Open Innovation
UNIVERSITY OF BATH, MSC IN INNOVATION AND TECHNOLOGY MANAGEMENT
Connect and Develop
P&G's big stake in open innovation
Limali Panduwawala Suvidha Venkatesh Pedro Parraguez Xiajing Zhang
27/11/2009
Abstract: This report explores P&G's "Connect and Develop" open innovation initiative. Its focus is to analyse this innovation strategy in the context of the formal academic theory, other P&G's programmes and the company situation. Its objective is to understand the impacts, challenges and problems of implementing a large open innovation initiative inside a corporate giant such as P&G. Keywords: Procter & Gamble, P&G, Open Innovation, Connect and Develop, Innovation Networks
Connect and Develop, P&G's big stake in open innovation
1
Introduction
Innovation is the main driver for economic growth and progress of companies. In the age of the internet, it assumes even greater importance as maintaining competitive advantage becomes tougher with technology that brings the world closer and collapses the concept of time and space. Procter & Gamble is a company that has been a pioneer in this field of innovation. They are global manufacturers and marketers of consumer products with complex operational networks. P&G have been able to maintain their position in the market by adopting various innovation techniques and strategies. This report looks at the innovation strategies adopted by P&G, particularly with a focus on Open Innovation. The report describes the theoretical framework of the innovation model the company has used along with its Innovation strategy and its management, followed by an analysis of the P&G Open Innovation model, its problems and challenges and our conclusions.
2
2.1
Theoretical Framework
Innovation networks
One assumes that innovation is a stand-alone concept which works well independently. In reality this is not true. To convert a good idea into a profitable product/service a lot more input from different people and
Connect and Develop
P&G's big stake in open innovation
Limali Panduwawala Suvidha Venkatesh Pedro Parraguez Xiajing Zhang
27/11/2009
Abstract: This report explores P&G's "Connect and Develop" open innovation initiative. Its focus is to analyse this innovation strategy in the context of the formal academic theory, other P&G's programmes and the company situation. Its objective is to understand the impacts, challenges and problems of implementing a large open innovation initiative inside a corporate giant such as P&G. Keywords: Procter & Gamble, P&G, Open Innovation, Connect and Develop, Innovation Networks
Connect and Develop, P&G's big stake in open innovation
1
Introduction
Innovation is the main driver for economic growth and progress of companies. In the age of the internet, it assumes even greater importance as maintaining competitive advantage becomes tougher with technology that brings the world closer and collapses the concept of time and space. Procter & Gamble is a company that has been a pioneer in this field of innovation. They are global manufacturers and marketers of consumer products with complex operational networks. P&G have been able to maintain their position in the market by adopting various innovation techniques and strategies. This report looks at the innovation strategies adopted by P&G, particularly with a focus on Open Innovation. The report describes the theoretical framework of the innovation model the company has used along with its Innovation strategy and its management, followed by an analysis of the P&G Open Innovation model, its problems and challenges and our conclusions.
2
2.1
Theoretical Framework
Innovation networks
One assumes that innovation is a stand-alone concept which works well independently. In reality this is not true. To convert a good idea into a profitable product/service a lot more input from different people and
References: Dodgson, M., Gann, D., AND Salter, A., 2006, R&D Management P&Gs Major Competitors (DataMonitor, 2009) Unilever Avon Products, Inc. Colgate-Palmolive Company Henkel KGaA Kimberly-Clark Corporation Reckitt Benckiser PLC Energizer Holdings L 'Oreal S.A. 7.2 List of P&G Innovations (DataMonitor, 2009)