innovation – the practice of sourcing ideas and expertise from outside a company to stimulate or supplement internal initiatives – can promote new business opportunities when applied at all stages of the innovation process – idea generation, idea development and commercialization.[1] To manage the process effectively, each company needs to learn to understand which stages of the innovation pipeline will benefit the most from recruiting outside perspectives and expertise. By selectively applying open innovation, companies can enrich their stock of valuable ideas, effectively manage product development and upgrade their emerging businesses without wholesale changes to their innovation initiative.
Amy Muller is a Director and
Nate Hutchins is a Principal with Strategos, a global strategy and innovation consulting firm (www. strategos.com) and the
Strategic Services division of Innovaro.
O
Whirlpool Corporation (Whirlpool), a successful innovator that is embracing open innovation, offers a case study of an innovation journey in progress. Its new line of consumer products, affreshw appliance cleaners, is an example of open innovation in action. Since its successful launch in 2007, affresh has grown into a family of related cleaners and products and has opened doors to further success for Whirlpool in the consumer goods space.
Open innovation at Whirlpool Corp: a set of principles and tools
Whirlpool began its innovation initiative in 2000 with the objective of establishing innovation as a core competency. Today, its innovation process is deeply embedded throughout the company.[2,3] In 2010, Whirlpool reported revenues from innovation of $3.6B, approximately 20 percent of its total 2010 revenue.[4] In 2010, Whirlpool was named one of the ten most innovative companies in consumer products by Fast Company magazine.[5]