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Mastère Professionnel MOME 2012                     Youssef
    Rentabilité Économique de l’innovation               Belaïd



                               Document Synthesis




       Connect & Develop
          Inside Procter & Gamble's New Model For Innovation




1
What’s happening ?


        Stock slid from 118$ to 52$ a share

          Market Cap has dropped by half

    Innovation success rate has stagnated at 35%


           Nowdays, R&D isn’t enough
2
What’s happening ?


    « Invent-it-ourselves » model is not capable
          of sustaining high level growth

        Innovation’s landscape is changing

 Classical optimization measures are inefficient
3
What to do ?


           World is changing


    Innovation model must change too

     Open Innovation is the solution
       & Crowdsourcing is the way
4
How to do ?


      Transform the innovation process

    Acquire 50% of the innovation outside
              of the company

       “Connect &Develop” Strategy
5
Connect ?

         Company attitude change from
“Not invented here” to “Proudly found elsewhere”


           From 7500 people inside to
         7500 inside + 1 million outside

6
Develop ?

          It’s not about outsourcing innovation,
     but finding good ideas and bringing them to P&G


    Adjacencies & Technology game boards are the keys
         to respond to the Top10 Customer needs

7
Networking ?

                   Proprietary networks
           Suppliers, Technology entrepreneurs


                       Open Networks
        Nine Sigma (technology briefs for problems resolution)
                InnoCentive (Processes Optimization)
     YourEncore (Retiree's experience for short-term assignment)
    Yet2.com (Online market place for intellectual property exchange)
8
Connect & Develop ?

    From Organization centered invention model,
       to Open Innovation & Crowdsourcing


             Not just a R&D evolution,
          but a Strategic innovation model
     to engage by the company’s Management
9

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Procter & Gamble's Connect & Develop

  • 1. Mastère Professionnel MOME 2012 Youssef Rentabilité Économique de l’innovation Belaïd Document Synthesis Connect & Develop Inside Procter & Gamble's New Model For Innovation 1
  • 2. What’s happening ? Stock slid from 118$ to 52$ a share Market Cap has dropped by half Innovation success rate has stagnated at 35%  Nowdays, R&D isn’t enough 2
  • 3. What’s happening ? « Invent-it-ourselves » model is not capable of sustaining high level growth Innovation’s landscape is changing  Classical optimization measures are inefficient 3
  • 4. What to do ? World is changing Innovation model must change too Open Innovation is the solution & Crowdsourcing is the way 4
  • 5. How to do ? Transform the innovation process Acquire 50% of the innovation outside of the company  “Connect &Develop” Strategy 5
  • 6. Connect ? Company attitude change from “Not invented here” to “Proudly found elsewhere” From 7500 people inside to 7500 inside + 1 million outside 6
  • 7. Develop ? It’s not about outsourcing innovation, but finding good ideas and bringing them to P&G Adjacencies & Technology game boards are the keys to respond to the Top10 Customer needs 7
  • 8. Networking ? Proprietary networks Suppliers, Technology entrepreneurs Open Networks Nine Sigma (technology briefs for problems resolution) InnoCentive (Processes Optimization) YourEncore (Retiree's experience for short-term assignment) Yet2.com (Online market place for intellectual property exchange) 8
  • 9. Connect & Develop ? From Organization centered invention model, to Open Innovation & Crowdsourcing Not just a R&D evolution, but a Strategic innovation model to engage by the company’s Management 9