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Procter & Gamble open innovation approach
The document discusses the significance of open innovation, emphasizing its role in driving growth and survival in organizations like P&G. It highlights the need for collaboration, an open culture, and external partnerships to harness new ideas and technologies. Effective strategies include focusing innovation efforts, building knowledge management systems, and encouraging a supportive atmosphere for creativity.
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Procter & Gamble open innovation approach
- 1. The DNA ofan open & innovative organisation…… Open Innovation practice from the biggest consumer products company in the world... Professor Roy Sandbach! David Goldman Professor of Innovation & Enterprise,! Newcastle University! ! IQE Launch event,!
- 3. ! ! 80 billion
- 4. 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
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- 6. Innovation is thekey to growth.....or survival...... • 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
- 7. Innovation “matching what’s possiblewith what’s needed...... to create economic value or social good or both......”
- 8. What does thismean in practice ?
- 9. The task oftenseems to be very clear....... • Single minded superior functionality ! ! • Superior Value/Cost ! ! • Reliability
- 10. But customers andconsumers 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 they get... ! ! ! • WE CAN ONLY DELIVER THIS KIND OF BUSINESS DEVELOPMENT THROUGH INNOVATION.....from sources inside and outside your organisation.
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- 12. In a networkedworld.... Innovation has no boundaries
- 13. To match what’spossible 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 !
- 14. So, What istoday’s externally focussed innovation strategy in P&G ? An approach called Connect & Develop………
- 15. 2 Million We Need $4 Billion/yr New Sales Generation P&G R&D= 9,000 People Why Open Innovation? There are more than 2,000,000 researchers worldwide in design, technology and business application areas of interest to P&G.
- 16. 16 And.....Think Broader Innovation Dimensions Defineproduct innovation broadly – packaging, engineering, market research, technology, ready-to-products, know- how.. ! Innovate to the heart with design ! ! Innovate in marketing ! Innovate the business model 15
- 17. Presentation titlePresentation title AC&D technology example… Pentapeptide technology from Sederma, a small company in France. Olay Regenerist
- 18. Flourishing Open Innovation..... Collaborationis today’s key....... Innovation Networking Incentivised competitions Crowdsourced innovations
- 19. What have welearnt in applying Open Innovation ?
- 20. 1. Drive fromthe 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....
- 21. Building An OpenInnovation Culture • Support Failure • Really Foster Open Communications • Build Process Understanding • Establish Rewards
- 22. Be Where theAction Is . . . • Developing markets • Venture capital hotbeds • Social media • SMEs • Academia/Universities • React to changing global landscapes
- 23. Build Efficient Knowledge ManagementSystems •Internally •Externally
- 24. 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...... !
- 25. Staff for Success •Hirethe Hunter-Gatherer ! ! •Look for “Serial Innovator DNA” ! •Use experience, in addition ! !
- 26. Innovation People • Keepyour serial innovators happy ! • Inform, inform, inform ! • Celebrate applied creativity ! • Don’t panic them. Innovation doesn’t like it. ! • Give them time to network………
- 27. And just thinkKEN...... • Knowledge • Expertise • Networks
- 28. Open Innovation Pitfalls •Cost, cost, cost...... ! • Short-termism ! • Losing your best people ! • Not enough focus on the core ! • Forgetting competencies
- 29. A final thought……withgreat 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 ! !
- 30. Thank you forlistening.... ! I would be happy to take questions....