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Connect and Develop Inside Procter & Gamble ’s New Model for Innovation. Contents. Introduction From R&D to C&D Where to Play How to Network When to Engage Push the Culture Adapt or Die. Introduction.
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Connect andDevelop InsideProcter & Gamble’s New Model for Innovation
Contents Introduction From R&D to C&D Where to Play How to Network When to Engage Push the Culture Adapt or Die
Introduction Procter & Gamble launched a new line of Pringles potato crisps with pictures and words printed on each crisp. “Connect and Develop” • 2 yrs • less than a year !!
From R&D to C&D • 1. Concepts • Innovation must principally reside within their own four walls. • Improve collaboration between marketing and R&D • Tightening go-to-market criteria • strengthening product portfolio management • from a centralized approach to a globally networked internal model • P&G’s Connect & Develop innovation model • “Half of our new products would come from our own labs, and half would come through them.” • Identify promising ideas throughout the world • Apply its own R&D, manufacturing, marketing, and purchasing capabilities to them to create better and cheaper products, faster
From R&D to C&D • 2. Causes and Results
Where to Play • 1. Outsourcing vs. C&D • Outsourcing Innovation • contracting with outsiders to develop innovations • Connect and Develop Innovation • finding good ideas and bringing them in to enhance and capitalize on internal capabilities • 2. Crucial to know • For C&D to work, • Proven technologies, packages, and products that we can improve, scale up, and market • Ideas and products that would benefit specifically from the application of P&G technology, marketing, distribution, or other capabilities
Where to Play • 3. Surveillance to three environments What consumer needs, when adressed, will drive the growth of their brands Top ten consumer needs Adjacencies • Reduce wrinkles, improve skin texture and tone • Improve soil repellency and restoration of hard surfaces • . • . • . Tech. game boards
Where to Play • 3. Surveillance to three environments New products or concepts that can help us take advantage of existing brand equity Top ten consumer needs Adjacencies Tech. game boards
Where to Play • 3. Surveillance to three environments • To evaluate how technology acquisition moves in one area might affect products in other categories • Which of our key technologies do we want to strengthen? • Which technologies do we want to acquire to help us better compete with rivals? • . • . • . Top ten consumer needs Adjacencies Tech. game boards
How to Network Networks themselves don’t provide competitive advantage. → Using these networks, we look for ideas • Core Networks • Proprietary networks • Technology entrepreneurs • Suppiers • Open networks • NineSigma • InnoCentive • YourEncore • Yet2.com
When to Engage How we might screen a new product found by a technology entrepreneur • Process • Tech. entrepreneur finds a promising product by initial screening • Log the product into our online using a template that helps organize certain facts about the product • What is it? • How does it meet our business needs? • Are its patents available? • Promote the product to specific managers in relevant lines of business • Gauge the product’s business potential • Test in consumer panels
Push the Culture • Organization isn’t behind the program!! Deeply centralized and internally focused ↓ Had to nurture an internal culture change while developing systems for making connections • Two Broad Goals • Make sure that the best ideas, • wherever they come from, rise to the surface • Exertsteady pressure on the culture
Adapt or Die Connect and Develop will become the dominant innovation model in the 21st century. To succeed, C&D must be driven by the top leaders in the organization. Don’t postpone crafting a C&D strategy, and don’t approach the process incrementally.
The End Any Questions?
