Presented at the Hands On Open Innovation workshops, this presentation explains why such giant as P&G engages in open innovation. P&G shares its approach to open innovation called Connect & Develop and reveals lessons the company has learned from applying open innovation practices.
More info about the event at http://www.ideonopen.com/events
The DNA of an open & innovative organisation……
Open Innovation practice from the biggest consumer products company in the world...
Professor Roy Sandbach!
David Goldman Professor of Innovation & Enterprise,!
IQE Launch event,!
An innovation journey…..
★ Why bother with innovation ? A few words…..
★ What is proving successful today ? Open & collaborative
★ Some insights on your application of innovation
processes……..organisation and people
Innovation is the key to
• Change happens
• Commodity creeps up on you...and reduces margins
•Your customers expect you to improve....
•You must spread your risk
•You can get greater value from your core competencies
•Your product or service will decline
“matching what’s possible with what’s
to create economic value or social
good or both......”
The task often seems to be very clear.......
• Single minded superior functionality
• Superior Value/Cost
But customers and consumers want
more as markets develop......
• Products & services that speak to them as individuals and
meet their own personal agenda
• With a sense of differentiation & aspiration......
• Overall, a combination of the functional and the emotional...in the beneﬁts that
• WE CAN ONLY DELIVER THIS KIND OF BUSINESS
DEVELOPMENT THROUGH INNOVATION.....from sources
inside and outside your organisation.
In a networked world....
Innovation has no boundaries
To match what’s possible with what’s needed.....
From anywhere, networked solutions
And from creative idea to market implementation
With shared risk & reward
NOT ALL THE BRIGHT PEOPLE WORK FORYOU
So, What is today’s externally focussed
innovation strategy in P&G ?
An approach called Connect & Develop………
Why Open Innovation?
There are more than 2,000,000 researchers
worldwide in design, technology and business
application areas of interest to P&G.
Deﬁne product innovation broadly
– packaging, engineering, market research,
technology, ready-to-products, know-
Innovate to the heart with design
Innovate in marketing
Innovate the business model
Presentation titlePresentation title
A C&D technology example…
from Sederma, a small
company in France.
Flourishing Open Innovation.....
Collaboration is today’s key.......
What have we learnt in
applying Open Innovation ?
1. Drive from the Top
2. Build an Open Innovation Culture
3. Focus the Hunt and organise for it……
4. Be Where the Action Is
5. Build Knowledge Management Systems
6. Staff for Success
7. Be the Partner We’re Looking For
How the organisation can create this
open atmosphere for innovation....
Building An Open Innovation
• Support Failure
• Really Foster Open Communications
• Build Process Understanding
• Establish Rewards
Be Where the Action Is . . .
• Developing markets
• Venture capital hotbeds
• Social media
• React to changing global landscapes
Build Efficient Knowledge
Open Innovation Planning
• Be clear on core competencies
• Maintain the core, and don’t lose the fundamentals
• Be risk averse but watch for change at the boundaries
• Partner for shared risk and reward
• Get the right people in the right place
•Take innovation from the end
of the funnel......
Staff for Success
•Hire the Hunter-Gatherer
•Look for “Serial Innovator DNA”
•Use experience, in addition
• Keep your serial innovators happy
• Inform, inform, inform
• Celebrate applied creativity
• Don’t panic them. Innovation doesn’t like it.
• Give them time to network………
And just think KEN......
• Knowledge • Expertise • Networks
Open Innovation Pitfalls
• Cost, cost, cost......
• Losing your best people
• Not enough focus on the core
• Forgetting competencies
A ﬁnal thought……with great relevance for
innovation today or in 2020…….
“You don’t always want to be considered the best at what you do.
You want to be considered the only one who does what you do.”
Jerry Garcia, rock legend, Grateful Dead
Thank you for listening....
I would be happy to take