This document discusses Procter & Gamble's shift from an "invent-it-ourselves" closed innovation model to an open innovation "Connect & Develop" strategy in response to stagnating innovation success rates and declining market performance. The new strategy aims to acquire 50% of innovations from outside the company by transforming R&D processes to engage over 1 million external innovators through proprietary and open innovation networks. This represents a strategic shift beyond optimization to engaging the company's management in an open, crowdsourced model focused on customer needs to sustain growth in a changing innovation landscape.

1. Mastère Professionnel MOME 2012 Youssef
Rentabilité Économique de l’innovation Belaïd
Document Synthesis
Connect & Develop
Inside Procter & Gamble's New Model For Innovation
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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
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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
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4. What to do ?
World is changing
Innovation model must change too
Open Innovation is the solution
& Crowdsourcing is the way
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5. How to do ?
Transform the innovation process
Acquire 50% of the innovation outside
of the company
 “Connect &Develop” Strategy
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6. Connect ?
Company attitude change from
“Not invented here” to “Proudly found elsewhere”
From 7500 people inside to
7500 inside + 1 million outside
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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
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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)
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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
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